Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Q1 2020 Earnings Presentation
17 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, Apr 20, 2020
Slide 1: Q1 2020 Results Presentation
Emirates NBD Q1 2020 Results Presentation 20 April 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 maintains strong balance sheet and good profitability despite increased impairments in Q1-20
Emirates NBD maintains strong balance sheet and good profitability despite increased impairments in Q1-20 Key Metrics 2020 Macro themes 2020 Regional Global Q1 2020 Guidance AED 2.1 Bn Net Profit +3% q-o-q • Strong measures by -24% y-o-y Governments and Profit • Strong regulatory Central Banks to NI
Slide 4: Q1 2020 Financial results highlights
Q1 2020 Financial results highlights Highlights Key performance indicators • Net profit of AED 2,081 Mn was down 24% y-o-y, or 43% excluding AED Mn Q1-20 Q1-19 Better / Q4-19 Better / DenizBank, mainly due to higher provisions. Net profit up 3% q-o-q (Worse) (Worse) • Results include DenizBank reven
Slide 5: Net interest income
Net interest income Highlights Net Interest Margin (%) • Q1-20 NIM of 3.02% increased 19 bps y-o-y as higher margins from DenizBank coupled with improved deposit and funding costs offset the reduction in loan yields 3.11 Qtrly NIM YTD NIM 3.02 • Excluding DenizBank, Q1-20 NIM of 2.56% declined 27 bp
Slide 6: Funding and liquidity
Funding and liquidity Highlights Advances to Deposit and Liquidity Coverage Ratio (%) • Q1-20 LCR of 149.7% and AD ratio of 94.8% demonstrate the Group’s LCR (%) AD Ratio (%) continuing healthy liquidity 250 100 196.5 195.3 198.8 • Liquid assets* of AED 112 Bn as at Q1-20 (18% of total liabilities a
Slide 7: Loan and deposit trends
Loan and deposit trends Highlights Trend in Gross Loans by Type (AED Bn) • Gross loans grew 2% since start of the year with growth across +30% operating segments +2% DenizBank Consumer • Corporate lending grew 3% from end 2019 due to growth in financial Corporate Islamic* 467 474 institutions sector
Slide 8: Loan composition
Loan composition Net Loans by Geography Q1-20 Gross Loans by Segment Q1-20 Gross Loans by Sector Q1-20 Trans. & com. Agriculture Corporate Trade Construction 2% Fin Institutions 37% 7% Hotels and restaurants Sovereign 2% 4% 5% UAE 3% Sovereign Manufacturing 75% 4% Mgmt of Cos 4% 2% GCC 3% Others **
Slide 9: Credit quality
Credit quality Highlights Impaired Loan & Coverage Ratios (%) • During Q1-20 NPL ratio stable at 5.5% 127.9 128.4 127.4 127.3 126.6 • Coverage ratio improved significantly by 8.2% to 120.5% on higher expected 125.8 123.9 credit loss overlay related to COVID-19 • Net cost of risk increased to 210 bps
Slide 10: 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 Stage 2 Stage 3 • Stage 1 coverage ratio improved to 1.2% from 1.1% in Q1-20 as Stage 1 impairment allowances increased to AED 5.2 bn from AED 4.7 bn ECL Allowances (AED Bn) *ECL to Loan Cover
Slide 11: Non-interest income
Non-interest income Highlights Composition of Non Interest Income (AED Mn) • Core fee income up 46% y-o-y due to the DenizBank acquisition Better / AED Mn Q1-20 Q1-19 (Worse) • Investment securities income declined 36% y-o-y mainly due to changing interest rates Core gross fee income 2,551 1,644 55%
Slide 12: Operating costs and efficiency
Operating costs and efficiency Highlights Cost to Income Ratio (%) • Q1-20 costs increased 47% y-o-y due to the DenizBank acquisition Target CI Ratio (YTD) CI Ratio 36.4 • Excluding DenizBank, costs increased 2% y-o-y mainly due to higher depreciation charges and information technology related costs
Slide 13: Capital adequacy
Capital adequacy Highlights Capitalisation 20.7 21.2 21.2 20.9 18.5 • In Q1-20, capital ratios declined as 2019 dividends and additional 17.9 18.0 18.7 18.9 19.8 risk-weighted assets more than offset the impact of retained earnings 17.4 16.8 15.6 16.6 15.3 14.8 • Capital ratios remain above original
Slide 14: Divisional performance (Excluding DenizBank)
Divisional performance (Excluding DenizBank) Retail Banking & Wealth Management • RBWM income grew 6% y-o-y due to higher net interest income Balance Sheet Trends AED Bn Income Trends AED Mn backed by increased volumes and higher core fee income +1% +6% • Liabilities grew by 1% supported by customer
Slide 15: Divisional performance (Excluding DenizBank)
Divisional performance (Excluding DenizBank) Corporate and Institutional Banking Balance Sheet Trends AED Bn Income Trends AED Mn • CIB income up 2% y-o-y due to a 7% increase in net interest income mainly due to growth in lending activity +11% +2% • Fee income declined 12% y-o-y due to lower lendin
Slide 16: DenizBank Business Overview
DenizBank Business Overview Business Overview Financial Highlights Better / • DenizBank contributed total income of AED 2,255 million and net profit AED Mn** Q1-20 Q4-19 (Worse) of AED 504 million to the Bank for the first three months in 2020 Net interest income 1,571 1,665 (6)% • Operating expense
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