Slide 1: FY-14 Results Presentation
FY-14 Results Presentation Jan 18, 2015 1
Slide 2: Important Information
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 form
Slide 3: FY-14 Financial Results Highlights
FY-14 Financial Results Highlights Highlights Key Performance Indicators • Net profit of AED 5,139 Mn for FY-14 improved 58% y-o-y, Better / with pre-impairment operating profit exceeding AED 10 bn, AED Mn FY-14 FY-13 (Worse) a first for any UAE bank • Increased dividend of AED 0.35 per share propos
Slide 4: Q4-14 Financial Results Highlights
Q4-14 Financial Results Highlights Highlights Key Performance Indicators • Net profit of AED 1,226 Mn for Q4 improved 82% y-o-y and declined 22% Better / Better / q-o-q AED Mn Q4-14 Q4-13 Q3-14 (Worse) (Worse) • Net interest income rose 11% y-o-y Net interest income 2,473 2,224 11% 2,465 0% helped b
Slide 5: Net Interest Income
Net Interest Income Highlights Net Interest Margin (%) 2.95 • NIMs declined 4 bps in Q4-14 and improved 22 bps to 2.91 2.85% through 2014 2.83 2.83 2.85 2.76 2.78 • Loan spreads improved in 2014 due to growth in higher 2.75 yielding retail and Islamic assets 2.77 • Deposit spreads improved in 2014 d
Slide 6: Funding and Liquidity
Funding and Liquidity Highlights Advances to Deposit (AD) Ratio (%) • AD ratio of 95.2% within 90-100% management target range • Liquid assets* of AED 56.6 Bn as at 31 December 2014 (17.9% 118.5 of total liabilities) • Modest maturity profile affords Emirates NBD ability to consider 105.1 public and
Slide 7: Loan and Deposit Trends
Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED Bn) • Gross loans grew 3% y-o-y in 2014 +3% (5% y-o-y excluding the write-off of 272 -2% 259 262 265 267 fully provided Retail loans), and 250 254 235 238 declined 2% q-o-q in Q4-14 221 216 205 178 180 188 191 195 196 197 200 201 •
Slide 8: Non-Interest Income
Non-Interest Income Highlights Composition of Non Interest Income (AED Mn) • Non-interest income improved 33% Better / y-o-y due to a rise in all sources of fee AED Mn FY-14 FY-13 (Worse) income and income from sale of Core gross fee income 4,324 3,468 25% properties and investment securities Fees &
Slide 9: Operating Costs and Efficiency
Operating Costs and Efficiency Highlights Cost to Income Ratio (%) • Costs increased by 10% q-o-q in Q4, 38.8 as per previous guidance, and increased by 5% in 2014 33.1 • Cost to Income Ratio improved by 5% 31.5 in 2014 to 30.4% YTD due to strong 35.4 30.3 29.5 income growth and a control on costs.
Slide 10: Credit Quality
Credit Quality Highlights Impaired Loan & Coverage Ratios (%) • NPL ratio improved significantly to 7.8% 85.4 92.0 100.3 13.8 80.1 • DW exposure reclassified as performing 59.8 66.2 76.1 57.5 60.7 64.7 70.3 49.4 • AED 4.4 Bn of fully provided Retail (Conventional and 43.4 Islamic) loans written off
Slide 11: Capital Adequacy
Capital Adequacy Highlights Capitalisation • CAR improved by 1.5% and Tier 1 ratio improved by 21.1 2.7% in 2014 due to: 19.6 19.2 19.6 20.4 17.2 18.0 – Issuance of USD 500 Mn Tier 1 notes and 15.3 15.0 15.6 retained earnings 44.7 43.6 44.4 45.7 46.4 9.9 9.0 7.0 6.7 – Repayment of AED 4.8 Bn of MOF
Slide 12: Egyptian Business Overview
Egyptian Business Overview Highlights Financials • Full service commercial banking platform: AED Mn Year 2013 FY-14 (from 9-June-13) • Corporate Banking: focused on large corporate and MNCs; serves c.4,000 clients Net interest income 225 482 • Retail Banking: High growth segment; serves Non-interest
Slide 13: Divisional Performance: Retail Banking & Wealth Management
Divisional Performance • Revenue improved 8% y-o-y Balance Sheet Trends Revenue Trends • Deposits grew 12% from end 2013 driven by AED Bn +12% AED Mn Wealth Management CASA growth +8% +11% Retail Banking & • Loans grew 11% from end 2013 driven by 113.5 5,621 growth in credit cards, auto loans, perso
Slide 14: Divisional Performance (cont'd): Wholesale Banking
Divisional Performance (cont’d) • Wholesale Banking revenues grew 8% y-o-y Balance Sheet Trends Revenue Trends • Loans were stable from end 2013 as normal AED Bn +11% AED Mn Wholesale Banking loan repayments offset new underwriting 0% +8% • Deposits grew by 11% from end 2013 driven 187.6 187.0 4,447
Slide 15: Outlook
Outlook • For the UAE • 2014 GDP growth expectation revised down to 4.5% from 5.0% due to fall in oil price • 2015 GDP growth forecast also revised lower to 4.3% from 4.8% • For Dubai • 2014 GDP growth expectation unchanged at 5% as non-oil sectors expanded robustly Economic • 2015 GDP growth foreca
Slide 16: Summary
Summary • Pre-impairment operating profit of AED 10.1 Bn in FY-14, up 31% y-o-y Profitability • Net profit of AED 5.1 Bn for FY-14 improved 58% y-o-y • NPL ratio improved significantly to 7.8% in 2014 due to reclassification of DW Credit Quality exposure, write-off of fully provided Retail loans and
Slide 17: ENBD's core strategy is focused on the following building blocks
ENBD’s core strategy is focused on the following building blocks Key Deliver an excellent customer Objective experience Strategic Run an Drive Levers Drive core efficient geographic business organization expansion Enablers Build a high performing organization Source: Emirates NBD 17
Slide 18: Strategic update – 2014 achievements
Strategic update – 2014 achievements Priorities 2014 Objectives Achievements 1 • Continue Group-wide Service Excellence • Enhanced customer experience via proactive servicing and Deliver an Program improved complaint management excellent • Lead multi-channel banking in the UAE • Expanded digital ser
Slide 19: Strategic priorities for 2015
Strategic priorities for 2015 Priorities Focus Areas 1 • Continue to deliver superior customer experience through better service and product offerings Deliver an • Drive front line cultural/ behavior change excellent customer • Reinforce ENBD’s position as a digital innovator in the region via best-