Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — H1 2020 Earnings Presentation
18 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, Jul 20, 2020
Slide 1: H1 2020 Results Presentation
Emirates NBD H1 2020 Results Presentation 20 July 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 H1-20
Emirates NBD maintains strong balance sheet and good profitability despite increased impairments in H1-20 Key Metrics 2020 Macro themes 2020 H1 2020 Regional Global Guidance AED 4.4 Bn • Strong Government Operating Profit -19% y-o-y and Regulatory support to mitigate • Strong central bank AED 4.1 Bn
Slide 4: H1 2020 Financial results highlights
H1 2020 Financial results highlights Highlights Key performance indicators • Operating profit of AED 4,418 was down 19% y-o-y, or 41% excluding AED Mn H1-20 H1-19 Better / H2-19 Better / DenizBank, mainly due to higher provisions. Operating profit 10% lower (Worse) (Worse) than the preceding half ye
Slide 5: Q2 2020 Financial results highlights
Q2 2020 Financial results highlights Highlights Key performance indicators • Operating profit of AED 2,140 was down 21% y-o-y, or 41% excluding Better / Better / AED Mn Q2-20 Q2-19 Q1-20 DenizBank due to higher provisions. Operating profit was down 6% q-o-q (Worse) (Worse) • Results include DenizBan
Slide 6: Net interest income
Net interest income Highlights Net Interest Margin (%) • Q2-20 NIM of 2.68% declined 4 bps compared to Q2-19 as lower interest rates offset the positive contribution from DenizBank. Qtrly NIM YTD NIM • H1-20 NIM of 2.84% improved 7 bps y-o-y helped by the positive impact from DenizBank. Excluding De
Slide 7: Funding and liquidity
Funding and liquidity Highlights Advances to Deposit and Liquidity Coverage Ratio (%) • Q2-20 LCR of 152.5% and AD ratio of 96.1% demonstrate the Group’s LCR (%) AD Ratio (%) continuing healthy liquidity 250 100 196.5 195.3 198.8 • Liquid assets* of AED 102 Bn as at Q2-20 (17% of total liabilities a
Slide 8: 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 due to growth in +30% Corporate and Islamic financing +2% DenizBank Consumer • Corporate lending grew 3% from end 2019 due to growth in transport Corporate Islamic* 474 475 and comm
Slide 9: Loan composition
Loan composition Net Loans by Geography Q2-20 Gross Loans by Segment Q2-20 Gross Loans by Sector Q2-20 Trans. & com. Agriculture Corporate Trade Construction 2% Fin Institutions 37% 7% 3% 4% 4% Hotels and restaurants UAE Sovereign 3% Sovereign Manufacturing 75% 5% Mgmt of Cos 3% 3% Others ** 2% GCC
Slide 10: Credit quality
Credit quality Highlights Impaired Loan & Coverage Ratios (%) 128.4 • During H1-20 NPL ratio increased from 5.6% to 5.8% 127.4 127.3 126.6 125.8 • Coverage ratio at 116.9% remains strong 123.9 • H1-20 net cost of risk increased to 172 bps (374 bps for DenizBank and 126 120.5 bps Emirates NBD only) o
Slide 11: 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 improved to 1.2% from 1.1% in H1-20 as Stage 1 Stage 1 Stage 2 Stage 3 impairment allowances increased to AED 5.1 bn from AED 4.7 bn • Stage 2 coverage ratio improved to 18.9%
Slide 12: Non-funded income
Non-funded income Highlights Composition of Non-Funded Income (AED Mn) • Core gross fee income declined 33% q-o-q as all sources of fee Better / Better / AED Mn Q2-20 Q2-19 Q1-20 income were adversely impacted by the Covid-19 shutdown (Worse) (Worse) • Core gross fee income up 4% y-o-y as the contri
Slide 13: Operating costs
Operating costs Highlights Cost to Income Ratio (%) CI Ratio (YTD) CI Ratio (QTD) • Q2-20 costs increased 36% y-o-y due to the DenizBank acquisition. 36.4 Excluding DenizBank, costs improved 3% y-o-y mainly due to lower Target 34.0 staff and marketing expenses 32.9 33.5 • Costs improved 5% q-o-q due
Slide 14: Capital adequacy
Capital adequacy Highlights Capitalisation 21.2 21.2 20.9 18.5 • In Q2-20, capital ratios strengthened as retained earnings more than 17.9 18.5 18.7 18.9 19.8 offset the impact of 2019 dividend and additional RWAs 17.4 16.8 17.3 15.6 16.6 15.3 14.8 15.3 • Capital ratios remain above original minimum
Slide 15: Divisional performance (Excluding DenizBank)
Divisional performance (Excluding DenizBank) Retail Banking & Wealth Management Balance Sheet Trends AED Bn Income Trends AED Mn • RBWM income was down 9% y-o-y due to lower fee income as volumes were impacted by the C-19 shutdown +4% -9% • Liabilities grew by 4% supported by customer campaigns and
Slide 16: Divisional performance (Excluding DenizBank)
Divisional performance (Excluding DenizBank) Corporate and Institutional Banking • CIB income was down 3% y-o-y mainly due to lower non-funded income. Balance Sheet Trends AED Bn Income Trends AED Mn Net interest income improved 1% y-o-y due to growth in lending activity +7% -3% • Fee income decline
Slide 17: DenizBank Business Overview
DenizBank Business Overview Business Overview Financial Highlights Better / • DenizBank contributed total income of AED 1,740 million and net profit AED Mn** Q2-20 Q1-20 (Worse) of AED 425 million to the Group for Q2-20 Net interest income 1,387 1,571 (12)% • Operating expenses and impairment allowa
Slide 18: 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 18