Slide 1: Investor Presentation Q1 2021
Investor Presentation Q1 2021 May 2021
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
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 March 2021 Emirates NBD at a Glance USD 189 Bn USD 129 Bn USD 125 Bn Total Assets Gross Customer Loans Total Customer Deposits 13 907 17+ million Countries Branches Customers 3rd 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 17.9%; Loans 22.0%; Deposits 20.2% London 9 1 1 Germany 17 ➢ Largest financial institution in Dubai, 3rd Austria largest in the GCC Turkey Beijing 693 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 • The lifestyle digital bank for millennials - launched its innovative • Mobile wallet ‘contactless’ payments more than doubled in 2020 digital credit card offering a truly customized experience, and personal loans to Liv. customers •
Slide 7: ESG
ESG Key Environmental developments Social investment Go Paperless program: in Feb 2020 we launched our sustainability program aligned ➢ 1500+ staff trained on Disability Etiquette and Sign Language with the Dubai Paperless Strategy. ➢ 47 Branches made disability friendly with 20 additional disabilit
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 31 Mar 2021 • A flagship bank for the Government of Dubai and the UAE • Strong and supportive shareholder base from the Government of Dubai via Investm
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, 31-Mar-2021 USD Bn, 31-Mar 2021 USD Bn, 31-Mar 2021 USD Mn, Q1 2021 283 202 203 1,809 256 129 155 1,679 189 106 125 1,588 160 97 112 1,541 137 95 112 1,194 65 796 108 67 Emirates NBD
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 & NPLs (%) CET-1 Ratio (%) USD Mn, Q1 2021 USD Mn, Q1 2021 USD Bn, Q1 2021 31-Mar 2021 31-Mar 2021 NPL% 675 129 15.6 1,679 125.1 6.1 633 106 6.5 13.7 1,194 112.0 796 305 67 13.4 104.2 4.9 776 232 56 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% 12.9% 6.3 6.1 4.7 4.1 4.2 3.9 4.0 4.0 3.2 2.6 2.7 2.8 2.7 2.3 1.9 2.0 1.9 1.7 1.4 0.9 0.6 0.7 0.7 0.6 2010 2011 2012 2013 2014 20
Slide 12: Emirates NBD delivers higher profits and maintains strong balance sheet in Q1 2021
Emirates NBD delivers higher profits and maintains strong balance sheet in Q1 2021 Key Metrics 2021 Macro themes 2021 Regional Global Q1 2021 Guidance Profit Net Profit NIM USD 0.6bn +12% y-o-y 2.46% Insert subtitle Emirates NBD maintains good profitability• UAE 2.35-2.45% and non-oila strong GDP ba
Slide 13: Q1 2021 Financial results highlights
Q1 2021 Financial results highlights Highlights Key performance indicators • Total income up 25% q-o-q due to increased transactional activity during Q1-21 and Better / Better / higher NIMs. Total income down 10% y-o-y as higher non-funded income was offset by USD million Q1-21 Q1-20 Q4-20 (Worse) (
Slide 14: Net interest income
Net interest income Highlights Net Interest Margin (%) • Q1-21 NIM increased by 4 bps to 2.46% as improved deposit mix more than offset the expected decline in DenizBank NIMs Qtrly NIM YTD NIM • Loan yields were stable q-o-q reflecting modest change in short term interest rates in 3.11 recent quarte
Slide 15: Loans and deposits trends
Loans and deposits trends Highlights Trend in Gross Loans by Type (USD billion) • Gross loans declined 1% in Q1-21 due to repayments of corporate loans including loans DenizBank Retail 0% receiving support and the FX translation impact on DenizBank’s loan book Corporate Islamic* -1% • Retail lending
Slide 16: Non-funded income
Non-funded income Highlights Composition of Non-Funded Income (USD million) • Core gross income up 77% q-o-q with increased contribution from all sources Better / USD million Q1-21 Q1-20 (Worse) • Core gross income improved q-o-q on higher transaction volumes coupled with increase in foreign exchang
