Slide 1: Emirates NBD FY 2019 Results Presentation
Emirates NBD FY 2019 Results Presentation 27 January 2020 2019 Presentation Title 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: Emirates NBD delivered a strong set of results in 2019
Emirates NBD delivered a strong set of results in 2019 Key Metrics 2020 Macro themes 2019 2020 Regional Global FY 2019 Guidance Guidance AED 14.5 Bn Net Profit +44% y-o-y • World Bank forecasts Profit • Expo 2020 to help global economy to NIM 2.75-2.85% 2.89% 2.75-2.85% support demand expand by 2.5%
Slide 4: FY 2019 Financial results highlights
FY 2019 Financial results highlights Highlights Key performance indicators (Including DenizBank from 1st Aug 2019) Better / AED Mn FY 2019 FY 2018 • Net profit of AED 14,504 Mn for 2019 increased 44% y-o-y, or (Worse) 38% excluding DenizBank Net interest income 16,188 12,888 26% • Results include De
Slide 5: Q4-19 Financial results highlights
Q4-19 Financial results highlights Highlights Key performance indicators (Including DenizBank from 1st Aug 2019) Better / Better / AED Mn Q4-19 Q4-18 Q3-19 • Net profit of AED 2,020 Mn for Q4-19 decreased 15% y-o-y (Worse) (Worse) due to higher impairment charge Net interest income 5,065 3,352 51% 4
Slide 6: Net interest income
Net interest income Highlights Net Interest Margin (%) • FY 2019 NIM increased 7 bps y-o-y to 2.89%, helped by higher margins Qtrly NIM from DenizBank 3.11 YTD NIM • Excluding DenizBank, NIMs declined 12 bps on higher average deposit costs for the year 2.89 2.87 2.85 2.83 2.82 2.83 • Q4-19 NIM of 3.
Slide 7: Funding and liquidity
Funding and liquidity Highlights Advances to Deposit (AD) Ratio (%) • LCR of 160% and AD ratio of 92.6% demonstrates continuing 100 healthy liquidity • Liquid assets* of AED 109.3 Bn as at Q4-19 (18% of total liabilities) 95.2 94.4 94.3 94.0 • In 2019, AED 13.3 Bn of term debt issued in 9 currencies
Slide 8: Loan and deposit trends
Loan and deposit trends Highlights Trend in Gross Loans by Type (AED Bn) • Gross loans excluding DenizBank grew 7% since start of the year +32% with growth across all operating segments +2% DenizBank Consumer • Corporate lending grew 8% (27% including DenizBank due to growth Corporate Islamic* 467 i
Slide 9: Loan composition
Loan composition Net Loans by Geography as at 31 Dec 2019 as at 31 Dec 2018 UAE 75% 2% GCC UAE 93% 2% GCC 5% International 23% International Gross Loans by Segment as at 31 Dec 2019 Corporate as at 31 Dec 2018 Corporate 35% 30% Sovereign 43% Sovereign 35% 13% Islamic* 15% Islamic* 17% 12% Retail Ret
Slide 10: Non-interest income
Non-interest income Highlights Composition of Non Interest Income (AED Mn) • Core fee income increased by 32% y-o-y due to higher foreign Better / AED Mn FY 2019 FY 2018 exchange and credit card related income (Worse) • Investment Securities Income improved y-o-y due to higher Core gross fee income
Slide 11: Operating costs and efficiency
Operating costs and efficiency Highlights Cost to Income Ratio (%) • Q4-19 costs increased 66% y-o-y, or 11% excluding DenizBank due to Target CI Ratio (YTD) CI Ratio 36.4 a rise in staff costs, digital transformation, amortization of intangibles and higher depreciation due to IFRS 16 implementation
Slide 12: Credit quality
Credit quality Highlights Impaired Loan & Coverage Ratios (%) • During 2019 the NPL ratio settled at 5.6% as a result of acquisition of 128.4 127.9 127.4 127.3 DenizBank’s loans at fair value 126.6 124.5 125.8 • Net cost of risk increased to 117 bps on higher net impairment charge 123.9 of AED 4,818
Slide 13: Capital adequacy
Capital adequacy Highlights Capitalisation 20.9 22.0 • In Q4-19, capital ratios strengthened as the Rights Issue and retained 21.5 18.5 earnings more than offset the impact of additional RWAs 20.4 17.0 19.8 20.9 17.4 15.9 • Capital ratios remain above the minimum regulatory requirements of 16.6 16.8
Slide 14: Divisional performance (Excluding DenizBank)
Divisional performance (Excluding DenizBank) Retail Banking & Wealth Management • RBWM income increased 8% y-o-y led by higher net interest Balance Sheet Trends Income Trends AED Bn AED Mn income from liabilities and fee income driven by cards, loans and +4% +8% FX • Liabilities grew by 4% backed by
Slide 15: Divisional performance (Excluding DenizBank)
Divisional performance (Excluding DenizBank) Wholesale Banking Balance Sheet Trends Income Trends • WB income increased 2% y-o-y mainly due to higher fee income AED Mn AED Bn • Net interest income was 0.5% higher y-o-y mainly due to growth in lending +13% +2% activity, partially offset by margin com
Slide 16: DenizBank Business Overview
DenizBank Business Overview Business Overview Financial Highlights Aug-Dec • DenizBank contributed total income of AED 3,643 million and net profit AED Mn** H1 2019 FY 2018 2019 of AED 609 million to the Bank for the five months since acquisition Net interest income 2,534 2,461 5,242 • Operating exp
Slide 17: Get in touch.
Get in touch. I N V E S T O R R E L AT I O N S Emirates NBD Head Office I 4th Floor PO Box 777 I Dubai, UAE IR@emiratesnbd.com Tel: +971 4 609 3046 17