Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Investor Presentation (June 2018)
30 slides from Emirates Nbd Bank (p.j.s.c)'s investor presentation, June 2018
Slide 1: Emirates NBD Investor Presentation
Emirates NBD Investor Presentation May / June 2018
Slide 2: Important Information
2 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 for
Slide 3: UAE Economic Update
Operating Environment 3 UAE Economic Update Highlights Real GDP growth forecasts • Oil production declined 2.5% in Q1 relative to 2017 average 2013 2014 2015 2016 2017F 2018F output. Compliance with OPEC targets has been higher than S. Arabia 2.7 3.7 4.1 1.7 -0.5 2.5 expected, and if sustained, this
Slide 4: Dubai Economic Update (1/3)
Operating Environment 4 Dubai Economic Update (1/3) Highlights Composition of Dubai GDP • The headline Dubai Economy Tracker Index eased further in Dubai GDP by Sector (%) – FY-17 March to 55.3, still well above the neutral 50.0 level and indicating a solid expansion in the non-oil private sector la
Slide 5: Dubai Economic Update (2/3)
Operating Environment 5 Dubai Economic Update (2/3) Highlights Dubai Airports passenger traffic • Passenger traffic at the Dubai International Airport (DXB) stood at 16 mn people million tons 440 14.9mn in Jan-Feb 2018, down -0.6% y/y 14 400 • Passenger traffic is expected exceed 90 million in 2018,
Slide 6: Dubai Economic Update (3/3)
Operating Environment 6 Dubai Economic Update (3/3) Highlights Residential property prices • Softness in residential real estate prices continues with apartment 350 prices faring better than villas 300 • Apartment prices were down -6.2% y/y in March, compared with 250 -6.6% y/y in March last year. V
Slide 7: UAE Banking Market Update
Operating Environment 7 UAE Banking Market Update Highlights Bank deposit and loan growth • Bank loans increased by AED 32.7 bn and 2.1% y/y to AED AD ratio (RHS) Bank deposits (% y/y) Bank Loans (% y/y) 1608.1 bn in March 18% 110% • Bank deposits increased by AED 60.4 billion and 3.8% y/y to AED 15
Slide 8: Emirates NBD at a glance
Operating Environment 8 Emirates NBD at a glance A leading bank in the region Largest branch network in the UAE • Market share in the UAE (as at 31 March 2018) Dubai 99 Ras al-Khaimah (5) -Assets 17.5%; Loans 19.3%; Deposits 20.0% Abu Dhabi 25 Sharjah 19 Umm al-Quwain (2) • Leading retail banking fr
Slide 9: Key strengths
Operating Environment 9 Key strengths Size Flagship One of the largest financial institutions by Flagship bank for the Government of Dubai asset size in the GCC (top 3); 2nd largest in the and the UAE, playing a strategic role in UAE developing the economy Emirates NBD Profile Balance Sheet Ownershi
Slide 10: Emirates NBD is the regional leader in digital innovation
Operating Environment 10 Emirates NBD is the regional leader in digital innovation 2012 2015 Introduced Direct Remit to Introduced New Pakistan Remit to ENBD Pay Dynamic IVR Pak in just 60 secs NFC based mobile contactless payment service Introduced Inaugurated Started Direct Remit to FutureLab mult
Slide 11: Emirates NBD is one of the largest banks in the GCC
Operating Environment 11 Emirates NBD is one of the largest banks in the GCC x% 2017 vs. 2016 Assets Loans Deposits Operating Income USD Bn, 2017 USD Bn, 2017 USD Bn, 2017 USD Bn, 2017 Emirates NBD Profile 223 13% 161 12% 161 16% 6.3 0% 182 3% 90 (1%) 108 4% 5.3 (4%) Financial & Operating Performanc
Slide 12: Profit and Balance Sheet Growth in Recent Years
Operating Environment 12 Profit and Balance Sheet Growth in Recent Years Revenues and Costs (AED Bn) Profits (AED Bn) Revenues Costs Pre-Provision Operating Profits Net Profits +7% +4% +8% +27% 15.5 4.9 10.6 8.3 14.4 15.2 14.7 4.4 4.7 4.8 10.1 10.5 9.9 4.2 7.1 7.2 Emirates NBD Profile 11.9 7.7 5.1 1
Slide 13: Emirates NBD delivered a strong set of results in Q1-18
Operating Environment 13 Emirates NBD delivered a strong set of results in Q1-18 Q1 2018 Key Metrics 2018 Macro themes Q1 2018 2018 Guidance Regional Global • Resilience of UAE • Emirates NBD’s economy balance sheet Emirates NBD Profile AED 2.4 Bn Profit Net profit underpinned by positioned to benef
Slide 14: Q1-18 Financial Results Highlights
Operating Environment 14 Q1-18 Financial Results Highlights Highlights Key Performance Indicators Better / Better / • Record quarterly net profit of AED 2,386 Mn for Q1- AED Mn Q1-18 Q1-17 Q4-17 (Worse) (Worse) 18 increased 10% q-o-q and 27% y-o-y Net interest income 2,984 2,486 20% 2,795 7% • Emira
Slide 15: Net Interest Income
Operating Environment 15 Net Interest Income Highlights Net Interest Margin (%) • NIMs continued to improve in Q1-18 as rate rises flowed 2.85 through to the loan book and funding costs remained stable due to healthy liquidity conditions 2.82 2.68 Emirates NBD Profile • Q1-18 NIM of 2.68% improved 1
Slide 16: Non-Interest Income
Operating Environment 16 Non-Interest Income Highlights Composition of Non Interest Income (AED Mn) Better / Better / • Core gross fee income was flat q-o-q and AED Mn Q1-18 Q1-17 Q4-17 improved 4% y-o-y on account of higher fee (Worse) (Worse) income Core gross fee income 1,428 1,373 4% 1,432 (0%)
Slide 17: Operating Costs and Efficiency
Operating Environment 17 Operating Costs and Efficiency Highlights Cost to Income Ratio (%) • Q1-18 costs improved 3% q-o-q as lower marketing, IT and professional fees more 33.7 34.5 than offset a modest increase in staff 32.8 32.6 costs Emirates NBD Profile 32.0 33.1 32.0 • Costs increased 14% y-o
Slide 18: Credit Quality
Operating Environment 18 Credit Quality Highlights Impaired Loan & Coverage Ratios (%) • 124.5 127.9 NPL ratio improved to 6.0% in Q1-18 120.1 122.5 123.5 124.9 111.5 • Impaired loans were unchanged at AED 20.3 Bn during Q1- 99.6 18 helped by AED 655 Mn of write backs & recoveries 76.1 66.2 Emirates
Slide 19: Capital Adequacy
Operating Environment 19 Capital Adequacy Highlights Capitalisation • In Q1-18, CET 1 and Tier 1 ratios were broadly flat q-o-q as BASEL II BASEL III 20.2 20.7 21.2 21.2 20.3 the increase in Tier 1 capital from retained earnings offset 18.3 18.9 19.0 the impact of IFRS 9 17.8 18.8 • CAR decreased 0.
