Slide 1: Q1 2017 Results Presentation
Q1 2017 Results Presentation 19 April 2017
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 solid set of results in Q1-17 amid a challenging environment
3 Emirates NBD delivered a solid set of results in Q1-17 amid a challenging environment Q1 2017 at a glance 2017 Macro themes Q1 2017 vs. Regional Global 2017 guidance • Resilience of UAE • Emirates NBD’s Profitability Net profit AED 1.87 Bn economy balance sheet +4% y-o-y underpinned by positioned
Slide 4: Q1-17 Financial Results Highlights
4 Q1-17 Financial Results Highlights Highlights Key Performance Indicators Better / Better / • Net profit of AED 1,873 Mn for Q1-17 increased 1% AED Mn Q1-17 Q1-16 Q4-16 (Worse) (Worse) q-o-q and 4% y-o-y Net interest income 2,486 2,555 (3%) 2,460 1% • Net interest income improved 1% q-o-q on loan N
Slide 5: Net Interest Income
5 Net Interest Income Highlights Net Interest Margin (%) • NIMs improved 4 bps q-o-q as rate rises flowed into loan 2.90 yields and funding pressures receded but tightened by 29 2.83 2.85 2.80 bps y-o-y on higher funding costs 2.90 2.82 • Loan yields improved 5 bps q-o-q as loans reset at higher 2.7
Slide 6: Loan and Deposit Trends
6 Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED Bn) +6% • Gross loans grew 2% since end 2016 320 +2% with good growth in Corporate lending 303 310 314 315 294 285 • Corporate lending grew 2% since end 267 271 279 221 225 226 227 233 209 215 2016 due to growth in real estate, t
Slide 7: Funding and Liquidity
7 Funding and Liquidity Highlights Advances to Deposit (AD) Ratio (%) • AD ratio of 92.5% comfortably within 90-100% management target range and demonstrates healthy liquidity position 97.2 • Liquid assets* of AED 62.6 Bn as at Q1-17 (15.7% of total 96.1 95.6 95.9 liabilities) 94.2 • Debt & Sukuk te
Slide 8: Capital Adequacy
8 Capital Adequacy Highlights Capitalisation 20.3 20.5 20.5 21.2 20.2 • In Q1-17, Tier 1 ratio decreased by 0.9% to 17.8% and CAR decreased by 1.0% to 20.2% due to: 17.6 17.9 17.8 18.0 18.7 - Annual dividend payment exceeding Q1-17 retained 50.2 51.8 53.5 54.4 53.4 profit 6.6 6.6 6.7 6.5 6.4 - Margi
Slide 9: Non-Interest Income
9 Non-Interest Income Highlights Composition of Non Interest Income (AED Mn) Better / Better / • Core gross fee income increased 27% q-o-q and AED Mn Q1-17 Q1-16 Q4-16 7% y-o-y on account of higher income from forex (Worse) (Worse) and rates Core gross fee income 1,373 1,287 7% 1,078 27% • Non-inter
Slide 10: Operating Costs and Efficiency
10 Operating Costs and Efficiency Highlights Cost to Income Ratio (%) • In Q1-17, costs improved by 7% q-o-q 34.5 33.7 and 11% y-o-y, helped by a containment in staff costs, following cost control 32.6 measures implemented in 2016 32.0 33.1 • Cost-to-Income Ratio improved by 3.6% 32.0 32.3 32.7 30.9
Slide 11: Credit Quality
11 Credit Quality Highlights Impaired Loan & Coverage Ratios (%) • NPL ratio improved to 6.3% 118.5 120.8 120.1 122.5 109.0 114.5 111.5 113.5 • Impaired loans improved to AED 20.1 Bn during the quarter 99.6 103.2 helped by AED 364 Mn of write backs & recoveries in Q1-17 7.9 • Q1-17 cost of risk at 8
Slide 12: Divisional Performance: Retail Banking & Wealth Management
12 Divisional Performance • RBWM revenues increased 3% q-o-q and 10% y-o-y Balance Sheet Trends Revenue Trends • In Q1-17, fee income grew 5% y-o-y and accounted for AED Bn +5% AED Mn 37% of total RBWM revenue +2% +3% Wealth Management • Loans grew by 2% across a range of products Retail Banking & p
Slide 13: Divisional Performance (cont'd): Wholesale Banking
13 Divisional Performance (cont’d) • Wholesale Banking revenues increased 13% q-o-q Balance Sheet Trends Revenue Trends and 4% y-o-y AED Bn -3% AED Mn • Loans grew 2% from end 2016 due to growth in real +2% +13% estate, trade and FI sectors Wholesale Banking 211.5 216.5 1,095 1,142 • Deposits declin
Slide 14: Investor Relations
Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: IR@emiratesnbd.com