Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Q3 2014 Earnings Presentation
17 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, Oct 22, 2014
Slide 1: Emirates NBD Q3-14 Results Presentation
Emirates NBD Q3-14 Results Presentation Oct 22, 2014 1
Slide 2: Important Information
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 form
Slide 3: Q3-14 YTD Financial Results Highlights
Q3-14 YTD Financial Results Highlights Highlights Key Performance Indicators • Net profit of AED 3,913 Mn for Q3-14 YTD improved 51% Better / y-o-y AED Mn Q3-14 YTD Q3-13 YTD (Worse) • Net interest income rose 19% y-o-y helped by an improved asset mix due to retail and Islamic growth, a lower cost o
Slide 4: Q3-14 Financial Results Highlights
Q3-14 Financial Results Highlights Highlights Key Performance Indicators • Net profit of AED 1,563 Mn for Q3 improved 102% y-o-y and 20% q-o-q Better / Better / AED Mn Q3-14 Q3-13 Q2-14 • Net interest income rose 9% y-o-y helped (Worse) (Worse) by an improved asset mix due to retail and Islamic grow
Slide 5: Net Interest Income
Net Interest Income Highlights Net Interest Margin (%) 2.95 • NIMs improved 17 bps in Q3-14 and improved 25 bps from 2.58% in Q3-13 YTD to 2.83% in Q3-14 YTD 2.83 2.83 2.76 2.78 • Loan spreads improved in Q3 and y-o-y due to 2.75 growth in higher yielding retail and Islamic assets 2.77 • Deposit spr
Slide 6: Funding and Liquidity
Funding and Liquidity Highlights Advances to Deposit (AD) Ratio (%) • AD ratio of 99.2% within 90-100% management target range (97.3% excluding IPO leverage settled subsequent 118.5 to the quarter) • Liquid assets* of AED 45.4 Bn at Q3-14 (14.7% of total 105.1 102.0 liabilities) 99.5 99.2 98.1 • Emi
Slide 7: Loan and Deposit Trends
Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED Bn) • Gross loans increased by 3% q-o-q +5% and by 5% from end 2013 272 +3% 259 262 265 • Consumer lending grew 13% q-o-q 221 223 228 235 238 250 254 and by 18% from end 2013, 216 218 200 205 175 178 180 188 191 195 196 197 tempora
Slide 8: Non-Interest Income
Non-Interest Income Highlights Composition of Non Interest Income (AED Mn) • Non-interest income improved 39% Better / y-o-y due to a rise in all sources of fee AED Mn Q3-14 YTD Q3-13 YTD (Worse) income and income from sale of Core gross fee income 3,236 2,480 30% properties and investment securitie
Slide 9: Operating Costs and Efficiency
Operating Costs and Efficiency Highlights Cost to Income Ratio (%) • Costs increased 2% y-o-y in Q3 but 38.8 decreased 1% q-o-q • Cost to Income Ratio improved by 34.1 1.4% q-o-q to 27.9% due to strong 35.4 31.5 income growth and a control on costs. 33.5 30.3 29.5 Adjusted for one-offs Cost to Incom
Slide 10: Credit Quality
Credit Quality Highlights Impaired Loan & Coverage Ratios (%) • NPL ratio improved by 0.9% q-o-q to 12.6% 80.1 85.4 92.0 76.1 • Net impaired loans decreased by AED 1.4 Bn in Q3 59.8 66.2 57.5 60.7 64.7 70.3 49.4 helped by repayments and recoveries 43.4 • Q3-14 YTD net impairment charge of AED 3.8 Bn
Slide 11: Capital Adequacy
Capital Adequacy Highlights Capitalisation • CAR improved by 0.8% and Tier 1 ratio improved by 1.6% 20.4 in Q3 due to: 19.0 19.6 19.2 19.6 15.6 17.2 – Issuance of $500m Tier 1 notes and retained earnings 14.9 15.3 15.0 43.6 44.7 43.6 44.4 45.7 – Repayment of AED 4.8 billion of MOF Tier 2 deposits 9.
Slide 12: Egyptian Business Overview
Egyptian Business Overview Highlights Financials • Full service commercial banking platform: AED Mn Year 2013 Q3-14 YTD (from 9-June-13) • Corporate Banking: focused on large corporate and MNCs; serves c.4,000 clients Net interest income 225 347 • Retail Banking: High growth segment; serves Non-inte
Slide 13: Divisional Performance: Retail Banking & Wealth Management, Islamic Banking
Divisional Performance • Revenue improved 5% y-o-y and remained Balance Sheet Trends Revenue Trends stable q-o-q. AED Bn AED Mn Wealth Management • Deposits grew 9% from end 2013 driven by +19% +5% Retail Banking & CASA growth 110.5 1,341 1,406 1,411 101.1 0% • Loans grew 19% from end 2013 driven by
Slide 14: Divisional Performance (cont'd): Wholesale Banking
Divisional Performance (cont’d) • Wholesale Banking revenues declined 8% Balance Sheet Trends Revenue Trends q-o-q but grew 10% y-o-y AED Bn AED Mn • Loans dropped by 1% from end 2013 as -1% +10% Wholesale Banking normal loan repayments offset new 187.6 186.6 1,349 underwriting 1,236 -8% 1,128 354 2
Slide 15: Outlook
Outlook • 2014 GDP growth expectations for the UAE have been revised upwards to 5% due to a strong expansion in the non-oil private sector. • 2014 GDP growth expectations also revised upwards to 5% for Dubai as manufacturing, hospitality, transport and logistics expanded robustly. Buoyant real estat
Slide 16: Summary
Summary • Pre-impairment operating profit of AED 7,675 Mn in Q3-14 YTD, up 34% y-o-y Profitability • Net profit of AED 3,913 Mn improved 51% y-o-y • NPL ratio improved by 0.9% to 12.6% in Q3-14 due to strong recoveries Credit Quality • Net impairment allowances of AED 3,831 Mn in Q3-14 YTD have boos
Slide 17: Investor Relations
Investor Relations PO Box 777 Emirates NBD Head Office 4th Floor, Group Finance Dubai, UAE Email: IR@emiratesnbd.com 17