Slide 1: Q3 2015 Results Presentation
Q3 2015 Results Presentation Oct 27, 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: Q3-15 YTD Financial Results Highlights
Q3-15 YTD Financial Results Highlights Highlights Key Performance Indicators • Net profit of AED 4,990 Mn for Q3-15 YTD improved 27% Better / y-o-y AED Mn Q3-15 YTD Q3-14 YTD (Worse) • Net interest income rose 8% y-o-y due to growth in Retail Net interest income 7,572 7,024 8% assets and a lower cos
Slide 4: Q3-15 Financial Results Highlights
Q3-15 Financial Results Highlights Highlights Key Performance Indicators • Net profit of AED 1,673 Mn for Q3-15 improved 7% y-o-y and 2% q-o-q Better / Better / AED Mn Q3-15 Q3-14 Q2-15 (Worse) (Worse) • Net interest income improved 5% y-o-y and 4% q-o-q as loan growth largely Net interest income 2,
Slide 5: Net Interest Income
Net Interest Income Highlights Net Interest Margin (%) 2.95 • Q3-15 NIMs declined marginally to 2.75% 2.91 2.90 – Both Loan and deposit rates held steady against a 5bp 2.83 2.83 increase in average EIBOR rates 2.83 2.80 2.76 2.75 2.78 – Treasury spreads improved as the rate on medium term 2.85 borro
Slide 6: Funding and Liquidity
Funding and Liquidity Highlights Advances to Deposit (AD) Ratio (%) • AD ratio of 97.2% within 90-100% management target range • Liquid assets* of AED 50.5 Bn as at Q3-15 (14.8% of total 105.1 liabilities) 102.0 • Debt & Sukuk term funding represent 11% of total liabilities 99.5 99.2 97.2 • Maturity
Slide 7: Loan and Deposit Trends
Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED Bn) • Gross loans grew 7% since end 2014 with +7% strong growth in Retail and Islamic +2% 279 285 banking 259 262 265 272 267 271 • Islamic financing grew 20% since end 216 235 209 2014 205 178 195 196 197 200 201 202 207 • Consume
Slide 8: Non-Interest Income
Non-Interest Income Highlights Composition of Non Interest Income (AED Mn) • Non-interest income declined 7% y-o-y Better / due to lower gains from the sale of AED Mn Q3-15 YTD Q3-14 YTD (Worse) properties and investment securities Core gross fee income 3,630 3,236 12% • Core fee income improved 14%
Slide 9: Operating Costs and Efficiency
Operating Costs and Efficiency Highlights Cost to Income Ratio (%) • Costs declined 3% q-o-q 33.1 • Costs increased 5% y-o-y in Q3-15 due to 31.2 31.3 higher staff costs linked with rising business volumes 29.5 • Cost to Income Ratio rose marginally by 30.4 28.1 29.6 30.1 0.1% q-o-q to 31.3% • Adjus
Slide 10: Credit Quality
Credit Quality Highlights Impaired Loan & Coverage Ratios (%) 115.3 109.8 • NPL ratio improved by 0.8% year to date to 7.1% 100.3 103.9 92.0 • Impaired loans improved to AED 20.3 Bn helped by over 76.1 80.1 85.4 AED 1 Bn of writebacks & recoveries 66.2 64.7 70.3 57.5 60.7 • Cost of risk fell for the
Slide 11: Capital Adequacy
Capital Adequacy Highlights Capitalisation • Tier 1 ratio remained steady at 18% and CAR declined 20.4 21.1 20.5 21.0 20.9 marginally by 0.1% to 20.9% 18.0 17.5 18.0 18.0 17.2 • Increase in Capital due to retained earnings largely offset 46.4 47.5 49.1 increase in RWAs 45.7 46.0 7.0 6.7 6.8 6.8 6.8
Slide 12: Divisional Performance
Divisional Performance • Retail loans grew 10% in 2015 whilst revenue grew Balance Sheet Trends Revenue Trends 2% y-o-y due to a change in internal transfer AED Bn -2% AED Mn pricing +2% Wealth Management +10% • Loans grew 10% from end 2014 thanks to growth Retail Banking & +2% in Auto Loans, Cards
Slide 13: Divisional Performance (cont'd)
Divisional Performance (cont’d) • Wholesale Banking revenues declined 3% y-o-y Balance Sheet Trends Revenue Trends and 3% q-o-q AED Bn +3% AED Mn • Loans grew 4% from end 2014 -3% Wholesale Banking +4% • Deposits grew by 3% from end 2014 -3% 187.0 193.9 • Focus during 2015 is on enhancing customer 1
Slide 14: Outlook
Outlook • UAE’s GDP growth forecast for 2015 adjusted down to 4.0% (from 4.3%) as a result of sustained lower oil prices and lower growth prospects for the global economy • UAE PMI eased to 56.0 in September, but still indicates robust growth in the non-oil private sector • Emirates NBD Dubai Econom
Slide 15: Summary
Summary • Net profit of AED 5.0 Bn for Q3-15 YTD improved 27% y-o-y due to growth in net Profitability interest income and lower provisions Credit Quality • NPL ratio improved to 7.1% helped by over AED 1 billion of writebacks and recoveries • Cost of risk continues to normalise, falling for 5th con
Slide 16: Investor Relations
Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: IR@emiratesnbd.com 16