Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — 7th EFG – Hermes One-on-One Conference 2009
33 slides from Emirates Nbd Bank (p.j.s.c)'s conference presentation, Mar 12, 2009
Slide 1: Emirates NBD – Finding the Right Opportunity
Emirates NBD Sanjay Uppal Chief Financial Officer 7th EFG – Hermes One-on-One Conference: Finding the Right Opportunity 8 - 12 March 2009
Slide 2: Forward Looking Statements
Forward Looking Statements It is possible that this presentation could or may contain forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only
Slide 3: Contents
Contents The UAE Economy and Banking Market Background on Emirates NBD Financial and Operating Performance Merger Update Strategy and Outlook 2
Slide 4: UAE Economic Update
UAE Economic Update Comments Growth in context - Real GDP growth % y/y* % GCC economies have approximately tripled in size in just 5 13 years, and their combined GDP should be well over $1 trillion in 2008 up from $805 billion in 2007 11 Real GDP growth has averaged 6-7% pa over the last 5 years
Slide 5: UAE Economic Update (cont’d)
UAE Economic Update (cont’d) Comments UAE Real GDP % y/y* 20 UAE GDP grew approximately by 6% in 2008 on the back of still strong investment, a consumption boom and higher oil output, however, in 2009 the external environment combined with 15 liquidity tightening and weakening demand should bring
Slide 6: UAE Economic Update (cont’d)
UAE Economic Update (cont’d) Comments Real GDP Growth Forecasts* UAE hit by global credit squeeze, caused by events largely 2008 2009 2010 outside its control UAE economy and banking system relatively well placed in UAE 6.0% 1.5% 2.9% comparison to many economies outside of the GCC UK 0.8% -2.9%
Slide 7: UAE Banking Market
UAE Banking Market Comments UAE Banking Sector Growth UAE Banking assets have grown by 28% CAGR from 2002 to Banking Assets USD billion 403 2008, spurred by nominal GDP growth of 22% CAGR Nominal GDP USD billion The UAE banking market is the largest is the GCC, followed by 333 Saudi Arabia. Is
Slide 8: UAE Banking Market (Cont’d)
UAE Banking Market (Cont’d) Comments Loans & Receivables vs. Deposits* UAE L&R growth has outstripped deposit growth in recent years USD b 280 UAE Banking system liquidity tightened in 3Q 2008 due to outflow of c.$50b of speculative capital & the Global 240 credit/liquidity crisis following the
Slide 9: Contents
Contents The UAE Economy and Banking Market Background on Emirates NBD Financial and Operating Performance Merger Update Strategy and Outlook 8
Slide 10: Emirates NBD is the largest bank in the UAE and GCC by assets
Emirates NBD is the largest bank in the UAE and GCC by assets UAE ranking by Assets $b UAE ranking by Equity $b UAE ranking by Profits $m Emirates NBD 76.9 Emirates NBD 7.0 Emirates NBD 1,002 NBAD 44.8 First Gulf Bank 4.4 NBAD 822 ADCB 40.2 ADCB 4.3 First Gulf Bank 816 First Gulf Bank 29.3 NBAD 3.9
Slide 11: Emirates NBD Group Structure and Market Shares
Emirates NBD Group Structure and Market Shares Group Structure Group Entities • Emirates Bank & National Bank of Dubai are the primary companies of Emirates Emirates NBD NBD group (Parent Company) • Provide services and products to Retail, Wholesale & Treasury Customers. Other Financial Banking Brok
Slide 12: Building a geographically diversified footprint
Building a geographically diversified footprint London, UK Tehran, Iran Branch (est. 1986) Representative Office (est. 2002) Cairo, Egypt Cards Processing Center - NPC (est. 2007) Mumbai, India Jersey Representative Office Channel Islands (est. 2000) • Branch (est. 1990) • Subsidiary Trust Co. (est.
