Slide 1: Results Presentation | FY 2022
Results Presentation | FY 2022 26 January 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: Executive Summary FY 22 Results
Executive Summary FY 22 Results Key Metrics and Guidance Key Highlights Net Profit Income NIM Income 36% higher AED 13 bn AED 32.5 bn 3.43% Strong momentum continues with driven by improved Guidance 2022: 3.2-3.3% AED 13 bn profit loan & deposit mix +40% +36% 2023: 3.8-4.0% up 40% in 2022 coupled wi
Slide 4: Consistently profitable due to diversified and resilient business model
Consistently profitable due to diversified and resilient business model Return on Average Tangible Equity (excluding 2019 NI gain) 9% 11% 16% 20% 18% 19% 20% 17% 10% 13% 17% Total Income CAGR (12-22): 12% 32.5 Net Profit CAGR (12-22): 17% 23.2 23.8 22.4 17.4 15.2 14.7 15.4 14.4 14.5 13.0 11.8 4.4 10
Slide 5: Emirates NBD's profit rises 40% YoY to AED 13 bn on strong diversified income growth
Emirates NBD’s profit rises 40% YoY to AED 13 bn on strong diversified income growth Excluding DenizBank Key Highlights Income Statement FY 22 FY 21 %∆ YoY FY 22 %∆ YoY FY 22 %∆ YoY • Group profit up 40% on strong diversified income growth (All figures are in AED bn) – ENBD income higher from improv
Slide 6: Quarterly profits again exceed US$ 1bn equivalent
Quarterly profits again exceed US$ 1bn equivalent Income Statement (All figures are in AED bn) Q4-22 Q4-21 %∆ YoY Q3-22 %∆ QoQ Key Highlights Net interest income 7.7 4.3 78% 6.1 27% Non-funded income 2.1 2.2 (3)% 2.4 (12)% • Continued strong performance in Q4-22 with net profit again exceeding US$1
Slide 7: Higher NIM guidance as interest rates rises feed through
Higher NIM guidance as interest rates rises feed through Net Interest Margin (%) 4.40 Key Highlights Quarterly NIM YTD NIM • FY22 NIM improved 90 bps y-o-y due to interest rate rises and higher 3.57 3.43 DenizBank NIMs 3.09 2.82 2.89 • Q4-22 NIM up 83 bps q-o-q on improved loan and deposit mix and h
Slide 8: Non-funded Income
Non-funded Income Non-funded income (All figures are in AED bn) FY-22 FY-21 %∆ YoY Key Highlights Fee and Commission income 7,004 6,475 8% • Healthy trend in fee and commission income, 8% higher y-o-y from increased local and international retail card business at both ENBD and DenizBank and Fee and
Slide 9: Improving loans and deposit mix
Improving loans and deposit mix Gross Loans by Type (All figures are in AED bn) Key Highlights -1% 459 463 463 457 456 • Gross lending ex. Sovereign grew up 12% (AED 36 bn) in FY22 DenizBank - Retail lending up 12% (AED 7 bn) with strong demand across all products 65 65 66 66 69 EI 47 50 52 - Corpor
Slide 10: Credit quality improving with market leading coverage
Credit quality improving with market leading coverage Impaired loans and allowances (All figures are in AED bn) Key Highlights 6.3 6.4 6.1 5.8 6.0 • NPL ratio improved by 0.3% to 6.0% in 2022 on continued strong writebacks 37.2 37.9 37.7 37.9 39.4 and recoveries 29.2 29.5 28.3 26.6 • Coverage ratio
Slide 11: Costs firmly controlled, focus on future growth
Costs firmly controlled, focus on future growth Cost to Income Ratio (%) Key Highlights 34.8 • FY22 cost to income ratio at 28.5% within guidance reflecting stronger 33.5 30.8 income enabling accelerated investment for growth 28.7 29.1 • Staff costs increased y-o-y on incentives to drive underlying
Slide 12: Funding & Liquidity remains very healthy
Funding & Liquidity remains very healthy Advances to Deposit and Liquidity Coverage Ratio (%) Key Highlights 180 ADR % LCR % 182 178 100 • LCR of 182% and ADR of 82% demonstrate healthy liquidity 160 96 • Liquid assets* of AED 75 billion cover 12% of total liabilities, 15% of deposits 157 155 152 •
Slide 13: Capital ratios remain solid
Capital ratios remain solid Capital 91.2 (All figures are in AED bn) 76.6 Key Highlights 67.5 • CET-1 ratio improved by 0.3% to 15.4% during 2022 as AED 8.9 bn of net earnings after proposed dividend more than offset 12% increase in RWAs • Capital ratios well above 11% / 12.5% / 14.5% CBUAE min. req
Slide 14: Divisional Performance
Divisional Performance Operating Segment Metrics FY22 %∆ YoY Key Highlights Income (mn) 10,234 27% Retail Banking and Wealth Management 2,702 21% • Strong loan growth in 2022 with Loan origination up 39%, Credit Card acquisitions up 100% and Expense (mn) Retail Banking and Card spends up 31 % y-o-y
Slide 15: Appendix
Appendix (ements)
Slide 16: Hyperinflation
Hyperinflation Türkiye Consumer Price Index Key Highlights +156% 64% • Loss on net monetary position for DenizBank was AED 3.1 bn for 2022 • AED 3.1 bn debit P&L charge with corresponding credit offset to OCI making it 1,128 1,047 56% 978 capital neutral 844 687 1.0 (1.3) 571 547 (0.2) 524 505 4.7 4
Slide 17: Income Statement
Income Statement Excluding DenizBank Income Statement FY 22 FY 21 %∆ YoY FY 22 FY 21 %∆ YoY FY 22 FY 21 %∆ YoY (All figures are in AED bn) Net interest income 23.2 16.9 37% 15.7 11.7 34% 7.6 5.3 43% Non-funded income 9.3 6.9 35% 6.3 5.1 22% 3.0 1.8 70% Total income 32.5 23.8 36% 21.9 16.8 31% 10.6 7
Slide 18: Emirates NBD's profit rises 40% YoY to USD 3.5 bn
Emirates NBD’s profit US$ convenience rises 40% YoY to USD 3.5 bn translation on strong diversified income growth Excluding DenizBank Income Statement FY 22 FY 21 %∆ YoY FY 22 %∆ YoY FY 22 %∆ YoY (All figures are in USD bn) Net interest income 6.3 4.6 37% 4.3 34% 2.1 43% Non-funded income 2.5 1.9 35
Slide 19: US$ convenience translation
US$ convenience translation Income Statement Q4-22 Q4-21 %∆ YoY Q3-22 %∆ QoQ (All figures are in USD bn) Net interest income 2.1 1.2 78% 1.7 27% Non-funded income 0.6 0.6 (3)% 0.7 (12)% Total income 2.7 1.8 50% 2.3 16% Operating expenses (0.8) (0.6) 26% (0.6) 23% Pre-impairment operating profit 1.9
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