Emirates NBD Bank (P.J.S.C) · DFM:EMIRATESNBD
Emirates NBD Bank (P.J.S.C) — Emirates NBD — Investor Presentation (February 2010)
36 slides from Emirates NBD Bank (P.J.S.C)'s investor presentation, Feb 23, 2010
Slide 1: Emirates NBD Investor Presentation
Emirates NBD Investor Presentation 22/23 February 2010 1
Slide 2: Important Information
Important Information Disclaimer The material in this presentation is general background information about Emirates NBD's activities current at the date of the presentation. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to
Slide 3: Investment Highlights
Investment Highlights Emirates NBD is the largest bank in the UAE and the GCC Diversified Business Model with Fully Fledged Financial Services Leading Banking Offering Strong Asset and Group in the UAE Profit Growth over and the GCC the Past 5 Years Solid 56% Dubai Capitalization Government Tier 1 =
Slide 4: Contents
Contents Operating Environment Emirates NBD Profile Financial and Operating Performance Merger Update Strategy and Outlook 4
Slide 5: UAE Economic Update
UAE Economic Update Highlights Real GDP Growth Forecasts (1) UAE was impacted by external shocks including weaker oil prices, a credit 2008 2009 2010 2011 squeeze, and declining world trade UAE 7.4% 0.0% 2.5% 4.5% Now these channels are improving, with oil prices firmer, global credit more UK 0.
Slide 6: Dubai Economic Update
Dubai Economic Update Highlights Dubai 2008 GDP breakdown Dubai is the 3rd largest centre for re-exports in the world which itself Dubai GDP by Sector (2008) represents 44% of GDP UAE GDP by Emirate (2008) 100% = USD 254b 100% = USD 82b Oil has played a progressively diminishing role in Dubai’s
Slide 7: UAE Banking Market Update
UAE Banking Market Update Highlights UAE Banking Sector Growth (USD billion) UAE loan growth has outstripped deposit growth in recent years 425 403 UAE Banking system liquidity tightened in H2 2008 due to outflow of c. USD 50b of speculative capital and the Global credit/liquidity crisis 333 fol
Slide 8: Contents
Contents Operating Environment Emirates NBD Profile Financial and Operating Performance Merger Update Strategy and Outlook 8
Slide 9: Summary
Summary Largest financial institution (by asset size) in the GCC and the UAE Flagship bank for Dubai and the UAE Governments 56% owned by Dubai government Consistently profitable; the No.1 bank in the UAE by income and net profits Fully fledged, diversified financial services offering Ever increasin
Slide 10: Emirates NBD at a Glance
Emirates NBD at a Glance Largest Bank in UAE Largest Branch Network in the UAE No.1 Market share in UAE: Ras al-Khaimah (4) Dubai 92 – Assets c.18%; Loans c.21% Abu Dhabi 17 Umm al-Quwain (2) – Deposits c.18% Sharjah 11 Fujairah (3) Other Emirates 12 Ajman (3) No. 1 Retail market shares (estimat
Slide 11: Emirates NBD is the Largest Bank in the UAE and GCC by Assets
Emirates NBD is the Largest Bank in the UAE and GCC by Assets UAE Ranking by Assets (USD billion) UAE Ranking by Equity (USD billion) UAE Ranking by Profits (2) (USD million) (1) Emirates NBD 76.7 Emirates NBD 7.0 Emirates NBD 910 NBAD 53.6 First Gulf Bank 6.2 First Gulf Bank 901 ADCB 43.6 NBAD 5.6
Slide 12: Contents
Contents Operating Environment Emirates NBD Profile Financial and Operating Performance Merger Update Strategy and Outlook 12
Slide 13: Profit and Balance Sheet Growth in Recent Years
Profit and Balance Sheet Growth in Recent Years Revenues (USD billion)(1) Net Profits (USD billion)(1) +4% 1.1 +32% 3.0 1.0 0.9 2.3 0.8 1.9 1.3 2006 2007 2008 2009 2006 2007 2008 2009 Assets and Loans (USD billion) Deposits and Equity (USD billion) Assets Loans Deposits Equity(2) +19% +25% 7 77 77 5
Slide 14: 2009 and Q4 2009 Financial Results
2009 and Q4 2009 Financial Results 2009 Financial Results Highlights Key Performance Indicators Operating profit before impairment allowances of USD 1,970m; +42% from USD million 2009 2008 Change Q4 Q4 Change (%) 2009 2008 (%) USD 1,386m in 2008 Net interest income 2,018 1,589 +27% 524 461 +14%
Slide 15: Net Interest Margins
Net Interest Margins Highlights Net Interest Margin Trends (%)(1) 2009 NIM of 2.81%; +63bps from 2.18% in 2008 driven by: 3.01 Qtrly NIM (ATA) – re-pricing of asset spreads, esp. for corporate lending 2.85 Qtrly NIM (AIEA) 2.76 – increased Treasury spreads benefiting from USD 1.1bn Tier 1 2.65 2.6
Slide 16: Non-interest Income
Non-interest Income Highlights Non-interest Income Trends (USD million) Non-interest income impacted in 2008 by decline in global asset valuations and mark to markets on investment and other securities 2009 witnessed improved financial asset valuations and partial 303 reversal of the negative ma
Slide 17: Operating Costs and Efficiency
Operating Costs and Efficiency Highlights Cost to Income Ratio Trends(1) The headline cost to income ratio declined by 6.4% from 39.7% in Cost:income ratio 2008 to 33.3% in 2009 Core cost:income ratio The core cost to income ratio rose by 0.5% from 34.6% in 2008 to 35.1% in 2009 The Group cont
Slide 18: Asset Quality
Asset Quality Loans & Receivables and Islamic Financing Highlights Loan Portfolio by Type – 2009(1) Credit quality remains satisfactory across the Bank’s corporate and 100% = USD 60.2b retail portfolios Provided for the Bank’s exposure to Al Gosaibi and Saad Groups in line with Central Bank requ
