Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Investor Presentation (September 2018)
31 slides from Emirates Nbd Bank (p.j.s.c)'s investor presentation, September 2018
Slide 1: Emirates NBD Investor Presentation
Emirates NBD Investor Presentation September 2018
Slide 2: Important Information
2 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 for
Slide 3: UAE Economic Update
Operating Environment 3 UAE Economic Update Highlights Real GDP growth forecasts • Oil production in KSA remained well below its OPEC targets at the 2013 2014 2015 2016 2017 2018F end of April. The UAE is also showing compliance with its OPEC S. Arabia 2.7 3.7 4.1 1.7 -0.7 1.5 target. We expect KSA
Slide 4: Dubai Economic Update (1/3)
Operating Environment 4 Dubai Economic Update (1/3) Highlights Composition of Dubai GDP in FY-17 • The headline Dubai Economy Tracker Index (DET) declined to 54.9 in July from 56.0 in June, signalling the slowest growth in Dubai’s private sector in three months Others Trade • Dubai’s real GDP expand
Slide 5: Dubai Economic Update (2/3)
Operating Environment 5 Dubai Economic Update (2/3) Highlights Dubai Airports passenger traffic • Passenger traffic at the Dubai International Airport (DXB) decline to 55 million pax million tons 1600 50.5mn in Jan-July 2018, down by 1% y-o-y 1500 • Passenger traffic is expected exceed 90 million in
Slide 6: Dubai Economic Update (3/3)
Operating Environment 6 Dubai Economic Update (3/3) Highlights Residential property prices • Softness in residential real estate prices continues with apartment 350 prices faring better than villas 300 • Apartment prices were down -6.2% y-o-y in March, compared with 250 -6.6% y-o-y in March last yea
Slide 7: UAE Banking Market Update
Operating Environment 7 UAE Banking Market Update Highlights Bank deposit and loan growth • Bank loans increased by AED 28.3 bn and 1.8% y-o-y to AED AD ratio (RHS) Bank deposits (% y/y) Bank Loans (% y/y) 1622.90 bn in July 20% 110% • Bank deposits increased by AED 102.7 billion and 6.5% y-o-y to 1
Slide 8: Emirates NBD at a glance
Operating Environment 8 Emirates NBD at a glance A leading bank in the region Largest branch network in the UAE • Market share in the UAE (as at 30 June 2018) Dubai 100 Ras al-Khaimah (5) -Assets 17.4%; Loans 19.5%; Deposits 19.9% Abu Dhabi 25 Sharjah 17 Umm al-Quwain (2) • Leading retail banking fr
Slide 9: Key strengths
Operating Environment 9 Key strengths Size Flagship One of the largest financial institutions by Flagship bank for the Government of Dubai asset size in the GCC (top 3); 2nd largest in the and the UAE, playing a strategic role in UAE developing the economy Emirates NBD Profile Balance Sheet Ownershi
Slide 10: Emirates NBD is the regional leader in digital innovation
Operating Environment 10 Emirates NBD is the regional leader in digital innovation CRM Cockpit app Introduced 2012 New smart, paperless and Dynamic IVR Direct Remit 2 Mobile Remit to India Mobile number in instant banking Introduced SkyShopper 4.5/5 just 60 secs FaceBanking (Avg. Rating) 2013 Introd
Slide 11: Emirates NBD is one of the largest banks in the GCC
Operating Environment 11 Emirates NBD is one of the largest banks in the GCC x% H1 2018 vs. H1 2017 Assets Loans Deposits Operating Income USD Bn, H1 2018 USD Bn, H1 2018 USD Bn, H1 2018 USD Bn, H1 2018 Emirates NBD Profile 232 10% 166 9% 169 9% 2.1 4% 188 11% 94 7% 117 14% 1.7 10% Financial & Opera
Slide 12: Profit and Balance Sheet Growth in Recent Years
Operating Environment 12 Profit and Balance Sheet Growth in Recent Years Revenues and Costs (AED Bn) Profits (AED Bn) Revenues Costs Pre-Provision Operating Profits Net Profits +7% +4% +8% +27% 15.5 4.9 10.6 8.3 14.4 15.2 14.7 4.4 4.7 4.8 10.1 10.5 9.9 4.2 7.1 7.2 Emirates NBD Profile 11.9 8.0 2.4 7
Slide 13: Emirates NBD delivered a strong set of results in H1-18
Operating Environment 13 Emirates NBD delivered a strong set of results in H1-18 H1 2018 Key Metrics 2018 Macro themes H1 2018 2018 Guidance Regional Global • Resilience of UAE • Emirates NBD’s Emirates NBD Profile AED 5.0 Bn economy balance sheet Profit Net profit underpinned by positioned to benef
Slide 14: H1-18 Financial Results Highlights
Operating Environment 14 H1-18 Financial Results Highlights Highlights Key Performance Indicators Better / Better / • Record half-year net profit of AED 5,018 Mn for AED Mn H1-18 H1-17 H2-17 (Worse) (Worse) H1-18 increased 29% y-o-y Net interest income 6,229 5,185 20% 5,601 11% • Emirates NBD Profil
Slide 15: Q2-18 Financial Results Highlights
Operating Environment 15 Q2-18 Financial Results Highlights Highlights Key Performance Indicators Better / Better / • Net profit of AED 2,631 Mn for Q2-18 increased AED Mn Q2-18 Q2-17 Q1-18 (Worse) (Worse) 30% y-o-y and 10% q-o-q Net interest income 3,245 2,699 20% 2,984 9% • Emirates NBD Profile Ne
Slide 16: Net Interest Income
