Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — H1 2015 Earnings Presentation
16 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, Jul 15, 2015
Slide 1: H1 2015 Results Presentation
H1 2015 Results Presentation July 15, 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: H1-15 Financial Results Highlights
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) • Net interest income rose 9% y-o-y due to growth in Retail assets and a lower cost of Net interest income 4,9
Slide 4: Q2-15 Financial Results Highlights
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) • Net interest income remained flat as loan Net interest income 2,497 2,327 7% 2,485 0%
Slide 5: Net Interest Income
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 experienced downward pressure 2.76 2.78 2.76 2.75 2.85 • Positive contribution from deposits as rat
Slide 6: Funding and Liquidity
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 liabilities) 102.0 • Debt & Sukuk term funding has grown to 11% of total liabilities 98.1 99.5 99.2 • Matur
Slide 7: Loan and Deposit Trends
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% 272 271 279 265 267 • Islamic financing grew 13% since end 235 259 262 2014 216 205 178 195 196 197 200 201 202 207 • Consumer lending grew
Slide 8: Non-Interest Income
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) year Core gross fee income 2,457 2,177 13% 2,147 14% • Higher income driven by increases in Fees
Slide 9: Operating Costs and Efficiency
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 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-o-q to 31.2% due to a higher staff 29.3 cos
Slide 10: Credit Quality
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 76.1 80.1 85.4 AED 800 Mn of writebacks and recoveries 70.3 66.2 60.7 64.7 57.5 • Cost of risk continued to fall in Q2-15 with net
Slide 11: Capital Adequacy
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 • Increase in Tier 1 capital from retained earnings more 15.6 17.2 18.0 17.5 18.0 47.5 than offset modest increase in risk weighted assets 44.4 45
Slide 12: Divisional Performance: Retail Banking & Wealth Management
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, Cards and Mortgages +1% •
Slide 13: Divisional Performance (cont'd): Wholesale Banking
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 1,240 • Focus during 2015
Slide 14: Outlook
Outlook • UAE’s GDP growth forecast for 2015 retained at 4.3% • Purchasing Managers’ Index eased to the lowest level in nearly 2 years to 54.7 in June, but is still well above the neutral 50 level • Emirates NBD Dubai Economy Tracker signals robust growth in the non-oil private sector year-to-date,
Slide 15: Summary
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 an efficient funding
Slide 16: Investor Relations
Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: IR@emiratesnbd.com 16