Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Investor Presentation (September 2023)
31 slides from Emirates Nbd Bank (p.j.s.c)'s investor presentation, September 2023
Slide 1: Investor Presentation September 2023
Investor Presentation September 2023
Slide 2: Important Information
Important Information Disclaimer that could cause actual results, and the Group’s plans and objectives, to differ materially from those expressed or implied in the forward- The material in this presentation is general background information about looking statements. Emirates NBD's activities current
Slide 3: Emirates NBD Profile
Emirates NBD Profile 6 ees 100 fi
Slide 4: Emirates NBD is a leading bank in the MENAT Region
Emirates NBD is a leading bank in the MENAT Region AED Key Highlights AED AED 14.15 as of June 17.90 113bn Share Price As of 1 June 2023 4th 2nd 2023 Largest Bank in GCC Largest Bank in UAE Share Price Market Cap As of 19 Sept 2023 As of 19 Sept 2023 AED AED AED AED AED 3.96% 21.3bn 12.3bn Net Inter
Slide 5: Emirates NBD at a glance
Emirates NBD at a glance Key Highlights Emirates NBD’s International Presence 1. Largest financial institution in Dubai, 650 Turkey one of the largest and most profitable in GCC 11 Austria 2. Leading retail banking franchise with a branch network of 855 branches throughout the 3 Germany MENAT region
Slide 6: 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 of 31 March 2023 • A flagship bank for the Government of Dubai and the UAE Others • Strong and supportive shareholder base from the Government of Duba
Slide 7: Leader in Digital Banking and Innovation
Leader in Digital Banking and Innovation Overview Key Digital Developments is Emirates NBD’s digital bank with over 450,000 customers. It • Enhanced everyday banking app ENBD X launched with 150+ services, has been refreshed with a new product portfolio and value including 100+ STPs proposition, foc
Slide 8: ESG Performance – Key developments
ESG Performance – Key developments 1. First female director elected to the Board in February 2022. 2. First UAE banking Group to commit to female leadership target, aiming for 25% women in senior management by 2027 3. Denizbank ranked top among Turkish private banks with 38% market share in agricult
Slide 9: ESG Finance and Investment
EmCap raised sustainable Raised first Sustainability- capital from 20 syndicated linked loan from a bank loan and debt capital from the Gulf region: market transactions in 2022 for clients in UAE, • KPI 1: Women in Senior Saudi Arabia, India, China, Management Singapore and Turkey • KPI 2: Reduction
Slide 10: Emirates NBD is one of the largest and most profitable banks in the MENAT region
Emirates NBD is one of the largest and most profitable banks in the MENAT region… Total Income Net Profit Total Asset Total Deposit In USD mn In USD mn In USD bn In USD bn H1 2023 5,800 3,340 330 230 4,982 2,676 312 203 4,593 2,220 266 161 3,694 2,211 221 152 3,628 2,081 209 151 2,172 1,038 142 86 1
Slide 11: Emirates NBD is a national champion, one of the two largest banks in the UAE
… and Emirates NBD is a national champion, one of the two largest banks in the UAE Total Income Net Profit Total Gross Loans Coverage Ratio & NPLs (%) CET-1 Ratio (%) In AED mn In AED mn In AED bn H1 2023 As of 30 June 2023 NPL% As of 30 June 2023 21,287 12,259 504 238 1.7 16.6 13,558 8,146 479 147
Slide 12: Consistent profitability due to diversified and resilient business model
… with consistent profitability due to diversified and resilient business model Return on Average Tangible Equity (excluding 2019 NI gain) 11% 16% 20% 18% 19% 20% 17% 10% 13% 17% 30% Total Income CAGR (13-22): 11% Net Profit CAGR (13-22): 15% 32.5 23.2 23.8 22.4 21.3 17.4 15.2 14.7 15.4 14.4 14.5 13
Slide 13: Economic Environment
Economic Environment 6 ees 100 fi
Slide 14: UAE economy rebounding with 7.9% growth in 2022 and 2.9% expected in 2023
UAE economy rebounding with 7.9% growth in 2022 and 2.9% expected in 2023 UAE GDP Growth Key Highlights 7.9 • UAE PMI averaged 56.3 in Q2 on strong domestic demand. 8.0 % y/y 4.4 • UAE corporate tax will help to further diversify budget revenues from 2025. 4.0 2.4 2.9 1.2 1.1 • Dubai CPI slowed to 2
Slide 15: Dubai: Positioning for future growth
Dubai: Positioning for future growth Dubai property prices growth Real estate transactions 50 Existing properties Off plan Villas Apartments % y/y 40 35 30 30 20 25 Thousands 20 10 15 0 10 (10) 5 (20) 0 Dubai tourists Dubai occupancy rates and RevPAR (Jan-Jun) In million tourists 100 160 16.7 80 15.
