Slide 1: Emirates NBD 2008 Financial Results
Emirates NBD 2008 Financial Results 12 February 2009
Slide 2: Forward Looking Statements
Forward Looking Statements It is possible that this presentation could or may contain forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only
Slide 3: Highlights
Highlights Integration is fully on track: We achieved major milestones during the last year and we are now in a very important phase of the integration with crucial milestones coming up 2008 full year synergy targets were exceeded on all revenue, costs & one-off synergies, with achieved synergie
Slide 4: Merger Update
Merger Update Integration fully on track We have achieved major milestones during the last year Mobile and Online Banking Emirates NBD’s Treasury team-up together integrated; enhanced First Annual Large Corporate in one premise, and are functionalities General Meeting Unit (LCU) is now working as
Slide 5: Merger Update: Exceeded 2008 synergy targets
Merger Update Exceeded 2008 full year targets on all revenue, costs & one-off synergies Target Synergies Actual 2008 Synergies AED 346m of recurring annual synergies by the third year post Achieved synergies of AED 235m – ahead of 2008 full year merger, plus AED 26m of one-off synergies totallin
Slide 6: 2008 Financial Results: Group Performance
2008 Financial Results Group Performance Comments Key Performance Indicators Year to Variance Full Year 2008 Net Profit down 7% from 2007 AED m 31 Dec 2008 vs. 2007* Total income 8,447 +19% Proposed cash dividend of 20% and stock dividend of 10% Operating expenses (3,356) +23% Q4-2008 Net Prof
Slide 7: Divisional Performance
2008 Financial Results Divisional Performance Wholesale banking had another successful quarter AED b AED m Continued success of its transactions business 3,648 37% Wholesale Banking Emirates NBD ranked as leader in local 2,672 syndications market as Mandated Lead Arranger 158 and Bookrunner in
Slide 8: Divisional Performance (cont'd)
2008 Financial Results Divisional Performance (cont’d) Grew sales and trading business; leading market share of AED m Global Markets & Dubai’s corporate business 46% 1,244 Arranged Govt of Dubai AED Fixed and Floating Bond Treasury issues totaling AED 6.5b 850 260 949 New debt capital markets
Slide 9: Asset Quality: Credit Metrics
Asset Quality Credit Metrics: Wholesale and Consumer Comments Loan Portfolio by Type – 2008 Loan portfolio is balanced and well secured Other debt Loans instrum ents Counterparties have been extensively reviewed and we against trust Others 1% Bills receipts discounted remain comfortable with our
Slide 10: Asset Quality: Real Estate Exposure
Asset Quality Real Estate Exposure Exposures to Real Estate & Construction Sector is 14% and 5% of the WB portfolio respectively Emirates NBD is very selective in financing real estate sector. Extent of finance is generally limited to: Wholesale Bank 70% of construction cost excluding land or
Slide 11: Asset Quality: Investments & Trading Securities
Asset Quality Investments & Trading Securities Comments 2008 MTM Impact Exposure to sub-prime and related exposures (e.g. RMBS, CMBS, AED million P&L impact Cumulative Total CDOs, CLOs) are minimal and were fully written down in prior years changes in Balance 81% of the assets are classified as
Slide 12: Capital, Funding and Liquidity
Capital, Funding and Liquidity Comments Capital Ratios Capital adequacy ratio at 11.4% in 2008 (2007: 12.5%) Liquidity in the UAE Banking system has improved in 4Q 2008 AED b 13.1% compared to Q3 2008, helped by the various Government 50 12.5% 14% 11.4% initiatives 10.5% 12% 40 9.7% Emirates N
Slide 13: Outlook: UAE Economic Environment
Outlook UAE Economic Environment Comments Real GDP Growth Forecasts* UAE hit by global credit squeeze, caused by events largely 2008 2009 2010 outside its control UAE economy and banking system relatively well placed in UAE 6.0% 1.5% 2.9% comparison to many economies outside of the GCC UK 0.8% -
Slide 14: Outlook: Strategic Imperatives
Outlook Comments Strategic Imperatives The current environment is presenting challenges in terms of liquidity, funding, profitability and asset quality Cautious lending growth The fundamentals of Emirates NBD’s core business remains • Support growth of important Group relationships strong Emir
Slide 15: Summary
Summary The integration is fully on track 2008 full year synergy targets were exceeded by 90% The core business continues to perform strongly 2008 core net profit up 49% from 2007 Impacted by write-downs and impairments on investment and other securities of AED 2.26b in 2008 2008 statuto
Slide 16: Emirates NBD 2008 Financial Results
Emirates NBD 2008 Financial Results 12 February 2009