Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Q1 2013 Earnings Presentation
41 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, June 2013
Slide 1: Emirates NBD Investor Presentation
Emirates NBD Investor Presentation May/June 2013 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: Contents
Contents Operating Environment Emirates NBD Profile Financial and Operating Performance St t Strategy Outlook Appendix 3
Slide 4: UAE Economic Update
UAE Economic Update Highlights Real GDP Growth Forecasts • The UAE’s PMI data in Q113 has broadly maintained the strong levels 2009 2010 2011 2012 2013F achieved in 2012 underpinned by strong domestic demand , although exportt orders d h have recently tl tturned d llower. UAE (4.8%) 1.3% 4.2% 3.7% 3
Slide 5: UAE Economic Update (cont)
UAE Economic Update (cont) Highlights Trends in CDS spreads • Bank deposits declined –AED15.1bn (-1.3% m/m, +9.2% y/y) in 510 Dubai (lhs) Abu Dhabi (rhs) 160 December. For 2012, bank deposits increased by AED 98.1bn, compared 150 460 with ith an increase of jjust st AED 20 20.1bn 1bn thro through gh
Slide 6: Dubai Economic Update
Dubai Economic Update Highlights Dubai: Real GDP growth • Dubai’s economy grew 3.2% in 2012, driven mainly by manufacturing, g trade which accounts for about 13% of Dubai’s GDP. Non-oil foreign 5.0% 3 9% 3.9% also held up better than we had expected in Q4 2012, and services 4.0% 3.2% 3.4% 2.8% 3.0%
Slide 7: Dubai Economic Update (cont)
Dubai Economic Update (cont) Highlights Dubai’s Strategic Location • Dubai is the 3rd largest centre for re-exports in the world which itself represents almost 50% of GDP • Dubai is a strategically located international trading hub with some of the world’s best air and sea ports serving over 205 des
Slide 8: Dubai Economic Update (cont)
Dubai Economic Update (cont) Highlights Dubai Property Prices (in AED) • Dubai property prices continued to inch up in 1700 Mid range villa Mid range apartment 2013 1500 Prrice per sq ft (In AED) • After dropping an average of 31% in 2009 (-36% 1300 for villas and -27% for apartments), property pric
Slide 9: UAE Banking Market Update
UAE Banking Market Update Highlights UAE Banking Sector Growth (AED billion) • UAE Banking sector is the largest by assets in the GCC; Banking Assets Nominal GDP sector is dominated by 23 local banks which account for more 2 000 2,000 Loans & Advances Deposits 45% than 75% of banking assets; 28 fore
Slide 10: Contents
Contents Operating Environment Emirates NBD Profile Financial and Operating Performance St t Strategy Outlook Appendix 10
Slide 11: Summary
Summary • One of the largest financial institutions (by asset size) in the GCC Size • Flagship bank for Dubai Government Flagship • 56% owned by Dubai Government Ownership • Consistently profitable; despite significant headwinds during the last few years Profitable • Fully fledged, diversified finan
Slide 12: Emirates NBD at a glance
Emirates NBD at a glance Leading bank in UAE Largest Branch Network in the UAE • No.2 Market share in UAE (at 31 Mar 2013): Dubai 100 Ras al-Khaimah (3) – Assets c.16.8%; Loans c.21.1% Abu Dhabi 26 Umm al al-Quwain Quwain (2) – Deposits c.18.% Sharjah 14 Other 9 Fujairah (2) Ajman (2) • Retail marke
Slide 13: Emirates NBD is the Largest Bank in the UAE and one of the largest in the GCC by Assets
Emirates NBD is the Largest Bank in the UAE and one of the largest in the GCC by Assets as at 31 Mar 2013 UAE Ranking by Assets (AED UAE Ranking by Equity (AED UAE Ranking by Profits (AED billion) billion) million) NBAD 322 Emirates NBD 36 NBAD 1,409 Emirates NBD 316 NBAD 31 FGB 1,051 ADCB 180 FGB 2
Slide 14: Contents
Contents Operating Environment Emirates NBD Profile Financial and Operating Performance St t Strategy Outlook Appendix 14
Slide 15: Profit and Balance Sheet Growth in Recent Years
