Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD

Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Merrill Lynch MENA & Frontiers Conference Dubai 2009

38 slides from Emirates Nbd Bank (p.j.s.c)'s conference presentation, November 2009

  1. Slide 1: EmiratesNBD – Merrill Lynch MENA & Frontiers Conference Dubai

    EmiratesNBD Merrill Lynch MENA & Frontiers Conference Dubai November 9 -11 2009

  2. 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

  3. Slide 3: Investment Highlights

    Investment Highlights Emirates NBD Group is the largest bank in the UAE and the GCC Diversified Business Model with Fully Fledged Financial Strong Asset and Leading Banking Services Offering Profit Growth over Group in the UAE the Past and the GCC 5 Years Solid Capitalization 56% Dubai Tier 1 = 12.7

  4. Slide 4: Contents

    Contents Operating Environment Emirates NBD Profile Financial and Operating Performance Merger Update Strategy and Outlook 4

  5. Slide 5: UAE Economic Update

    UAE Economic Update Highlights Real GDP Growth Forecasts (1)  UAE was impacted by external shocks including weaker oil prices, a 2008 2009 2010 credit squeeze, and declining world trade UAE 7.4% 0.0% 3.0%  Now these channels are improving, with oil prices firmer, global credit UK 0.7% (3.5%) (0.3%

  6. Slide 6: Dubai Economic Update

    Dubai Economic Update Highlights Dubai Nominal GDP (USD Billion)  Dubai is the 3rd largest centre for re-exports in the world which itself +17% CAGR Dubai constitutes almost 1/3rd represents 44% of GDP of the UAE economy 1.6  Oil has played a progressively diminishing role in Dubai’s economy as 1.

  7. Slide 7: UAE Banking Market Update

    UAE Banking Market Update Highlights UAE Banking Sector Growth (USD billion)  UAE loan growth has outstripped deposit growth in recent years 403 415  UAE Banking system liquidity tightened in Q3 2008 due to outflow of c. USD 50b of speculative capital & the Global credit/liquidity crisis following

  8. Slide 8: Contents

    Contents Operating Environment Emirates NBD Profile Financial and Operating Performance Merger Update Strategy and Outlook 8

  9. Slide 9: Emirates NBD – the leading banking group in the GCC

    Emirates NBD – the leading banking group in the GCC Largest financial institution (by asset size) in the GCC and the UAE Flagship bank for Dubai and the UAE Governments 56% owned by Dubai government Consistently profitable; the No.1 bank in the UAE by income and net profits Fully fledged, diversifie

  10. Slide 10: Emirates NBD at a glance

    Emirates NBD at a glance Largest bank in the UAE Largest Branch Network in the UAE  No.1 Market share in UAE: Ras al-Khaimah (4) − Assets c.19%; Loans c.21% Dubai 91 Umm al-Quwain (2) − Deposits c.18% Abu Dhabi 16 Fujairah Sharjah 11 Ajman (3)  No. 1 Retail market shares (estimated): Other Emirate

  11. Slide 11: Emirates NBD is the Largest Bank in the UAE and GCC by Assets

    Emirates NBD is the Largest Bank in the UAE and GCC by Assets UAE Ranking by Assets (USD billion) UAE Ranking by Equity (USD billion) UAE Ranking by Profits (USD million)(2) Emirates NBD 76.8 Emirates NBD 8.5(1) Emirates NBD 575 NBAD 49.3 First Gulf Bank 5.7 NBAD 457 ADCB 42.1 ADCB 5.4 First Gulf Ba

  12. Slide 12: Contents

    Contents Operating Environment Emirates NBD Profile Financial and Operating Performance Merger Update Strategy and Outlook 12

  13. Slide 13: Profit and Balance Sheet Growth in Recent Years

    Profit and Balance Sheet Growth in Recent Years Revenues (USD billion) Net Profits (USD billion) +33% +11% 2.3 2.3 1.1 1.9 1.0 0.8 0.9 1.3 (1) (1) 2006 2007 2008 Q3 09 YTD 2006 2007 2008 Q3 09 YTD Assets and Loans (USD billion) Deposits and Equity (USD billion) Assets Loans Deposits Equity (2) +23%