Slide 13: Strong Credit Ratings
Strong Credit Ratings Current Ratings Moody´s¹ • A1 / P-1 • A1 / P-1 S&P² • A / A-1 • A / A-1 Fitch³ • AA- • n/a Capital • AA- • AA- Intelligence 1 Moody’s Long-term rating / Short-term rating 2 S&P Credit ratings on negative outlook 3 EBI’ s Long term Issuer Default rating is AA-; NBD has not been
Slide 14: Contents
Contents The UAE Economy and Banking Market Background on Emirates NBD Financial and Operating Performance Merger Update Strategy and Outlook 13
Slide 15: 2008 Financial Results
2008 Financial Results Group Performance Comments Key Performance Indicators Year to Variance Full Year 2008 Net Profit down 7% from 2007 $m 31 Dec 2008 vs. 2007* Total income 2,300 +19% Proposed cash dividend of 20% and stock dividend of 10% Operating expenses (914) +23% Q4-2008 Net Profit of
Slide 16: 2008 Financial Results – Profit and Balance Sheet growth
2008 Financial Results Profit and Balance Sheet growth in recent years Revenues & Net Profits, $m Net Interest Margins +30% +10% 2,300 2.16 1,935 1,097 1,028 2.08 1,295 815 2.01 2.01 1.98 1.97 1.96 1.92 1.92 1.93 1.89 1.86 2006 2007* 2008 2006 2007* 2008 2006 2007 2008 Revenues Net Profits Q1 Q2 Q3
Slide 17: 2008 Financial Results – Divisional Performance
2008 Financial Results Divisional Performance Wholesale banking had another successful quarter $b $m Continued success of its transactions business 993 37% Wholesale Banking Emirates NBD ranked as leader in local 728 syndications market as Mandated Lead Arranger 43 and Bookrunner in 2008 35
Slide 18: Divisional Performance (cont’d)
2008 Financial Results Divisional Performance (cont’d) Grew sales and trading business; leading market share of $m Global Markets & Dubai’s corporate business 46% 339 Arranged Govt of Dubai AED Fixed and Floating Bond Treasury issues totaling $1.8b 231 71 258 New debt capital markets activity
Slide 19: Asset Quality – Credit Metrics
Asset Quality Credit Metrics: Wholesale and Consumer Comments Loan Portfolio by Type – 2008 Loan portfolio is balanced and well secured Other debt Loans instrum ents Counterparties have been extensively reviewed and we against trust Others 1% Bills receipts discounted remain comfortable with our
Slide 20: Asset Quality – Real Estate Exposure
Asset Quality Real Estate Exposure Exposures to Real Estate & Construction Sector is 14% and 5% of the WB portfolio respectively Emirates NBD is very selective in financing real estate sector. Extent of finance is generally limited to: Wholesale Bank 70% of construction cost excluding land or
Slide 21: Asset Quality – Investments & Trading Securities
Asset Quality Investments & Trading Securities Comments 2008 MTM Impact Exposure to sub-prime and related exposures (e.g. RMBS, CMBS, $ million P&L impact Cumulative Total CDOs, CLOs) are minimal and were fully written down in prior years changes in Balance 81% of the assets are classified as Av
Slide 22: Capital, Funding and Liquidity
Capital, Funding and Liquidity Comments Capital Ratios Capital adequacy ratio at 11.4% in 2008 (2007: 12.5%) $b Liquidity in the UAE Banking system has improved in 4Q 2008 12 16% 13.1% 14.3%* compared to Q3 2008, helped by the various Government 12.5% 14% 10 initiatives 10.5% 11.4% 12% 8 9.7%
Slide 23: Contents
Contents The UAE Economy and Banking Market Background on Emirates NBD Financial and Operating Performance Merger Update Strategy and Outlook 22
Slide 24: Merger Update – Integration fully on track
Merger Update Integration fully on track We have achieved major milestones during the last year Mobile and Online Banking Emirates NBD’s Treasury team-up together integrated; enhanced First Annual Large Corporate in one premise, and are functionalities General Meeting Unit (LCU) is now working as
Slide 25: Merger Update – Exceeded 2008 synergy targets
Merger Update Exceeded 2008 full year targets on all revenue, costs & one-off synergies Target Synergies Actual 2008 Synergies $94m of recurring annual synergies by the third year post Achieved synergies of $64m – ahead of 2008 full year target by merger, plus $7m of one-off synergies totalling
Slide 26: Contents
Contents The UAE Economy and Banking Market Background on Emirates NBD Financial and Operating Performance Merger Update Strategy and Outlook 25
Slide 27: Strategy and Outlook
Strategy and Outlook Comments Strategic Imperatives The current environment is presenting challenges in terms of liquidity, funding, profitability and asset quality Cautious lending growth The fundamentals of Emirates NBD’s core business remains • Support growth of important Group relationships
Slide 28: Summary
Summary The UAE economy is expected to slow down but remains relatively well positioned compared to developed and developing countries outside the GCC Emirates NBD is the largest bank in the GCC by assets and Emirates NBD leads the UAE Banking Sector The core business continues to perform st
Slide 29: Appendix
Appendix
Slide 30: 2008: Awards
2008 : Awards Emirates NBD was honored by H.H. Sheikh Mohamed Bin Rashid Al Maktoum, the Ruler of Dubai and Vice President & Prime Minister of the UAE, for its role in boosting investments and attracting businesses from around the world. Rick Pudner, Chief Executive Officer of Emirates NBD was a
Slide 31: Large Deals Concluded 2008
…..Large Deals Concluded 2008 February 2008 March 2008 March 2008 March 2008 Emirates Aluminum DEER FIELDS TOWN SQUARE Limitless LLC PROJECT US$225,000,000 revolving multi- USD $ 1.2 Billion (Dual currency US$4,940 Million currency credit facility AED/USD) Project Finance Facility Syndicated Mudarab
Slide 32: Large Deals Concluded 2008 Cont’d
… Large Deals Concluded 2008 Cont’d… June 2008 June 2008 June 2008 July 2008 Dubai World Axiom Telecom LLC The Palm Vacation Club FZE Dubai Aerospace (A Subsidiary of IFA Hotels & Enterprise Limited Resorts KSCC) USD 5,000,000,000 USD 400,000,000 AED 367,300,000 Dual Currency (AED/USD) US$1,000 Mill
Slide 33: Large Deals Concluded 2008 Cont’d
… Large Deals Concluded 2008 Cont’d… August 2008 August 2008 September 2008 October 2008 Drydocks World LLC Commercial Real Estate ENOC Processing Company Investment Corporation of Company KSCC LLC Dubai AED 771 Million US$ 6,000 Million US$ 2,200 Million US$155 Million Islamic Financing Facility Sy
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