Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Q1 2022 Earnings Presentation
25 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, June 2022
Slide 1: Investor Presentation Q1 2022
Investor Presentation Q1 2022 June 2022
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: Agenda
1. Emirates NBD Profile 2. Economic Environment 3. Financial & Operating Performance 4. Divisional Performance
Slide 4: Emirates NBD is a leading bank in the MENAT Region
Emirates NBD is a leading bank in the MENAT Region Key Highlights as of March 2022 Emirates NBD at a Glance AED 694 Bn AED 463 Bn AED 469 Bn Total Assets Gross Customer Loans Total Customer Deposits 13 901 17+ million Countries Branches Customers 4th 2nd ~20% Largest in GCC Largest in UAE Market Sha
Slide 5: Emirates NBD at a glance
Emirates NBD at a glance Emirates NBD’s International Presence Market share in the UAE* Moscow ➢ Assets 18%; Loans 23%; Deposits 20% London 8 1 1 Germany 13 ➢ Largest financial institution in Dubai, 4th Austria largest in the GCC Turkey Beijing 694 1 ➢ Leading retail banking franchise with a branch
Slide 6: Leader in Digital Banking and Innovation
Leader in Digital Banking and Innovation Key Digital Developments • 90% of all face-to-face card payment transactions now ‘contactless’ through • Liv. is now over 640,000 customer strong in UAE & KSA, making it Mobile wallet the largest digital lifestyle bank in the region. • An enhanced tablet bank
Slide 7: ESG Performance – Key Highlights
ESG Performance – Key Highlights For more about ESG report, please visit: Key developments First female director elected to the Board in February 2022. First UAE banking Group to commit to female leadership target, aiming for 25% women in senior management by 2027 Raised first Sustainability-linked
Slide 8: 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 at 31 March 2022 • A flagship bank for the Government of Dubai and the UAE • Strong and supportive shareholder base from the Government of Dubai Other
Slide 9: Emirates NBD is one of the largest banks in the GCC
Emirates NBD is one of the largest banks in the GCC… Total Assets Total Loans Total Deposits Total Income AED Bn, 31-Mar-2022 AED Bn, 31-Mar-2022 AED Bn, 31-Mar-2022 AED Mn, Q1 2022 1,115 796 793 8,065 981 513 600 7,533 902 484 592 6,957 694 463 497 6,374 644 447 469 4,458 446 257 262 3,016 9
Slide 10: …and one of the largest banks in the UAE
…and one of the largest banks in the UAE Total Income Net Profit Total Loans Coverage Ratio & NPLs (%) CET-1 Ratio (%) AED Mn, Q1 2021 AED Mn, Q1 2022 AED Bn, Q1 2022 31-Mar-2022 31-Mar-2022 NPL% 463 15.0 6,374 5,123 128 6.3 4,458 2,745 447 4.0 14.5 98 3,016 257 93 5.4 13.0 1,483 2,936 200 13.0 1,34
Slide 11: Consistently profitable due to diversified and resilient business model
Consistently profitable due to diversified and resilient business model 9.1% 9.3% 8.8% 10.5% 15.7% 19.7% 18.0% 18.8% 20.3% 16.5% 9.5% 12.8% 15.6% 23.8 23.2 22.4 17.4 15.2 15.4 14.4 14.7 14.5 11.8 9.7 9.9 10.2 10.0 9.3 8.3 7.1 7.2 7.0 6.4 5.1 3.3 2.3 2.5 2.6 2.7 2010 2011 2012 2013 2014 2015 2016 201
Slide 12: UAE economy rebounding with 5.7% growth expected in 2022
UAE economy rebounding with 5.7% growth expected in 2022 UAE GDP Growth Key Highlights 8.0 % y/y • The UAE economy enjoyed a strong finish to 2021, with Expo 2020 and 5.7 5.7 increased tourism boosting domestic demand 4.0 3.8 3.4 • ENBD Research expects UAE GDP to grow by 5.7% and the non-oil 2.4 1.
