Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — H1 2021 Earnings Presentation
29 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, September 2021
Slide 1: Investor Presentation H1 2021
Investor Presentation H1 2021 September 2021 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. Economic Environment 4. Divisional Performance 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 June 2021 Emirates NBD at a Glance USD 189 Bn USD 129 Bn USD 125 Bn Total Assets Gross Customer Loans Total Customer Deposits 13 905 17+ million Countries Branches Customers 4th 2nd ~20% Largest in GCC Largest in the UAE Market
Slide 5: Emirates NBD at a glance
Emirates NBD at a glance Emirates NBD’s International Presence Market share in the UAE* Moscow ➢ Assets 17.8%; Loans 22.6%; Deposits 20.2% London 9 1 1 Germany 17 ➢ Largest financial institution in Dubai, 3rd Austria largest in the GCC Turkey Beijing 690 1 ➢ Leading retail banking franchise with a b
Slide 6: Leader in Digital Banking and Innovation
Leader in Digital Banking and Innovation Key Digital Developments • Mobile wallet ‘contactless’ payments continues to strengthen with 86% of all • The lifestyle digital bank for millennials - launched its innovative face-to-face card payment transactions digital credit card offering a truly customiz
Slide 7: ESG Performance - Key Sustainability Developments
ESG Performance - Key Sustainability Developments Key Environmental developments Community Outreach ‘Go Paperless initiative’ Philanthropy • Aligned with the Dubai Paperless Strategy • Total Donation: USD 1.3 million • 40% reduction in paper consumption in 2020 • Electronic Devices donation • 78+ in
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 30 June 2021 • A flagship bank for the Government of Dubai and the UAE • Strong and supportive shareholder base from the Government of Dubai via Invest
Slide 9: Emirates NBD is one of the largest banks in the GCC
Emirates NBD is one of the largest banks in the GCC… Total Assets Total Loans Total Deposits Operating Income USD Bn, 30-Jun-2021 USD Bn, 30-Jun-2021 USD Bn, 30-Jun-2021 USD Mn, H1 2021 288 208 207 3,624 257 136 157 3,542 239 129 157 3,278 189 113 125 3,144 146 106 119 2,607 113 68 68 1,655 Emirates
Slide 10: ...and one of the largest banks in the UAE
…and one of the largest banks in the UAE Operating Income Net Profit Total Loans Coverage Ratio & NPL’s (%) CET-1 Ratio (%) USD Mn, H1 2021 USD Mn, H1 2021 USD Bn, H1 2021 30-Jun 2021 30-Jun 2021 NPL% 3,144 1,459 129 122.5% 6.3% 15.6% 2,609 1,304 113 118.1% 6.4% 14.5% 1,656 688 68 117.0% 4.7% 13.3%
Slide 11: 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% 18.8% 20.3% 16.5% 9.5% 13.1% 6.3 6.1 4.7 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 1.9 1.4 1.3 0.9 0.6 0.7 0.7 2010 2011 2012 2013 2014 20
Slide 12: Emirates NBD delivers higher profits in H1 2021 on improving economic conditions
Emirates NBD delivers higher profits in H1 2021 on improving economic conditions Key Metrics 2021 Macro themes 2021 Regional Global H1 2021 Guidance USD 1.3bn Net Profit +17% y-o-y • UAE non-oil GDP expected to grow • Improved global indicators of Profit NIM 2.45% 2.40-2.50% by 3.5%, boosting overal
Slide 13: H1 2021 Financial results highlights
H1 2021 Financial results highlights Highlights Key performance indicators • Total income up 9% over the preceding half year due to increased transactional activity Better / Better / USD million H1-21 H1-20 H2-20 during H1-21 and stable NIMs. Total income down 9% y-o-y as higher non-funded (Worse) (
Slide 14: Q2 2021 Financial results highlights
Q2 2021 Financial results highlights Highlights Key performance indicators • Total income down 6% y-o-y on lower NIMs and lower non-funded income. Total income Better / Better / USD million Q2-21 Q2-20 Q1-21 down 13% q-o-q on lower non-funded income from DenizBank. (Worse) (Worse) - Net interest inc
Slide 15: Net interest income
Net interest income Highlights Net Interest Margin (%) • Q2-21 NIM declined 2 bps q-o-q to 2.44% as: - Loan yields declined 4 bps reflecting a 1 and 5 bps fall in 1 & 3-month EIBOR Qtrly NIM 3.11 - Funding costs improved 9 bps on higher CASA balances 3.02 YTD NIM 2.83 - Treasury yields declined 6 bp
Slide 16: Loans and deposits trends
Loans and deposits trends Highlights Trend in Gross Loans by Type (USD billion) • Gross loans grew 1% in Q2-21 with Corporate, Retail and Islamic all registering growth DenizBank Retail -1% • Gross loans declined 1% in H1-21 due to currency translation of DenizBank’s loans Corporate Islamic* +1% • R
