Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Investor Presentation (September 2024)
40 slides from Emirates Nbd Bank (p.j.s.c)'s investor presentation, September 2024
Slide 1: Investor Presentation
Investor Presentation | September 2024
Slide 2: Important Information
Important Information Disclaimer that could cause actual results, and the Group’s plans and objectives, to differ materially from those expressed or implied in the forward- The material in this presentation is general background information about looking statements. Emirates NBD's activities current
Slide 3: Emirates NBD Profile
Emirates NBD Profile (; (aig) cass culo eLiy Emirates NBD
Slide 4: Emirates NBD is a Leading Bank in the MENAT Region
Emirates NBD is a Leading Bank in the MENAT Region Region’s most AED AED profitable bank 4th 2nd 17.55 111bn Largest Bank in GCC Largest Bank in UAE US$ 3.75bn By Assets By Assets Share Price Market Cap H1 2024 As of 18 Jul 2024 As of 18 Jul 2024 AED AED AED AED AED 21.4bn 13.8bn 3.59% Net Interest
Slide 5: Emirates NBD at a Glance
Emirates NBD at a Glance Key Highlights Emirates NBD’s International Presence 1. Largest financial institution in Dubai, 643 Türkiye one of the largest and most profitable in GCC 11 Austria 2. Leading retail banking franchise with a branch network of 859 branches throughout the 3 Germany MENAT regio
Slide 6: Strong Credit Ratings Reflecting Financial Stability
Strong Credit Ratings Reflecting Financial Stability Stable Credit Ratings A+/A1 Short-term Long-term Outlook A/A2 Moody’s P-1 A2 Positive Fitch F1 A+ Stable A-/A3 CI A1 A+ Stable BBB+/Baa1 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Outlook- Negative Stable Positive Moodys Fitc
Slide 7: Stable Shareholder Base and Diversified Business Model
Stable Shareholder Base and Diversified Business Model Split of Ownership – Anchored by the Government of Dubai Key Highlights Ownership structure as of April 2024 • A flagship bank for the Government of Dubai and the UAE Investment Corporation • Strong and supportive shareholder base from the Gover
Slide 8: Building the Bank of the Future
Building the Bank of the Future Where we stand … Where we are heading … Transformed from a local bank to a regional powerhouse operating 859 Six Strategic Pillars Additional innovative products and branches across 12 countries services on ENBD X, providing the premier one-stop banking & wealth manag
Slide 9: Digital Transformation Journey
Digital Transformation Journey Key Digital Developments Overview • Migrated UAE’s retail customer base of 1M+to mobile banking superapp is Emirates NBD’s digital-only bank with over 450K customers. ENBD X, which has 150+ services (including 100+ STPs) It is focused on fulfilling the unique financial
Slide 10: Emirates NBD is the Most Profitable Bank in the Region
Emirates NBD is the Most Profitable Bank in the Region Total Income Net Profit Total Assets Coverage Ratio & NPLs (%) CET-1 Ratio (%) In USD mn 11 In USD mn In USD bn H1-2024 As of 30 Jun 2024 NPL% As of 30 Jun 2024 5,821 3,752 346 231 1.3 20.8 5,454 2,726 320 168 0.78 16.6 4,762 2,427 290 145 4.2 1
Slide 11: Consistently Strong Returns on Equity
Consistently Strong Returns on Equity Return on Average Tangible Equity (excluding 2019 NI gain) 11% 16% 20% 18% 19% 20% 17% 10% 13% 17% 24% Total Income CAGR (2013-2023): 14% Net Profit CAGR (2013-2023): 21% 43.0 32.5 23.2 23.8 22.4 21.5 17.4 14.4 15.2 14.7 15.4 14.5 11.9 13.0 10.0 9.3 7.2 8.3 7.1
Slide 12: Economic Environment
Economic Environment (; (aig) cass culo eLiy Emirates NBD
Slide 13: Non-oil GDP growth of 5% expected in 2024
Non-oil GDP growth of 5% expected in 2024 UAE GDP Growth Key Highlights • The Dubai PMI shows reading of 54.6 in June 2024 7.9 • Record international visitors to Dubai at 17.15m in 2023, up 19% y/y and 2.5% 4.4 5.0 higher than pre-pandemic levels. 3.6 3.7 1.1 • Dubai GDP grew by 3.6% y/y in 2023. Th
Slide 14: Dubai: Growth momentum continues
Dubai: Growth momentum continues Dubai Property Prices Growth Real estate Transactions Ready Off-Plan 30 45,000 Dubai apartments Dubai villas 25 40,000 20 35,000 % Y/Y sales prices 15 30,000 10 25,000 5 20,000 0 15,000 -5 10,000 -10 5,000 -15 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 15: Financial & Operating Performance
Financial & Operating Performance
Slide 16: Executive Summary | H1 2024 Results Key Metrics and Guidance
Executive Summary | H1 2024 Results Key Metrics and Guidance Record AED 13.8 bn Healthy net-interest Profit Income NIM profit in H1-24 on income growth on higher net interest strong loan & deposit income & strong mix propelled by AED 13.8 bn AED 21.4 bn 3.59% recoveries increased regional +5% q-o-q
Slide 17: AED 13.8 bn record H1 profit rises 12% y-o-y
AED 13.8 bn record H1 profit rises 12% y-o-y on diversified net interest income growth and healthy recoveries Income Statement (All figures are in AED bn) H1-24 H1-23 %∆ YoY Q2-24 %∆ YoY %∆ QoQ Key Highlights Net interest income 15.4 14.4 6% 7.9 10% 7% • Group profit up 12% y-o-y to a record AED 13.
