Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Investor Presentation (June 2015)
29 slides from Emirates Nbd Bank (p.j.s.c)'s investor presentation, June 2015
Slide 1: Emirates NBD Investor Presentation
Emirates NBD Investor Presentation June 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: UAE Economic Overview
Operating Environment UAE Economic Overview Highlights Real GDP Growth Forecasts • Non-oil sector growth remains robust, underpinned by Country 2010 2011 2012 2013 2014F 2015F infrastructure spending and growth in key trading partners. UAE 1.6% 4.9% 4.7% 5.2% 4.5% 4.3% Emirates NBD Profile China 10.
Slide 4: Dubai Economic Overview (1/3)
Operating Environment Dubai Economic Overview (1/3) Highlights Dubai: Real GDP growth • Highly diversified economy and key contributor to UAE’s 6% 4.6% 5.0% 4.7% 4.1% non-oil sector growth. 4% 3.5% 3.5% 3.0% Emirates NBD Profile • Limited impact from oil price decline: 2014 growth forecast 2% retain
Slide 5: Dubai Economic Overview (2/3)
Operating Environment Dubai Economic Overview (2/3) Highlights Dubai Airports Passenger Traffic • Tourism continues to be a key driver of Dubai’s growth 7 30% with Dubai International Airport, the world’s busiest 6 25% 20% international hub, enjoying strong passenger growth of 6.0% Emirates NBD Prof
Slide 6: Dubai Economic Overview (3/3)
Operating Environment Dubai Economic Overview (3/3) Highlights Business Licenses Issued* • Higher transaction fees and mortgage caps implemented in 130 2014 have helped to cool the market. Residential real estate 110 No. of licenses in ‘000s Emirates NBD Profile prices continue to ease, but on low v
Slide 7: UAE Banking Market Overview
Operating Environment UAE Banking Market Overview Highlights Bank Deposit and Loan Growth* • UAE Banking sector is the largest by assets in the GCC. 18% Bank deposits (% y/y) Bank Loans (% y/y) Sector is dominated by 23 local banks which account for more 16% than 75% of banking assets; 28 foreign ba
Slide 8: Emirates NBD is a leading banking group in the region and the largest bank in the UAE
Operating Environment Emirates NBD is a leading banking group in the region and the largest bank in the UAE Size • One of the largest financial institutions (by asset size) in the GCC Emirates NBD Profile Flagship • Flagship bank for Dubai Government Ownership • 56% owned by Dubai Government Financi
Slide 9: Emirates NBD at a glance
Operating Environment Emirates NBD at a glance A Leading Bank in the UAE Largest Branch Network in the UAE • Market share in UAE (at 31 Mar 2015): Dubai Abu Dhabi 101 25 Ras al-Khaimah (5) – Assets c.15.7%; Loans c.18.2% Sharjah 17 Umm al-Quwain (2) Other Emirates 11 Emirates NBD Profile – Deposits
Slide 10: Emirates NBD is the largest bank in the UAE
Operating Environment Emirates NBD is the largest bank in the UAE by Operating Income, Net Profit, Loans and Deposits x% Q1 2015 vs. Q1 2014 in Q1 2015 Operating income Net profit Net Loans Total Deposits AED Mn, Q1 2015 AED Mn, Q1 2015 AED Bn, Q1 2015 AED Bn, Q1 2015 Emirates NBD Profile 60% 249 1.
Slide 11: Emirates NBD is among top banks in the GCC
Operating Environment Emirates NBD is among top 3 banks in the GCC by Operating Income, Loans and Deposits in 2014 x% 2014 vs. 2013 Operating income Net Profit Net Loans Deposits USD Bn, 2014 USD Bn, 2014 USD Bn, 2014 USD Bn, 2014 Emirates NBD Profile 93 9% 99 7% 4.3 9% 2.9 11% 67 3% 89 11% 4.2 7% 2
Slide 12: Profit and Balance Sheet Growth in Recent Years
Operating Environment Profit and Balance Sheet Growth in Recent Years Revenues and Costs (AED Bn) Profits (AED Bn) Revenues Costs Pre-Provision Operating Profits Net Profits Emirates NBD Profile +6% +4% +7% +9% 14.4 4.2 4.4 10.1 5.1 11.9 3.6 3.6 3.8 10.8 3.1 7.7 9.7 9.9 10.2 7.1 6.6 6.3 6.5 3.3 3.3
Slide 13: Q1-15 Financial Results Highlights
Operating Environment Q1-15 Financial Results Highlights Highlights Key Performance Indicators • Net profit of AED 1,671 Mn for Q1-15 Better / Better / improved 60% y-o-y and 36% q-o-q AED Mn Q1-15 Q1-14 Q4-14 (Worse) (Worse) • Net interest income rose 11% y-o-y Emirates NBD Profile mainly due to gr
Slide 14: Net Interest Income
Operating Environment Net Interest Income Highlights Net Interest Margin (%) 2.95 • NIMs steady in Q1-15 vs. Q4-14 at 2.90% and widened 2.91 2.90 15 bps vs. Q1-14 2.83 2.83 2.85 Emirates NBD Profile 2.78 • Loan spreads declined marginally q-o-q and improved 2.76 2.75 6 bps y-o-y due to higher yieldi
Slide 15: Non-Interest Income
