Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Q3 2019 Earnings Presentation
18 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, Oct 28, 2019
Slide 1: Emirates NBD Q3 2019 Results Presentation
Emirates NBD Q3 2019 Results Presentation 28 October 2019 2019 Presentation Title 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: Emirates NBD delivered a strong set of results in Q3-19
Emirates NBD delivered a strong set of results in Q3-19 Key Metrics 2019 Macro themes Q3 2019 2019 YTD Guidance AED 12.5 Bn Regional Global Net Profit +63% y-o-y Profit NIM 2.82% 2.75-2.85% Cost to income 30.3% 33% • GCC growth • Slowing but growing supported by stable NPL 4.8% US economy Stable oil
Slide 4: Q3-19 YTD Financial results highlights
Q3-19 YTD Financial results highlights Highlights Key performance indicators (Including Denizbank from 1st Aug 2019) Better / AED Mn Q3-19 YTD Q3-18 YTD • Net profit of AED 12,483 Mn for Q3-19 YTD increased 63% y-o-y, (Worse) or 3% excluding Denizbank and the impact of the Network Net interest incom
Slide 5: Q3-19 Financial results highlights
Q3-19 Financial results highlights Highlights Key performance indicators (Including Denizbank from 1st Aug 2019) Better / Better / AED Mn Q3-19 Q3-18 Q2-19 • Net profit of AED 5,001 Mn for Q3-19 increased 90% y-o-y (Worse) (Worse) and 6% q-o-q Net interest income 4,271 3,307 29% 3,452 24% • The resu
Slide 6: Net interest income
Net interest income Highlights Net Interest Margin (%) • Q3-19 YTD NIM advanced 1 bp y-o-y to 2.82%, helped by higher margins from Denizbank 2.87 2.85 2.82 2.83 2.83 • Excluding Denizbank, NIMs declined 5 bps on higher deposit costs 2.77 2.82 2.83 2.82 2.81 • Q3-19 NIM of 2.83% improved 11 bps q-o-q
Slide 7: Funding and liquidity
Funding and liquidity Highlights Advances to Deposit (AD) Ratio (%) • LCR of 149.3% and AD ratio of 91.8% demonstrates continuing healthy liquidity post Denizbank acquisition • Liquid assets* of AED 107.3 Bn as at Q3-19 (18% of total liabilities) 95.2 94.4 94.4 94.3 94.0 • In 2019, AED 12.7 Bn of te
Slide 8: Loan and deposit trends
Loan and deposit trends Highlights Trend in Gross Loans by Type (AED Bn) • Gross loans excluding Denizbank grew 5% since start of the year with growth across all operating segments DenizBank Consumer +31% • Corporate lending grew 6% (27% including Denizbank due to growth Corporate Islamic* in agricu
Slide 9: Loan composition
Loan composition Total Net Loans (AED 429 Bn) Gross Loans (AED 465 Bn) Corporate 36% UAE 74% 3% GCC Sovereign 34% 12% Islamic 23% International 18% Retail Gross Corporate and Retail Loans (AED 249 Bn) Gross Islamic Loans* (AED 59 Bn) Others ** Fin Institutions Agriculture Manufacturing 4% Real estat
Slide 10: Non-interest income
Non-interest income Highlights Composition of Non Interest Income (AED Mn) • Core fee income increased by 26% y-o-y due to higher Q3-2019 Q3-2018 Better / AED Mn foreign exchange and credit card related income YTD YTD (Worse) Core gross fee income 5,573 4,314 29% • Investment Securities Income impro
Slide 11: Operating costs and efficiency
Operating costs and efficiency Highlights Cost to Income Ratio (%) • Q3-19 costs were AED 1,880 Mn, a 31% q-o-q and 28% y-o-y increase due to a rise in staff and operating costs relating to 32.9 33.5 32.8 international expansion 32.0 31.1 31.5 31.3 • Excluding Denizbank, quarterly costs increased 3%
Slide 12: Credit quality
Credit quality Highlights Impaired Loan & Coverage Ratios (%) • NPL ratio improved to 4.8% in Q3-19 as Denizbank loans recorded at fair value on acquisition date resulted in no addition to NPLs 127.9 128.4 127.4 127.3 126.6 • Cost of risk increased to 103 bps from 63 bps in 2018 on higher net 124.5
Slide 13: Capital adequacy
Capital adequacy Highlights Capitalisation • In Q3-19, capital ratios declined on growth in RWAs from Denizbank 21.3 20.9 22.0 21.5 20.9 • Capital ratios remain above the minimum regulatory requirements of 20.4 17.0 20.0 19.8 11% for CET-1 ratio, 12.5% for Tier 1 ratio and 14.5% for CAR ratio 16.8 1
Slide 14: Divisional performance (Excluding Denizbank)
Divisional performance (Excluding Denizbank) Retail Banking & Wealth Management • Revenue increased 10% y-o-y led by higher net interest income Balance Sheet Trends Revenue Trends AED Bn +1% AED Mn from liabilities and fee income driven by cards, loans and FX +10% • Liabilities grew by 1% backed by
Slide 15: Divisional performance (Excluding Denizbank)
Divisional performance (Excluding Denizbank) Wholesale Banking Balance Sheet Trends Revenue Trends • Wholesale Banking revenue slightly lower q-o-q and down 4% y-o-y as AED Mn AED Bn lower margins more than offset a growth in fee income +10% -4% • Net interest income lower 2% q-o-q mainly due compre
Slide 16: Acquisition of DenizBank
Acquisition of DenizBank Highlights Financial Impact on Acquisition • Emirates NBD acquired 99.85% shares in DenizBank on 31st July 2019 AED Mn AED Million • Purchase consideration of AED 9,950 million paid in US$ ($2.7 billion Book value of assets 10,677 equivalent) Fair value adjustments (1,599) •
Slide 17: DenizBank Business Overview
DenizBank Business Overview Business Overview Financial Highlights Aug-Sep AED Mn** H1 2019 FY 2018 • DenizBank is the fifth largest private bank in Turkey 2019 YTD* • Wide presence through a network of 752 branches and 2,800+ ATMs Net interest income 869 2,461 5,242 • Operates with 708 branches in
Slide 18: Get in touch.
Get in touch. I N V E S T O R R E L AT I O N S Emirates NBD Head Office I 4th Floor PO Box 777 I Dubai, UAE IR@emiratesnbd.com Tel: +971 4 609 3046 18