Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Investor Presentation (September 2008)
48 slides from Emirates Nbd Bank (p.j.s.c)'s investor presentation, September 2008
Slide 1: Creating a Banking Leader in the Middle East
Emirates NBD Creating a Banking Leader in the Middle East September 2008
Slide 2: Forward Looking Statements
Forward Looking Statements It is possible that this presentation could or may contain forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only
Slide 3: Contents
Contents The UAE banking opportunity Emirates NBD: Banking Leader in middle east Strategic Focus First Half Year 2008: Financial Overview Synergies Integration Update 2
Slide 4: In line with the economy, the UAE banking sector has grown strongly
In line with the economy, the UAE banking sector has grown strongly USD billion Nominal GDP Banking assets 389 336 +31% 275 +21% 234 236 190 163 170 132 105 120 90 100 71 80 2002 03 04 05 06 07 08 09 2002 03 04 05 06 07 Q2 08 Source: Central Bank statistics. Source: Central Bank Statistics 3
Slide 5: Islamic banks have increased their presence in the market
Islamic banks have increased their presence in the market Timeline of Islamic Banking in the UAE Islamic Banks Assets USD billion 45 Al Hilal Bank 42 2008 +47% Dubai Bank converted 33 2007 to Islamic 2006 Al Noor Islamic Bank 20 Emirates Islamic Bank 13 2004 2002 Sharjah Islamic Bank 1997 Abu Dhabi
Slide 6: UAE is now the largest banking market in the GCC
UAE is now the largest banking market in the GCC 2007 Banking assets Assets/Nom. GDP Country USD billion Percent UAE* 336 177 Saudi Arabia 287 76 Kuwait 125 112 Qatar 82 119 Bahrain** 44 225 Oman 27 67 *Includes Foreign Banks **Excludes off-shore banking units Source: Central Banks; Global Insight 5
Slide 7: Contents
Contents The UAE banking opportunity Emirates NBD: Banking Leader in middle east Strategic Focus First Half Year 2008: Financial Overview Synergies Integration Update 6
Slide 8: Merger: Creating a Banking Leader
Merger : Creating a Banking Leader Assets, $b +42% 26 Assets, $b 16 9 10 +29% 78 69 2003 2004 2005 2006 45 Assets, $b 30 19 21 +24% 2003 2004 2005 2006 2007 H1 2008 19 14 10 11 • Largest Bank by assets in GCC • Enhanced distribution • Scale and strength to pursue expansion 2003 2004 2005 2006 7
Slide 9: Emirates NBD leads the UAE Banking Sector
Emirates NBD leads the UAE Banking Sector . . . First Half 2008 Assets Equity Net profits $b $b $m Emirates Emirates Emirates 732 77.7 5.5 NBD NBD* NBD Nat. Bk. of Nat. Bk. of Nat. Bk. of Abu Dhabi 45 Abu Dhabi 3.7 Abu Dhabi 511 Abu Dhabi Abu Dhabi First Gulf 35 3.2 404 Comm. Bk. Comm. Bk. Bank Firs
Slide 10: A comprehensive financial services group
A comprehensive financial services group Emirates NBD (Parent Company) Other Banking Financial Brokerage Processing Associates Services EIS Asset National Bank Emirates Int’l Union Emirates Bank Management ETFS of Dubai Securities Properties (DIFC) NBD National Emirates Emirates NBD Network Investme
Slide 11: Our Group Entities
Our Group Entities • Emirates Bank & National Bank of Dubai are the primary companies of Emirates NBD group • Provide services and products to Retail Customers, • Provides Wholesale & Treasury services. • Emirates Islamic Bank is the fastest growing Islamic bank in UAE • Provides Sharia compliant pr
Slide 12: Our Group Entities
Our Group Entities • Emirates International Securities was established in 2001. • It is wholly owned brokerage arm of the Group. • The principal activity of the company is to act as intermediary in dealings in stocks and equities which are listed on DFM and ADSM. • DFM Market share of 5.5% for the b
Slide 13: Our Group Entities
Our Group Entities • Emirates Investment Services Limited was incorporated in DIFC in August 2006. • Principal business activities are Investment Banking and Asset Management. • Currently the company is more involved in providing Asset Management Services only. • Assets Under Management – USD 2.4 bi
Slide 14: Emirates NBD is the largest bank in GCC by assets
Emirates NBD is the largest bank in GCC by assets First Half 2008 GCC ranking by assets Equity GCC ranking by profits $b $b $m Emirates NBD 77.7 Nat. Comm. Al Rajhi Bank 891 8.4 Bank Nat. Comm. Emirates NBD Bank 60.5 Al Rajhi Bank 7.1 732 Nat. Bank of SAMBA 48.9 Riyad Bank 6.8 Kuwait 657 Nat. Bank o
Slide 15: Building a geographically diversified footprint
Building a geographically diversified footprint London, UK Tehran, Iran Branch (est. 1986) Representative Office (est. 2002) Cairo, Egypt Cards Processing Center - NPC (est. 2007) Mumbai, India Jersey Representative Office Channel Islands (est. 2000) • Branch (est. 1990) • Subsidiary Trust Co. (est.
