Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Q1 2024 Earnings Presentation
42 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, June 2024
Slide 1: Investor Presentation June 2024
Investor Presentation June 2024
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 that could cause actual results, and the Group’s plans and objectives, information given in summary form and does not pu
Slide 3: Emirates NBD Profile
Emirates NBD Profile (, (nibogll nyo culo Lis 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 16.55 105bn Largest Bank in GCC Largest Bank in UAE US$ 5.9bn in 2023 By Assets By Assets Share Price Market Cap As of 25 Apr 2024 As of 25 Apr 2024 AED AED AED AED AED 10.7bn 6.7bn 3.52% Net Interest Ma
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, 642 Turkey one of the largest and most profitable in GCC 11 Austria 2. Leading retail banking franchise with a branch network of 858 branches throughout the 3 Germany MENAT region
Slide 6: 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 7: 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 858 Six Strategic Pillars Additional innovative products and branches across 12 countries services on ENBD X, providing the premier one-stop banking & wealth manag
Slide 8: 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 9: 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 Q1-2024 As of 31 Mar 2024 NPL% As of 31 Mar 2024 2,903 1,829 340 250 1.3 17.2 2,830 1,348 336 175 0.8 15.8 2,384 1,175 286 153 4.4 15
Slide 10: 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 11: Economic Environment
Economic Environment (, (nibogll nyo culo Lis Emirates NBD
Slide 12: 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 55.3 in April 2024 7.9 • Record international visitors to Dubai at 17.15m in 2023, up 19% y/y and 2.5% 4.4 3.6 3.7 4.0 higher than pre-pandemic levels. 1.1 • Dubai GDP grew by 3.6% y/y in 2023. T
Slide 13: Dubai: Growth momentum continues
Dubai: Growth momentum continues Dubai Property Prices Growth Real estate Transactions 45 40000 Dubai apartments Dubai villas Ready Off-Plan 35 35000 Y/Y % change in sales prices 25 30000 No. of Units 25000 15 20000 5 15000 -5 10000 -15 5000 -25 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 14: Financial & Operating Performance
Financial & Operating Performance
Slide 15: Executive Summary Q1 2024 Results Key Metrics and Guidance
Executive Summary Q1 2024 Results Key Metrics and Guidance Record AED 6.7 bn Healthy income Profit Income NIM profit in Q1-24 on growth on strong higher income & loan & deposit mix AED 6.7 bn AED 10.7 bn strong recoveries propelled by 3.52% increased regional +67% q-o-q +3% q-o-q Guidance revised to
Slide 16: AED 6.7 bn record Q1 profit rises 67% q-o-q and 12% y-o-y
AED 6.7 bn record Q1 profit rises 67% q-o-q and 12% y-o-y on diversified income growth and healthy recoveries Income Statement (All figures are in AED bn) Q1-24 Q1-23 %∆ YoY Q4-23 %∆ QoQ Key Highlights Net interest income 7.4 7.2 3% 7.8 (5)% Non-funded income 3.3 3.3 (1)% 2.5 30% • Group profit up 6
Slide 17: NIMs: CASA growth and favourable loan mix helping offset higher rates
NIMs: CASA growth and favourable loan mix helping offset impact of higher interest rates in Türkiye Net Interest Margin (%) Key Highlights Quarterly NIM • Q1-24 NIM down 53 bps y-o-y due to higher funding costs and competitive loan 4.08 4.05 YTD NIM 4.05 3.96 pricing at ENBD and lower margins at Den
Slide 18: Strong client flows driving fee & commission income growth
Strong client flows driving fee & commission income growth Key Highlights Non-funded income Q1-24 Q1-23 %∆ YoY Q4-23 %∆ QoQ (All figures are in AED m) • Total non-funded income flat y-o-y as higher fee and commission income offset Fee and Commission income 2,986 2,016 48% 2,561 17% by lower other op
Slide 19: Business loan and deposit growth momentum continues
Business loan and deposit growth momentum continues Gross Loans by Type Key Highlights (AED bn) 2% • Loans up 2.3% in Q1-24 on very strong underlying growth – Record retail lending up 8% q-o-q with healthy demand across all products 479 494 481 492 – Corporate lending up 3% q-o-q on strong originati
Slide 20: Credit quality continues to significantly improve
Credit quality continues to significantly improve Impaired loans and allowances Key Highlights NPLs 5.6% 5.6% 5.5% 4.6% 4.4% 100% • NPL ratio improved by 0.2% to 4.4% in Q1-24 on strong writebacks, recoveries, Coverage 152% write-offs and repayments 60.0 147% 145% 163% 153% 99% • Stage 2 loans reduc
