Emirates Nbd Bank (p.j.s.c) · DFM:EMIRATESNBD
Emirates Nbd Bank (p.j.s.c) — Emirates NBD — Investor Presentation (September 2016)
29 slides from Emirates Nbd Bank (p.j.s.c)'s investor presentation, September 2016
Slide 1: Emirates NBD Investor Presentation
Emirates NBD Investor Presentation August / September 2016
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: UAE Economic Update
Operating Environment 3 UAE Economic Update Highlights Real GDP growth forecasts • Oil output in the UAE rose slightly 0.4% y/y in H1 2016 2013 2014 2015E 2016F 2017F following the sharp decline in oil prices in the first half of S. Arabia 2.7 3.5 3.4 1.9 2.6 2016. Production rose to 2.9mn b/d in Ju
Slide 4: Dubai Economic Update (1/3)
Operating Environment 4 Dubai Economic Update (1/3) Highlights Dubai: Real GDP growth • Dubai’s economy expanded 4.1% y/y in 2015, up from 6.0 5.2 3.5% in 2014. Wholesale & retail trade remains the largest 5.0 4.6 sector in the economy, and expanded 4.0% in 2015. 4.0 4.2 3.9 Hospitality (restaurant
Slide 5: Dubai Economic Update (2/3)
Operating Environment 5 Dubai Economic Update (2/3) Highlights Dubai Airports passenger traffic • Passenger traffic at the Dubai International Airport (DXB) rose 45 mn people thousand tons 1400 to 40.5 million in H1 2016, up by 5.8% y/y 40 1300 • Passenger traffic is expected to exceed 85 million at
Slide 6: Dubai Economic Update (3/3)
Operating Environment 6 Dubai Economic Update (3/3) Highlights Business licenses issued* • Dubai residential real estate prices have eased further in June 160 12 2016 with apartment prices down -13.5% y/y and villa prices business licences % y/y down -12.2% y/y 10 Thousands 140 • Average rents have
Slide 7: UAE Banking Market Update
Operating Environment 7 UAE Banking Market Update Highlights Bank deposit and loan growth Bank Loans (% y/y) Bank deposits (% y/y) AD ratio (RHS) • M2 growth increased at a slower pace in June 2016 up by a 18% 110% mere 0.5% y/y. M3 (M2 +Govt. deposits) also increased 16% slightly by 2.0% y/y for th
Slide 8: Emirates NBD at a glance
8 Emirates NBD at a glance Operating Environment #1 bank in the UAE Largest branch network in the UAE • Market share in the UAE (as at 30 June 2016) Dubai 104 Ras al-Khaimah (5) - Assets 16.9%; Loans 20.1%; Deposits 19.9% Abu Dhabi 25 Sharjah 18 Umm al-Quwain (2) Other Emirates 11 Fujairah (2) Ajman
Slide 9: Emirates NBD is the largest bank in the UAE
9 Emirates NBD is the largest bank in the UAE Operating Environment x% H1-16 vs. H1-15 x% H1-16 vs. Q4-15 Operating Income Net Profit Loans Total Deposits AED Mn, H1-16 AED Mn, H1-16 AED Bn, H1-16 AED Bn, H1-16 Emirates NBD Profile 7,671 2% 3,718 12% 286 6% ENBD 298 4% 5,409 0% 2,647 (8%) 203 (1%) N
Slide 10: Emirates NBD is among top banks in the GCC
10 Emirates NBD is among top 3 banks in the GCC by Operating Income, Net Profit, Operating Environment Loans and Deposits in 2015 x% 2015 vs. 2014 Operating Income Net Profit Loans Total Deposits USD Bn, 2015 USD Bn, 2015 USD Bn, 2015 USD Bn, 2015 Emirates NBD Profile 4.6 8% 3.1 8% 109 15% 109 10% 4
Slide 11: Profit and Balance Sheet Growth in Recent Years
11 Operating Environment Profit and Balance Sheet Growth in Recent Years Revenues and Costs (AED Bn) Profits (AED Bn) Revenues Costs Pre-Provision Operating Profits Net Profits +11% +14% +7% +30% 14.4 15.2 4.7 10.1 10.5 7.1 Emirates NBD Profile 4.2 4.4 11.9 3.6 3.8 7.7 5.1 9.9 10.2 7.4 7.7 2.3 2.5 6
Slide 12: Emirates NBD delivered a solid set of results in H1-16 amid a challenging environment
12 Operating Environment Emirates NBD delivered a solid set of results in H1-16 amid a challenging environment H1 2016 at a glance 2016 Macro themes H1 2016 vs. Regional Global revised 2016 guidance • Resilience of UAE • Recovering US Emirates NBD Profile Profitability Net profit AED 3.7 Bn economy
Slide 13: H1-16 Financial Results
13 Operating Environment H1-16 Financial Results Highlights Key Performance Indicators • Net profit of AED 3,718 million for H1-16 improved Better / Better / AED Mn H1-16 H1-15 H2-15 12% y-o-y (Worse) (Worse) • Net interest income improved 2% y-o-y as loan growth Net interest income 5,099 4,982 2% 5
Slide 14: Q2-16 Financial Results Highlights
14 Operating Environment Q2-16 Financial Results Highlights Highlights Key Performance Indicators Better / Better / • Net profit of AED 1,910 million for Q2-16 improved AED Mn Q2-16 Q2-15 Q1-16 (Worse) (Worse) 16% y-o-y and 6% q-o-q Net interest income 2,544 2,497 2% 2,555 (0%) • Net interest income
Slide 15: Net Interest Income
15 Operating Environment Net Interest Income Highlights Net Interest Margin (%) 2.95 • NIMs declined to 2.58% in H1-16 and to 2.55% in Q2-16 2.91 2.90 • Loan spreads declined on retail and Islamic products as 2.85 loan margins did not keep pace with rising EIBOR rates 2.83 2.83 Emirates NBD Profile
