Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — H1 2018 Earnings Presentation
15 slides from Emirates Nbd Bank (p.j.s.c)'s earnings presentation, Jul 18, 2018
Slide 1: H1 2018 Results Presentation
H1 2018 Results Presentation 18 July 2018
Slide 2: Important Information
2 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 for
Slide 3: Emirates NBD delivered a record set of results in H1-18
3 Emirates NBD delivered a record set of results in H1-18 H1 2018 Key Metrics 2018 Macro themes H1 2018 2018 Guidance Regional Global • Resilience of UAE • Emirates NBD’s AED 5.0 Bn economy balance sheet Profit Net profit underpinned by positioned to +29% y-o-y non-oil activity benefit from rising 2
Slide 4: H1-18 Financial Results Highlights
4 H1-18 Financial Results Highlights Highlights Key Performance Indicators Better / Better / • Record half-year net profit of AED 5,018 Mn for AED Mn H1-18 H1-17 H2-17 (Worse) (Worse) H1-18 increased 29% y-o-y Net interest income 6,229 5,185 20% 5,601 11% • Net interest income improved 20% y-o-y and
Slide 5: Q2-18 Financial Results Highlights
5 Q2-18 Financial Results Highlights Highlights Key Performance Indicators Better / Better / • Net profit of AED 2,631 Mn for Q2-18 increased AED Mn Q2-18 Q2-17 Q1-18 (Worse) (Worse) 30% y-o-y and 10% q-o-q Net interest income 3,245 2,699 20% 2,984 9% • Net interest income improved 20% y-o-y and 9%
Slide 6: Net Interest Income
6 Net Interest Income Highlights Net Interest Margin (%) 2.82 • NIMs continued to improve in Q2-18 as rate rises flowed through to the loan book which more than offset a modest rise in funding costs 2.68 2.78 • Q2-18 NIM of 2.82% improved 14 bps q-o-q and 33 bps y-o-y 2.58 2.68 2.54 2.56 • Loan yiel
Slide 7: Loan and Deposit Trends
7 Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED Bn) +4% • Gross loans grew 4% in H1-18 with growth across all sectors 337 343 329 329 329 314 315 320 310 • Corporate lending grew 3% since year- 303 226 227 233 242 242 243 249 252 end due to growth in the services and 221 225 t
Slide 8: Funding and Liquidity
8 Funding and Liquidity Highlights Advances to Deposit (AD) Ratio (%) • Liquidity Coverage Ratio of 158.7% and AD ratio of 94.4% demonstrates healthy liquidity position • Liquid assets* of AED 67.5 Bn as at H1-18 (16.1% of total 96.1 liabilities) 95.0 94.4 93.8 94.4 • Debt & Sukuk term funding repre
Slide 9: Capital Adequacy
9 Capital Adequacy Highlights Capitalisation 21.2 20.3 21.2 • In Q2-18, capital ratios improved by 0.8-0.9% as retained earnings more than offset the increase in Risk Weighted 18.9 19.0 19.8 Assets 15.6 15.5 16.3 • CAR unchanged at 21.2% since the beginning of the year as retained earnings were offs
Slide 10: Non-Interest Income
10 Non-Interest Income Highlights Composition of Non Interest Income (AED Mn) Better / Better / • Core gross fee income was 10% higher y-o-y AED Mn Q2-18 Q2-17 Q1-18 and 3% higher q-o-q due to higher foreign (Worse) (Worse) exchange income Core gross fee income 1,471 1,333 10% 1,428 3% • Non-interes
Slide 11: Operating Costs and Efficiency
11 Operating Costs and Efficiency Highlights Cost to Income Ratio (%) • Q2-18 costs were 7% higher q-o-q due to an increase in staff and IT costs as 32.0 32.8 signaled earlier. Other costs also 31.3 31.5 increased due to costs associated with 31.1 30.8 the acquisition opportunity in Turkey 30.2 31.1
Slide 12: Credit Quality
12 Credit Quality Highlights Impaired Loan & Coverage Ratios (%) 127.9 128.4 • NPL ratio was steady at 6.0% in Q2-18 124.9 124.5 122.5 123.5 • Impaired loans steady in 2018 helped by AED 840 Mn of 120.8 120.1 118.5 write backs & recoveries • H1-18 annualized loan cost of risk at 55 bps continued to
Slide 13: Divisional Performance: Retail Banking & Wealth Management
13 Divisional Performance • Revenues increased 13% y-o-y Balance Sheet Trends Revenue Trends • Net interest income grew 10% y-o-y led by liabilities. AED Bn +3% AED Mn +13% Fee income grew 19% y-o-y supported by FX and cards +5% Wealth Management and represents 36% of total RBWM revenue 3% Retail Ba
Slide 14: Divisional Performance (continued): Wholesale Banking
14 Divisional Performance (continued) • Wholesale Banking revenues increased 14% y-o-y Balance Sheet Trends Revenue Trends • Loans grew 4% in H1-18 due to growth in services and AED Bn -3% AED Mn +14% trade sectors. Deposits declined 3% as expensive time +4% deposits sourced over year-end rolled off
Slide 15: Investor Relations
Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: IR@emiratesnbd.com