Slide 21: 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 28.8% for Q1-24, comfortably within guidance, with continued investment for growth supported by income 32.4% 28.8% • Staff costs increased to deliver strong business growth and
Slide 22: Funding & liquidity remains very healthy
Funding & liquidity remains very healthy Advances to Deposit and Liquidity Coverage Ratio (%) Key Highlights 90 ADR % LCR % • LCR of 186% and ADR of 75% demonstrate healthy liquidity 240 217 • Liquid assets* of AED 101 bn cover 13% of total liabilities, 17% of deposits 210 85 • AED 13 bn of term deb
Slide 23: Total Capital ratio strong at 17.8%
Total Capital ratio strong at 17.8% Capital Key Highlights (AED bn) • 15.2% CET-1 ratio strengthened in Q1-24 as retained earnings more than offset 2% growth in RWAs • Credit RWA increase from strong Retail and Corporate loan growth • CET-1 at 15.0% excluding ECL regulatory add back • Capital ratios
Slide 24: Divisional Performance
Divisional Performance Key Highlights Operating Segment Metrics Q1-24 Q1-23 %∆ YoY Retail Banking and Wealth Management (RBWM) had an excellent first quarter with the highest ever revenue, Income (mn) 4,428 3,855 15% strongest ever loan acquisition and a substantial growth in balance sheet Expense (
Slide 25: ESG Development
ESG Development (, (niall ins. culjloUl eLiy Emirates NBD
Slide 26: Emirates NBD Principal Banking Partner at COP28
Emirates NBD Principal Banking Partner at COP28 Delivering ESG Solutions for a greener future Emirates NBD’s Objectives Leading GCC bank in ESG ranked by Strong regional Green Bond Sustainalytics and rated 5th out of origination credentials, helping 311 diversified banks globally Supporting clients
Slide 27: Examples of ENBD's Existing Eligible Green and Social Loans
Examples of ENBD’s Existing Eligible Green and Social Loans Solar Park Construction Circular manufacturing unit Agricultural water treatment plant Circular manufacturing unit which uses 100% waste Large concentrated solar park in UAE paper/cardboard as raw material to produce Large agricultural wast
Slide 28: 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 Governance • Emirates NBD’s sustainability
Slide 29: 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 targets as highlighted below. Environmental So
Slide 30: ESG 2023 Highlights
ESG 2023 Highlights Strong regional Green Bond Launch of Emirates NBD First bank in the MENAT origination credentials, helping region to be awarded Sustainable Finance raise USD 20 billion Platinum status by the US through 40 Green Bond issues Framework in 2023. Green Building Council’s LEED in 2023
Slide 31: 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. • Emirates NBD and De
Slide 32: ESG Forward Journey
ESG Forward Journey Enhance Sustainable Finance Governance by: • Setting Sustainable Finance Committee; • Publish our Environmental and Social Risk Framework. • Refresh Sustainable Finance Framework • Developing the Sustainable Finance Product Catalogue. • Refresh Transition Finance Framework • Enga
Slide 33: 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 34: 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 35: ESG 2023 Highlights
ESG 2023 Highlights Eligible Green Assets Portfolio* Eligible Social Assets Portfolio* Green Buildings 82% Access to Essential Services 87% Renewable Energy 10% Affordable Housing 11% Clean Transportation 3% Pollution Prevention 3% Energy Efficiency 2% Employment Generation & Unemployment Action Pla
Slide 36: 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 37: 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 38: Appendix
(; gnibgll cus SylbUl diy Emirates NBD Appendix
Slide 39: Financial Results Highlights Q1-24
Financial Results Highlights Q1-24 Excluding DenizBank Income Statement Q1-24 Q1-23 %∆ YoY Q4-23 %∆ QoQ Q1-24 Q1-23 %∆ YoY Q4-23 %∆ QoQ Q1-24 Q1-23 %∆ YoY Q4-23 %∆ QoQ (All figures are in AED bn) Net interest income 7.4 7.2 3% 7.8 (5)% 6.3 5.8 8% 6.1 2% 1.1 1.4 (17)% 1.7 (33)% Non-funded income 3.3
Slide 40: US$ convenience translation
US$ convenience translation Excluding DenizBank Income Statement Q1-24 Q1-23 %∆ YoY Q4-23 %∆ QoQ Q1-24 Q1-23 %∆ YoY Q4-23 %∆ QoQ Q1-24 Q1-23 %∆ YoY Q4-23 %∆ QoQ (All figures are in USD bn) Net interest income 2.0 2.0 3% 2.1 (5)% 1.7 1.6 8% 1.7 2% 0.3 0.4 (17)% 0.5 (33)% Non-funded income 0.9 0.9 (1)
Slide 41: Hyperinflation
Hyperinflation 309% 68% Key Highlights 143% 2,139 1,859 1,691 1,352 1,270 1,128 1,047 978 844 687 571 547 524 Sep-21 Jun-21 Jun-22 Sep-22 Jun-23 Sep-23 Mar-21 Mar-22 Mar-23 Mar-24 Dec-21 Dec-22 Dec-23 • Turkish CPI grew by 309% over preceding three-years and by 68% in the preceding 12 months • 23 bp
Slide 42: gnibgll uy oll cls
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