Slide 16: Non-Interest Income
Operating Environment Non-Interest Income Highlights Composition of Non Interest Income (AED Mn) • Non-interest income held steady y-o-y and improved Better / Better / AED Mn H1-16 H1-15 H2-15 7% compared to the previous half year (Worse) (Worse) • Core fee income improved 5% y-o-y and 6% Core gross
Slide 17: Operating Costs and Efficiency
17 Operating Environment Operating Costs and Efficiency Highlights Cost to Income Ratio (%) 33.3 • In Q2-16, costs improved by 2% q-o-q following cost control measures 32.0 32.6 31.2 31.3 31.0 implemented in Q1-16 and increased by 6% 32.3 Emirates NBD Profile y-o-y on the back of late 2015 growth in
Slide 18: Credit Quality
18 Operating Environment Credit Quality Highlights Impaired Loan & Coverage Ratios (%) 114.5 113.5 118.5 • NPL ratio improved to 6.6% 103.2 109.0 111.5 99.6 92.0 • Impaired loans improved to AED 20.4 Bn helped by AED 85.4 1,318 Mn of write backs & recoveries in H1-16 Emirates NBD Profile 70.3 64.7 •
Slide 19: Capital Adequacy
19 Operating Environment Capital Adequacy Highlights Capitalisation 21.0 20.9 20.7 20.3 20.5 • In Q2-16, Tier 1 ratio and CAR increased by 0.2% to 17.8% and 20.5% respectively 18.0 18.0 18.0 17.6 17.8 • Increase in Tier 1 capital from retained earnings more than 49.1 50.9 50.2 51.8 Emirates NBD Prof
Slide 20: Funding and Liquidity
20 Operating Environment Funding and Liquidity Highlights Advances to Deposit (AD) Ratio (%) • AD ratio of 96.1% within 90-100% management target range • Liquid assets* of AED 51.3 Bn as at H1-16 (13.7% of total liabilities) Emirates NBD Profile • Debt & Sukuk term funding represent 12% of total lia
Slide 21: Loan and Deposit Trends
21 Operating Environment Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED Bn) +6% • Gross loans grew 6% since end 2015 310 +2% with good growth in Corporate and 294 303 279 285 Islamic lending 267 271 Emirates NBD Profile 259 • Islamic financing grew 12% since end 216 235 221 225
Slide 22: Loan Composition
22 Operating Environment Loan Composition Total Gross Loans (AED 310 bn) Corporate Loans (AED 99 bn) Treasury/Other Cont. Corporate Trans. & com. Retail 7% 99 5% 31 RE (32%) Emirates NBD Profile (10%) 0 32% Trade (0%) 16% 53 8% 127 Manuf. 1% (17%) (41%) Islamic* 5% Others** 4% 22% Sovereign Per. - C
Slide 23: Divisional Performance
23 Operating Environment Divisional Performance • RBWM revenues grew 1% q-o-q Balance Sheet Trends Revenue Trends • In H1-16, fee income accounted for 39% of total RBWM AED Bn +7% AED Mn revenue +5% +1% Wealth Management • Retail loans grew by 5% and deposits by 7% from end Retail Banking & 2015 121
Slide 24: Divisional Performance (cont'd)
24 24 Divisional Performance (cont’d) Operating Environment • Wholesale Banking revenues improved 5% q-o-q Balance Sheet Trends Revenue Trends • Loans grew 4% from end 2015 AED Bn -4% AED Mn • Deposits declined 4% from end 2015, reflecting +4% +5% Wholesale Banking continued efforts to reduce the av
Slide 25: Emirates NBD's core strategy is focused on the following building blocks
25 Emirates NBD’s core strategy is focused on the following building blocks Operating Environment Key Deliver an excellent customer Objective experience Emirates NBD Profile Financial & Operating Performance Strategic Run an Drive Levers Drive core efficient geographic business organization expansio
Slide 26: Strategic priorities for 2016
26 Strategic priorities for 2016 Operating Environment Pillars of our strategy Key focus areas 1 • Extend servicing of products through online, mobile, social channels Deliver an excellent • Reinforce ENBD’s position as a digital innovator in the region via best-in-class online and mobile banking cu
Slide 27: 2015 & H1 2016 Selected Awards
27 2015 & H1 2016 Selected Awards Operating Environment ‘Commercial banking ‘Best Bank in the Middle East’ Capabilities in the UAE’ ‘Best Digital Bank in the ‘Best Prepaid Program – ‘Innovative Technology – Emirates NBD Profile Middle East’ ‘#1 Financial Services Brand Emirates Islamic’ Client Exper
Slide 28: Large Deals Concluded in H1 2016
28 Large Deals Concluded in H1 2016 Operating Environment EMIRATES NBD BANK ADEPTIO AD UNITED ARAB BANK PJSC ALLANA INTERNATIONAL AFRICA FINANCE INVESTMENTS SPC LIMITED LIMITED CORPORATION USD 1,700,000,000 USD 1,650,000,000 USD 150,000,000 USD 190,000,000 USD 500,000,000 SYNDICATED TERM LOAN SYNDIC
Slide 29: Investor Relations
Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: IR@emiratesnbd.com
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