Slide 13: Dubai: Positioning for future growth
Dubai: Positioning for future growth Key contributors to Dubai GDP (Jan-Sep 2021) Key Highlights Hospitality • ENBD Research expects Dubai’s economy to grow by 4.5% in 2022 4.3% Other % of total 15.1% Trade • Visitor numbers expected to grow from 7.3 million in 2021, towards 2019 level ICT 25.4% 4.3
Slide 14: Emirates NBD delivers higher profits and maintains strong balance sheet in Q1 2022
Emirates NBD delivers higher profits and maintains strong balance sheet in Q1 2022 Key Highlights Key Metrics & Guidance Net Profit CET 1 Strong momentum continues with Q1-22 profit up 18% to AED 2.7bn AED 2.7bn 15.0% +18% y-o-y Improved loan & deposit mix with higher interest rates enabling Group t
Slide 15: Financial results highlights Q1 2022
Financial results highlights Q1 2022 Highlights Income Expenses Risk Capital Liquidity Divisional Better / Better / Income Statement (AED bn) Q1-22 Q1-21 Q4-21 Key Highlights (Worse) (Worse) Net interest income 4.3 4.1 4% 4.3 (2)% • Strong Q1-22 results with net profit up 18% y-o-y on higher income
Slide 16: Net interest income
Net interest income Highlights Income Expenses Risk Capital Liquidity Divisional 3.3 Key Highlights 3.2 Net Interest Margin (%) • Q1-22 NIM up 14 bps y-o-y on improved loan and deposit mix 3.1 2.89 3.0 2.82 Quarterly NIM - Loan yields up 5 bps on higher retail balances 2.9 YTD NIM - Deposit costs im
Slide 17: Loans and deposits trends
Loans and deposits trends Highlights Income Expenses Risk Capital Liquidity Macro Divisional Gross Loans by Type (AED Bn) Key Highlights +1% 472 475 475 463 459 • Gross loans grew 1% (AED 4bn) in Q1-22 DenizBank 81 79 79 65 65 - Retail lending up 4% (AED 3bn) with strong demand across all products E
Slide 18: Non-funded income
Non-funded income Highlights Income Expenses Risk Capital Liquidity Macro Divisional Key Highlights • Q1-22 fee and commission income 14% lower y-o-y mainly from Better / Better / Non-funded income (AED mn) Q1-22 Q1-21 Q4-21 (Worse) (Worse) Turkish Lira depreciation, partially offset by higher incom
Slide 19: Operating expenses
Operating expenses Highlights Income Expenses Risk Capital Liquidity Divisional Key Highlights Cost to Income Ratio (%) • Q1 22 cost to income ratio at 30.8% well below guidance reflecting seasonal 35.3 34.8 trend of investment in Q4 to ‘hit the ground running’ in Q1 34.0 • Staff costs increased y-o
Slide 20: Credit quality
Credit quality Highlights Income Expenses Risk Capital Liquidity Divisional Impaired loans and allowances Key Highlights • NPL ratio increased marginally by 2 bps to 6.4% in Q1-22 6.1 36.1 6.3 36.4 6.2 37.1 6.3 37.2 6.4 37.9 • Coverage ratio strengthened 1% to 128.5% in Q1-22 28.9 29.7 29.2 29.2 29.
Slide 21: Capital adequacy
Capital adequacy Highlights Income Expenses Risk Capital Liquidity Divisional Capital (AED billion) Key Highlights • CET-1 ratio marginally lower by 0.1% during 2022 as 82.7 5.1 - AED 2.7bn of retained earnings largely offset - AED 1.0bn impact on currency translation reserve and others 9.1 68.5 67.
Slide 22: Funding and liquidity
Funding and liquidity Highlights Income Expenses Risk Capital Liquidity Divisional Advances to Deposit and Liquidity Coverage Ratio (%) Key Highlights ADR % LCR % • LCR of 157.4% and ADR of 90.7% demonstrate healthy liquidity 180 100 165.1 158.8 177.6 • Liquid assets* of AED 67.7 billion cover 11% o
Slide 23: Divisional performance
Divisional performance Highlights Income Expenses Risk Capital Liquidity Divisional Key Highlights Increase / Retail Banking and Wealth Management Operating Segment Metrics Q1-22 (Decrease) • Record quarter for cards acquisitions, fee income and balance sheet growth Income (mn) 2,277 16% • Lending g
Slide 24: DenizBank business overview
DenizBank business overview Highlights Income Expenses Risk Capital Liquidity Divisional Better / Better / Income Statement (AED Mn) Q1-22 Q1-21 Q4-21 Key Highlights (Worse) (Worse) Net interest income 1,226 1,285 (5)% 1,319 (7)% • Net profit of AED 629 million in Q1-22 stable y-o-y despite 48% depr
Slide 25: Thank you
Thank you Investor Relations Emirates NBD Head Office I 4th Floor PO Box 777 I Dubai, UAE IR@emiratesnbd.com Tel: +971 4 609 3046