Slide 1: Q1 2013 Results Presentation
Q1 2013 Results Presentation April 25, 2013 1
Slide 2: Important Information
Important Information Disclaimer The material in this presentation is general background information about Emirates NBD's activities current at the date of the presentation. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to
Slide 3: Q1 2013 Financial Results Highlights
Q1 2013 Financial Results Highlights Highlights Key Performance Indicators • Net profit of AED 837 million, AED million Q1 2013 Q1 2012 % Q4 2012 % improved by +34% vs vs. Q4 2012 and N t iinterest Net t t income i 1 748 1,748 1 777 1,777 -2% 2% 1 766 1,766 -1% 1% +31% vs. Q1 2012 Non-interest incom
Slide 4: Net Interest Income
Net Interest Income Highlights Net Interest Margin (%) • NIM declined by 8 bps from 2.47% in Q4 2012 to 2.96 2.39% 2 39% in Q1 2013 resulting in a decrease in net 2 85 2.85 Qtrly NIM interest income to AED 1,748 million YTD NIM 2.69 • Q1 2013 NIM decline is driven mainly by lower 2.63 2.63 spreads i
Slide 5: Funding and Liquidity
Funding and Liquidity Highlights Loan to Deposit (LTD) Ratio (%) • Headline LTD ratio of 99% at Q1 2013 107.0 • The LTD ratio is being managed to the revised target 105.1 LTD Ratio (%) range of c.95%-105% 102.0 • Liquid assets* of AED 31.9 billion as at 31 March 2013 99.9 (11% of total liabilities)
Slide 6: Loan and Deposit Trends
Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED billion) • Signs of modest pickup in new +9% underwriting across all business 234 238 segments with 9% growth in gross 223 227 +2% 219 179 181 loans from Q1 2012 176 172 • Balance sheet optimisation 168 22 23 22 21 21 initiatives s
Slide 7: Non-Interest Income
Non-Interest Income Highlights Composition of Non Interest Income (AED million) • Non-interest income improved by AED million Q1 2013 Q1 2012 % Q4 2012 % 19% q-o-q q o q but declined by 3% y-o-y yoy Core gross fee income 750 756 -1% 1% 674 +11% • Impact of non-core items: Fees & commission (24) +37%
Slide 8: Operating Costs and Efficiency
Operating Costs and Efficiency Highlights Cost to Income Ratio (%) • Q1 2013 Costs improved by 4% y y due to cost optimisation y-o-y p initiatives 35.9 • Costs improved by 5% q-o-q to 35.3 35.4 AED 909 million in Q1 2013 resulting 35.1 35.2 from: 34.6 – One off Dubai Bank Integration g cost in Q4 20
Slide 9: Credit Quality
Credit Quality Highlights Impaired Loan & Coverage Ratios (%) 72.1 72.3 73.0 • Q1 2013 net impairment charge of AED 888 million 70.3 69.8 driven principally by additional net specific corporate 51 4 51.4 45.3 46.2 47.8 49.4 loan provisions • Total portfolio impairment allowances amount to AED 3.7 bi
Slide 10: Capital Adequacy
Capital Adequacy Highlights Capitalization • CAR and T1 declined 0.9% and 0.3% q-o-q to 19.1 19.5 19.9 20.6 19.7 19 7% and 13.5% 19.7% 13 5% respectively resulting from: 13 2 13.2 13 8 13.8 13 5 13.5 12.5 12.8 – decrease in Tier 1 capital by AED 0.6 billion in Q1 43.3 43.9 44.5 45.0 43.2 2013 due to
Slide 11: Divisional Performance
Divisional Performance • Continued focus on re-alignment to ensure Balance Sheet Trends Revenue Trends enhanced future customer service quality AED billion AED million and share of wallet, increased cross-sell of +8% -5% nking Treasury and Investment Banking products 176.0 176.9 1,114 1,118 and incr
Slide 12: Divisional Performance (cont'd)
Divisional Performance (cont’d) • Revenue increased to positive AED 112 Revenue Trends Treasury million in Q1 2013 from a negative AED 20 AED million million in Q4 2012 driven by lower negative net interest income drag and higher investment income -55% Global Markets & T 247 • Tightening of spreads
Slide 13: Emirates NBD enters 2013 with a focused longer-term strategy built on 5 core building blocks
Emirates NBD enters 2013 with a focused longer-term strategy built on 5 core building blocks 1 Deliver an excellent customer experience 3 4 5 Drive core Run an Drive b i business efficient ffi i t geographic hi organization expansion 2 Build a high performing organization 13
Slide 14: 2013 Strategic Priorities
2013 Strategic Priorities 1 • Continuous C ti G Group wide id CCurrentt S Service i E Excellence ll P Program, e.g. end d tto end d process Deliver an excellent optimization to improve turn-around times , etc. customer • Further improvement of convenience and ease of access, e.g. through enhancement
Slide 15: Outlook
Outlook • During 2012 the UAE economy continued to display resiliency with an estimated GDP growth of 3.7% 3 7% underpinned by rising oil output and modest private sector expansion • Continued strength and growth witnessed in Dubai’s traditional trade, logistics, tourism and retail sales sectors and
Slide 16: Summary
Summary • Net profit improved significantly q-o-q and y-o-y by 34% and 31% respectively to Profitability AED 837 million • Top-line trends stable q-o-q and y-o-y Income • Cost to Income ratio has improved q-o-q and y-o-y from 38.2% and 35.1% CI Ratio respectively to 34.6% • NPL coverage improved by
Slide 17: Investor Relations
Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: IR@emiratesnbd.com 17