Slide 18: NIMs improving as DenizBank margin benefiting from loan repricing
NIMs improving as DenizBank margin benefiting from loan repricing and stabilisation in funding costs Net Interest Margin (%) Key Highlights Quarterly NIM YTD NIM • Q2-24 NIM up 13bps q-o-q to 3.65% as DenizBank NIMs increased on improved 4.08 3.87 loan pricing and stable funding costs 3.95 4.00 3.65
Slide 19: Strong Client Flows Driving Fee & Commission Income Growth
Strong Client Flows Driving Fee & Commission Income Growth Key Highlights Non-funded income Q2-24 Q2-23 %∆ YoY Q1-24 %∆ QoQ (All figures are in AED m) • Healthy trend in Net Fee and Commission Income, up 56% y-o-y and 5% q-o-q Fee and Commission income 3,273 1,993 64% 2,986 10% from increased invest
Slide 20: Gross loans and deposits growth
NIMs improving as DenizBank margin benefiting from loan repricing and stabilisation in funding costs Gross Loans by Type Key Highlights (AED bn) 6% • Loans up 6% by AED 27bn in H1-24 on very strong underlying growth – Lending surpasses AED 500 bn milestone 508 – Record retail lending up 14% in H1-24
Slide 21: Credit Quality Continues to Significantly Improve
Credit Quality Continues to Significantly Improve Impaired loans and allowances Key Highlights NPLs 5.6% 5.5% 4.6% 4.4% 4.2% 100% • NPL ratio improved by 0.4% to 4.2% in H1-24 on strong writebacks, recoveries, write-offs and repayments Coverage 60.0 147% 145% 163% 153% 145% 99% 98% • Stage 2 loans r
Slide 22: Costs Firmly Controlled with Focus on Future Growth
Costs Firmly Controlled with Focus on Future Growth Cost to Income Ratio (%) Key Highlights 33.0% • Cost to Income ratio at 28.6% for H1-24, comfortably within guidance, with continued investment for growth supported by income 32.4% 28.8% 28.6% • Cost to Income ratio expected to be in the 30% range
Slide 23: Funding & Liquidity Remains Very Healthy
Funding & Liquidity Remains Very Healthy Advances to Deposit and Liquidity Coverage Ratio (%) Key Highlights 90 ADR % LCR % • LCR of 199% and ADR of 76% demonstrate healthy liquidity 240 217 • Liquid assets* of AED 110 bn cover 14% of total liabilities, 18% of deposits 210 85 199 • AED 20 bn of term
Slide 24: Total Capital ratio strong at 18.0%
Total Capital ratio strong at 18.0% Capital Key Highlights (AED bn) • 15.4% CET-1 ratio strengthened in H1-24 as retained earnings more than offset 9% growth in RWAs • Credit RWA increase from strong Retail and Corporate loan growth • CET-1 at 15.3% excluding ECL regulatory add back • Capital ratios
Slide 25: Divisional Performance
Divisional Performance Operating Segment Metrics H1-24 H1-23 %∆ YoY Key Highlights Retail Banking and Wealth Management (RBWM) had an excellent first half of the year with the highest ever Income (mn) 8,910 7,948 12% revenue, strongest ever loan acquisition and a substantial growth in balance sheet
Slide 26: ESG Development
ESG Development (; (aig) cass culo eLiy Emirates NBD
Slide 27: Emirates NBD: a Leading Bank in ESG
Emirates NBD: a Leading Bank in ESG Delivering ESG Solutions for a greener future – 2023-2024 highlights Emirates NBD’s Objectives Financial Institutions Bond Deal of the First UAE Bank to partner with BeZero Supporting clients to access Year for our USD 750 million Carbon to enhance due diligence o
Slide 28: Emirates NBD Sustainability Strategy
Emirates NBD Sustainability Strategy Emirates NBD Sustainability Strategy Emirates NBD commits to both regional and international sustainability development goals which enhances the overall agenda for sustainable business strategy and management approach. Sustainability Approach Sustainability Gover