Profit and Balance Sheet Growth in Recent Years Revenues and Costs (AED billion) Profits (AED billion) Revenues Costs Pre-Provision Operating Profits Net Profits 10.8 10.2 3.6 3.5 3.7 7.1 3.3 9.7 9.9 6.6 6.3 6.5 3.1 2.5 2.6 2.3 2.1 8.2 7.2 7.5 2.6 2.7 2.7 5.5 4.9 4.7 1.1 7.7 2.2 4.9 1.2 1.9 26 2.6 0
Slide 16: Q1 2013 Financial Results Highlights
Q1 2013 Financial Results Highlights Highlights Key Performance Indicators • Net profit of AED 837 million, AED million Q1 2013 Q1 2012 % Q4 2012 % improved by +34% vs vs. Q4 2012 and N t iinterest Net t t income i 1 748 1,748 1 777 1,777 -2% 2% 1 766 1,766 -1% 1% +31% vs. Q1 2012 Non-interest incom
Slide 17: Net Interest Income
Net Interest Income Highlights Net Interest Margin (%) • NIM declined by 8 bps from 2.47% in Q4 2012 to 2.96 2.39% 2 39% in Q1 2013 resulting in a decrease in net 2 85 2.85 Qtrly NIM interest income to AED 1,748 million YTD NIM 2.69 • Q1 2013 NIM decline is driven mainly by lower 2.63 2.63 spreads i
Slide 18: Non-Interest Income
Non-Interest Income Highlights Composition of Non Interest Income (AED million) • Non-interest income improved by AED million Q1 2013 Q1 2012 % Q4 2012 % 19% q-o-q q o q but declined by 3% y-o-y yoy Core gross fee income 750 756 -1% 1% 674 +11% • Impact of non-core items: Fees & commission (24) +37%
Slide 19: Operating Costs and Efficiency
Operating Costs and Efficiency Highlights Cost to Income Ratio (%) • Q1 2013 Costs improved by 4% y y due to cost optimisation y-o-y p initiatives 35.9 • Costs improved by 5% q-o-q to 35.3 35.4 AED 909 million in Q1 2013 resulting 35.1 35.2 from: 34.6 – One off Dubai Bank Integration g cost in Q4 20
Slide 20: Credit Quality
Credit Quality Highlights Impaired Loan & Coverage Ratios (%) 72.1 72.3 73.0 • Q1 2013 net impairment charge of AED 888 million 70.3 69.8 driven principally by additional net specific corporate 51 4 51.4 47.8 49.4 loan provisions 45.3 46.2 • Total portfolio impairment allowances amount to AED 3.7 bi
Slide 21: Credit Quality
Credit Quality Composition of Gross Loan Portfolio Corporate and Retail Lending Portfolio By Type (AED 240 bn) By Econ Sector (AED 240 bn) Trans. & Others • Corporate a & Sovereign Loans (AED 183 bn) Retail Loans (AED 21 bn) Retail com. Cont. Overdr O d Others 3% Manuf. Trans. & 8% 2% 4% 3% Manuf. C
Slide 22: Capital Adequacy
Capital Adequacy Highlights Capitalization • CAR and T1 declined 0.9% and 0.3% q-o-q to 19.1 19.5 19.9 20.6 19.7 19 7% and 13.5% 19.7% 13 5% respectively resulting from: 13 2 13.2 13 8 13.8 13 5 13.5 12.5 12.8 – decrease in Tier 1 capital by AED 0.6 billion in Q1 43.3 43.9 44.5 45.0 43.2 2013 due to
Slide 23: Funding and Liquidity
Funding and Liquidity Highlights Loan to Deposit (LTD) Ratio (%) • Headline LTD ratio of 99% at Q1 2013 107.0 • The LTD ratio is being managed to the revised target 105.1 LTD Ratio (%) range of c.95%-105% 102.0 • Liquid assets* of AED 31.9 billion as at 31 March 2013 99.9 (11% of total liabilities)
Slide 24: Loan and Deposit Trends
Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED billion) • Signs of modest pickup in new +9% underwriting across all business 234 238 segments with 9% growth in gross 223 227 +2% 219 179 181 loans from Q1 2012 176 172 • Balance sheet optimisation 168 22 23 22 21 21 initiatives s
Slide 25: Associates and Joint Ventures
Associates and Joint Ventures Composition of Associates and Joint Highlights Ventures • De-risking of investment in Union Properties (UP) since 2009: Income Statement AED million Q1 13 Q1 12 % Q4 12 Q3 12 % – UP investment reduced to nil by AED 0 0.5 5 billion in 2009, 2009 AED 1.0 billion in 2010 a
Slide 26: Divisional Performance
Divisional Performance • Continued focus on re-alignment to ensure Balance Sheet Trends Revenue Trends enhanced future customer service quality AED billion AED million and share of wallet, increased cross-sell of +8% -5% nking Treasury and Investment Banking products 176.0 176.9 1,114 1,118 and incr
Slide 27: Divisional Performance (cont'd)
