Slide 1: H1-14 Results Presentation
H1-14 Results Presentation July 24, 2014 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: H1-14 Financial Results Highlights
H1-14 Financial Results Highlights Highlights Key Performance Indicators • Net profit of AED 2,350 Mn for H1 Better / Better / improved 30% y-o-y. AED Mn H1-14 H1-13 H2-13 (Worse) (Worse) • Net interest income rose 25% y-o-y helped by an improved asset mix due to Net interest income 4,559 3,661 25%
Slide 4: Q2-14 Financial Results Highlights
Q2-14 Financial Results Highlights Highlights Key Performance Indicators • Net profit of AED 1,308 Mn for Q2 Better / Better / improved 35% y-o-y and 25% q-o-q AED Mn Q2-14 Q2-13 Q1-14 (Worse) (Worse) • Net interest income rose 22% y-o-y Net interest income 2,327 1,913 22% 2,232 4% helped by an impr
Slide 5: Net Interest Income
Net Interest Income Highlights Net Interest Margin (%) 2.83 • NIMs improved 3 bps in Q2-14 and improved 33 bps from 2.76 2.75 2.78 2.44% in H1-13 to 2.77% in H1-14 • Loan spreads improved in Q2 and year-on-year due to 2.77 growth in balances of higher yielding retail and Islamic assets 2.62 2.48 • T
Slide 6: Funding and Liquidity
Funding and Liquidity Highlights Advances to Deposit (AD) Ratio (%) • Headline AD ratio of 95.6% comfortably within the 90-100% management target range 102.5 • Liquid assets* of AED 46.9 Bn as at Q2-14 (15.4% of total 102.0 100.6 liabilities) 99.9 99.5 99.2 98.9 • Debt maturity profile comfortably w
Slide 7: Loan and Deposit Trends
Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED Bn) • Gross loans increased by 1% q-o-q +2% and by 2% from end 2013 +1% 259 262 265 • Consumer lending grew 1% q-o-q and 250 254 195 196 197 by 5% from end 2013 188 191 • Islamic financing grew 4% q-o-q and 26 27 28 29 29 by 6% fro
Slide 8: Non-Interest Income
Non-Interest Income Highlights Composition of Non Interest Income (AED Mn) • Non-interest income improved 31% Better / Better / y-o-y and 36% from the previous half AED Mn H1-14 H1-13 H2-13 (Worse) (Worse) year due to a rise in fee income, brokerage income, and income from Core gross fee income 2,17
Slide 9: Operating Costs and Efficiency
Operating Costs and Efficiency Highlights Cost to Income Ratio (%) • Costs increased 10% y-o-y in Q2 due 38.8 to staff and occupancy costs on the back of higher business volumes and 34.5 34.1 the inclusion of the Egyptian business 35.4 • Excluding Egypt, costs only increased 33.9 33.5 31.5 30.3 by 4
Slide 10: Credit Quality
Credit Quality Highlights Impaired Loan & Coverage Ratios (%) • Impaired loans ratio improved by 0.3% q-o-q to 70.1 72.3 76.1 80.1 85.4 13.5% 60.7 64.7 52.7 54.8 57.5 • Net impaired loans decreased by AED 0.2 Bn helped by repayments and recoveries • H1-14 net impairment charge of AED 2.6 Bn driven 1
Slide 11: Capital Adequacy
Capital Adequacy Highlights Capitalisation • CAR and T1 improved by 0.4% and 0.6% 19.6 19.6 respectively in Q2-14 to 19.6% and 15.6% 18.5 19.0 19.2 respectively resulting from: 14.9 15.3 15.0 15.6 14.5 – increase in Tier 1 capital due to retained earnings 42.8 43.6 44.7 43.6 44.4 – modest decrease i
Slide 12: Egyptian Business Overview
Egyptian Business Overview Highlights Financials • Full service commercial banking platform: AED Mn Year 2013 H1-14 (from 9-June-13) • Corporate Banking: focused on large corporate and MNCs; serves c.4,000 clients Net interest income 225 222 • Retail Banking: High growth segment; serves Non-interest
Slide 13: Divisional Performance: Retail Banking & Wealth Management
Divisional Performance • RBWM continued to improve its position Balance Sheet Trends Revenue Trends during the quarter AED Bn AED Mn Wealth Management • Revenue improved 1% q-o-q and 10% y-o-y +5% +10% Retail Banking & 108.6 • Deposits grew 7% from end 2013, driven 101.1 +7% 1,277 1,388 1,406 +1% ma
Slide 14: Divisional Performance (cont'd): Wholesale Banking
Divisional Performance (cont’d) • The decrease y-o-y and q-o-q is due to internal Balance Sheet Trends Revenue Trends management adjustments for term funding and AED Bn AED Mn does not affect total Bank income 0% -3% Wholesale Banking • Loans were broadly stable from end 2013 as new underwriting off
Slide 15: Outlook
Outlook • 2014 GDP growth expectations for the UAE have been revised upwards to 5% due to a strong expansion in the non-oil private sector. • 2014 GDP growth expectations also revised upwards to 5% for Dubai as manufacturing, hospitality, transport and logistics expanded robustly. Also buoyant real
Slide 16: Summary
Summary • Pre-impairment operating profit of AED 4,905 Mn in H1-14, up 35% y-o-y Profitability • Net profit of AED 2,350 Mn improved 30% y-o-y • Total income improved 27% y-o-y to AED 7,042 Mn in H1-14 helped by an improving Income asset mix, efficient funding base and strong fee income • NIMs stabl