Slide 16: Strong Credit Ratings
Strong Credit Ratings Current Ratings Moody´s¹ • A1 / P-1 • A1 / P-1 S&P² • A / Positive / A-1 • A / Positive / A-1 Fitch³ • AA- •… Capital • AA- • AA- Intelligence 1 Moody’s Long-term rating / Short-term rating 2 S&P Credit rating 3 EBI’ s Long term Issuer Default rating is AA-; NBD has not been ra
Slide 17: Contents
Contents The UAE banking opportunity Emirates NBD: Banking Leader in middle east Strategic Focus First Half Year 2008: Financial Overview Synergies Integration Update 16
Slide 18: Emirates NBD strategy
Emirates NBD strategy 1 Pursue profitable growth in Retail Banking 2 Establish a distinctive Wealth Management offering 3 Consolidate and enhance market position in Corporate Banking 4 Develop a leading regional Investment Banking franchise 5 Expand Islamic Banking 6 Pursue expansion in the GCC and
Slide 19: Emirates NBD Strategic Priorities
Emirates NBD Strategic Priorities 1 Significantly expand Groups’ branch network to under penetrated areas like Abu Dhabi and new developments in Dubai Increase sales force performance through dedicated sales Retail transformation program over the next 12 months Rollout a new branch concept to
Slide 20: Emirates NBD Strategic Priorities (Cont'd)
Emirates NBD Strategic Priorities (Cont’d) 4 Build upon the investment banking capabilities within the Group and Investment leverage the existing customer franchise in the GCC Banking Enhance cross-selling to the corporate and institutional clients base Leverage Dubai’s development as a region
Slide 21: Contents
Contents The UAE banking opportunity Emirates NBD: Banking Leader in middle east Strategic Focus First Half Year 2008: Financial Overview Synergies Integration Update 20
Slide 22: Strong growth
Strong growth……. Key Performance Indicators Key Performance Indicators H1 2008 vs. H1 2007 Q2 2008 vs. FY 2007 Total Income USD 1,274 m 49% Total Assets USD 78 bn 12% Total Costs USD 476.7 m 48% Loans USD 51 bn 13% Net Profit USD 731.8 m 41% Deposit USD 43 bn 13% 0.1% Return on Tangible Cost Income
Slide 23: Delivered strong profit growth in recent years
Delivered strong profit growth in recent years Half Year Net Int Income Full Year Fees, Comm and Others Revenues, $m Costs, $m 740 1,935 +28% +29% 1,295 496 419 +32% 1,079 1,057 +29% 356 807 +49% 271 +48% 676 679 270 274 537 554 218 1,274 205 477 438 149 138 381 856 114 321 292 503 616 225 295 369 1
Slide 24: Robust returns and capitalization
Robust returns and capitalization Cost Income Ratio Net Interest Margins 2006 2007 2008 2006 2007 2008 2.16 38.1 38.3 38.2 38.3 2.08 37.6 2.04 2.01 36.5 39.0 38.9 1.98 1.97 37.4 1.92 1.92 1.89 1.86 31.3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 06 06 06 06 07 07 07 07 08 08 06 06 0
Slide 25: Delivered strong B/S growth in recent years
Delivered strong B/S growth in recent years Assets, $b Loans, $b 51 78 45 +27% 69 +36% 45 30 30 19 17 19 21 10 12 8 2002 03 04 05 06 07 H1 08 2002 03 04 05 06 07 H1 08 Deposits, $b Equity, $b * 5.2 5.5 +23% 43 +13% 38 4.1 3.6 26 3.0 3.0 3.1 19 12 13 14 2002 03 04 05 06 07 H1 08 2002 03 04 05 06 07 H
Slide 26: Balanced Loan Portfolio with High Degree of Security
Balanced Loan Portfolio with High Degree of Security Loan Portfolio by Type –H1 2008 Loan Portfolio by Sector – H1 2008 Bills Discounted Others Manufacturing 1% 6% 3% Construction Others 20% 6% Loans Against Trade Trust Receipts Revolving Facilities 6% 3% Overdrafts Transport and 31% Corp Personal C
Slide 27: Outstanding EMTNs & ECPs
