Slide 1: Results Presentation | Q1 2023
Results Presentation | Q1 2023 27 April 2023
Slide 2: Important Information
Important Information Disclaimer The material in this presentation is general background information about that could cause actual results, and the Group’s plans and objectives, Emirates NBD's activities current at the date of the presentation. It is to differ materially from those expressed or impl
Slide 3: Executive Summary Q1 23 Results
Executive Summary Q1 23 Results Key Metrics and Guidance Key Highlights Profit Income NIM Record AED 10.5 bn AED 6 bn AED 10.5 bn 4.05% Record quarterly profit of AED 6 bn quarterly income on Guidance on higher income & improved loan & deposit +119% +64% 3.8-4.0% strong recoveries mix coupled with h
Slide 4: Emirates NBD's profit rises 119% YoY to AED 6 bn on strong diversified income growth
Emirates NBD’s profit rises 119% YoY to AED 6 bn on strong diversified income growth and healthy recoveries Income Statement Q1-23 Q1-22 %∆ YoY Q4-22 %∆ QoQ (All figures are in AED bn) Net interest income 7.2 4.3 69% 7.7 (7)% Key Highlights Non-funded income 3.3 2.1 54% 2.1 55% Total income 10.5 6.4
Slide 5: NIMs trending towards guidance range on collective impact of rate rises, deposit mix and Turkish regulations
NIMs trending towards guidance range on collective impact of rate rises, deposit mix and Turkish regulations Net Interest Margin (%) 4.40 Key Highlights Quarterly NIM YTD NIM 4.05 • Q1-23 NIM up 145 bps y-o-y due to improved loan & deposit mix and higher interest 4.05 rates 3.57 • Q1-23 NIM down 35
Slide 6: Non-funded Income
Non-funded Income Non-funded income Q1-23 Q1-22 %∆ YoY Q4-22 %∆ QoQ Key Highlights (All figures are in AED mn) • Healthy trend in fee and commission income, 32% higher y-o-y from increased local Fee and Commission income 2,016 1,527 32% 1,870 8% and international retail card business at both ENBD an
Slide 7: Improving loans and deposit mix
Improving loans and deposit mix Gross Loans by Type* (AED bn) 1% Key Highlights 470 • Gross lending up 3% in Q1-23 463 463 457 456 - Retail lending up 6% with strong demand across all products 65 66 66 69 73 - Corporate lending up 1% 88 - DenizBank’s gross loans up 6% after FX 91 94 95 101 DenizBank
Slide 8: Credit quality improving with market leading coverage
Credit quality improving with market leading coverage Impaired loans and allowances Key Highlights 55 6.4 6.1 5.8 6.0 5.6 100% • NPL ratio improved by 0.4% to 5.6% in Q1-23 on continued strong writebacks and recoveries 99% 37.9 37.9 39.4 39.8 37.7 • Coverage ratio strengthened 7% to 152% in Q1-23 35
Slide 9: Costs firmly controlled with focus on future growth
Costs firmly controlled with focus on future growth Cost to Income Ratio (%) Key Highlights 30.8% • Q1-23 cost to income ratio at 25.3% within guidance reflecting stronger 30.8% 29.1% income enabling continued acceleration of investment for growth 28.7% 28.2% • Staff costs increased y-o-y on incenti
Slide 10: Funding & Liquidity remains very healthy
Funding & Liquidity remains very healthy Advances to Deposit and Liquidity Coverage Ratio (%) Key Highlights ADR % LCR % 187 99 182 • LCR of 187% and ADR of 80% demonstrate healthy liquidity 180 95 157 155 • Liquid assets* of AED 74 billion cover 11% of total liabilities, 14% of deposits 152 91 • AE
Slide 11: Capital ratios remain solid
Capital ratios remain solid Capital (AED bn) Key Highlights • CET-1 ratio improved by 0.4% to 15.8% during Q1-23 as AED 5.6 bn of net earnings more than offset 3% increase in RWAs • Capital ratios well above 11% / 12.5% / 14.5% CBUAE min. requirement • CET-1 at 15.3% excluding ECL regulatory add-bac
Slide 12: Divisional Performance
Divisional Performance Operating Segment Metrics Q1-23 %∆ YoY Key Highlights 3,855 Retail Banking and Wealth Management had an excellent first quarter with its highest ever Income (mn) 39% revenue, strongest ever disbursement of loans and credit cards, and a stable, diverse deposit 949 base Expense
Slide 13: Appendix
Appendix (ements)
Slide 14: Hyperinflation
Hyperinflation Türkiye Consumer Price Index Key Highlights 182% 51% 87% 1,128 1,270 1,047 978 844 687 571 547 524 505 477 466 451 Dec-20 Dec-21 Dec-22 Jun-20 Jun-21 Jun-22 Sep-20 Sep-21 Sep-22 Mar-20 Mar-21 Mar-22 Mar-23 • Turkish CPI grew by 182% over preceding three-years and by 51% in the precedi
Slide 15: Income Statement
Income Statement Excluding DenizBank Income Statement Q1-23 Q1-22 %∆ YoY Q4-22 %∆ QoQ Q1-23 Q1-22 %∆ YoY Q4-22 %∆ QoQ Q1-23 Q1-22 %∆ YoY Q4-22 %∆ QoQ (All figures are in AED bn) Net interest income 7.2 4.3 69% 7.7 (7)% 5.8 3.0 93% 5.1 15% 1.4 1.2 11% 2.6 (48)% Non-funded income 3.3 2.1 54% 2.1 55% 2
Slide 16: US$ convenience translation
US$ convenience translation Excluding DenizBank Income Statement Q1-23 Q1-22 %∆ YoY Q4-22 %∆ QoQ Q1-23 Q1-22 %∆ YoY Q4-22 %∆ QoQ Q1-23 Q1-22 %∆ YoY Q4-22 %∆ QoQ (All figures are in USD bn) Net interest income 2.0 1.2 69% 2.1 (7)% 1.6 0.8 93% 1.4 15% 0.4 0.3 11% 0.7 (48)% Non-funded income 0.9 0.6 54
Slide 17: (feneaen0
(feneaen0