Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — FY2024 Earnings Presentation
39 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, February 2025
Slide 1: Investor Presentation
Investor Presentation February 2025 AED USD
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 that could cause actual results, and the Group’s plans and objectives, information given in summary form and does not pu
Slide 3: Emirates NBD Profile
Emirates NBD Profile ( (niall yay culo Lig Emirates NBD
Slide 4: Emirates NBD is a Leading Bank in the MENAT Region
Emirates NBD is a Leading Bank in the MENAT Region Region’s most AED AED profitable bank 4th 2nd 20.85 132bn Largest Bank in GCC Largest Bank in UAE US$ 6.3bn By Assets By Assets Share Price Market Cap FY’24 As of 31 Jan 2025 As of 31 Jan 2025 AED AED AED AED AED 44.1bn 23.0bn 3.64% Net Interest Mar
Slide 5: Emirates NBD at a glance
Emirates NBD at a glance Key Highlights Emirates NBD’s International Presence 1. Largest financial institution in Dubai, 629 Türkiye one of the largest and most profitable in GCC 11 Austria 2. Leading retail banking franchise with a branch network of 848 branches throughout the 3 Germany MENAT regio
Slide 6: Strong Credit Ratings Reflecting Financial Stability
Strong Credit Ratings Reflecting Financial Stability Strong Credit Ratings A+/A1 Short-term Long-term Outlook A/A2 Moody’s P-1 A2 Positive Fitch F1 A+ Stable A-/A3 CI A1 A+ Stable BBB+/Baa1 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Outlook: Negative Stable Positive Moodys Fitc
Slide 7: Stable Shareholder Base and Diversified Business Model
Stable Shareholder Base and Diversified Business Model Split of Ownership – Anchored by the Government of Dubai Key Highlights Ownership structure as of December 2024 • A flagship bank for the Government of Dubai and the UAE Investment Corporation • Strong and supportive shareholder base from the Go
Slide 8: 2024 Key Achievements and 2025 Strategic Focus
Record financial growth and well-positioned for the future 2024 Key Achievements 2025 Strategic Focus AED 23 bn record profit Six Strategic Pillars Enhance product suite and expand digital platforms to grow wealth management 16% balance sheet growth with market- Deliver an Maintain core market leade
Slide 9: Investment Case
Investment Case Emirates NBD is committed to delivering long-term growth and creating value for its stakeholders through innovation, operational excellence, and strategic expansion. By consistently enhancing its financial performance and capitalizing on opportunities in key markets, the Group is bui
Slide 10: Digital Transformation Journey
Digital Transformation Journey Key Digital Developments Overview is Emirates NBD’s digital-only bank with over 450K customers, • Increased digital adoption to 91% and no. of instant services on ENBD X to focused on fulfilling the unique financial needs of Generation Now. It close to 200. Total regis
Slide 11: Emirates NBD is the Most Profitable Bank in the Region
Emirates NBD is the Most Profitable Bank in the Region Total Income Net Profit Total Assets Coverage Ratio & NPLs (%) CET-1 Ratio (%) In USD mn 11 In USD mn In USD bn FY 2024 As of 31 Dec 2024 NPL% As of 31 Dec 2024 12,017 6,265 357 159 0.8 16.0 11,189 5,651 330 156 3.3 14.7 9,610 5,259 294 110 3.0
Slide 12: Impressive profit growth with strong return on equity
Impressive profit growth with strong return on equity Return on Tangible Equity (excluding 2019 NI gain) 16% 20% 18% 19% 20% 17% 10% 13% 17% 24% 22% Net Profit CAGR (2014-2024): 16% Total Income CAGR (2014-2024): 12% ROTE 10-year average : 18% 43.0 44.1 32.5 23.2 23.8 22.4 23.0 21.5 17.4 15.2 14.7 1
Slide 13: Economic Environment
Economic Environment ( (niall yay culo Lig Emirates NBD
Slide 14: Non-oil GDP growth of 5% expected in 2025