Slide 29: Environmental, Social and Governance Commitment
Environmental, Social and Governance Commitment Environmental, Social and Governance Commitment ESG is embedded into the culture, operations and strategy of Emirates NBD. Our ESG commitment are integrated to all our business divisions and across all our subsidiaries, with qualitative and qualitative
Slide 30: ESG Journey
ESG Journey ESG Journey Emirates NBD’s ESG commitment over the years have enhanced, covering larger and wider aspects of ESG principles. Our journey has been fruitful, and we expect further development in the upcoming years given the plan to standardize the ESG practices and contributions. • Emirate
Slide 31: ESG Forward Journey
ESG Forward Journey ESG Forward Journey • Refresh Sustainable Finance Framework • Refresh Transition Finance Framework • Announce a Net Zero Pathway for all • Achieve a 30% reduction in Scope 1 & 2 GHG Enhance Sustainable Finance Governance: Emissions from 2020 baseline • Publish our 1st ISSB Report
Slide 32: Sustainable Finance Framework
Sustainable Finance Framework Bringing a diverse and robust ESG financing Framework to the market The Framework allows Emirates NBD to issue Green, Social and/or Sustainability debt instruments including Sharia’h compliant financing or investments. Debt instruments issued under the Framework are ful
Slide 33: Strong Second Party Opinion
Strong Second Party Opinion Provided by ISS ESG The Framework is aligned to ICMA principles and in line with best market practices Emirates NBD demonstrates its contribution to sustainability and to the UAE’s government’s sustainable strategies. ICMA Pillars Aligned • Emirates NBD’s green/social cat
Slide 34: Use of Proceeds: Green Project Categories
Use of Proceeds Green Project Categories UNSDG GBP Category Eligibility Criteria Alignment • New and existing residential, commercial or mixed use buildings that meet the minimum external green building certification level including (but not limited to): • LEED, Leadership in Energy and Environment
Slide 35: Use of Proceeds: Social Project Categories
Use of Proceeds Social Project Categories UNSDG SBP Category Eligibility Criteria Alignment • Financing dedicated to healthcare facilities: • Construction and/or operation of healthcare facilities such as hospitals and primary care facilities, affiliated to the relevant national healthcare system Ac
Slide 36: Appendix
Appendix (; (aig) cass culo eLiy Emirates NBD
Slide 37: Financial Results Highlights H1-24
Financial Results Highlights H1-24 Excluding DenizBank Income Statement H1-24 H1-23 %∆ YoY Q2-24 %∆ QoQ H1-24 H1-23 %∆ YoY Q2-24 %∆ QoQ H1-24 H1-23 %∆ YoY Q2-24 %∆ QoQ (All figures are in AED bn) Net interest income 15.4 14.4 6% 7.9 7% 12.7 12.0 6% 6.4 2% 2.7 2.4 10% 1.6 38% Non-funded income 6.0 6.
Slide 38: Financial Results Highlights H1-24 (USD)
Financial Results Highlights H1-24 US$ convenience translation Excluding DenizBank Income Statement H1-24 H1-23 %∆ YoY Q2-24 %∆ QoQ H1-24 H1-23 %∆ YoY Q2-24 %∆ QoQ H1-24 H1-23 %∆ YoY Q2-24 %∆ QoQ (All figures are in USD bn) Net interest income 4.2 3.9 6% 2.2 7% 3.5 3.3 6% 1.7 2% 0.7 0.7 10% 0.4 38%
Slide 39: Hyperinflation
Hyperinflation 324% 72% Key Highlights 2,319 2,139 1,859 1,691 1,352 1,270 1,128 1,047 978 844 687 571 547 Sep-21 Sep-22 Sep-23 Dec-22 Jun-21 Dec-21 Jun-22 Jun-23 Dec-23 Jun-24 Mar-22 Mar-23 Mar-24 • Turkish CPI grew by 324% over preceding cumulative three-years and by 72% in the • 23 bps positive i
Slide 40: For additional information
For additional information: IR@emiratesnbd.com www.emiratesnbd.com/en/investor-relations
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