Outstanding EMTNs & ECPs • Diversified liability portfolio (Deposits/ Outstanding by Currency ECP/ EMTN/ Repos) AED A$ 12% THB 1% EMTNs • Active MTNs issuance under EMTN JPY 3% programme 1% CHF • Diversified investor base. 4% EUR USD • Diversified maturity profile. 11% 66% SGD 1% HKD 1% 100% = $ 8,4
Slide 28: Diversified Business mix with growth in all segments
Diversified Business mix with growth in all segments… First Half Year 2008, % Assets Revenues 100% = $ 78b 100% = $ 1,274m Wholesale* Wholesale* Islamic Islamic 60% 9% 11% 80% 11% 29% Retail Retail 100% = $ 78 b 100% = $ 1,274 m * Wholesale include Corporate Banking, Investment Banking, Investment m
Slide 29: Wholesale Bank continues to deliver strong performance
Wholesale Bank continues to deliver strong performance Loans $b +42% CAGR 39.8 34.8 Highlights 23.2 Servicing Multinational, Large Local Corporate, Government linked institutions, Financial & Investment Institutions. Deposits Product offering comprises mainly Lending, Deposits, Trade $b +23% Fin
Slide 30: Retail Bank has the largest distribution network & dominant market share
Retail Bank has the largest distribution network & dominant market share CAGR Loans $b Highlights +43% Highlights 6.0 5.0 Largest distribution network in UAE & highest market share 3.5 in Loans and Deposits. Investment in customer service has been a key focus and is Deposits $b expected to be a
Slide 31: Emirates Islamic Bank: Fastest growth in UAE
Emirates Islamic Bank : Fastest growth in UAE Financing Receivables CAGR $b +95% 4.9 Highlights Highlights 3.9 1.8 Fastest growing Islamic bank in the UAE, since its inception in 2004. The business has more than doubled assets & income Customer Accounts every year and is rapidly increasing marke
Slide 32: Contents
Contents The UAE banking opportunity Emirates NBD: Banking Leader in middle east Strategic Focus First Half Year 2008: Financial Overview Synergies Integration Update 31
Slide 33: Target Synergies: USD 34m in 2008 & USD 101m by 2010
Target Synergies : USD 34m in 2008 & USD 101m by 2010 USD 94m of recurring annual synergies by the third year post merger, plus USD 7m of one-off synergies totalling USD 101m The recurring synergies include: % of Smaller Base1 % of Combined Base1 Synergies (2010) Total, USD m Actual** Benchmark*
Slide 34: H1 2008: Achieved Annualised Synergies of USD 55m
H1 2008 : Achieved Annualised Synergies of USD 55m – ahead of 2008 full year target by 61% USD Millions Total Synergies 101 61% 67 55 34 2008 2009 2010 Target Actual (H1'08) Note 1: Base used when computing synergy targets were 2006 financials 33
Slide 35: Exceeded 2008 full year targets on all revenue, costs & one-off synergies
Exceeded 2008 full year targets on all revenue, costs & one-off synergies Revenue Synergies 53 USD Millions 35 24 34% 18 2008 2009 2010 Total Synergies 41 Cost Synergies 101 25 82% 27 67 55 61% + 14 34 2008 2009 2010 2008 2009 2010 Target Actual (H1'08) One-off Synergies 7.1 6 4.6 144% 2.5 Note 1: B
Slide 36: On track to exceed targets even re-based with 2007 proforma
On track to exceed targets even re-based with reference to 2007 financials proforma revenues & costs USD Millions 88% 124% 27 25 24 % achieved of re- 20 based targets Annualised synergies achieved Re-based targets based on 2007 proforma results Revenue synergies Cost synergies • Rebased targets for
Slide 37: Synergies achieved: Key drivers
Synergies achieved : Key drivers USD millions Annualised synergies Total, % Key drivers of synergies achieved in H1’2008 • Largest distribution network of 115 branches & 486 ATMs • Focus on cross selling – e.g. mortgages >USD 27m loans Revenue 24 41 • Enhanced market share/pricing advantages – e.g.
