Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — H1 2022 Earnings Presentation
15 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, Jul 28, 2022
Slide 1: Results Presentation H1 2022
Results Presentation H1 2022 28 July 2022
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 delivers strong results and maintains solid balance sheet in H1-22
Emirates NBD delivers strong results and maintains solid balance sheet in H1-22 Key Highlights Key Metrics & Guidance Net Profit CET 1 Strong momentum continues with H1-22 profit up 11% to AED 5.3bn AED 5.3bn 15.0% +11% y-o-y Improved loan & deposit mix with higher interest rates enabling Group to N
Slide 4: Strong diversified income and profit growth in H1-22
Strong diversified income and profit growth in H1-22 Highlights Income Liquidity Risk Expenses Capital Divisional Key Highlights • Group net profit up by 11% and strong diversified income Income Statement Better / Better / Better / absorbs new hyperinflation adjustment H1-22 H1-21 H1-22 H1-21 H1-22
Slide 5: Q2-22 results highlights
Q2-22 results highlights Highlights Income Liquidity Risk Expenses Capital Divisional Better / Better / Key Highlights Income Statement (AED bn) Q2-22 Q2-21 Q1-22* (Worse) (Worse) Net interest income 5.1 4.1 27% 4.3 21% • Strong Q2-22 results with net profit up 42% y-o-y on higher income and lower N
Slide 6: Net interest income – NIM guidance revised up 50 bps
Net interest income – NIM guidance revised up 50 bps Highlights Income Liquidity Risk Expenses Capital Divisional 3.3 Key Highlights Quarterly NIM 3.09 3.2 YTD NIM Net Interest Margin (%) • Q2-22 NIM up 65 bps y-o-y on ENBD’s improved loan and deposit mix 3.1 and wider margins at DenizBank 3.0 - Loa
Slide 7: Loans and deposits trends
Loans and deposits trends Highlights Income Liquidity Risk Expenses Capital Divisional Gross Loans by Type (AED Bn) +1% Key Highlights 475 475 463 463 459 • Gross loans grew 1% (AED 4bn) in H1-22 DenizBank 79 79 65 66 65 - Retail lending up 8% (AED 5 bn) with strong demand across all products EI* 46
Slide 8: Credit quality
Credit quality Highlights Income Liquidity Risk Expenses Capital Divisional Impaired loans and allowances Key Highlights 6.3 6.2 6.3 6.4 6.1 • NPL ratio improved by 0.3% to 6.1% in Q2-22 on strong writebacks and recoveries 36.4 37.1 37.2 37.9 37.7 • Coverage ratio strengthened 4.8% to 133.3% in Q2-2
Slide 9: Non-funded income
Non-funded income Highlights Income Liquidity Risk Expenses Capital Divisional Key Highlights Better / Better / • Q2-22 fee and commission income 11% higher y-o-y from increased Non-funded income (AED mn) Q2-22 Q2-21 Q1-22 local and international retail card business at both ENBD and (Worse) (Worse)
Slide 10: Operating expenses
Operating expenses Highlights Income Liquidity Risk Expenses Capital Divisional Key Highlights Cost to Income Ratio (%) 35.3 34.8 • Q2 22 cost to income ratio at 28.7% below guidance reflecting stronger income 34.0 • Staff costs increased y-o-y on incentives to drive underlying earnings and hiring f
Slide 11: Funding and liquidity
Funding and liquidity Highlights Income Liquidity Risk Expenses Capital Divisional Key Highlights Advances to Deposit and Liquidity Coverage Ratio (%) • LCR of 154.8% and ADR of 90.8% demonstrate healthy liquidity ADR % LCR % • Liquid assets* of AED 63 billion cover 10% of total liabilities, 13% of
Slide 12: Capital adequacy
Capital adequacy Highlights Income Liquidity Risk Expenses Capital Divisional Capital (AED billion) Key Highlights • CET-1 ratio stable at 15.0% during 2022 as 86.1 5.3 - AED 4.8bn of net earnings largely offset - AED 0.4bn reduction in ECL addback 9.1 71.7 - 7% increase in RWAs as strong growth in
Slide 13: Divisional performance
Divisional performance Highlights Income Liquidity Risk Expenses Capital Divisional Key Highlights Increase / Retail Banking and Wealth Management Operating Segment Metrics H1-22 (Decrease) • Record half-year for income, loans & cards acquisitions and balance sheet growth Income (mn) 4,653 • Lending
Slide 14: Appendix 1: Hyperinflation
Appendix 1: Hyperinflation Türkiye Consumer Price Index Key Highlights +133% 42% • Loss on net monetary position for DenizBank was AED 1.9 bn for first six 978 months of 2022 844 • AED 1.9 bn debit P&L charge with corresponding credit offset to OCI making 64% it capital neutral 687 547 571 505 524 0
Slide 15: Thank you
Thank you Investor Relations Emirates NBD Head Office I 4th Floor PO Box 777 I Dubai, UAE IR@emiratesnbd.com Tel: +971 4 609 3046