Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Investor Presentation (September 2015)
30 slides from Emirates Nbd Bank (p.j.s.c)'s investor presentation, September 2015
Slide 1: Emirates NBD Investor Presentation
Emirates NBD Investor Presentation September / October 2015 1
Slide 2: Important Information
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 form
Slide 3: UAE Economic Update
Operating Environment UAE Economic Update Highlights Real GDP Growth Forecasts • Official estimates show GDP grew 4.6% in 2014, broadly Country 2010 2011 2012 2013 2014 2015F in line with our forecast. Oil sector growth was 4.0% and UAE 1.6% 5.2% 4.7% 5.2% 4.6% 4.3% non-oil sector growth was 4.8%. W
Slide 4: Dubai Economic Update (1/3)
Operating Environment Dubai Economic Update (1/3) Highlights Dubai: Real GDP growth • Dubai’s economy expanded 3.9% y/y in Q1 2015, slower 6% 4.6% 5% 4.1% than 5.1% growth in Q1 2014. The services sector have 3.5% 3.5% 3.8% 4% 3.0% Emirates NBD Profile enjoyed the strongest growth in Q1 2015, up 5.6
Slide 5: Dubai Economic Update (2/3)
Operating Environment Dubai Economic Update (2/3) Highlights Dubai Airports passenger traffic • Transport and tourism continue to be key drivers of 7.5 mn people thousand tons 240 Dubai’s growth. Passenger traffic through Dubai International 7.0 220 Airport was 10.4% higher in Jan-June 2015 over the
Slide 6: Dubai Economic Update (3/3)
Operating Environment Dubai Economic Update (3/3) Highlights Business Licenses issued* • Residential real estate prices declined at a slower pace 85,000 Business licences % y/y 12 across most sectors on an annual basis, according to 10 81,064 Emirates NBD Profile Cluttons, with mid-range villas down
Slide 7: UAE Banking Market Update
Operating Environment UAE Banking Market Update Highlights Bank deposit and loan growth* • Bank deposit growth slowed in the first seven months of 20 2015, reaching 2.2% y/y in July from 11.1% y/y in December % y/y Bank loans Bank deposits 2014. Total bank deposits increased by AED 13.9bn in Jan- 16
Slide 8: Emirates NBD is a leading banking group in the region and the largest bank in the UAE
Operating Environment Emirates NBD is a leading banking group in the region and the largest bank in the UAE Size • One of the largest financial institutions (by asset size) in the GCC Emirates NBD Profile Flagship • Flagship bank for Dubai Government Ownership • 56% owned by Dubai Government Financi
Slide 9: Emirates NBD at a glance
Operating Environment Emirates NBD at a glance A Leading Bank in the UAE Largest Branch Network in the UAE • Market share in UAE (at 30 Jun 2015): Dubai Abu Dhabi 101 26 Ras al-Khaimah (5) – Assets c.16.2%; Loans c.19.5% Sharjah 17 Umm al-Quwain (2) Other Emirates 12 Emirates NBD Profile – Deposits
Slide 10: Emirates NBD is the largest bank in the UAE
Operating Environment Emirates NBD is the largest bank in the UAE by Operating Income, Net Profit, Loans and Deposits x% H1 2015 vs. H1 2014 in H1 2015 x% H1 2015 vs. Q4 2014 Operating income Net profit Net Loans Total Deposits AED Mn, H1 2015 AED Mn, H1 2015 AED Bn, H1 2015 AED Bn, H1 2015 Emirates
Slide 11: Emirates NBD is among top banks in the GCC
Operating Environment Emirates NBD is among top 3 banks in the GCC by Operating Income, Loans and Deposits in 2014 x% 2014 vs. 2013 Operating income Net Profit Net Loans Deposits USD Bn, 2014 USD Bn, 2014 USD Bn, 2014 USD Bn, 2014 Emirates NBD Profile 93 9% 99 7% 4.3 9% 2.9 11% 67 3% 89 11% 4.2 7% 2
Slide 12: Profit and Balance Sheet Growth in Recent Years
Operating Environment Profit and Balance Sheet Growth in Recent Years Revenues and Costs (AED Bn) Profits (AED Bn) Revenues Costs Pre-Provision Operating Profits Net Profits Emirates NBD Profile +6% +4% +7% +9% 14.4 4.2 4.4 10.1 5.1 11.9 3.6 3.6 3.8 10.8 3.1 7.7 9.7 9.9 10.2 7.1 +41% 7.4 2.3 2.3 6.6
Slide 13: H1-15 Financial Results Highlights
Operating Environment H1-15 Financial Results Highlights Highlights Key Performance Indicators • Net profit of AED 3,317 Mn for H1-15 improved 41% y-o-y Better / Better / AED Mn H1-15 H1-14 H2-14 (Worse) (Worse) Emirates NBD Profile • Net interest income rose 9% y-o-y due to growth in Retail assets
Slide 14: Q2-15 Financial Results Highlights
Operating Environment Q2-15 Financial Results Highlights Highlights Key Performance Indicators • Net profit of AED 1,646 Mn for Q2-15 Better / Better / improved 26% y-o-y and declined 1% AED Mn Q2-15 Q2-14 Q1-15 q-o-q (Worse) (Worse) Emirates NBD Profile • Net interest income remained flat as loan N
Slide 15: Net Interest Income
Operating Environment Net Interest Income Highlights Net Interest Margin (%) 2.95 • NIMs declined to 2.83% in H1-15 and to 2.76% in Q2-15 2.91 2.90 • Loan spreads declined as margins on conventional products 2.83 2.83 2.83 Emirates NBD Profile experienced downward pressure 2.76 2.78 2.76 2.75 2.85 •