Operating Environment Non-Interest Income Highlights Composition of Non Interest Income (AED Mn) • Non-interest income improved 26% q- o-q driven by increases in foreign Better / Better / AED Mn Q1-15 Q1-14 Q4-14 exchange and derivative income, higher (Worse) (Worse) Emirates NBD Profile asset manag
Slide 16: Costs and Efficiency
Operating Environment Operating Costs and Efficiency Highlights Cost to Income Ratio (%) • Costs decreased by 8% q-o-q in 33.1 Q1-15 and increased by 3% y-o-y Emirates NBD Profile 31.5 • Cost to Income Ratio improved by 5% 30.3 30.4 q-o-q to 28.1% due to growth in 29.5 29.3 non-interest income and a
Slide 17: Credit Quality
Operating Environment Credit Quality Highlights Impaired Loan & Coverage Ratios (%) • NPL ratio improved marginally to 7.8% 92.0 100.3 103.9 85.4 • Impaired loans increased by AED 0.1 Bn 76.1 80.1 Emirates NBD Profile 66.2 70.3 60.7 64.7 59.8 57.5 • Q1 2015 net impairment charge of AED 1.1 Bn 43.4 4
Slide 18: Capital Adequacy
Operating Environment Capital Adequacy Highlights Capitalisation • CAR decreased by 0.6% to 20.5% and Tier 1 ratio 20.4 21.1 20.5 19.2 19.6 decreased by 0.5% to 17.5% in Q1-15 due to: Emirates NBD Profile 17.2 18.0 17.5 – Annual dividend payment exceeding the quarterly 15.0 15.6 retained profit 43.6
Slide 19: Funding and Liquidity
Operating Environment Funding and Liquidity Highlights Advances to Deposit (AD) Ratio (%) • AD ratio of 95.6% within 90-100% management target range • Liquid assets* of AED 50.3 Bn as at Q1-15 (15.7% of total liabilities) 105.1 Emirates NBD Profile • Maturity Profile of Debt Issued significantly ext
Slide 20: Loan and Deposit Trends
Operating Environment Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED Bn) • Gross loans grew 1% since end 2014 +1% mainly due to growth in Islamic 272 265 267 271 Emirates NBD Profile 262 financing 259 235 • Islamic financing grew 6% since 221 205 216 178 195 196 197 200 201 202
Slide 21: Loan Composition
Operating Environment Loan Composition Total Gross Loans (AED 271 bn) Corporate Loans (AED 92 bn) Treasury/Other Corporate Cont. Retail 92 Trans. & com. 8% Emirates NBD Profile 27 (34%) 6% RE (10%) 1 33% (0%) Trade 14% 40 (15%) 7% 111 Islamic* Manuf. 4% (41%) 3% Financial & Operating Performance Oth
Slide 22: Divisional Performance
Operating Environment Divisional Performance • Retail business has grown but revenue stable Balance Sheet Trends Revenue Trends due to a change in internal transfer pricing -3% AED Bn AED Mn Wealth Management • Deposits declined 3% from end 2014 as more +1% -1% Retail Banking & expensive time deposi
Slide 23: Divisional Performance (cont'd)
Operating Environment Divisional Performance (cont’d) • Wholesale Banking revenues grew Balance Sheet Trends Revenue Trends 15% q-o-q AED Bn +1% AED Mn • Loans grew 1% from end 2014 Wholesale Banking +1% +15% • Deposits also grew by 1% from end 2014 187.0 188.0 1,246 1,146 Emirates NBD Profile 1,084
Slide 24: Summary
Operating Environment Summary • Net profit of AED 1.7 Bn for Q1-15 improved 60% y-o-y due to higher income, stable Profitability costs and lower provisions • Total income rose 15% y-o-y to AED 3.8 Bn helped by an improving asset mix, strong Emirates NBD Profile Income fee income and efficient fundin
Slide 25: Emirates NBD's core strategy building blocks
Emirates NBD’s core strategy is focused on the following building blocks Operating Environment Key Deliver an excellent customer Objective experience Emirates NBD Profile Financial & Operating Performance Strategic Run an Drive Levers Drive core efficient geographic business organization expansion S
Slide 26: Strategic priorities for 2015
Strategic priorities for 2015 Priorities Focus Areas Operating Environment 1 • Continue to deliver superior customer experience through better service and product offerings Deliver an • Drive front line cultural/ behavior change excellent customer • Reinforce ENBD’s position as a digital innovator i
Slide 27: 2015 Awards
Operating Environment 2015 Awards • Emirates NBD Capital won ‘Best Sukuk house’ and ‘Best local Investment Bank’ in the UAE at Best Bank and Best EMEA Finance’s Middle East Banking Awards 2014 Regional Bank • Emirates NBD won ‘Most Innovative Bank’ in Pan-Middle East at EMEA Finance’s Middle East Aw
Slide 28: Appendix
Appendix Strategy Financial & Operating Performance Emirates NBD Profile Operating Environment Large Deals Concluded in 2015
Slide 29: Investor Relations
Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: IR@emiratesnbd.com 29