Divisional Performance (cont’d) • Revenue increased to positive AED 112 Revenue Trends Treasury million in Q1 2013 from a negative AED 20 AED million million in Q4 2012 driven by lower negative net interest income drag and higher investment income -55% Global Markets & T 247 • Tightening of spreads
Slide 28: Contents
Contents Operating Environment Emirates NBD Profile Financial and Operating Performance St t Strategy Outlook Appendix 28
Slide 29: Emirates NBD enters 2013 with a focused longer-term strategy built on 5 core building blocks
Emirates NBD enters 2013 with a focused longer-term strategy built on 5 core building blocks 1 Deliver an excellent customer experience 3 4 5 Drive core Run an Drive b i business efficient ffi i t geographic hi organization expansion 2 Build a high performing organization 29
Slide 30: 2013 Strategic Priorities
2013 Strategic Priorities 1 • Continuous C ti G Group wide id CCurrentt S Service i E Excellence ll P Program, e.g. end d tto end d process Deliver an excellent optimization to improve turn-around times , etc. customer • Further improvement of convenience and ease of access, e.g. through enhancement
Slide 31: Contents
Contents Operating Environment Emirates NBD Profile Financial and Operating Performance St t Strategy Outlook Appendix
Slide 32: Outlook
Outlook • During 2012 the UAE economy continued to display resiliency with an estimated GDP growth of 3.7% 3 7% underpinned by rising oil output and modest private sector expansion • Continued strength and growth witnessed in Dubai’s traditional trade, logistics, tourism and retail sales sectors and
Slide 33: Summary
Summary • Net profit improved significantly q-o-q and y-o-y by 34% and 31% respectively to Profitability AED 837 million • Top-line trends stable q-o-q and y-o-y Income • Cost to Income ratio has improved q-o-q and y-o-y from 38.2% and 35.1% CI Ratio respectively to 34.6% • NPL coverage improved by
Slide 34: Contents
Contents Operating Environment Emirates NBD Profile Financial and Operating Performance St t Strategy Outlook Appendix
Slide 35: 2013 Awards
2013 Awards Emirates NBD named UAE’s “Best Foreign Exchange Provider 2013” by Global Finance. Emirates NBD Asset Management named ‘UAE Asset Manager of the Year’ at MENA Fund Manager Awards 2013. Emirates E i t NBD Securities S iti has h been b declared d l d as “Winner “Wi off NASDAQ Dubai’s Retail
Slide 36: 2013 Awards
2013 Awards Emirates NBD won bronze award for best sponsorship of Omega Dubai Desert Classic. Emirates NBD won Best SME Internet Banking Service’ award by Banker Middle East. 36
Slide 37: Large Deals Concluded in 2013
Large Deals Concluded in 2013 March 2013 USD S 90,000,000 and EUR 30,000,000 CLUB LOAN FACILITY Mandated Lead Arranger December2012 USD 1,030,000,000 SYNDICATED TERM LOAN FACILITY Initial Mandated Lead Arranger and Bookrunner
Slide 38: Large Deals Concluded in 2012
Large Deals Concluded in 2012 January 2012 March 2012 March 2012 January 2012 EMIRATES ISLAMIC BANK EMIRATES NBD BANK EMIRATES NBD BANK PALM DISTRICT COOLING PJSC PJSC LLC USD 500,000,000 RMB 750,000,000 USD 1,000,000,000 AED 1,140,000,000 5 YEAR SUKUK 3 YEAR SUKUK 5 YEAR SUKUK CONVENTIONAL AND ISLA
Slide 39: Large Deals Concluded in 2012 (cont)
Large Deals Concluded in 2012 (cont) April 2012 June 2012 May 2012 Dec ember2012 BANK ASYA DIFC INVESTMENTS MAF PROPERTIES ROSBANK USD 201,000,000,000 USD 1,035,000,000 & EUR 96,500,000 ISLAMIC SYNDICATED USD 290,000,000 DUAL CURRENCY FACILITY USD 290,000,000 DUAL TRANCHE SYNDICATED MURABAHA SYNDICA
Slide 40: Large Deals Concluded in 2012 (cont)
Large Deals Concluded in 2012 (cont) October 2012 PROMSVYAZBAN USD 307,000,000 & EUR 72,000,000 DUAL CURRENCY SYNDICATED LOAN FACILITY Mandated Lead Arranger, Book runner & Co- coordinator December2012 EMAAR PROPERTIES PJSC & EMAAR LIBADIYE GAYRIMENKUL A S. GELISTIRME A.S USD 500,000,000 CONVENTIONA
Slide 41: Investor Relations
Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: IR@emiratesnbd.com 41