Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — H1 2023 Earnings Presentation
17 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, Jul 27, 2023
Slide 1: Results Presentation | H1 2023
Results Presentation | H1 2023 27 July 2023
Slide 2: Important Information
Important Information Disclaimer The material in this presentation is general background information about that could cause actual results, and the Group’s plans and objectives, Emirates NBD's activities current at the date of the presentation. It is to differ materially from those expressed or impl
Slide 3: Executive Summary H1 23 Results Key Metrics and Guidance
Executive Summary H1 23 Results Key Metrics and Guidance Profit Income NIM Record profit of Record income of AED 12.3 bn in AED 21.3 bn in H1-23 on AED 12.3 bn AED 21.3 bn 3.96% H1-23 on higher improved loan & deposit income & strong mix coupled with higher Guidance recoveries interest rates +130% +
Slide 4: Emirates NBD's profit rise 130% YoY to record AED 12.3 bn
Emirates NBD’s profit rise 130% YoY to record AED 12.3 bn on strong diversified income growth and healthy recoveries Income Statement H1-23 H1-22 %∆ YoY Q2-23 %∆ YoY %∆ QoQ (All figures are in AED bn) Key Highlights Net interest income 14.4 9.4 53% 7.2 41% 1% Non-funded income 6.9 4.8 44% 3.6 35% 10
Slide 5: NIMs within guidance range on collective impact of rate rises, loan & deposit mix
NIMs within guidance range on collective impact of rate rises, loan & deposit mix and Turkish operating environment Net Interest Margin (%) 4.40 Key Highlights Quarterly NIM YTD NIM 4.05 3.96 • H1-23 NIM up 110 bps y-o-y due to improved loan & deposit mix and higher interest 3.57 4.05 rates 3.87 • Q
Slide 6: Non-funded Income
Non-funded Income Non-funded income Q2-23 Q2-22 %∆ YoY Q1-23 %∆ QoQ Key Highlights (All figures are in AED m) Fee and Commission income 1,993 1,782 12% 2,016 (1)% • Healthy trend in fee and commission income, 12% higher y-o-y from increased local and international retail card business at both ENBD a
Slide 7: Improving loan and deposit mix
Improving loan and deposit mix Gross Loans by Type (AED bn) 5% Key Highlights 479 • Gross lending up 5% in H1-23 463 457 456 470 - Retail lending up 12% with strong demand across all products 66 73 67 - Corporate lending up 8% on strong origination with fewer repayments 66 69 107 - DenizBank’s TL gr
Slide 8: Credit quality improving with market leading coverage
Credit quality improving with market leading coverage Impaired loans and allowances Key Highlights 6.1 5.8 6.0 5.6 5.6 100% • NPL ratio improved by 0.4% to 5.6% in H1-23 on strong writebacks and recoveries 39.4 39.8 39.3 99% • Coverage ratio strengthened 2% to 147% in H1-23 40 37.7 37.9 98% – S1 cov
Slide 9: Costs firmly controlled with focus on future growth
Costs firmly controlled with focus on future growth Cost to Income Ratio (%) Key Highlights • H1-23 cost to income ratio at 25.6% comfortably within guidance as 28.7% 29.1% continued acceleration of investment for growth supported by higher income 28.2% • Staff costs increased y-o-y to deliver stron
Slide 10: Funding & Liquidity remains very healthy
Funding & Liquidity remains very healthy Advances to Deposit and Liquidity Coverage Ratio (%) Key Highlights 105 217 • LCR of 217% and ADR of 79% demonstrate healthy liquidity 220 ADR % LCR % 100 187 • Liquid assets* of AED 82 billion cover 12% of total liabilities, 15% of deposits 182 95 180 • AED
Slide 11: Capital ratios extremely strong
Capital ratios extremely strong Capital (AED bn) Key Highlights • CET-1 ratio improved by 1.2% to 16.6% during H1-23 as AED 8.9 bn of net earnings more than offset 2% increase in RWAs • Lower RWA density due to high quality Corporate loans added • Capital ratios well above 11% / 12.5% / 14.5% CBUAE
Slide 12: Divisional Performance
Divisional Performance Operating Segment Metrics H1-23 H1-22 %∆ YoY Key Highlights Income (mn) 7,948 5,670 40% Retail Banking and Wealth Management had an excellent first half with highest ever revenue, strongest ever acquisition of loans and a substantial growth in balance sheet Expense (mn) 1,974
Slide 13: Appendix
Appendix So aE a) IT i 7] ; mrs i i hh ” Eee Lie peut ee oe | ) Soe "7 (Cemen 60 years together
Slide 14: Hyperinflation
Hyperinflation Türkiye Consumer Price Index Key Highlights 190% 38% 110% 1270 1352 1128 1047 978 844 687 571 547 524 505 477 466 Jun-20 Dec-20 Dec-21 Dec-22 Sep-20 Jun-21 Sep-21 Jun-22 Sep-22 Jun-23 Mar-21 Mar-22 Mar-23 • Turkish CPI grew by 190% over preceding three-years and by 38% in the precedin
Slide 15: Financial Results Highlights H1 2023
Financial Results Highlights H1 2023 Excluding DenizBank Income Statement H1-23 H1-22 %∆ YoY Q2-23 %∆ QoQ H1-23 H1-22 %∆ YoY Q2-23 %∆ QoQ H1-23 H1-22 %∆ YoY Q2-23 %∆ QoQ (All figures are in AED bn) Net interest income 14.4 9.4 53% 7.2 1% 12.0 6.4 87% 6.2 5% 2.4 3.0 (20)% 1.1 (21)% Non-funded income
Slide 16: US$ convenience translation
US$ convenience translation Excluding DenizBank Income Statement H1-23 H1-22 %∆ YoY Q2-23 %∆ QoQ H1-23 H1-22 %∆ YoY Q2-23 %∆ QoQ H1-23 H1-22 %∆ YoY Q2-23 %∆ QoQ (All figures are in USD bn) Net interest income 3.9 2.6 53% 2.0 1% 3.3 1.7 87% 1.7 5% 0.7 0.8 (20)% 0.3 (21)% Non-funded income 1.9 1.3 44%
Slide 17: 60 years together
60 years together