Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Q3 2023 Earnings Presentation
41 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, November 2023
Slide 1: Investor Presentation November 2023
Principal Banking Partner Investor Presentation November 2023
Slide 2: Important Information
Important Information Disclaimer that could cause actual results, and the Group’s plans and objectives, to differ materially from those expressed or implied in the forward- The material in this presentation is general background information about looking statements. Emirates NBD's activities current
Slide 3: Emirates NBD Profile
Emirates NBD Profile 6 ees 100 fi
Slide 4: Emirates NBD is a leading bank in the MENAT Region
Emirates NBD is a leading bank in the MENAT Region Region’s AED AED most profitable bank 4th 2nd 17.15 108bn Largest Bank in GCC Largest Bank in UAE US$ 4.8bn in 9M’23 +31.9% YTD By Assets By Assets Share Price Market Cap As of 2 Nov 2023 As of 2 Nov 2023 AED AED AED AED AED 4.00% 32.7bn 17.5bn Net
Slide 5: Emirates NBD at a glance
Emirates NBD at a glance Key Highlights Emirates NBD’s International Presence 1. Largest financial institution in Dubai, 643 Turkey one of the largest and most profitable in GCC 11 Austria 2. Leading retail banking franchise with a branch network of 853 branches throughout the 3 Germany MENAT region
Slide 6: Stable Shareholder Base and Diversified Business Model
Stable Shareholder Base and Diversified Business Model Split of Ownership – Anchored by the Government of Dubai Key Highlights Ownership structure as of September 2023 • A flagship bank for the Government of Dubai and the UAE Others • Strong and supportive shareholder base from the Government of Dub
Slide 7: Leader in Digital Banking and Innovation
Leader in Digital Banking and Innovation Overview Key Digital Developments is Emirates NBD’s digital bank with over 450,000 customers. It • Enhanced everyday banking app ENBD X launched with 150+ services, has been refreshed with a new product portfolio and value including 100+ STPs proposition, foc
Slide 8: Emirates NBD is one of the largest and most profitable banks in the MENAT region
Emirates NBD is one of the largest and most profitable banks in the MENAT region… Total Income Net Profit Total Assets Total Deposits In USD mn In USD mn In USD bn In USD bn 9M’2023 8,909 4,763 326 226 7,830 4,046 323 214 6,924 3,375 274 167 5,592 3,320 228 155 5,462 3,292 214 151 3,323 1,566 146 86
Slide 9: Emirates NBD is a national champion, one of the two largest banks in the UAE
… and Emirates NBD is a national champion, One of the two largest banks in the UAE Total Income Net Profit Total Gross Loans Coverage Ratio & NPLs (%) CET-1 Ratio (%) In AED mn 11 In AED mn In AED bn 9M’2023 As of 30 Sep 2023 NPL% As of 30 Sep 2023 32,719 17,493 500 223 1.5 16.9 20,538 12,395 494 14
Slide 10: Economic Environment
Economic Environment 6 ees 100 fi
Slide 11: Forecasted non-oil GDP growth revised up to 5% in 2023
Forecasted non-oil GDP growth revised up to 5% in 2023 UAE GDP Growth Key Highlights 7.9 • The Dubai PMI rose to a three-month high of 56.1 in September 2023 4.4 2.9 3.6 on strong business outlook 0.7 1.3 1.1 • Dubai tourism flourishing with visitors exceeding 11mn during 2023 • Dubai’s Villa sales
Slide 12: Dubai: Positioning for future growth
Dubai: Positioning for future growth Dubai property prices growth Real estate transactions 60 Villas Apartments 35,000 Existing properties Off plan 40 30,000 25,000 20 20,000 15,000 0 10,000 (20) 5,000 0 Q1 2019 Q3 2019 Q1 2020 Q3 2020 Q1 2021 Q3 2021 Q1 2022 Q3 2022 Q1 2023 Q3 2023 Dubai Tourists D
Slide 13: Financial & Operating Performance
Financial & Operating Performance
Slide 14: Executive Summary Q3 23 Results
Executive Summary Q3 23 Results Key Metrics and Guidance Profit Income NIM Record profit of Record income of AED 17.5 bn in AED 32.7 bn in 9M’23 on AED 17.5 bn AED 32.7 bn 4.00% 9M’23 on higher strong loan & deposit income & strong mix coupled with higher Guidance recoveries interest rates +92% +44%
Slide 15: Consistent profitability due to diversified and resilient business model
Consistent profitability due to diversified and resilient business model Return on Average Tangible Equity (excluding 2019 NI gain) 11% 16% 20% 18% 19% 20% 17% 10% 13% 17% 27% Total Income CAGR (13-9M'23): 14% Net Profit CAGR (13-9M'23): 22% 32.5 32.7 23.2 23.8 22.4 22.7 17.4 15.2 14.7 15.4 17.5 14.