  14. Slide 14: 2008 and Q3 2009 YTD Financial Results

    2008 and Q3 2009 YTD Financial Results 2008 Financial Results Highlights Key Performance Indicators  Full Year 2008 Net Profit down 7% from 2007 Change vs. Change vs. USD million 2008 Q3 2009 YTD 2007 Q3 2008 YTD  Cash dividend of 20% and stock dividend of 10% Net Interest Income 1,589 +43% 1,494

  15. Slide 15: Net Interest Margins

    Net Interest Margins Highlights Net Interest Margin Trends  Q3 2009 YTD Net Interest Margin (NIM) of 2.55% – up 59 bps from 1.96% in Q3 2008 YTD driven by re-pricing of Qtrly NIM assets and benefits of balance sheet management 2.76 – down 3 bps compared to NIM of 2.58% in H1 2009 2.52 2.40  Q3 200

  16. Slide 16: Non-interest Income

    Non-interest Income Highlights Composition of Non-interest Income (%)  Non-interest income impacted in 2008 and Q1 2009 by decline in 100% = USD 760m (Q3 2009 YTD) global asset valuations and mark to markets on investment and other securities Dividend Other Income, 4% Rental income, 5% income, 1% 

  17. Slide 17: Operating Costs and Efficiency

    Operating Costs and Efficiency Highlights Cost to Income Ratio Trends  The cost to income ratio declined by 5.7% from 37.9% in Q3 2008 YTD Cost:income ratio to 32.2% in Q3 2009 YTD Core cost:income ratio  The core cost to income ratio declined by 0.9% from 35.4% in Q3 2008 YTD to 34.5% in Q3 2009

  18. Slide 18: Asset Quality – Loans and Receivables and Islamic Financing

    Asset Quality Loans and Receivables and Islamic Financing Highlights Loan Portfolio by Sector – Q3 2009  Loan portfolio is balanced and well secured 100% = USD 60.8b Transport and  Credit quality remains robust across the Bank’s corporate and retail Contracting, 4% communication, 3% portfolios Man

  19. Slide 19: Asset Quality – Real Estate Exposure

    Asset Quality Real Estate Exposure  Exposures to Real Estate and Contracting Sector is 15.9% and 3.7% of the corporate portfolio respectively  Emirates NBD is very selective in financing real estate sector. Extent of finance is generally limited to: – 70% of construction cost excluding land or 60%

  20. Slide 20: Asset Quality – Investments & Trading Securities

    Asset Quality Investments & Trading Securities Highlights 2008 and Q3 2009 YTD MTM Impact  Write-downs and impairments reflected a market-wide downturn in Total P&L impact Cum. 2008 USD million changes Balance Income Impairm. in FV  Relative stabilisation and improvement of equity and bond markets

  21. Slide 21: Capital Adequacy

    Capital Adequacy Highlights Capital Ratios (USD billion)  Capital adequacy ratio at 19.9% in Q3 2009 (FY 2008: 11.4%; Q2 19.0% 19.9% 2009: 19.0%) 16.2% 13.1% 12.7%  Tier 1 capital increased from 9.4% at end-2008 to 12.7% at Q3 2009 11.4% 12.1% 10.5% 9.7% principally due to: 9.4% 10.9 11.3 – profit

  22. Slide 22: Funding and Liquidity

    Funding and Liquidity Highlights Loan to Deposit Ratios (%)  Liquidity in the UAE Banking system improved in 2009 YTD, helped by 129% 127% 126% various Federal Government initiatives, including an additional Ministry 122% 118% 117% 119% 118% of Finance (MOF) deposit in Q3 2009  Funding remains sta

  23. Slide 23: Divisional Performance

    Divisional Performance USD billion USD million  Wholesale banking recorded a successful 9 months +56% Wholesale 47.1  Key focus during the period was on balance sheet optimisation, continued proactive 43.1 Banking management of credit quality, building non-risk based and fee generating businesses

  24. Slide 24: Contents

    Contents Operating Environment Emirates NBD Profile Financial and Operating Performance Merger Update Strategy and Outlook 24

  25. Slide 25: Merger Update: Integration fully on track

    Merger Update Integration fully on track We have achieved major milestones during the last year Emirates NBD’s Large Treasury team moved to one Mobile and Online Banking integrated; New Core Banking Successful integration of 92 Corporate Unit (LCU) premise. Now working as a single enhanced functiona

