Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Investor Presentation (March 2020)
28 slides from Emirates Nbd Bank (p.j.s.c)'s investor presentation, March 2020
Slide 1: Emirates NBD Investor Presentation
Emirates NBD Investor Presentation February-March 2020 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: Agenda
1. Emirates NBD Profile 2. Financial & Operating Performance 3. Divisional Performance 7 4. Economic Environment 3
Slide 4: Emirates NBD is a Leading Bank in the MENAT Region
Emirates NBD is a Leading Bank in the MENAT Region Key Highlights as of Q4 2019 Emirates NBD at a Glance USD 186 Bn USD 127 Bn USD 23.6 Bn Total Assets Gross Customer Loans Market Capitalization* 13 1,000+ 14.7 million Countries Branches Customers 3rd 2nd ~20% Largest in GCC** Largest in the UAE** M
Slide 5: Emirates NBD at a glance
Emirates NBD at a glance Emirates NBD’s International Presence Market share in the UAE* Assets 17.8%; Loans 21.5%; Deposits Moscow 20.0% London 16 1 1 Germany 27 Austria Largest financial institution in Dubai, 3rd largest in the GCC Turkey Beijing 707 1 Leading retail banking franchise Bahrain
Slide 6: Emirates NBD is one of the largest banks in the GCC
Emirates NBD is one of the largest banks in the GCC % Dec-19 vs. Dec-18 Total Assets Gross Loans Total Deposits Net Profit USD Bn, 31-Dec 2019 USD Bn, 31-Dec 2019 USD Bn, 31-Dec 2019 USD Bn, 2019 YoY 259 10% 190 11% 188 10% 3.95 44% 224 10% 127 32% 141 12% 3.92 4% 186 37% 114 15% 129 36% 3.41 4% 135
Slide 7: Strong track record of profitability
Strong track record of profitability Consistently profitable due to diversified and resilient business model 9.1% 9.3% 8.8% 10.5% 15.7% 19.7% 18.0% 18.7% 20.3% 24.2% Record year for revenue and profit 6.1 6.9% 4.7 5.1% 4.4% 5.1% 4.5% 4.1 4.2 3.9 4.0 4.0 3.2 3.1% 2.6 2.7 2.8 2.7 2.3 1.9 2.0 1.6% 1.7%
Slide 8: Stable Shareholder Base and Diversified Business Model
Stable Shareholder Base and Diversified Business Model Split of ownership – Anchored by the Government of Dubai Highlights Ownership structure as at 31 December 2019 • A flagship bank for the Government of Dubai and the UAE • Strong and supportive shareholder base from the Government of Dubai via In
Slide 9: Digital lifestyle banking continuing innovation
Digital lifestyle banking continuing innovation Recent Launches Liv. Sure, Smartphone insurance – a range of insurance products for millennials Olivia, a Millennial chatbot – a conversational AI (artificial intelligence) based chatbot Goal accounts – multiple goal based saving options for the custom
Slide 10: Emirates NBD delivered a strong set of results in 2019
Emirates NBD delivered a strong set of results in 2019 Key Metrics 2020 Macro themes 2019 2020 Regional Global FY 2019 Guidance Guidance USD 3.9 Bn Net Profit +44% y-o-y • World Bank forecasts Profit • Expo 2020 to help global economy to NIM 2.75-2.85% 2.89% 2.75-2.85% support demand expand by 2.5%
Slide 11: FY 2019 Financial results highlights
FY 2019 Financial results highlights Highlights Key performance indicators (Including DenizBank from 1st Aug 2019) Better / USD Mn FY 2019 FY 2018 • Net profit of USD 3,952 Mn for 2019 increased 44% y-o-y, or 38% (Worse) excluding DenizBank Net interest income 4,411 3,512 26% • Results include Deniz
Slide 12: Q4-19 Financial results highlights
Q4-19 Financial results highlights Highlights Key performance indicators (Including DenizBank from 1st Aug 2019) Better / Better / USD Mn Q4-19 Q4-18 Q3-19 • Net profit of USD 551 Mn for Q4-19 decreased 15% y-o-y (Worse) (Worse) due to higher impairment charge Net interest income 1,380 913 51% 1,164
Slide 13: Net interest income
Net interest income Highlights Net Interest Margin (%) • FY 2019 NIM increased 7 bps y-o-y to 2.89%, helped by higher margins from DenizBank Qtrly NIM 3.11 YTD NIM • Excluding DenizBank, NIMs declined 12 bps on higher average deposit costs for the year 2.87 2.89 2.82 2.85 2.83 2.83 • Q4-19 NIM of 3.