Non-oil GDP growth of 5% expected in 2025 UAE GDP Growth (%) Budget Surplus • Population growth projected at 5.8mn by 2040 7.9 • Government projected surplus of 4% of GDP in 2025 on AED 97.7bn revenue 4.4 5.0 3.6 3.7 • Budget 86.3bn for 2025 1.1 ▪ 46% Infrastructure ▪ 30% Social Development, Health
Slide 15: Dubai: Growth momentum continues
Dubai: Growth momentum continues Dubai Property Prices Growth Real estate Transactions 30 Dubai apartments Dubai villas % Y/Y sales prices 20 10 0 -10 -20 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 Dec-23 Jun-24 Dec-24 Dubai Tourists (in millions) Dubai private school enrollments (in th
Slide 16: Financial & Operating Performance
Financial & Operating Performance
Slide 17: Executive Summary 2024 Results Key Metrics and Guidance
Executive Summary 2024 Results Key Metrics and Guidance Record AED 27 bn Healthy net-interest Profit Profit before tax on Profit Income income growth on strong before tax loan growth & strong loan & deposit mix recoveries propelled by increased AED 27.1 bn AED 23.0 bn AED 44.1 bn regional presence +
Slide 18: AED 27.1 bn record profit before tax rises 15% y-o-y
AED 27.1 bn record profit before tax rises 15% y-o-y on balance sheet growth and healthy recoveries Income Statement FY’24 FY’23 %∆ YoY Q4-24 %∆ YoY %∆ QoQ (All figures are in AED bn) • Profit up 7% y-o-y to a record AED 23 bn on balance sheet growth helped by a wider network and healthy recoveries
Slide 19: 2024 NIM within guidance as rate cuts expected to push 2025 NIM lower
2024 NIM within guidance as rates cuts expected to push 2025 NIM slightly lower Net Interest Margin (%) • FY’24 NIM down 31bps y-o-y to 3.64% on flow through of higher funding costs Quarterly NIM over time due to higher interest rates and competitive loan pricing at ENBD YTD NIM • Q4-24 NIM down 10b
Slide 20: Strong client flows driving fee & commission income growth
Strong client flows driving fee & commission income growth Non-funded income • Healthy trend in Net Fee and Commission Income, up 39% y-o-y from record FY'24 FY'23 %∆ YoY Q4-24 Q4-23 %∆YoY %∆QoQ (AED m) increase in local & international retail card business, highest ever investment banking income, g
Slide 21: Loan and deposit growth momentum continues
Loan and deposit growth momentum continues Gross Loans by Type • Loans up 10% by AED 48bn in 2024 on very strong underlying growth (AED bn) – Record retail lending up 30% with healthy demand across all products 10% – Corporate lending up 9% with AED 88 bn of new origination – KSA delivered 57% loan
Slide 22: Credit quality significantly improved
Credit quality significantly improved Impaired loans and allowances • NPL ratio improved by 1.3% to 3.3% in FY’24 on strong writebacks, recoveries, write-offs and repayments 4.6% 4.4% 4.2% 3.9% 3.3% NPLs 100% • NPLs older than 5-years written off in Q4-24 as per the new UAE credit Coverage 60.0 163%
Slide 23: Costs firmly controlled with focus on future growth
Costs firmly controlled with focus on future growth Cost to Income Ratio (%) • Cost to Income ratio at 31.2% for FY’24, comfortably within guidance, with 36.4% continued investment for growth supported by income • Cost to Income ratio rose to 36.4% in Q4-24 on higher staff costs, accelerated depreci
Slide 24: Funding & liquidity remains very healthy
Funding & liquidity remains very healthy Advances to Deposit and Liquidity Coverage Ratio (%) • LCR of 197% and ADR of 75% demonstrating healthy liquidity 85 ADR % LCR % 240 • Liquid assets* of AED 105 bn cover 12% of total liabilities, 16% of deposits • AED 26 bn of term debt and sukuk issued in 20
Slide 25: Total Capital ratio strong at 17.1%
Total Capital ratio strong at 17.1% Capital Progression • 14.7% CET-1 ratio remains very strong in 2024 as retained earnings more than (AED bn) offset 18% growth in RWAs and 100 fils proposed dividend (0.9%) • Credit RWA increase from strong Retail and Corporate loan growth • CET-1 at 14.5% excludin
Slide 26: Divisional Performance
