Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Q3 2023 Earnings Presentation
18 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, Oct 26, 2023
Slide 1: Results Presentation | Q3 2023
Principal Banking Partner Results Presentation | Q3 2023 26 October 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 Q3 23 Results
Executive Summary Q3 23 Results Key Metrics and Guidance Profit Income NIM Record profit of Record income of AED 17.5 bn in AED 32.7 bn in 9M’23 on AED 17.5 bn AED 32.7 bn 4.00% 9M’23 on higher strong loan & deposit income & strong mix coupled with higher Guidance recoveries interest rates +92% +44%
Slide 4: Emirates NBD, the Principal Banking Partner at COP28
Emirates NBD, the Principal Banking Partner at COP28 Delivering ESG Solutions for a greener future Principal Banking Partner Emirates NBD’s COP 28 program Carbon Trading introduced as Recognised as Best Bank for ESG in the UAE at the Euromoney CO2 Emirates NBD becomes 1st UAE Excellence Awards 2023
Slide 5: AED 17.5 bn record profit rises 92% y-o-y on strong diversified income growth
AED 17.5 bn record profit rises 92% y-o-y on strong diversified income growth and healthy recoveries Income Statement 9M’23 9M’22 %∆ YoY Q3-23 %∆ YoY %∆ QoQ (All figures are in AED bn) Key Highlights Net interest income 22.3 15.5 43% 7.8 29% 8% • Group profit up 92% on strong diversified income Non-
Slide 6: NIMs at top-end of guidance
NIMs at top-end of guidance Net Interest Margin (%) 4.40 Key Highlights Quarterly NIM YTD NIM 4.05 4.08 • 9M’23 NIM up 90 bps y-o-y due to improved loan & deposit mix and higher 3.96 interest rates 3.57 4.05 3.87 4.00 • Q3-23 NIM up 21 bps q-o-q on higher DenizBank NIM due to improved loan pricing,
Slide 7: Non-funded Income showing steady growth
Non-funded Income showing steady growth Non-funded income Q3-23 Q3-22 %∆ YoY Q2-23 %∆ QoQ Key Highlights (All figures are in AED m) Fee and Commission income 2,394 1,806 33% 1,993 20% • Healthy trend in fee and commission income from increased local & international retail card business at both ENBD
Slide 8: Strong Loan and Deposit growth
Strong Loan and Deposit growth Gross Loans by Type (AED bn) Key Highlights 8% • Gross lending up 8% in 9M’23 - Retail lending up 16% with strong demand across all products 479 494 457 456 470 - Corporate lending up 15% on strong origination throughout region in Manufacturing, 67 67 Trade, Transport
Slide 9: Credit quality improving with market leading coverage
Credit quality improving with market leading coverage Impaired loans and allowances Key Highlights 5.8 6.0 5.6 5.6 5.5 100% • NPL ratio improved by 0.5% to 5.5% in 9M’23 on strong writebacks and recoveries 99% • Coverage ratio remained healthy at 145% in 9M’23 37.9 39.4 39.8 39.3 39.2 40 98% – S1 co
Slide 10: Costs firmly controlled with focus on future growth
Costs firmly controlled with focus on future growth Cost to Income Ratio (%) Key Highlights 33.0% • 9M’23 cost to income ratio at 25.5% comfortably within guidance as continued acceleration of investment for growth supported by higher income 29.1% • Staff costs increased y-o-y to deliver strong busi
Slide 11: Funding & Liquidity remains very healthy
Funding & Liquidity remains very healthy Advances to Deposit and Liquidity Coverage Ratio (%) Key Highlights 105 ADR % LCR % 217 220 • LCR of 190% and ADR of 80% demonstrate healthy liquidity 100 187 190 182 • Liquid assets* of AED 80 billion cover 11% of total liabilities, 14% of deposits 180 95 15
Slide 12: Capital ratios extremely strong
Capital ratios extremely strong Capital (AED bn) Key Highlights • CET-1 ratio improved by 1.5% to 16.9% during 9M’23 as the AED 14.6 bn increase in net earnings more than offsets a 7% increase in RWAs • Capital ratios well above 11% / 12.5% / 14.5% CBUAE min. requirement • CET-1 at 16.4% excluding E
Slide 13: Divisional Performance
Divisional Performance Operating Segment Metrics 9M'23 9M'22 %∆ YoY Key Highlights Income (mn) 12,057 8,888 36% Retail Banking and Wealth Management continued its excellent performance with its highest Expense (mn) 3,021 2,505 21% ever nine-month revenue, strongest ever acquisition, and substantial
Slide 14: Appendix
Appendix So aE a) IT i 7] ; mrs i i hh ” Eee Lie peut ee oe | ) Soe "7 (Cemen 60 years together
Slide 15: Hyperinflation
Hyperinflation Türkiye Consumer Price Index Key Highlights 254% 62% 119% 1,691 1,352 1,270 1,128 1,047 978 844 687 571 547 524 505 477 Mar-21 Mar-22 Mar-23 Dec-20 Dec-21 Dec-22 Jun-21 Jun-22 Jun-23 Sep-20 Sep-21 Sep-22 Sep-23 • Turkish CPI grew by 254% over preceding three-years and by 62% in the pr
Slide 16: Financial Results Highlights 9M'23
Financial Results Highlights 9M’23 Excluding DenizBank Income Statement 9M’23 9M’22 %∆ YoY Q3-23 %∆ QoQ 9M’23 9M’22 %∆ YoY Q3-23 %∆ QoQ 9M’23 9M’22 %∆ YoY Q3-23 %∆ QoQ (All figures are in AED bn) Net interest income 22.3 15.5 43% 7.8 8% 18.0 10.6 69% 6.0 (3)% 4.3 4.9 (13)% 1.9 73% Non-funded income
Slide 17: US$ convenience translation
US$ convenience translation Excluding DenizBank Income Statement 9M’23 9M’22 %∆ YoY Q3-23 %∆ QoQ 9M’23 9M’22 %∆ YoY Q3-23 %∆ QoQ 9M’23 9M’22 %∆ YoY Q3-23 %∆ QoQ (All figures are in USD bn) Net interest income 6.1 4.2 43% 2.1 8% 4.9 2.9 69% 1.6 (3)% 1.2 1.3 (13)% 0.5 73% Non-funded income 2.8 2.0 46%
Slide 18: years together
60 years together