Slide 16: AED 17.5 bn record profit rises 92% y-o-y on strong diversified income growth
AED 17.5 bn record profit rises 92% y-o-y on strong diversified income growth and healthy recoveries Income Statement 9M’23 9M’22 %∆ YoY Q3-23 %∆ YoY %∆ QoQ (All figures are in AED bn) Key Highlights Net interest income 22.3 15.5 43% 7.8 29% 8% • Group profit up 92% on strong diversified income Non-
Slide 17: NIMs at top-end of guidance
NIMs at top-end of guidance Net Interest Margin (%) 4.40 Key Highlights Quarterly NIM YTD NIM 4.05 4.08 • 9M’23 NIM up 90 bps y-o-y due to improved loan & deposit mix and higher 3.96 interest rates 3.57 4.05 3.87 4.00 • Q3-23 NIM up 21 bps q-o-q on higher DenizBank NIM due to improved loan pricing,
Slide 18: Non-funded Income showing steady growth
Non-funded Income showing steady growth Non-funded income Q3-23 Q3-22 %∆ YoY Q2-23 %∆ QoQ Key Highlights (All figures are in AED m) Fee and Commission income 2,394 1,806 33% 1,993 20% • Healthy trend in fee and commission income from increased local & international retail card business at both ENBD
Slide 19: Strong Loan and Deposit growth
Strong Loan and Deposit growth Gross Loans by Type (AED bn) Key Highlights 8% • Gross lending up 8% in 9M’23 - Retail lending up 16% with strong demand across all products 479 494 457 456 470 - Corporate lending up 15% on strong origination throughout region in Manufacturing, 67 67 Trade, Transport
Slide 20: Credit quality improving with market leading coverage
Credit quality improving with market leading coverage Impaired loans and allowances Key Highlights 5.8 6.0 5.6 5.6 5.5 100% • NPL ratio improved by 0.5% to 5.5% in 9M’23 on strong writebacks and recoveries 99% • Coverage ratio remained healthy at 145% in 9M’23 37.9 39.4 39.8 39.3 39.2 40 98% – S1 co
Slide 21: Costs firmly controlled with focus on future growth
Costs firmly controlled with focus on future growth Cost to Income Ratio (%) Key Highlights 33.0% • 9M’23 cost to income ratio at 25.5% comfortably within guidance as continued acceleration of investment for growth supported by higher income 29.1% • Staff costs increased y-o-y to deliver strong busi
Slide 22: Funding & Liquidity remains very healthy
Funding & Liquidity remains very healthy Advances to Deposit and Liquidity Coverage Ratio (%) Key Highlights 105 ADR % LCR % 217 220 • LCR of 190% and ADR of 80% demonstrate healthy liquidity 100 187 190 182 • Liquid assets* of AED 80 billion cover 11% of total liabilities, 14% of deposits 180 95 15
Slide 23: Capital ratios extremely strong
Capital ratios extremely strong Capital (AED bn) Key Highlights • CET-1 ratio improved by 1.5% to 16.9% during 9M’23 as the AED 14.6 bn increase in net earnings more than offsets a 7% increase in RWAs • Capital ratios well above 11% / 12.5% / 14.5% CBUAE min. requirement • CET-1 at 16.4% excluding E
Slide 24: Divisional Performance
Divisional Performance Operating Segment Metrics 9M'23 9M'22 %∆ YoY Key Highlights Income (mn) 12,057 8,888 36% Retail Banking and Wealth Management continued its excellent performance with its highest Expense (mn) 3,021 2,505 21% ever nine-month revenue, strongest ever acquisition, and substantial
Slide 25: ESG Developments
ESG Developments 6 ees 100 fi
Slide 26: Emirates NBD, the Principal Banking Partner at COP28
Emirates NBD, the Principal Banking Partner at COP28 Delivering ESG Solutions for a greener future Principal Banking Partner Emirates NBD’s COP 28 program Carbon Trading introduced as Recognised as Best Bank for ESG in the UAE at the Euromoney CO2 Emirates NBD becomes 1st UAE Excellence Awards 2023
Slide 27: Examples of ENBD's Existing Eligible Green and Social Loans
Examples of ENBD’s Existing Eligible Green and Social Loans Solar Park Construction Circular manufacturing unit Agricultural water treatment plant Circular manufacturing unit which uses 100% waste Large concentrated solar park in UAE paper/cardboard as raw material to produce Large agricultural wast
Slide 28: Emirates NBD Sustainability Strategy