Divisional Performance Operating Segment Metrics FY'24 FY'23 %∆ YoY Retail Banking and Wealth Management had an excellent 2024 with its highest ever revenue, strongest Income (mn) 17,767 16,211 ever acquisition of loans, and substantial growth in balance sheet 10% – AED 67 bn of new loan origination
Slide 27: ESG Development
ESG Development ( (niall yay culo Lig Emirates NBD
Slide 28: Emirates NBD: A Leading Bank in ESG
Emirates NBD: A Leading Bank in ESG Strong regional Sustainable origination credentials, facilitated USD 11.9 billion through Emirates NBD Launch of the Bank's first Sustainable Fixed Term Deposit in line with the Bank's Sustainable ESG Objectives 57 Issuances in 2024 Finance Framework Published the
Slide 29: ESG Forward Journey
ESG Forward Journey Emirates NBD’s ESG commitment over the years have enhanced, covering larger and wider aspects of ESG principles. Our journey has been fruitful, and we expect further development in the upcoming years given the plan to standardize the ESG practices and contributions. • Release of
Slide 30: Emirates NBD Sustainability Strategy
Emirates NBD Sustainability Strategy Emirates NBD commits to both regional and international sustainability development goals which enhances the overall agenda for sustainable business strategy and management approach. Sustainability Approach Sustainability Governance • Emirates NBD’s sustainability
Slide 31: Environmental, Social and Governance Commitment
Environmental, Social and Governance Commitment ESG is embedded into the culture, operations and strategy of Emirates NBD. Our ESG commitment are integrated to all our business divisions and across all our subsidiaries, with qualitative and qualitative targets as highlighted below. Environmental Soc
Slide 32: Sustainable Finance Framework
Sustainable Finance Framework Bringing a diverse and robust ESG financing Framework to the market The Framework allows Emirates NBD to issue Green, Social and/or Sustainability debt instruments including Sharia’h compliant financing or investments. Debt instruments issued under the Framework are ful
Slide 33: Sustainability-Linked Loan (SLL) Financing Bond Framework
Sustainability-Linked Loan (SLL) Financing Bond Framework Bringing an innovative financing Framework to the market to support companies’ sustainability goals Key Highlights and Rationale Framework Overview 1st SLL Financing Bond Framework globally fully aligned with The Framework finance and refinan
Slide 34: Sustainability-Linked Loan (SLL) Financing Bond Framework
Sustainability-Linked Loan (SLL) Financing Bond Framework Bringing an innovative financing Framework to the market to support companies’ sustainability goals Summary Project Evaluation Management of Proceeds Reporting • Emirates NBD’s Sustainable Finance • Proceeds will be managed by Emirates NBD in
Slide 35: Appendix
Appendix ( (niall yay culo Lig Emirates NBD
Slide 36: Financial Results 2024
Financial Results 2024 Excluding DenizBank Income Statement FY’24 FY’23 %∆ YoY Q4-24 %∆ QoQ FY’24 FY’23 %∆ YoY Q4-24 %∆ QoQ FY’24 FY’23 %∆ YoY Q4-24 %∆ QoQ (All figures are in AED bn) Net interest income 32.4 30.1 8% 8.6 1% 25.3 24.1 5% 6.3 (1)% 7.1 6.0 19% 2.3 9% Non-funded income 11.7 12.9 (9)% 2.
Slide 37: US$ convenience translation
US$ convenience translation Excluding DenizBank Income Statement FY’24 FY’23 %∆ YoY Q4-24 %∆ QoQ FY’24 FY’23 %∆ YoY Q4-24 %∆ QoQ FY’24 FY’23 %∆ YoY Q4-24 %∆ QoQ (All figures are in USD bn) Net interest income 8.8 8.2 8% 2.3 1% 6.9 6.6 5% 1.7 (1)% 1.9 1.6 19% 0.6 9% Non-funded income 3.2 3.5 (9)% 0.7
Slide 38: Hyperinflation
Hyperinflation 291% DenizBank Profitability Progression 44% 72% 2,685 2,526 2,319 2,139 1,859 1,691 1,352 1,270 1,128 1,047 978 844 687 Jun-22 Dec-21 Dec-22 Dec-23 Dec-24 Jun-23 Jun-24 Sep-22 Sep-23 Sep-24 Mar-22 Mar-23 Mar-24 • Turkish CPI grew by 44% FY 2024 and by 291% over preceding three-years
Slide 39: For additional information
For additional information: IR@emiratesnbd.com www.emiratesnbd.com/en/investor-relations