Slide 1: FY 2017 Results Presentation
FY 2017 Results Presentation 16 January 2018
Slide 2: Important Information
2 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 for
Slide 3: Emirates NBD delivered a strong set of results in 2017
3 Emirates NBD delivered a strong set of results in 2017 FY2017 Key Metrics 2018 Macro themes FY 2017 v. 2017 2018 Regional Global Guidance Guidance • Resilience of UAE • Emirates NBD’s economy balance sheet AED 8.35 Bn underpinned by positioned to Profit Net profit +15% non-oil activity benefit fro
Slide 4: FY 2017 Financial Results
4 FY 2017 Financial Results Highlights Key Performance Indicators Better / • Net profit of AED 8,346 Mn for FY 2017 improved AED Mn FY 2017 FY 2016 (Worse) 15% y-o-y Net interest income 10,786 10,111 7% • Net interest income improved 7% y-o-y due to 5% Non-interest income 4,669 4,637 1% loan growth
Slide 5: Q4-17 Financial Results Highlights
5 Q4-17 Financial Results Highlights Highlights Key Performance Indicators Better / Better / • Net profit of AED 2,176 Mn for Q4-17 increased AED Mn Q4-17 Q4-16 Q3-17 (Worse) (Worse) 17% y-o-y and declined 4% q-o-q Net interest income 2,795 2,460 14% 2,806 (0%) • Net interest income improved 14% y-o
Slide 6: Net Interest Income
6 Net Interest Income Highlights Net Interest Margin (%) 2.85 • NIMs showed an improving trend in 2017, as rate rises flowed through to the loan book and liquidity conditions improved 2.82 • Q4-17 NIM of 2.51% improved 22 bps y-o-y 2.62 2.62 2.58 2.56 • Loan yields improved 2 bps y-o-y and held stea
Slide 7: Loan and Deposit Trends
7 Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED Bn) +5% • Gross loans grew 5% in 2017 with growth mainly from corporate lending 329 329 329 314 315 320 303 310 • Corporate lending grew 7% in 2017 due 285 294 221 225 226 227 233 242 242 243 215 to growth in real estate, service
Slide 8: Funding and Liquidity
8 Funding and Liquidity Highlights Advances to Deposit (AD) Ratio (%) • Liquidity Coverage Ratio (LCR) of 146.0% and AD ratio of 93.1% demonstrates healthy liquidity position • Liquid assets* of AED 71.9 Bn as at Q4-17 (17.5% of total 95.9 96.1 liabilities) 95.0 94.2 94.4 • Debt & Sukuk term funding
Slide 9: Capital Adequacy
9 Capital Adequacy Highlights Capitalisation – Basel II • In Q4-17, Tier 1 ratio improved by 0.7% to 19.5% and CAR 21.9 21.2 20.2 20.7 21.2 increased by 0.7% to 21.9% 18.3 19.5 • Increase in Tier 1 capital from retained earning more than 18.7 17.8 18.8 offsetting modest increase in risk weighted ass
Slide 10: Non-Interest Income
10 Non-Interest Income Highlights Composition of Non Interest Income (AED Mn) Better / • Core fee income improved 9% y-o-y driven by AED Mn FY 2017 FY 2016 growth in foreign exchange and derivative (Worse) income, bancassurance, credit card and trade Core gross fee income 5,325 4,889 9% finance inco
Slide 11: Operating Costs and Efficiency
11 Operating Costs and Efficiency Highlights Cost to Income Ratio (%) • FY 2017 costs improved 1% y-o-y as 34.5 lower staff costs more than offset an increase in costs both on Marketing and 32.0 32.8 IT relating to our planned investment in 33.1 digital and technology 30.9 30.8 • Costs increased 4%
Slide 12: Credit Quality
12 Credit Quality Highlights Impaired Loan & Coverage Ratios (%) 124.9 124.5 122.5 123.5 • NPL ratio improved to 6.2% during 2017 120.8 120.1 118.5 • Impaired loans were steady at AED 20.3 Bn during 2017 helped by AED 1,777 Mn of write backs & recoveries 113.5 111.5 • FY 2017 cost of risk at 68 bps
Slide 13: Wealth Management
13 Divisional Performance • Revenues increased 11% y-o-y Balance Sheet Trends Revenue Trends • Net interest income grew 17% led by liabilities. Fee AED Bn -3% AED Mn income grew 1% supported by wealth, FX and cards 0% +11% and accounts for 35% of total RBWM revenue Wealth Management • Retail Banking
Slide 14: Wholesale Banking
14 Divisional Performance (cont’d) • Wholesale Banking revenues increased 16% y-o-y Balance Sheet Trends Revenue Trends AED Bn +19% AED Mn • Loans grew 7% in 2017 due to growth in real estate, services and trade sectors. Deposits up 19% in 2017 +7% +16% Wholesale Banking • Net Interest Income grew 1
Slide 15: Investor Relations
Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: IR@emiratesnbd.com