Slide 38: Key performance indicators: Cost-Income ratio
Key performance indicators : Cost-Income ratio 9 Cost Income ratio for H1-2008 is 37.4% (vs. 38.8% in H2-2007) 9 Before synergies H1-2008 cost-income ratio is 38.6% 9 Synergies contribute to 1.2% drop in cost-income ratio 9 Jaws of 4% achieved in H1-2008 vs. H2-2007 (before synergies 1%) Cost: Incom
Slide 39: Contents
Contents The UAE banking opportunity Emirates NBD: Banking Leader in middle east Strategic Focus First Half Year 2008: Financial Overview Synergies Integration Update 38
Slide 40: Integration Update
Integration Update Defined future strategy, target business & operating model in 2007 Developed integration implementation plan till mid 2009 Formalized organization structure for the combined entity ¾ Integration of staff into new organization structure completed ¾ Co-location of teams from b
Slide 41: Customer services improved significantly
Customer services improved significantly Integrated ATM network with 488 ATMs – largest ATM network in the UAE; Roll-out of enhanced payment functionalities completed in September Network of Smart Deposit Machines (SDMs) integrated: One platform of 92 SDMs across Emirates Bank, Emirates Islamic
Slide 42: Integration milestones going forward
Integration milestones going forward Electronic Retail channels integrated Rebranding across Single Treasury Same functionalities all branches system in place across ATM network, completed – One Combined trading mobile banking and bank across all coverage to both Internet channels bank’s customers 0
Slide 43: Key Messages
Key Messages
Slide 44: Key Messages
Key Messages UAE presents significant growth potential for financial services EmiratesNBD : A regional financial powerhouse Our strategy is clear & focused Integration is on target & delivering value Strong performance & growth across all businesses Enhanced products & services for our c
Slide 45: Appendix
Appendix
Slide 46: 2008: Awards
2008 : Awards Emirates NBD was honored by H.H. Sheikh Mohamed Bin Rashid Al Maktoum, the Ruler of Dubai and Vice President & Prime Minister of the UAE, for its role in boosting investments and attracting businesses from around the world. Rick Pudner, Chief Executive Officer of Emirates NBD was a
Slide 47: Large Deals Concluded 2008
…..Large Deals Concluded 2008 February 2008 March 2008 March 2008 March 2008 Emirates Aluminum DEER FIELDS TOWN SQUARE Limitless LLC PROJECT US$225,000,000 revolving multi- USD $ 1.2 Billion (Dual currency US$4,940 Million currency credit facility AED/USD) Project Finance Facility Syndicated Mudarab
Slide 48: Large Deals Concluded 2008 Cont'd
… Large Deals Concluded 2008 Cont’d… June 2008 June 2008 June 2008 Dubai World Axiom Telecom LLC The Palm Vacation Club FZE (A Subsidiary of IFA Hotels & Resorts KSCC) USD 5,000,000,000 USD 400,000,000 Dual Currency (AED/USD) AED 367,300,000 Term Loan and Revolving Credit Import / Purchase Finance F
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