Slide 17: Operating expenses
Operating expenses Highlights Cost to Income Ratio (%) • Q1-21 expenses down 9% q-o-q from the impact of earlier cost management initiatives and lower marketing expenses CI Ratio (YTD) CI Ratio (QTD) • Q1-21 expenses y-o-y improved 9% on lower staff and operating expenses, and lower Target 41.5 cost
Slide 18: Credit quality
Credit quality Highlights Impaired Loan & Coverage Ratios (%) • NPL ratio improved by 0.1% to 6.1% in Q1-21 due to corporate recoveries and DenizBank FX translation 126.6 NPL ratio Coverage ratio 125.8 • Coverage ratio further strengthened to 125.1% during Q1-21 123.9 120.5 125.1 • Q1-21 cost of ris
Slide 19: 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 remains healthy at 1.1% with USD 1.2 bn of impairment allowances Stage 1 Stage 2 Stage 3 • Stage 2 impairment allowances boosted to USD 1.9 bn, strengthening the coverage rati
Slide 20: Capital adequacy
Capital adequacy Highlights Capitalisation 18.5 19.1 18.5 19.0 • CET-1 ratio improved 0.6% during Q1-21 driven by USD 0.6bn of retained earnings and a 17.9 18.5 18.0 17.4 17.9 USD 0.6bn reduction in RWAs 17.4 16.8 17.3 • The decline in RWAs is due to lower Market Risk and the impact from the decline
Slide 21: Funding and liquidity
Funding and liquidity Highlights Advances to Deposit and Liquidity Coverage Ratio (%) • Q4-20 LCR of 165.1% and ADR of 95.0% demonstrate the Group’s continuing healthy LCR (%) ADR (%) liquidity position 250 LCR % ADR % • Liquid assets* of USD 24 billion cover 14% of total liabilities and 19% of depo
Slide 22: 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 94.6% in February % y/y AD Ratio (RHS) Bank Deposits (LHS) Bank Loans (LHS) % 2021 10 • Growth in the UAE bank deposits rose 2
Slide 23: UAE economy expected to grow to 1.4% in 2021
UAE economy expected to grow to 1.4% in 2021 Highlights UAE oil production and prices 3.4 90 • Emirates NBD Research expects the non-oil economy to grow by 3.5% in 2021. UAE oil output (LHS) Brent oil (RHS) 80 • Curbs on oil production will weigh on GDP growth, expected to be 1.4% this year 3.2 70 •
Slide 24: Dubai: reasons for optimism in the second half of the year
Dubai: reasons for optimism in the second half of the year Highlights Dubai Residential transactions • Dubai Land Department figures show that property transaction volumes for Q1-21 Q1 2020 Q1 2021 19 15,000 increased 27% compared to Q1-20 driven by the strong rise in mortgages 13 • In Q1-21, sales
Slide 25: Divisional performance (excluding DenizBank): Retail Banking & Wealth Management
Divisional performance (excluding DenizBank) Retail Banking & Wealth Management • RBWM income up 4% q-o-q as higher volumes drove 14% increase in non funded income Balance Sheet Trends USD billion Income Trends USD million • Net interest income stable compared to the previous quarter and lower y-o-y
Slide 26: Divisional performance (excluding DenizBank): Corporate and Institutional Banking
Divisional performance (excluding DenizBank) Corporate and Institutional Banking • CIB income up 8% q-o-q as non funded income improved 26% on higher business Balance Sheet Trends USD billion Income Trends USD million volumes and net interest income improved 2% -3% -11% • Income down 11% y-o-y due t
Slide 27: DenizBank business overview
DenizBank business overview Business Overview Financial Highlights Better / Better / • DenizBank contributed total income of USD 555m and net profit of USD 175m to the USD million Q1-21 Q1-20 Q4-20 (Worse) (Worse) Group for Q1-21 • Q1-21 net cost of risk of 285 bps compared to 430 bps in Q1-20 and 3
Slide 28: Thank you
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