Slide 20: Funding and Liquidity
Operating Environment 20 Funding and Liquidity Highlights Advances to Deposit (AD) Ratio (%) • Liquidity Coverage Ratio (LCR) of 152.9% and AD ratio of 118.5 93.8% demonstrates healthy liquidity position • Liquid assets* of AED 68.6 Bn as at Q1-18 (16.4% of total 105.1 liabilities) 102.0 Emirates NB
Slide 21: Loan and Deposit Trends
Operating Environment 21 Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED Bn) +2% • Gross loans grew 2% in Q1-18 with growth mainly from consumer and 337 Islamic lending 320 329 329 329 310 314 315 303 • Corporate lending grew 2% since year- 294 221 225 226 227 233 242 242 243 24
Slide 22: Loan Composition
Operating Environment 22 Loan Composition Total Gross Loans (AED 337 bn) Corporate Loans (AED 104 bn) Treasury/Other Corporate Trans. & com. Cont. Retail 104 2% 36 Trade (31%) 5% RE (11%) 0 14% 34% Emirates NBD Profile (0%) Manuf. 5% 6% 52 Others** 1% 145 (15%) 3% Islamic* Per. - Corp. 5% (43%) Serv
Slide 23: Divisional Performance - Retail Banking & Wealth Management
Operating Environment 23 Divisional Performance • Revenues increased 7% y-o-y Balance Sheet Trends Revenue Trends • Net interest income grew 10% led by liabilities. Fee AED Bn +3% AED Mn +7% income grew 3% supported by FX and cards and Wealth Management represents 36% of total RBWM revenue +1% 0% Re
Slide 24: Divisional Performance (cont'd) - Wholesale Banking
24 Divisional Performance (cont’d) Operating Environment • Wholesale Banking revenues increased 20% y-o-y Balance Sheet Trends Revenue Trends • Loans grew 3% in Q1-18 due to growth in services and AED Bn -4% AED Mn +20% trade sectors. Deposits down 4% as expensive time +3% 4% deposits sourced over y
Slide 25: Emirates NBD's core strategy building blocks
25 Emirates NBD’s core strategy is focused on the following building blocks Operating Environment Key Deliver an excellent customer Emirates NBD Profile Objective experience (with digital being the focus) Financial & Operating Performance Strategic Run an Drive Levers Drive core efficient geographic
Slide 26: Highlights of strategic achievements in 2017
Operating Environment 26 Highlights of strategic achievements in 2017 2017 Strategic Priorities Key Achievements 1 Reinforce ENBD’s position as a digital • Won several awards including Most Innovative Financial Services Deliver an innovator in the region via Organization of the Year globally, at BAI
Slide 27: Strategic priorities for 2018
Operating Environment 27 Strategic priorities for 2018 Pillars of our strategy Key focus areas 1 Deliver an excellent Continue to deliver superior customer experience and lead digital innovation in the region via customer experience (with digital being the • Prudent investments in to new digital opp
Slide 28: 2017 & Q1-18 Selected Awards
Operating Environment 28 2017 & Q1-18 Selected Awards ‘Best Retail Bank in the UAE’, Emirates NBD Capital won ‘Best Retail Bank in the Emirates NBD Profile ‘Banking Company of the ‘Best Local Investment Bank Middle East’, ‘Best Digital ‘Top banking brand in the (UAE)’ and ‘Best Equity Year’ and ‘Ban
Slide 29: Large Deals Concluded in Q1-18
Operating Environment 29 Large Deals Concluded in Q1-18 Emirates Airline Dar Al Arkan Majid Al Futtaim Islamic Development Bank Bank Muscat USD 400m USD 1,250 USD 600m USD 500m USD 500m 5 year Bond 5 years Sukuk Baa2/-/BBB- Emirates NBD Profile 10 year Amortising Sukuk Sub. Perpetual Bond Joint Lead
Slide 30: Investor Relations
Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: IR@emiratesnbd.com