Slide 14: Loan and deposit trends
Loan and deposit trends Highlights Trend in Gross Loans by Type (USD Bn) • Gross loans excluding DenizBank grew 7% since start of the year +32% with growth across all operating segments +2% DenizBank Consumer • Corporate lending grew 8% (27% including DenizBank due to growth Corporate Islamic* 127 i
Slide 15: Loan composition
Loan composition Net Loans by Geography as at 31 Dec 2019 as at 31 Dec 2018 UAE 75% 2% GCC UAE 93% 2% GCC 5% International 23% International Gross Loans by Segment as at 31 Dec 2019 Corporate as at 31 Dec 2018 Corporate 35% 30% Sovereign 43% Sovereign 35% 13% Islamic* 15% Islamic* 17% 12% Retail Ret
Slide 16: Non-interest income
Non-interest income Highlights Composition of Non Interest Income (USD Mn) • Core fee income increased by 32% y-o-y due to higher foreign Better / USD Mn FY 2019 FY 2018 exchange and credit card related income (Worse) • Investment Securities Income improved y-o-y due to higher Core gross fee income
Slide 17: Operating costs and efficiency
Operating costs and efficiency Highlights Cost to Income Ratio (%) • Q4-19 costs increased 66% y-o-y, or 11% excluding DenizBank due to Target CI Ratio (YTD) CI Ratio 36.4 a rise in staff costs, digital transformation, amortization of intangibles and higher depreciation due to IFRS 16 implementation
Slide 18: Credit quality
Credit quality Highlights Impaired Loan & Coverage Ratios (%) • During 2019 the NPL ratio settled at 5.6% as a result of acquisition of 128.4 127.9 127.4 127.3 DenizBank’s loans at fair value 126.6 124.5 125.8 • Net cost of risk increased to 117 bps on higher net impairment charge 123.9 of USD 1,313
Slide 19: Capital adequacy
Capital adequacy Highlights Capitalisation • In Q4-19, capital ratios strengthened as the Rights Issue and retained 21.1 20.7 21.2 21.2 20.9 18.5 earnings more than offset the impact of additional RWAs 18.0 18.0 18.7 18.9 19.8 17.4 • Capital ratios remain above the minimum regulatory requirements of
Slide 20: Funding and liquidity
Funding and liquidity Highlights Advances to Deposit (AD) Ratio (%) • LCR of 160% and AD ratio of 92.6% demonstrates continuing 100 healthy liquidity • Liquid assets* of USD 29.8 Bn as at Q4-19 (18% of total liabilities) 95.2 94.4 94.3 94.0 • In 2019, USD 3.6 Bn of term debt issued in 9 currencies t
Slide 21: Divisional performance (Excluding DenizBank)
Divisional performance (Excluding DenizBank) Retail Banking & Wealth Management • RBWM income increased 8% y-o-y led by higher net interest Balance Sheet Trends Income Trends USD Bn USD Mn income from liabilities and fee income driven by cards, loans and +4% +8% FX • Liabilities grew by 4% backed by
Slide 22: Divisional performance (Excluding DenizBank)
Divisional performance (Excluding DenizBank) Wholesale Banking Balance Sheet Trends Income Trends • WB income increased 2% y-o-y mainly due to higher fee income USD Mn USD Bn • Net interest income was 0.5% higher y-o-y mainly due to growth in lending +13% +2% activity, partially offset by margin com
Slide 23: DenizBank Business Overview
DenizBank Business Overview Business Overview Financial Highlights Aug-Dec • DenizBank contributed total income of USD 993 million and net profit of USD Mn** 2019* H1 2019 FY 2018 USD 166 million to the Bank for the five months since acquisition Net interest income 690 671 1,428 • Operating expenses
Slide 24: UAE: 2020 GDP forecast to grow at 1.6%
UAE: 2020 GDP forecast to grow at 1.6% Highlights UAE oil production and prices 3.1 100 • The Bank’s Research team estimate that UAE GDP growth reached UAE oil output (LHS) 2.0% in 2019, up from 1.7% in 2018 as the oil sector contributed Brent oil (RHS) positively to overall economic growth 3.0 80 •
Slide 25: UAE: private sector credit growth picks up at year end
UAE: private sector credit growth picks up at year end Highlights Breakdown of UAE bank credit by economic activity • Growth in UAE bank deposits rose in December, up 2.8% m/m and 12 % y/y AD Ratio (RHS) Bank Deposits (LHS) % 110 6.5% y/y. Both residents’ and non-residents’ deposits increased while
Slide 26: Real estate: further softness in residential prices is expected in 2020
Real estate: further softness in residential prices is expected in 2020 Highlights Residential property prices • Dubai’s real estate prices have continued to decline in Q4 2019, albeit 60 at a slower rate % y/y growth Dubai Abu Dhabi • The number of transactions has increased, with off-plan property
Slide 27: Dubai: international visitor growth recovered in 2019
Dubai: international visitor growth recovered in 2019 Highlights DXB passenger traffic (Jan-Sep) • The number of international visitors to Dubai grew 5.1% y/y in 2019 80 Mn people Thousand 2500 after a stagnant 2018. tons 2100 • Pricing pressure on firms in the hospitality sector remains a challenge
Slide 28: 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 28