Slide 1: Emirates NBD Q2 2011 Results Presentation
Emirates NBD Q2 2011 Results Presentation July 25, 2011 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: Q2 2011 Financial Results Highlights
Q2 2011 Financial Results Highlights Q2 2011 Financial Results Highlights Key Performance Indicators Net profit of AED 744 million, +85% vs. Q2 AED million Q2 2011 Q2 2010 Change Q1 2011 Change 2010 and -47% vs. Q1 2011 (%) (%) Net interest income grew 5% q-o-q to AED Net interest income 1,731 1
Slide 4: Net Interest Income
Net Interest Income Highlights Net Interest Margin (%) NIM of 2.53% at Q2 2011 improved by 12 bps 3.01 from 2.41% in Q1 2011: Qtrly NIM 2.85 o Direct positive impact of downward re- 2.76 2.65 pricing on deposits as well as resultant 2.60 2.59 2.57 2.51 2.53 positive mix impact of higher LTD ratio
Slide 5: Non Interest Income
Non Interest Income Highlights Composition of Non Interest Income (AED million) Non-interest income improved by 43% y-o-y AED million Q2 2011 Q2 2010 Change Q1 2011 Change and 38% q-o-q due to: (%) (%) o higher investment securities income Core gross fee income 626 619 +1% 628 -0% o AED 160 millio
Slide 6: Operating Costs and Efficiency
Operating Costs and Efficiency Highlights Cost to Income Ratio (%) Costs increased by 2% q-o-q to AED 826 Cost to income ratio (YTD) million in Q2 2011 resulting from continued investment in future growth across 38.5 37.6 37.4 advertising and marketing costs, and 35.8 35.7 expansion of retail dist
Slide 7: Credit Quality
Credit Quality Highlights Impaired Loans & Coverage Ratios (%) The impaired loans ratio improved by 1.1% in 101% 95% 102% 105% 102% 98% 109% Q2 2011 to 9.3% Portfolio impairment allowances increased 55% 48% 45% by AED 981 million in Q2 2011, substantially to 40% cover future contingencies Tota
Slide 8: Capital Adequacy
Capital Adequacy Highlights Capital Ratios - Basel II (AED billion) Capital adequacy strengthened further to 20.1% 20.1% 21.2% 18.7% CAR 21.2% and T1 13.4% 11.9% 12.8% 12.7% 13.4% Tier 1 capital increased by AED 1.0 billion in 10.5% H1 2011 due to strong net profit generation 43.6 44.0 45.2 8.4%
Slide 9: Funding and Liquidity
Funding and Liquidity Highlights Loan to Deposit Ratios (%) Headline LTD ratio of 96% at Q2 2011 due to Headline LTD Ratio % pro-active management action to target range of 129% 95%-100% 126% 127% 122% Central Bank LTD ratio of 94% at Q2 2011 117% 119% 118% 118% 111% Liquid assets of AED 53.4
Slide 10: Associates and Joint Ventures
Associates and Joint Ventures Composition of Balances Highlights Composition of Associates & Joint Ventures (AED million) Further downside risk on UP limited as Income Statement Q2 2011 Q2 2010 Change Q1 2011 Change carrying value is close to market value AED million (%) (%) Network Internationa
Slide 11: Divisional Performance: Wholesale Banking and Wealth Management
Divisional Performance Balance Sheet Trends Revenue Trends Key focus during Q2 2011 was on balance sheet AED billion AED million optimisation, continued proactive management of credit +1% Wholesale Banking quality, building non-risk based and fee generating 161.1 162.3 160.6 1,077 businesses and s
Slide 12: Divisional Performance: Emirates Islamic Bank and Global Markets & Treasury
Divisional Performance Revenue improved to AED 180 million in Q2 2011 Revenue Trends Global Markets & Treasury compared with AED 54 million in Q2 2010 driven primarily AED million by valuation gains on investments and yield enhancement +232% 180 from balance sheet management activities 148 Treas
Slide 13: Strategic Imperatives for 2011
Strategic Imperatives for 2011 Objectives Evidence of Success in H1 2011 Increase lending activities in identified pockets of Successfully managed Headline LTD ratio within 95%- growth, e.g. SME lending, cards, … 100% target range ; grew CASA balances by AED 9.7 Further diversifying funding so
Slide 14: Strategic Imperatives for 2011
Strategic Imperatives for 2011 Objectives Evidence of Success in H1 2011 Further enhance employee proposition through Launched Managerial Leadership Program in talent/leadership development as well as performance partnership with HULT International Business School and retention management Risk
Slide 15: Outlook
Outlook Conditions in the local economy have continued to improve in H1 2011 and UAE GDP growth for 2011 is expected to reach 4.6% compared with our previous expectation of 4.0% o Economic signals offer evidence of take-off in non-oil economy, particularly in trade, logistics and hospitality o Ave
Slide 16: Summary
Summary Strong financial performance with Net Profit of AED 744 million for Q2 2011, up 85% y-o-y; Net profit for H1 2011 of AED 2.2 billion up 43% from H1 2010 Top-line trends encouraging with pickup in q-o-q net interest income and non-interest income of 5% and 38% respectively Improvement of almo
Slide 17: 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 17