Slide 16: Non-Interest Income
Operating Environment Non-Interest Income Highlights Composition of Non Interest Income (AED Mn) • Non-interest income improved 4% Better / Better / y-o-y and 5% from the previous half AED Mn H1-15 H1-14 H2-14 (Worse) (Worse) Emirates NBD Profile year Core gross fee income 2,457 2,177 13% 2,147 14%
Slide 17: Costs and Efficiency
Operating Environment Operating Costs and Efficiency Highlights Cost to Income Ratio (%) • Costs increased by 7% q-o-q and by 33.1 6% y-o-y in Q2-15 due to higher staff Emirates NBD Profile costs linked with rising business 31.2 30.3 volumes 29.5 • Cost to Income Ratio rose by 3.1% 30.4 28.1 29.6 q-
Slide 18: Credit Quality
Operating Environment Credit Quality Highlights Impaired Loan & Coverage Ratios (%) • NPL ratio improved to 7.4% 100.3 103.9 109.8 92.0 • Impaired loans improved to AED 20.6 Bn helped by over 85.4 Emirates NBD Profile 76.1 80.1 AED 800 Mn of writebacks and recoveries 70.3 66.2 60.7 64.7 57.5 • Cost
Slide 19: Capital Adequacy
Operating Environment Capital Adequacy Highlights Capitalisation • CAR increased by 0.5% to 21.0% and Tier 1 ratio 20.4 21.1 20.5 21.0 19.6 increased by 0.5% to 18.0% in Q2-15 Emirates NBD Profile • Increase in Tier 1 capital from retained earnings more 15.6 17.2 18.0 17.5 18.0 47.5 than offset mode
Slide 20: Funding and Liquidity
Operating Environment Funding and Liquidity Highlights Advances to Deposit (AD) Ratio (%) • AD ratio of 93.3% within 90-100% management target range • Liquid assets* of AED 53.4 Bn as at H1-15 (15.7% of total 105.1 Emirates NBD Profile liabilities) 102.0 • Debt & Sukuk term funding has grown to 11%
Slide 21: Loan and Deposit Trends
Operating Environment Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED Bn) • Gross loans grew 4% since end 2014 +4% mainly due to growth in Islamic financing +3% 272 271 279 Emirates NBD Profile 265 267 • Islamic financing grew 13% since end 235 259 262 2014 216 205 178 195 196 1
Slide 22: Loan Composition
Operating Environment Loan Composition Total Gross Loans (AED 279 bn) Corporate Loans (AED 93 bn) Treasury/Other Corporate Cont. Retail 93 Trans. & com. 7% Emirates NBD Profile 28 (33%) 7% RE (10%) 1 33% (0%) Trade 15% 43 (15%) 8% 114 Islamic* Manuf. 2% (41%) 4% Financial & Operating Performance Oth
Slide 23: Divisional Performance
Operating Environment Divisional Performance • Retail business has grown but revenue stable due Balance Sheet Trends Revenue Trends to a change in internal transfer pricing AED Bn -3% AED Mn +1% • Loans grew 4% from end 2014 thanks to growth in Wealth Management +4% Retail Banking & Auto Loans, Card
Slide 24: Divisional Performance (cont'd)
Operating Environment Divisional Performance (cont’d) • Wholesale Banking revenues grew 13% Balance Sheet Trends Revenue Trends y-o-y and remained flat q-o-q AED Bn +13% AED Mn +13% • Loans grew 3% from end 2014 Wholesale Banking +3% 0% • Deposits also grew by 13% from end 2014 187.0 192.9 1,246 1,2
Slide 25: Summary
Operating Environment Summary • Net profit of AED 3.3 Bn for H1-15 improved 41% y-o-y due to positive jaws as income Profitability growth exceeded that of expenses, coupled with lower provisions • Total income rose 7% y-o-y to AED 7.6 Bn helped by an improving asset mix, higher Income fee income and
Slide 26: Emirates NBD's core strategy building blocks
Emirates NBD’s core strategy is focused on the following building blocks Operating Environment Key Deliver an excellent customer Objective experience Emirates NBD Profile Financial & Operating Performance Strategic Run an Drive Levers Drive core efficient geographic business organization expansion S
Slide 27: Strategic priorities for 2015
Strategic priorities for 2015 Priorities Focus Areas Operating Environment 1 • Continue to deliver superior customer experience through better service and product offerings Deliver an • Drive front line cultural/ behavior change excellent customer • Reinforce ENBD’s position as a digital innovator i
Slide 28: 2015 Awards
Operating Environment 2015 Awards • Emirates NBD Capital won ‘Best Sukuk house’ and ‘Best local Investment Bank’ in the UAE at EMEA Finance’s Middle East Banking Awards 2014 • Emirates NBD won ‘Most Innovative Bank’ in Pan-Middle East at EMEA Finance’s Middle East Banking Awards 2014 • Emirates NBD
Slide 29: Large Deals Concluded in 2015
Operating Environment Large Deals Concluded in 2015 FAR EAST HORIZON LIMITED EMIRATES NATIONAL OIL PT BFI FINANCE INDONESIA PUMA INTERNATIONAL FIRSTRAND BANK LIMITED USD 250,000,000 COMPANY LTD. (ENOC) LLC TBK. FINANCING S.A USD 235,000,000 USD 1,500,000,000 USD 50,000,000 USD 1,250,000,000 SECURED
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 30
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