Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Q1 2014 Earnings Presentation
16 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, Apr 24, 2014
Slide 1: Q1 2014 Results Presentation
Q1 2014 Results Presentation April 24, 2014 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: Q1 2014 Financial Results Highlights
Q1 2014 Financial Results Highlights Highlights Key Performance Indicators • Net profit of AED 1,042 Mn improved Better / Better / 55% q-o-q and 25% y-o-y AED Mn Q1 14 Q1 13 Q4 13 (Worse) (Worse) • Total income improved 5% q-o-q and Net interest income 2,232 1,748 28% 2,224 0% 27% y-o-y Non-interest
Slide 4: Net Interest Income
Net Interest Income Highlights Net Interest Margin (%) 2.83 • NIMs were broadly stable in Q1 2014 vs. Q4 2013 2.76 2.75 and widened 36 bps from 2.39% in Q1 2013 to 2.75% in Q1 2014 2.63 • Loan spreads improved due to a rise in retail volumes 2.63 coupled with increased margins from the Egyptian 2.47
Slide 5: Funding and Liquidity
Funding and Liquidity Highlights Advances to Deposit (AD) Ratio (%) • Headline AD ratio improved to 95.3% at Q1 2014 helped by a growth in deposits of 5% 102.5 • Liquid assets* of AED 40.7 Bn as at Q1 2014 (13.3% 99.9 102.0 100.6 99.5 of total liabilities) 97.9 99.2 98.9 • Debt maturity profile comf
Slide 6: Loan and Deposit Trends
Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED Bn) • Gross loans increased by 1% q-o-q in +10% Q1 2014 +1% 259 262 250 254 • Consumer lending grew 3% q-o-q 238 191 195 196 with growth spread across all areas 189 including Personal Loans (2%), 181 Mortgages (2%), Credit Cards (3
Slide 7: Non-Interest Income
Non-Interest Income Highlights Composition of Non Interest Income (AED Mn) • Non-interest income improved 17% Better / Better / q-o-q and 25% y-o-y AED Mn Q1 14 Q1 13 Q4 13 (Worse) (Worse) • Quarterly improvement due to a rise in Core gross fee income 1,031 792 30% 895 15% fee income from credit car
Slide 8: Operating Costs and Efficiency
Operating Costs and Efficiency Highlights Cost to Income Ratio (%) • Cost to Income Ratio improved by 7.3% q-o-q to 31.5% 38.8 • Costs increased by 14% y-o-y but 35.2 34.5 35.4 decreased by 14% q-o-q due to a 34.1 number of one-off costs booked in Q4 31.5 33.9 33.5 2013 but not replicated in Q1 2014
Slide 9: Credit Quality
Credit Quality Highlights Impaired Loan & Coverage Ratios (%) • Impaired loans ratio improved by 0.1% q-o-q to 13.8% 73.0 74.1 76.5 81.2 85.7 • Net impaired loans decreased by AED 0.1 Bn helped by 52.7 54.8 57.5 60.7 repayments and recoveries 51.4 • Q1 2014 net impairment charge of AED 1.3 Bn driven
Slide 10: Capital Adequacy
Capital Adequacy Highlights Capitalisation • CAR and T1 declined by 0.4% and 0.3% respectively 19.7 19.6 in Q1 2014 to 19.2% and 15.0% respectively 18.5 19.0 19.2 resulting from: 15.3 15.0 13.5 14.5 14.9 – decrease in Tier 1 capital due to 2013 dividend 43.3 42.8 43.6 44.7 43.6 payment in Q1 2014 9.
Slide 11: Egyptian Business Overview
Egyptian Business Overview Highlights Financials • Full service commercial banking platform: AED Mn Year 2013 Q1 2014 (from 9-June-13) • Corporate Banking: focused on large corporate and MNCs; serves c.4,000 clients Net interest income 225 111 • Retail Banking: High growth segment; serves Non-intere
Slide 12: Divisional Performance: Retail Banking & Wealth Management
Divisional Performance • RBWM continued to improve its position Balance Sheet Trends Revenue Trends during the quarter AED Bn AED Mn Wealth Management • Revenue improved 6% q-o-q and 13% y-o-y +3% +13% Retail Banking & 107.9 • Deposits grew 7% from end 2013, driven 101.1 +7% 1,225 1,308 1,388 +6% ma
Slide 13: Divisional Performance (cont'd): Wholesale Banking
Divisional Performance (cont’d) • Main focus during Q1 2014 was on Balance Sheet Trends Revenue Trends continued strategy evolution by building AED Bn AED Mn center of excellence around key sectors and 0% +12% Wholesale Banking geographic locations to enhance customer service quality and share of wa
Slide 14: Outlook
Outlook • 2014 GDP growth for the UAE expected to be 4.5% due to a strong expansion in the non-oil private sector. • 2014 GDP growth expected to accelerate to 4.7% for Dubai on the back of continued growth in tourism and hospitality, which should boost trade, transport and associated services as wel
Slide 15: Summary
Summary • Pre-impairment operating profit improved 18% q-o-q to AED 2,283 Mn in Q1 2014 Profitability • Net profit of AED 1,042 Mn improved 55% q-o-q • Conservative provisioning with net impairment allowances of AED 1,267 Mn in Q1 Provisions 2014 • Total income improved 5% q-o-q to AED 3,333 Mn in Q
Slide 16: Investor Relations
Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: IR@emiratesnbd.com 16