Emirates NBD Sustainability Strategy Emirates NBD commits to both regional and international sustainability development goals which enhances the overall agenda for sustainable business strategy and management approach. Sustainability Approach Sustainability Governance ▪ Emirates NBD’s sustainability
Slide 29: Environmental, Social, and Governance Commitment
Environmental, Social, and Governance Commitment ESG is embedded into the culture, operations and strategy of Emirates NBD. Our ESG commitment are integrated to all our business divisions and across all our subsidiaries, with qualitative and qualitative targets as highlighted below. Environmental So
Slide 30: ESG 2022 Highlights
ESG 2022 Highlights 1st female director Fully operational Smart Green auto loans doubled in 2022. elected to the Board in Green parking Building. 2022. Emcap raised sustainable 25% Transitioning towards electric capital from 20 syndicated Committed to and hybrid fleet vehicles. loan and debt capital
Slide 31: ESG Journey
ESG Journey Emirates NBD’s ESG commitment over the years have enhanced, covering larger and wider aspects of ESG principles. Our journey has been fruitful, and we expect further development in the upcoming years given the plan to standardize the ESG practices and contributions. As part of accelerati
Slide 32: Sustainable Finance Framework
Sustainable Finance Framework Bringing a diverse and robust ESG financing Framework to the market The Framework allows Emirates NBD to issue Green, Social and/or Sustainability debt instruments including Sharia’h compliant financing or investments. Debt instruments issued under the Framework are ful
Slide 33: Strong Second Party Opinion
Strong Second Party Opinion Provided by ISS ESG The Framework is aligned to ICMA principles and in line with best market practices Emirates NBD demonstrates its contribution to sustainability and to the UAE’s government’s sustainable strategies. ICMA Pillars Aligned ✔ ▪ Emirates NBD’s green/social c
Slide 34: Indicative Eligible Asset Portfolio
Indicative Eligible Asset Portfolio Eligible Green Assets Portfolio* Eligible Social Assets Portfolio* Green Buildings 82% Access to Essential Services 87% Renewable Energy 10% Affordable Housing 11% Clean Transportation 3% Pollution Prevention 3% Energy Efficiency 2% Employment Generation & Unemplo
Slide 35: Use of Proceeds: Green Project Categories
Use of Proceeds Green Project Categories UNSDG GBP Category Eligibility Criteria Alignment • New and existing residential, commercial or mixed use buildings that meet the minimum external green building certification level including (but not limited to): • LEED, Leadership in Energy and Environment
Slide 36: Use of Proceeds: Social Project Categories
Use of Proceeds Social Project Categories UNSDG SBP Category Eligibility Criteria Alignment • Financing dedicated to healthcare facilities: • Construction and/or operation of healthcare facilities such as hospitals and primary care facilities, affiliated to the relevant national healthcare system Ac
Slide 37: Appendix
Appendix So aE a) IT i 7] ; mrs i i hh ” Eee Lie peut ee oe | ) Soe "7 (Cemen 60 years together
Slide 38: Hyperinflation
Hyperinflation Türkiye Consumer Price Index Key Highlights 254% 62% 119% 1,691 1,352 1,270 1,128 1,047 978 844 687 571 547 524 505 477 Mar-21 Mar-22 Mar-23 Dec-20 Dec-21 Dec-22 Jun-21 Jun-22 Jun-23 Sep-20 Sep-21 Sep-22 Sep-23 • Turkish CPI grew by 254% over preceding three-years and by 62% in the pr
Slide 39: Financial Results Highlights 9M'23
Financial Results Highlights 9M’23 Excluding DenizBank Income Statement 9M’23 9M’22 %∆ YoY Q3-23 %∆ QoQ 9M’23 9M’22 %∆ YoY Q3-23 %∆ QoQ 9M’23 9M’22 %∆ YoY Q3-23 %∆ QoQ (All figures are in AED bn) Net interest income 22.3 15.5 43% 7.8 8% 18.0 10.6 69% 6.0 (3)% 4.3 4.9 (13)% 1.9 73% Non-funded income
Slide 40: US$ convenience translation
US$ convenience translation Excluding DenizBank Income Statement 9M’23 9M’22 %∆ YoY Q3-23 %∆ QoQ 9M’23 9M’22 %∆ YoY Q3-23 %∆ QoQ 9M’23 9M’22 %∆ YoY Q3-23 %∆ QoQ (All figures are in USD bn) Net interest income 6.1 4.2 43% 2.1 8% 4.9 2.9 69% 1.6 (3)% 1.2 1.3 (13)% 0.5 73% Non-funded income 2.8 2.0 46%
Slide 41: Years together
60 years together