Slide 19: Asset Quality
Asset Quality Retail and Corporate Loans & Receivables Corporate & Sovereign Lending Portfolio By Sector(1) Corporate Credit Quality Real Estate & Contracting 100% = USD 47.8b • Portfolio credit quality remains satisfactory, despite challenging • Exposures to Real Estate and Contracting Sector are U
Slide 20: Asset Quality
Asset Quality Investments & Trading Securities Highlights 2008 and 2009 MTM Impact Write-downs and impairments reflected a market-wide downturn in 2008 P&L impact Cum. Total USD million changes Relative stabilization and improvement of equity and bond markets in 2009 Balance Income Impairm. in F
Slide 21: Capital Adequacy
Capital Adequacy Highlights Capital Ratios - Basel I (USD billion) 19.0% 20.8% Capital adequacy ratio at 20.8% at end-2009 (2008: 11.4%) 16.2% 19.9% 13.1% Tier 1 ratio increased from 9.4% at end-2008 to 13.3% at end-2009 as: 11.4% – profit generation for the period exceeded 2008 dividend payment
Slide 22: Funding and Liquidity
Funding and Liquidity Highlights Loan to Deposit Ratios (%) Liquidity in the UAE banking system improved in 2009 primarily due to Headline LTD Ratio % initiatives taken by the UAE Ministry of Finance and UAE Central Bank 129% Adjusted LTD Ratio % 126% 127% 122% Funding remains stable and deposit
Slide 23: Divisional Performance
Divisional Performance USD billion USD million +23% Wholesale banking recorded a successful year 46.8 1,218 Wholesale Banking 43.0 Key focus during the period was on balance sheet optimisation, 993 continued proactive management of credit quality, building non-risk based and fee generating busin
Slide 24: Divisional Performance (cont'd)
Divisional Performance (cont’d) USD million Continuing improvement in global market conditions resulted in a Global Markets & 411 strong performance in 2009. Treasury Revenues 2009 were USD 411m compared with USD 83m in 2008, the better performance resulting from a recovery in equity 83 markets
Slide 25: Contents
Contents Operating Environment Emirates NBD Profile Financial and Operating Performance Merger Update Strategy and Outlook 25
Slide 26: Merger Update: Integration completed successfully
Merger Update Integration completed successfully Mobile and Legal Emirates NBD’s Treasury Online Banking integration Large Corporate operations integrated; New Core completed; EBI First AGM for Unit (LCU) is integrated in enhanced Banking system and NBD Emirates NBD inaugurated single premises funct
Slide 27: Merger Update: Organisation Structure and Brands
Merger Update Emirates NBD Organisation Structure and Brands Associate companies Emirates NBD Asset Management Emirates Islamic Bank (99.8%) Union Properties Group (47.6%) Emirates NBD Securities (Brokerage) Emirates NBD Capital Emirates Money (Consumer Finance) Network International National Genera
Slide 28: Merger Update: Synergies
Merger Update Synergies exceed 2009 full year target by 33% and already exceed 2010 cost and one-off synergies a year ahead of plan Target Synergies Key Drivers of Synergies USD 94m of recurring annual synergies by the third year post merger, Revenue synergies for 2008 and 2009: plus USD 7m of o
Slide 29: Contents
Contents Operating Environment Emirates NBD Profile Financial and Operating Performance Merger Update Strategy and Outlook 29
Slide 30: Strategic Imperatives for 2010
Strategic Imperatives for 2010 Objectives Evidence of success in 2009 Prudent lending growth CAR strengthened to 20.8% from 11.4% at Focus on funding end-2008 – Leverage distribution network Tier 1 increased to 13.3% from 9.4% at end- 2008 Optimise – Maintain & develop wholesale sources of m
Slide 31: Outlook
Outlook In 2009 the external environment combined with liquidity tightening and weakening demand brought UAE GDP growth towards an estimated 0%-0.5% With oil prices firmer, global credit more available, world trade improving and counter-cyclical fiscal and monetary policies, GDP is expected to r
Slide 32: Summary
Summary Robust financial performance driven by strong income and improved efficiency Significantly improved capitalisation and liquidity metrics due to success of balance sheet optimisation initiatives and continued proactive support from federal and local Government Credit quality remains tig
Slide 33: Appendix
APPENDIX Emirates NBD
Slide 34: 2009 Awards
2009 Awards Emirates Islamic Bank was awarded the Islamic Home Finance award by CPI Financial / Banker Middle East Publication in February 2009 Emirates NBD was awarded the Mohamed bin Rashid Al Maktoum Business Award for Finance in April 2009 Emirates NBD was awarded Best Retail Bank in the UAE in
Slide 35: 2009 Awards
2009 Awards Emirates NBD has been named by Global Finance Magazine as Best Emerging Market Bank in the UAE and in the Middle East in March and October 2009 respectively. Global Finance Magazine also named the bank as Best Bank, Best Trade Finance Bank (February 2009) and Provider as well as Best For
Slide 36: Investor Relations
Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: IR@emiratesnbd.com Ben Franz-Marwick Head, Investor Relations Tel: +971 4 201 2604 Email: bernhardf@emiratesnbd.com Chaden Boustany Investor Relations Analyst Tel: +971 4 201 2628 Email: ChadenB@