Slide 1: Emirates NBD H1 2019 Results Presentation
Emirates NBD H1 2019 Results Presentation 17 July 2019 2019 Presentation Title 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: Emirates NBD delivered a strong set of results in H1-19
Emirates NBD delivered a strong set of results in H1-19 Key Metrics 2019 Macro themes H1 2019 2019 Guidance AED 7.5 Bn Regional Global Net Profit +49% y-o-y Profit • Slowing but still NIM 2.77% 2.75-2.85% growing US economy Cost to income 29.7% 33% • GCC growth supported by stable • Positive outlook
Slide 4: H1-19 Financial results highlights
H1-19 Financial results highlights Highlights Key performance indicators Better / Better / AED Mn H1-19 H1-18 H2-18 • Net profit of AED 7,482 Mn for H1-19 increased 49% y-o-y (Worse) (Worse) and 49% over the preceding half year Net interest income 6,852 6,229 10% 6,659 3% • The results include a gai
Slide 5: Q2-19 Financial results highlights
Q2-19 Financial results highlights Highlights Key performance indicators Better / Better / AED Mn Q2-19 Q2-18 Q1-19 • Net profit of AED 4,739 Mn for Q2-19 increased 80% y-o-y (Worse) (Worse) and 73% q-o-q Net interest income 3,452 3,245 6% 3,400 2% • The results include a gain on disposal of a stake
Slide 6: Net interest income
Net interest income Highlights Net Interest Margin (%) • NIMS have followed a similar pattern to short term interest rates, rising 2.87 during 2018 as the US Fed increased rates, before declining to 2.77% in 2.82 2.85 2.83 2019. NIM in H1-2019 is 1 basis point lower than in 2018 2.77 • Q2-19 NIM of
Slide 7: Loan and deposit trends
Loan and deposit trends Highlights Trend in Gross Loans by Type (AED Bn) +3% • Gross loans grew 3% in H1-19 with growth across all operating segments +0% • Corporate lending grew 3% in H1-19 due to growth in manufacturing, services and real estate sectors 364 365 343 351 355 • Consumer lending remai
Slide 8: Capital adequacy
Capital adequacy Highlights Capitalisation 21.2 21.3 22.0 21.5 • In Q2-19, CET 1 was higher at 17.4% as retained earnings more than 20.9 20.9 20.4 offset an increase in RWAs 20.0 19.8 19.8 17.4 16.8 • CAR and Tier 1 ratio declined by 0.5% to 21.5% and 20.4% due to the 16.3 16.6 16.6 call of USD 1 Bn
Slide 9: Funding and liquidity
Funding and liquidity Highlights Advances to Deposit (AD) Ratio (%) • Liquidity Coverage Ratio of 188.8% and AD ratio of 92.1% demonstrates healthy liquidity position 95.0 95.2 • Liquid assets* of AED 84.7 Bn as at H1-19 (18.0% of total 94.4 94.4 94.3 94.0 93.8 liabilities) 93.1 • In H1-19, AED 9.7
Slide 10: Non-interest income
Non-interest income Highlights Composition of Non Interest Income (AED Mn) Better / Better / • Core fee income increased by 10% y-o-y on the back of AED Mn Q2-2019 Q2-2018 Q1-2019 (Worse) (Worse) higher foreign exchange income generated by the Trading and ALM desks Core gross fee income 1,653 1,471
Slide 11: Credit quality
Credit quality Highlights Impaired Loan & Coverage Ratios (%) • NPL ratio stable to 5.9% in H1-19 127.9 128.4 127.4 127.3 • H1-19 cost of risk increased to 82 bps from 63bp in 2018 on higher 124.5 125.8 124.9 net impairment charge of AED 1,226 Mn 123.5 123.9 • AED 527 Mn of write backs & recoveries
Slide 12: Operating costs and efficiency
Operating costs and efficiency Highlights Cost to Income Ratio (%) • Q2-19 costs were AED 1,430 Mn, a 2% q-o-q and 4% y-o-y increase due to a rise in staff costs relating to international 32.9 33.5 32.8 expansion, digital and technology 32.0 31.1 31.5 • Other Costs are lower y-o-y as higher telecomm
Slide 13: Divisional performance
Divisional performance Retail Banking & Wealth Management Balance Sheet Trends Revenue Trends • Revenue increased 9% y-o-y and 3% q-o-q led by higher net AED Bn +2% AED Mn interest income from liabilities and fee income driven by Cards +9% and FX 0% • Liabilities grew by 2% backed by higher current
Slide 14: Divisional performance
Divisional performance Wholesale Banking • Wholesale Banking revenue remained unchanged y-o-y and was down 5% Balance Sheet Trends Revenue Trends q-o-q due to lower volume of treasury sales and FX margins during an AED Bn AED Mn extended holiday period +10% 0% • Net interest income grew 1% q-o-q dri
Slide 15: Get in touch.
Get in touch. I N V E S T O R R E L AT I O N S Emirates NBD Head Office I 4th Floor PO Box 777 I Dubai, UAE IR@emiratesnbd.com Tel: +971 4 609 3046 15