Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Q1 2019 Earnings Presentation
14 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, Apr 17, 2019
Slide 1: Emirates NBD Q1 2019 Results Presentation
Emirates NBD Q1 2019 Results Presentation 17 April 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 Q1-19
Emirates NBD delivered a strong set of results in Q1-19 Key Metrics 2019 Macro themes Q1 2019 2019 Guidance AED 2.7 Bn Regional Global Net Profit +15% y-o-y Profit • Diversified UAE economy • Slowing but still NIM 2.83% 2.75-2.85% growing US economy • GCC growth supported Cost to income 29.6% 33% by
Slide 4: Q1-19 Financial results highlights
Q1-19 Financial results highlights Highlights Key performance indicators Better / Better / AED Mn Q1-19 Q1-18 Q4-18 • Net profit of AED 2,743 Mn for Q1-19 increased 15% q-o-q and (Worse) (Worse) 15% y-o-y Net interest income 3,400 2,984 14% 3,352 1% • Net interest income improved 14% y-o-y on 8% loa
Slide 5: Net interest income
Net interest income Highlights Net Interest Margin (%) 2.87 2.85 2.82 2.83 • Q1-19 NIM of 2.83% improved 15 bps y-o-y as rate rises flowed through to the loan book which more than offset a rise in funding costs 2.83 2.68 2.81 2.82 • Q1-19 NIM declined 2 bps q-o-q as higher wholesale funding and fixe
Slide 6: Loan and deposit trends
Loan and deposit trends Highlights Trend in Gross Loans by Type (AED Bn) • Gross loans grew 3% in Q1-19 with growth across all operating +8% segments +3% • Consumer lending grew 3% in Q1-19 due to growth in personal 364 343 351 355 loans and overdrafts 329 329 329 337 320 259 261 269 252 • Corporate
Slide 7: Capital adequacy
Capital adequacy Highlights Capitalisation 21.2 21.3 22.0 • In Q1-19, CET 1 was higher at 16.8% as retained earnings more than 20.3 20.9 20.9 offset an increase in RWAs 20.0 19.0 19.8 19.8 16.8 • Tier 1 ratio also increased to 20.9% due to issue in Mar-19 of USD 1 Bn 16.3 16.6 16.6 15.5 of Basel III
Slide 8: Funding and liquidity
Funding and liquidity Highlights Advances to Deposit (AD) Ratio (%) • Liquidity Coverage Ratio of 198.8% and AD ratio of 94% demonstrates healthy liquidity position 95.0 95.2 • Liquid assets* of AED 80.9 Bn as at Q1-19 (17.7% of total 94.4 93.8 94.4 94.3 94.0 liabilities) 93.4 93.1 92.5 • In Q1-19,
Slide 9: Non-interest income
Non-interest income Highlights Composition of Non Interest Income (AED Mn) Better / • Core fee income increased by 15% y-o-y on the back of higher AED Mn Q1-2019 Q1-2018 (Worse) foreign exchange and derivative income generated by the Trading and ALM desks. Core gross fee income 1,644 1,428 15% Fees
Slide 10: Credit quality
Credit quality Highlights Impaired Loan & Coverage Ratios (%) • NPL ratio stable to 5.9% in Q1-19 127.9 128.4 127.4 127.3 • Q1-19 cost of risk increased to 66 bps from 63bp in 2018 on net 124.9 124.5 impairment charge of AED 570 Mn 123.5 123.9 122.5 • AED 331 Mn of write backs & recoveries in Q1-19
Slide 11: Operating costs and efficiency
Operating costs and efficiency Highlights Cost to Income Ratio (%) • Q1-19 costs amounted to AED 1,397 Mn improved 7% q-o-q 32.9 33.5 due to a reduction in staff costs, lower professional fees and 32.8 marketing expenses 32.0 30.9 31.1 31.5 • Costs increased 9% y-o-y in Q1-19 due to investment in ou
Slide 12: Divisional performance
Divisional performance Retail Banking & Wealth Management • Revenues increased 8% y-o-y in Q1-19 as interest income grew Balance Sheet Trends Revenue Trends by 12% supported by growth in liabilities AED Bn AED Mn +5% +8% • Loans rose by AED 0.8 Bn (2%) in Q1-19 supported by growth in +2% +2% persona
Slide 13: Divisional performance
Divisional performance Wholesale Banking Balance Sheet Trends Revenue Trends • Wholesale Banking revenues increased 12% y-o-y, helped by a 9% AED Bn AED Mn improvement in interest income and a 23% advance in fee income -1% +12% • Net interest income grew 9% y-o-y driven by growth in lending activity
Slide 14: 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 14