Slide 17: Non-funded income
Non-funded income Highlights Composition of Non-Funded Income (USD million) • Q2-21 core gross income up 6% y-o-y on higher transaction volumes and increased Better / Better / USD million Q2-21 Q2-20 Q1-21 income from trade finance, brokerage and asset management (Worse) (Worse) • Core gross income
Slide 18: Operating expenses
Operating expenses Highlights Cost to Income Ratio (%) • Q2-21 expenses improved 3% y-o-y due to lower staff and operating expenses CI Ratio (YTD) CI Ratio (QTD) following earlier cost management exercises Target 41.5 • Q2-21 expenses up 2% q-o-q due to incentives related to strong retail growth and
Slide 19: Credit quality
Credit quality Highlights Impaired Loan & Coverage Ratios (%) 130 126.6 NPL ratio Coverage ratio 122.5 7.5 • NPL ratio increased marginally by 0.1% to 6.3% in H1-21 due to stage migrations 125.8 125.1 • Coverage ratio strengthened to 122.5% during H1-21 125 7.0 120.5 119.6 • H1-21 cost of risk decre
Slide 20: Impairment allowances and Stage 1, 2 and 3 Coverage
Impairment allowances and Stage 1, 2 and 3 Coverage Highlights Impairment allowances and Coverage % • Stage 1 coverage ratio reduced to 0.9%, or USD 1.0 bn of impairment allowances, due to Stage 1 Stage 2 Stage 3 a combination of improved MEVs and stage migrations ECL Allowances (USD billion) *ECL t
Slide 21: Capital adequacy
Capital adequacy Highlights Capitalisation 18.5 19.1 18.5 19.0 18.7 • CET-1 ratio improved 0.6% during H1-21 driven by USD 1.3bn of retained earnings 17.9 18.0 17.4 17.9 17.6 which more than offset the 2% increase in RWAs 16.8 17.3 • USD 0.5 billion increase in CRWAs relates to new CBUAE methodologi
Slide 22: Funding and liquidity
Funding and liquidity Highlights Advances to Deposit and Liquidity Coverage Ratio (%) 200 110 188.8 LCR (%) ADR (%) • LCR of 158.8% and ADR of 95.7% demonstrate the Group’s continuing healthy liquidity LCR % ADR % • Liquid assets* of USD 22.5 billion cover 14% of total liabilities and 18% of deposit
Slide 23: Liquidity within the UAE banking system remains healthy
Liquidity within the UAE banking system remains healthy Highlights Bank loan and deposit growth 12 110 • The gross advances to deposits ratio for the UAE remained healthy at 92.7% in June % y/y AD Ratio (RHS) Bank Deposits (LHS) 2021 10 Bank Loans (LHS) % 105 • Growth in the UAE bank deposits rose 2
Slide 24: UAE economy expected to grow to 1.5% in 2021
UAE economy expected to grow to 1.5% in 2021 Highlights UAE oil production and prices • Emirates NBD Research expects the non-oil economy to grow by 3.5% in 2021 3.4 100 • However, with oil production likely to rise only gradually in H2 2021, the oil sector is likely UAE oil output (LHS) Brent oil (
Slide 25: Dubai: property and tourism sectors continue to recover
Dubai: property and tourism sectors continues to recover in the second half of the year Highlights Dubai Residential transactions 30,000 27,208 • Dubai Land Department figures show that property transaction volumes for H1-21 H1 2020 H1 2021 increased 79% compared to H1-20 driven by the strong rise i
Slide 26: Divisional performance (excluding DenizBank): Retail Banking & Wealth Management
Divisional performance (excluding DenizBank) Retail Banking & Wealth Management • RBWM income up 3% q-o-q and 9% y-o-y as record acquisition volumes led to improved Balance Sheet Trends USD billion Income Trends USD million non-funded income +3% +9% • Net interest income up 2% q-o-q on improved cost
Slide 27: Divisional performance (excluding DenizBank): Corporate and Institutional Banking
Divisional performance (excluding DenizBank) Corporate and Institutional Banking • CIB income down 2% q-o-q as higher non-funded income from investment banking and Balance Sheet Trends USD billion Income Trends USD million trade finance was more than offset by drop in net interest income on lower le
Slide 28: DenizBank business overview
DenizBank business overview Business Overview Financial Highlights Better / Better / • DenizBank contributed total income of USD 903m and net profit of USD 282m to the USD million Q2-21 Q2-20 Q1-21 (Worse) (Worse) Group for H1-21 Net interest income 341 378 (10)% 350 (3)% • DenizBank contributed tot
Slide 29: Thank you Investor Relations
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 29