Operating Environment 16 Net Interest Income Highlights Net Interest Margin (%) • NIMs continued to improve in Q2-18 as rate rises flowed 2.85 through to the loan book which more than offset a modest rise 2.82 in funding costs 2.82 2.68 2.78 • Emirates NBD Profile Q2-18 NIM of 2.82% improved 14 bps
Slide 17: Non-Interest Income
Operating Environment 17 Non-Interest Income Highlights Composition of Non Interest Income (AED Mn) Better / Better / • Core gross fee income was 10% higher y-o-y AED Mn Q2-18 Q2-17 Q1-18 (Worse) (Worse) and 3% higher q-o-q due to higher foreign exchange income Core gross fee income 1,471 1,333 10%
Slide 18: Operating Costs and Efficiency
Operating Environment 18 Operating Costs and Efficiency Highlights Cost to Income Ratio (%) • Q2-18 costs were 7% higher q-o-q due to an increase in staff and IT costs as 33.7 34.5 signaled earlier. Other costs also 32.8 32.6 increased due to costs associated with Emirates NBD Profile 32.0 33.1 32.0
Slide 19: Credit Quality
Operating Environment 19 Credit Quality Highlights Impaired Loan & Coverage Ratios (%) • NPL ratio was steady at 6.0% in Q2-18 124.9 124.5 127.9 128.4 120.1 122.5 123.5 111.5 • Impaired loans steady in 2018 helped by AED 840 Mn of 99.6 write backs & recoveries 76.1 Emirates NBD Profile 66.2 • H1-18
Slide 20: Capital Adequacy
Operating Environment 20 Capital Adequacy Highlights Capitalisation 21.2 20.3 21.2 • In Q2-18, capital ratios improved by 0.8-0.9% as retained earnings more than offset the increase in Risk Weighted 18.9 19.0 19.8 Assets 16.3 15.6 15.5 • CAR unchanged at 21.2% since the beginning of the year Emirate
Slide 21: Funding and Liquidity
Operating Environment 21 Funding and Liquidity Highlights Advances to Deposit (AD) Ratio (%) • Liquidity Coverage Ratio of 158.7% and AD ratio of 94.4% 118.5 demonstrates healthy liquidity position • Liquid assets* of AED 67.5 Bn as at H1-18 (16.1% of total 105.1 liabilities) 102.0 Emirates NBD Prof
Slide 22: Loan and Deposit Trends
Operating Environment 22 Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED Bn) +4% • Gross loans grew 4% in H1-18 with growth across all sectors 343 329 329 329 337 • Corporate lending grew 3% since year- 310 314 315 320 303 242 242 243 249 252 end due to growth in the services an
Slide 23: Loan Composition
Operating Environment 23 Loan Composition Total Gross Loans (AED 343 bn) Corporate Loans (AED 107 bn) Treasury/Other Trans. & com. Cont. Corporate Retail 107 2% 37 Trade (31%) 5% RE (11%) 0 16% 33% Emirates NBD Profile (0%) Manuf. 5% 53 7% (15%) Others** 0% 3% 146 Islamic* Per. - Corp. 6% Hotels/ Re
Slide 24: Divisional Performance
Operating Environment 24 Divisional Performance • Revenues increased 13% y-o-y Balance Sheet Trends Revenue Trends • Net interest income grew 10% y-o-y led by liabilities. Fee AED Bn +3% AED Mn +13% income grew 19% y-o-y supported by FX and cards and +5% Wealth Management represents 36% of total RBW
Slide 25: Divisional Performance (cont'd)
25 Divisional Performance (cont’d) Operating Environment • Wholesale Banking revenues increased 14% y-o-y Balance Sheet Trends Revenue Trends • Loans grew 4% in H1-18 due to growth in services and AED Bn -3% AED Mn +14% trade sectors. Deposits declined 3% as expensive time +4% deposits sourced over
Slide 26: Emirates NBD's core strategy building blocks
26 Emirates NBD’s core strategy is focused on the following building blocks Operating Environment Key Deliver an excellent customer Emirates NBD Profile Objective experience (with digital being the focus) Financial & Operating Performance Strategic Run an Drive Levers Drive core efficient geographic
Slide 27: Highlights of strategic achievements in 2017
Operating Environment 27 Highlights of strategic achievements in 2017 2017 Strategic Priorities Key Achievements 1 Reinforce ENBD’s position as a digital • Won several awards including Most Innovative Financial Services Deliver an innovator in the region via Organization of the Year globally, at BAI
Slide 28: Strategic priorities for 2018
Operating Environment 28 Strategic priorities for 2018 Pillars of our strategy Key focus areas 1 Deliver an excellent Continue to deliver superior customer experience and lead digital innovation in the region via customer experience (with digital being the • Prudent investments in to new digital opp
Slide 29: 2017 & H1 Selected Awards
Operating Environment 29 2017 & H1 Selected Awards Best Retail Bank in the ‘Best Local Investment Bank Middle East’, ‘Best Digital Emirates NBD Profile ‘Most Innovative Bank in the (UAE)’ and ‘Best Equity Bank in Middle East’ and ‘Top banking brand in the House (UAE)’ Middle East’ ‘Best Online Bank
Slide 30: Large Deals Concluded in H1-18
Operating Environment 30 Large Deals Concluded in H1-18 Bank Dhofar Saog Egyptian Electricity Holding Pakistan International Airlines Emirates International T.C. Ziraat Bankasi .A.S. Company Corporation Limited Telecommunications USD 250m USD 616.8m & EUR 240m USD 120m USD 54m AND AED 2,061m USD 452
Slide 31: Investor Relations
Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: IR@emiratesnbd.com
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