Slide 1: FY 2013 Results Presentation
FY 2013 Results Presentation January 27, 2014 1
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 information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to
Slide 3: FY 2013 Financial Results Highlights
FY 2013 Financial Results Highlights Highlights Key Performance Indicators • Net profit improved 27% to AED 3.3 Bn Better / AED Mn FY 2013 FY 2012 • Dividend of AED 0.25 per share proposed (Worse) • Net interest income improved 18% to AED 8.1 Bn Net interest income 8,139 6,912 18% helped by increase
Slide 4: Net Interest Income
Net Interest Income Highlights Net Interest Margin (%) 2.83 • NIMs contracted by 7 bps in Q4 and widened by 20 2.76 bps from 2.43% during 2013 to 2.63% • Over 2013, Loan spreads improved as retail volumes 2.63 increased in this higher yielding business, coupled with increased margins from the Egypti
Slide 5: Funding and Liquidity
Funding and Liquidity Highlights Advances to Deposit (AD) Ratio (%) • Headline AD ratio improved to 99.5% at end 2013 • AD ratio managed within target range of 95%-105% • Liquid assets* of AED 38.4 Bn as at 31 December 2013 (12.8% of total liabilities) 102.0 102.5 • Debt maturity profile comfortably
Slide 6: Loan and Deposit Trends
Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED Bn) • Continued growth in new underwriting +10% across all business segments with 254 259 10% growth in gross loans in 2013 250 +2% 235 238 and 2% growth in Q4 2013. Egypt 189 191 196 contributed 1% to loan growth in 2013 179 181 •
Slide 7: Non-Interest Income
Non-Interest Income Highlights Composition of Non Interest Income (AED Mn) • Non-interest income improved 5% AED Mn Q4 13 Q3 13 Better / Q4 12 Better / q-o-q and 26% y-o-y (Worse) (Worse) • Quarterly improvement mainly due to Core gross fee income 895 817 10% 693 29% seasonal factors in forex and ra
Slide 8: Operating Costs and Efficiency
Operating Costs and Efficiency Highlights Cost to Income Ratio (%) • Cost to Income Ratio (YTD) improved 39.2 by 1.3% y-o-y to 35.4% 38.8 • Costs increased by 12% in 2013; excluding costs associated with the 35.2 35.4 36.7 34.5 Egyptian business costs increased by 34.1 6% in 2013 33.9 • Higher absol
Slide 9: Credit Quality
Credit Quality Highlights Impaired Loan & Coverage Ratios (%) 81.2 • The impaired loans ratio improved by 0.2% q-o-q to 13.9% 69.8 73.0 74.1 76.5 • Net impaired loans increased by AED 0.2 Bn mainly due to a 49.4 51.4 52.7 54.8 57.5 AED 0.3 Bn increase in impaired loans in the Islamic corporate portf
Slide 10: Capital Adequacy
Capital Adequacy Highlights Capitalisation • CAR and T1 steadily improved by 0.6% and 0.4% in Q4 to 19.6% and 15.3% respectively resulting from: 20.6 19.7 18.5 19.0 19.6 – increase in Tier 1 capital through profit generation 13.8 13.5 14.5 14.9 15.3 – Ongoing issuance of Tier 2 private placements 45
Slide 11: Egyptian Business Overview
Egyptian Business Overview Highlights Financials • Full service commercial banking platform: AED Mn Year 2013 (from 9-June-13) • Corporate Banking: focused on large corporate and MNCs; serves c.4,000 clients Net interest income 224 • Retail Banking: High growth segment; serves Non-interest income 13
Slide 12: Divisional Performance
Divisional Performance • Main focus during 2013 was on continued Balance Sheet Trends Revenue Trends strategy evolution by building center of AED Bn AED Mn excellence around key sectors and +7% +6% Wholesale Banking geographic locations to enhance customer service quality and share of wallet, increa
Slide 13: Divisional Performance (cont'd)
Divisional Performance (cont’d) • Revenue decreased from AED 528 Mn in Revenue Trends Net Revenue Trends Global Markets & Treasury 2012 to AED 461 Mn in 2013 mainly driven AED Mn AED Mn by lower non-interest income partially offset by higher net interest income -13% -13% • Trading in 2013 faced chal
Slide 14: Outlook
Outlook • 2013 GDP growth for the UAE expected to be 4.6%, on the back of higher than expected oil output, as well as strong expansion in the non-oil private sector. • UAE GDP growth forecast at 4.5% in 2014 • 2013 GDP growth expected to be 4.5% for Dubai, as manufacturing, trade and hospitality exp
Slide 15: Summary
Summary • Pre-impairment operating profit improved 19% in 2013 Profitability • Net profit of AED 3,256m improved 27% in 2013 • Conservative provisioning with net impairment allowances up 18% in 2013 to AED Provisions 4,713 Mn • Total income improved 16% in 2013 to AED 11,856 Mn Income • NIM rose 0.2
Slide 16: Vision and Mission
Emirates NBD continues to operate with a clear vision and mission… VISION To be globally recognized as the most valued financial services provider based in the Middle East. MISSION Everyday we make our customers’ life simpler by providing solutions that help them fulfill their financial aspirations.
Slide 17: Longer-term strategy built on 5 core building blocks
…and with a focused longer-term strategy built on 5 core building blocks 1 Deliver an excellent customer experience 3 4 5 Drive core Run an Drive business efficient geographic organization expansion 2 Build a high performing organization 17
Slide 18: 2013 Strategic Imperatives
2013 Strategic Imperatives Summary of Key Achievements 1 Deliver an excellent • Customer Service Excellence embedded in organizational culture customer • Continued investments to enhance digital capabilities across the bank experience • Building the leading multi-channel bank in the UAE 2 Build a hi
Slide 19: 2014 Strategic Priorities
2014 Strategic Priorities 1 Deliver an excellent • Continue on Group wide Service Excellence Program customer • Continue to lead the way on multi-channel banking in the UAE experience • Drive customer service through social media, and expand to other platforms 2 Build a high • Continue to drive Nati
Slide 20: Investor Relations
Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: IR@emiratesnbd.com 20