Slide 16: Financial & Operating Performance
Financial & Operating Performance
Slide 17: Executive Summary H1 23 Results
Executive Summary H1 23 Results Key Metrics and Guidance Profit Income NIM Record profit of Record income of AED 12.3 bn in AED 21.3 bn in H1-23 on AED 12.3 bn AED 21.3 bn 3.96% H1-23 on higher improved loan & deposit income & strong mix coupled with higher Guidance recoveries interest rates +130% +
Slide 18: Profit rises 130% YoY to record AED 12.3 bn
Emirates NBD’s profit rise 130% YoY to record AED 12.3 bn on strong diversified income growth and healthy recoveries Income Statement H1-23 H1-22 %∆ YoY Q2-23 %∆ YoY %∆ QoQ (All figures are in AED bn) Key Highlights Net interest income 14.4 9.4 53% 7.2 41% 1% Non-funded income 6.9 4.8 44% 3.6 35% 10
Slide 19: NIMs within guidance range
NIMs within guidance range on collective impact of rate rises, loan & deposit mix and Turkish operating environment Net Interest Margin (%) 4.40 Key Highlights Quarterly NIM YTD NIM 4.05 3.96 • H1-23 NIM up 110 bps y-o-y due to improved loan & deposit mix and higher interest 3.57 4.05 rates 3.87 • Q
Slide 20: Non-funded Income
Non-funded Income Non-funded income Q2-23 Q2-22 %∆ YoY Q1-23 %∆ QoQ Key Highlights (All figures are in AED m) Fee and Commission income 1,993 1,782 12% 2,016 (1)% • Healthy trend in fee and commission income, 12% higher y-o-y from increased local and international retail card business at both ENBD a
Slide 21: Improving loan and deposit mix
Improving loan and deposit mix Gross Loans by Type (AED bn) 5% Key Highlights 479 • Gross lending up 5% in H1-23 463 457 456 470 - Retail lending up 12% with strong demand across all products 66 73 67 - Corporate lending up 8% on strong origination with fewer repayments 66 69 107 - DenizBank’s TL gr
Slide 22: Credit quality improving with market leading coverage
Credit quality improving with market leading coverage Impaired loans and allowances Key Highlights 6.1 5.8 6.0 5.6 5.6 100% • NPL ratio improved by 0.4% to 5.6% in H1-23 on strong writebacks and recoveries 39.4 39.8 39.3 99% • Coverage ratio strengthened 2% to 147% in H1-23 40 37.7 37.9 98% – S1 cov
Slide 23: Costs firmly controlled with focus on future growth
Costs firmly controlled with focus on future growth Cost to Income Ratio (%) Key Highlights • H1-23 cost to income ratio at 25.6% comfortably within guidance as 28.7% 29.1% continued acceleration of investment for growth supported by higher income 28.2% • Staff costs increased y-o-y to deliver stron
Slide 24: Funding & Liquidity remains very healthy
Funding & Liquidity remains very healthy Advances to Deposit and Liquidity Coverage Ratio (%) Key Highlights 105 217 • LCR of 217% and ADR of 79% demonstrate healthy liquidity 220 ADR % LCR % 100 187 • Liquid assets* of AED 82 billion cover 12% of total liabilities, 15% of deposits 182 95 180 • AED
Slide 25: Capital ratios extremely strong
Capital ratios extremely strong Capital (AED bn) Key Highlights • CET-1 ratio improved by 1.2% to 16.6% during H1-23 as AED 8.9 bn of net earnings more than offset 2% increase in RWAs • Lower RWA density due to high quality Corporate loans added • Capital ratios well above 11% / 12.5% / 14.5% CBUAE
Slide 26: Divisional Performance
Divisional Performance Operating Segment Metrics H1-23 H1-22 %∆ YoY Key Highlights Income (mn) 7,948 5,670 40% Retail Banking and Wealth Management had an excellent first half with highest ever revenue, strongest ever acquisition of loans and a substantial growth in balance sheet Expense (mn) 1,974
Slide 27: Appendix
Appendix So aE a) IT i 7] ; mrs i i hh ” Eee Lie peut ee oe | ) Soe "7 (Cemen 60 years together
Slide 28: Hyperinflation
Hyperinflation Türkiye Consumer Price Index Key Highlights 190% 38% 110% 1270 1352 1128 1047 978 844 687 571 547 524 505 477 466 Jun-20 Dec-20 Dec-21 Dec-22 Sep-20 Jun-21 Sep-21 Jun-22 Sep-22 Jun-23 Mar-21 Mar-22 Mar-23 • Turkish CPI grew by 190% over preceding three-years and by 38% in the precedin
Slide 29: Financial Results Highlights H1 2023
Financial Results Highlights H1 2023 Excluding DenizBank Income Statement H1-23 H1-22 %∆ YoY Q2-23 %∆ QoQ H1-23 H1-22 %∆ YoY Q2-23 %∆ QoQ H1-23 H1-22 %∆ YoY Q2-23 %∆ QoQ (All figures are in AED bn) Net interest income 14.4 9.4 53% 7.2 1% 12.0 6.4 87% 6.2 5% 2.4 3.0 (20)% 1.1 (21)% Non-funded income
Slide 30: US$ convenience translation
US$ convenience translation Excluding DenizBank Income Statement H1-23 H1-22 %∆ YoY Q2-23 %∆ QoQ H1-23 H1-22 %∆ YoY Q2-23 %∆ QoQ H1-23 H1-22 %∆ YoY Q2-23 %∆ QoQ (All figures are in USD bn) Net interest income 3.9 2.6 53% 2.0 1% 3.3 1.7 87% 1.7 5% 0.7 0.8 (20)% 0.3 (21)% Non-funded income 1.9 1.3 44%
Slide 31: Slide 31
Emirates NBD — Investor Presentation (September 2023) on 6ix