Slide 1: Q1-15 Results Presentation
Q1-15 Results Presentation Apr 22, 2015 1
Slide 2: Important Information
Important Information Disclaimer The material in this presentation is general background information about the activities of Emirates NBD Bank PJSC (Emirates NBD), current at the date of this presentation, and believed by Emirates NBD to be accurate and true. It is information given in summary form
Slide 3: Q1-15 Financial Results Highlights
Q1-15 Financial Results Highlights Highlights Key Performance Indicators • Net profit of AED 1,671 Mn for Q1-15 Better / Better / improved 60% y-o-y and 36% q-o-q AED Mn Q1-15 Q1-14 Q4-14 (Worse) (Worse) • Net interest income rose 11% y-o-y mainly due to growth in Retail assets Net interest income 2
Slide 4: Net Interest Income
Net Interest Income Highlights Net Interest Margin (%) 2.95 • NIMs steady in Q1-15 vs. Q4-14 at 2.90% and widened 2.91 2.90 15 bps vs. Q1-14 2.83 2.83 2.85 2.78 • Loan spreads declined marginally q-o-q and improved 2.76 2.75 6 bps y-o-y due to higher yielding Islamic products and time loans 2.77 • D
Slide 5: Funding and Liquidity
Funding and Liquidity Highlights Advances to Deposit (AD) Ratio (%) • AD ratio of 95.6% within 90-100% management target range • Liquid assets* of AED 50.3 Bn as at Q1-15 (15.7% of total liabilities) 105.1 • Maturity Profile of Debt Issued significantly extended in Q1 2015 102.0 thanks to, 99.5 99.2
Slide 6: Loan and Deposit Trends
Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED Bn) • Gross loans grew 1% since end 2014 +1% mainly due to growth in Islamic 272 262 265 267 271 financing 259 235 • Islamic financing grew 6% since 221 205 216 178 195 196 197 200 201 202 end 2014 • Consumer lending grew 1% since
Slide 7: Non-Interest Income
Non-Interest Income Highlights Composition of Non Interest Income (AED Mn) • Non-interest income improved 26% Better / Better / q-o-q driven by increases in foreign AED Mn Q1-15 Q1-14 Q4-14 (Worse) (Worse) exchange and derivative income, higher asset management fees and Core gross fee income 1,270 1
Slide 8: Operating Costs and Efficiency
Operating Costs and Efficiency Highlights Cost to Income Ratio (%) • Costs decreased by 8% q-o-q in 33.1 Q1-15 and increased by 3% y-o-y 31.5 • Cost to Income Ratio improved by 5% 30.3 30.4 q-o-q to 28.1% due to growth in 29.5 29.3 non-interest income and a control on costs. Adjusted for one-offs, C
Slide 9: Credit Quality
Credit Quality Highlights Impaired Loan & Coverage Ratios (%) • NPL ratio improved marginally to 7.8% 92.0 100.3 103.9 85.4 • Impaired loans increased by AED 0.1 Bn 66.2 76.1 80.1 64.7 70.3 59.8 57.5 60.7 • Q1 2015 net impairment charge of AED 1.1 Bn 43.4 49.4 • Coverage ratio increased to 103.9% 13
Slide 10: Capital Adequacy
Capital Adequacy Highlights Capitalisation • CAR decreased by 0.6% to 20.5% and Tier 1 ratio 20.4 21.1 20.5 19.2 19.6 decreased by 0.5% to 17.5% in Q1-15 due to: 17.2 18.0 17.5 – Annual dividend payment exceeding the quarterly 15.0 15.6 retained profit 43.6 44.4 45.7 46.4 46.0 9.4 9.0 7.0 6.7 6.8 –
Slide 11: Divisional Performance: Retail Banking & Wealth Management
Divisional Performance • Retail business has grown but revenue stable Balance Sheet Trends Revenue Trends due to a change in internal transfer pricing -3% AED Bn AED Mn Wealth Management • Deposits declined 3% from end 2014 as more +1% -1% Retail Banking & expensive time deposits were retired 113.5
Slide 12: Divisional Performance (cont'd): Wholesale Banking
Divisional Performance (cont’d) • Wholesale Banking revenues grew Balance Sheet Trends Revenue Trends 15% q-o-q AED Bn +1% AED Mn • Loans grew 1% from end 2014 Wholesale Banking +1% +15% • Deposits also grew by 1% from end 2014 187.0 188.0 1,246 1,146 1,084 • Focus during 2015 is on enhancing custom
Slide 13: Outlook
Outlook • UAE’s GDP growth expectation for: • 2014 is 4.5% • 2015 is 4.3% • Dubai’s GDP growth expectation for: • 2014 is 5% • 2015 is 4.7% • Purchasing Managers’ Index declined in March, for the third consecutive month, to 56.3, but still well above the neutral 50 level. Economic • We saw a slowdow
Slide 14: Summary
Summary • Net profit of AED 1.7 Bn for Q1-15 improved 60% y-o-y due to higher income, stable Profitability costs and lower provisions • Total income rose 15% y-o-y to AED 3.8 Bn helped by an improving asset mix, strong Income fee income and efficient funding base • Costs increased 3% y-o-y, improvin
Slide 15: Investor Relations
Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: IR@emiratesnbd.com 15