Emirates NBD Bank (P.J.S.C) · DFM:EMIRATESNBD
Emirates NBD Bank (P.J.S.C) — Emirates NBD — Q3 2009 Earnings Presentation
22 slides from Emirates NBD Bank (P.J.S.C)'s earnings presentation, Oct 26, 2009
Slide 1: Q3 2009 Financial Results
EmiratesNBD Q3 2009 Financial Results 26 October 2009
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: Financial Highlights
Financial Highlights Q3 2009 Net Profit of AED 1,053m; +3% y-o-y and +24% q-o-q Q3 2009 YTD Net Profit of AED 3,164m; -14% y-o-y Income for Q3 2009 +39% y-o-y to AED 2,768m; Q3 2009 YTD income +24% to AED 8,278m NIM improved to 2.52% in Q3 2009 from 2.40% in the previous quarter YTD core cost to inc
Slide 4: Contents
Contents Financial and Operating Performance Strategy and Outlook 4
Slide 5: Q3 2009 Financial Results
Q3 2009 Financial Results Highlights Key Performance Indicators Operating Profit before impairment allowances of AED 1,918m AED million Q3 2009 Q3 2008 Variance up 58% from Q3 2008 of AED 1,211m Net Interest Income 1,845 1,399 +32% down 4% from Q2 2009 of AED 1,992m Fee & Other Income 662 966
Slide 6: Q3 2009 Year-to-Date Financial Results
Q3 2009 Year-to-Date Financial Results Highlights Key Performance Indicators Operating Profit before impairment allowances of AED 5,611m AED million Q3 2009 YTD Q3 2008 YTD Variance – up 36% from Q3 2008 YTD of AED 4,139m Net Interest Income 5,488 4,141 +33% Fee & Other Income 2,251 2,993 -25% Q
Slide 7: Net Interest Margins
Net Interest Margins Highlights Net Interest Margin Trends Q3 2009 YTD Net Interest Margin (NIM) of 2.55% – up 59 bps from 1.96% in Q3 2008 YTD driven by re-pricing of Qtrly NIM assets and benefits of balance sheet management 2.76 – down 3 bps compared to NIM of 2.58% in H1 2009 2.52 2.40 Q3 200
Slide 8: Non-interest Income
Non-interest Income Highlights Composition of Non-interest Income (%) Non-interest income impacted in 2008 and Q1 2009 by decline in 100% = AED 2,790m (Q3 2009 YTD) global asset valuations and mark to markets on investment and other securities Dividend Other Income, 4% Rental income, 5% income, 1%
Slide 9: Operating Costs and Efficiency
Operating Costs and Efficiency Highlights Cost to Income Ratio Trends The cost to income ratio declined by 5.7% from 37.9% in Q3 2008 YTD Cost:income ratio to 32.2% in Q3 2009 YTD Core cost:income ratio The core cost to income ratio declined by 0.9% from 35.4% in Q3 2008 YTD to 34.5% in Q3 2009
Slide 10: Asset Quality
Asset Quality Loans and Receivables and Islamic Financing Highlights Loan Portfolio by Sector – Q3 2009 Loan portfolio is balanced and well secured 100% = AED 223.3b Transport and Credit quality remains robust across the Bank’s corporate and retail Contracting, 4% communication, 3% portfolios Ma
Slide 11: Capital and Funding
Capital and Funding Capital Adequacy Funding Capital adequacy ratio at 19.9% in Q3 2009 (FY 2008: 11.4%; Q2 Liquidity in the UAE Banking system improved in 2009 YTD, helped by 2009: 19.0%) various Federal Government initiatives, including an additional Ministry of Finance (MOF) deposit in Q3 200
Slide 12: Divisional Performance
Divisional Performance AED billion AED million Wholesale banking recorded a successful 9 months +56% 173 Wholesale 158 Key focus during the period was on balance sheet optimisation, continued proactive Banking 4,447 management of credit quality, building non-risk based and fee generating busines
Slide 13: Contents
Contents Financial and Operating Performance Strategy and Outlook 13
Slide 14: Merger Update
Merger Update Integration fully on track We have achieved major milestones during the last year Emirates NBD’s Large Treasury team moved to one Mobile and Online Banking integrated; New Core Banking Successful integration of 92 Corporate Unit (LCU) premise. Now working as a single enhanced functiona
Slide 15: Strategic Imperatives
Strategic Imperatives Objectives Evidence of success in Q3 2009 YTD Prudent lending growth Capital Adequacy Ratio strengthened to 19.9% from 11.4% – Support growth of important Group relationships in line at end-2008 with targeted asset/deposit ratios Tier 1 increased to 12.7% from 9.4% at end
Slide 16: Emerging Stronger from the Crisis
Emerging Stronger from the Crisis Strengthened senior management team structure Governance Investor communication / disclosures Enhanced risk management and controls Enhanced trade finance & cash management offering in WB Products Leverage asset management, investment banking, insurance &
Slide 17: Emirates NBD Investment in IT systems
Emirates NBD Investment in IT systems Almost AED 250m invested during 2008 and 2009 in state of the art applications AED 163 million New core banking platform for EBI went live in May 2009 and implementation investment for NBD expected in November 2009 1 Finacle Finacle provides reduced complexi
Slide 18: Al Barsha Centre
Al Barsha Centre Specifications and Features Units Housed Al Barsha center Operations processing unit – Commenced in December 2005 – Remittances – Completed: in June 2008 – Treasury – Investment of c. AED 100 million – Account opening Built up area of c.320,000 sq ft – Payroll processing – 3 f
Slide 19: Data Centre
Data Centre Highlights Investment of c. AED 50 million Designed as a “Lights out” data center High availability design – Built –in Redundancy – Availability of more than 99.98% Adhering to the TIA 942 Tier 3 standards Hosts an array of state-of-the-art technologies – Computing infrastructu
Slide 20: Outlook
Outlook In 2009 the external environment combined with liquidity tightening and weakening demand should bring UAE GDP growth towards 0% before recovering modestly to c.3% in 2010. Q3 2009 witnessed continued signs of stabilisation in the local and international economies and improved financial m
Slide 21: Summary
Summary Strong Q3 Financial Results with Net Profit of AED 1,053m; +3% y-o-y and +24% q-o-q NPL ratio at 1.88% with trajectory in line with expectations Significant improvement in liquidity metrics, with LTD down to 118% in Q3 from 127% in Q2 Capitalisation very strong at 19.9% CAR and 12.7% Tier 1
Slide 22: Investor Relations
Investor Relations PO Box 777 ENBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: IR@emiratesbank.com Ben Franz-Marwick Head, Investor Relations Tel: +971 4 201 2604 Email: bernhardf@emiratesbank.com Chaden Boustany Investor Relations Analyst Tel: +971 4 201 2628 Email: ChadenB@emirat