  26. Slide 26: Merger Update: Exceeded 2009 full year targets

    Merger Update Exceeded 2009 full year targets Target Synergies Actual H1 2009 Synergies (USD million)  USD 94m of recurring annual synergies by the third year post merger, plus  Achieved synergies of USD 89m – ahead of 2009 full year target by 33% USD 7m of one-off synergies totaling USD 101m 2009

  27. Slide 27: Contents

    Contents Operating Environment Emirates NBD Profile Financial and Operating Performance Merger Update Strategy and Outlook 27

  28. Slide 28: Strategic Imperatives

    Strategic Imperatives Objectives Evidence of success in Q3 2009 YTD  Prudent lending growth  Capital Adequacy Ratio strengthened to 19.9% from 11.4% – Support growth of important Group relationships in line at end-2008 with targeted asset/deposit ratios  Tier 1 increased to 12.7% from 9.4% at end

  29. Slide 29: Emerging Stronger from the Crisis

    Emerging Stronger from the Crisis  Strengthened senior management team structure Governance  Investor communication / disclosures  Enhanced risk management and controls  Enhanced trade finance & cash management offering in WB Products  Leverage asset management, investment banking, insurance &

  30. Slide 30: Emirates NBD Investment in IT systems

    Emirates NBD Investment in IT systems Over USD 60m invested during 2008 and 2009 in state of the art applications USD 44 million  New core banking platform for EBI went live in May 2009 and implementation investment for NBD expected in November 2009 1 Finacle  Finacle provides reduced complexity o

  31. Slide 31: Al Barsha Centre

    Al Barsha Centre Specifications and Features Units Housed  Al Barsha center  Operations processing unit – Commenced in December 2005 – Remittances – Completed: in June 2008 – Treasury – Investment of c. USD 25 million – Account opening  Built up area of c.320,000 sq ft – Payroll processing – 3 fl

  32. Slide 32: Data Centre

    Data Centre Highlights  Investment of c. USD 15 million  Designed as a “lights out” data center  High availability design – Built –in Redundancy – Availability of more than 99.98%  Adhering to the TIA 942 Tier 3 standards  Hosts an array of state-of-the-art technologies – Computing infrastructu

  33. Slide 33: Outlook

    Outlook  In 2009 the external environment combined with liquidity tightening and weakening demand should bring UAE GDP growth towards 0% before recovering modestly to c.3% in 2010.  Q3 2009 witnessed continued signs of stabilisation in the local and international economies and improved financial m

  34. Slide 34: Summary

    Summary Emirates NBD is the largest bank in the GCC by assets Dubai Government ownership and strong demonstrable UAE Federal support Robust financial results in 2009 YTD demonstrate resilience and conservatism Credit quality robust NPL ratio at 1.88% with trajectory in line with expectations Signifi

  35. Slide 35: Appendix

    Appendix 35

  36. Slide 36: Awards in Q3 2009 YTD

    Awards in Q3 2009 YTD Emirates NBD was named as the Outstanding Private Bank in the Middle East by VRL Financial News in October 2009 Emirates NBD was awarded the Mohamed bin Rashid Al Maktoum Business Award for Finance in April 2009 Emirates NBD has been named as Best Emerging Market Bank in the Mi

  37. Slide 37: Large Deals Concluded in Q3 2009 YTD

    Large Deals Concluded in Q3 2009 YTD Al Ghurair Centre LLC Borse Dubai Limited Saudi Bin Ladin Group Ltd Dubai Electricity & Water The Government of Dubai, (Public Buildings & Airports Authority Department of Finance (Dubai Division) Civil Aviation) US$ 347m US$ 2.5b SR 3.15b US$ 2,200m US$ 635m Syn

  38. Slide 38: Investor Relations

    Investor Relations PO Box 777 ENBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: IR@emiratesbank.com Ben Franz-Marwick Head, Investor Relations Tel: +971 4 201 2604 Email: bernhardf@emiratesbank.com Chaden Boustany Investor Relations Analyst Tel: +971 4 201 2628 Email: ChadenB@emirat

Emirates NBD — Merrill Lynch MENA & Frontiers Conference Dubai 2009 on 6ix