Emirates NBD Bank (P.J.S.C) · DFM:EMIRATESNBD

Emirates NBD Bank (P.J.S.C) — Emirates NBD — UBS Middle East Senior Management One-on-One Conference 2011

27 slides from Emirates NBD Bank (P.J.S.C)'s conference presentation, Sep 28, 2011

  1. Slide 1: Emirates NBD Investor Presentation

    Emirates NBD Investor Presentation UBS Middle East Senior Management One-on-One Conference 28th & 29th September 2011 1 1

  2. Slide 2: Important Information

    Important Information Disclaimer The material in this presentation is general background information about Emirates NBD's activities current at the date of the presentation. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to

  3. Slide 3: Contents

    Contents Operating Environment Emirates NBD Profile Financial and Operating Performance Strategy and Outlook 3

  4. Slide 4: UAE Economic Update

    UAE Economic Update Highlights Real GDP Growth Forecasts  We have upgraded our UAE growth forecast to 4.6% in 2011 from 4% 2008 2009 2010 2011F 2012F previously on the back of higher than expected oil production in H1 2011, UAE 7.4% (1.6%) (1.4%) 4.6% 4.2% which is expected to be maintained for the

  5. Slide 5: UAE Economic Update (cont'd)

    UAE Economic Update (cont’d) Highlights CDS spreads have narrowed in Q2 2011  CDS spreads for Abu Dhabi and Dubai have narrowed in Q2, reflecting 500 170 improved investor sentiment, and allowing UAE entities to tap the debt market at better rates; USD 6.3 billion of paper was issued in Q2, includi

  6. Slide 6: Dubai Economic Update

    Dubai Economic Update Highlights Dubai: GDP growth set to accelerate 5  Dubai’s economy grew 2.4% in 2010 according to the latest official statistics; 4 the emirate’s GDP growth is expected to accelerate to 3% in 2011 and 4% in 4 3.2 3 2012 3 2.4  Dubai has developed a competitive edge in trade &

  7. Slide 7: Dubai Economic Update (cont'd)

    Dubai Economic Update (cont’d) Highlights Dubai’s Strategic Location  Dubai is the 3rd largest centre for re-exports in the world which itself represents almost 50% of GDP  Dubai is a strategically located international trading hub with some of the world’s best air and sea ports serving over 205 d

  8. Slide 8: Contents

    Contents Operating Environment Emirates NBD Profile Financial and Operating Performance Strategy and Outlook 8

  9. Slide 9: Summary

    Summary Largest financial institution (by asset size) in the GCC Flagship bank for Dubai and the UAE Governments 56% owned by Dubai government Consistently profitable; despite significant headwinds during the last two years Fully fledged, diversified financial services offering Ever increasing prese

  10. Slide 10: Emirates NBD at a Glance

    Emirates NBD at a Glance Largest Bank in UAE Largest Branch Network in the UAE  No.1 Market share in UAE (at 30 June 2011): Dubai 98 Ras al-Khaimah (3) – Assets c.17%; Loans c.18% Abu Dhabi 21 Sharjah 13 Umm al-Quwain (2) – Deposits c.18% Fujairah (2) Other Emirates 9 Ajman (2)  Retail market shar

  11. Slide 11: Emirates NBD is the Largest Bank in the UAE and GCC by Assets

    Emirates NBD is the Largest Bank in the UAE and GCC by Assets as at 30 June 2011 UAE Ranking by Assets (USD billion) UAE Ranking by Equity (USD billion) UAE Ranking by Profits (USD million) (1) Emirates NBD 78.4 Emirates NBD 7.9 Emirates NBD 587 NBAD 67.1 NBAD 6.9 NBAD 532 ADCB 48.8 FGB 6.8 ADCB 522

  12. Slide 12: Contents

    Contents Operating Environment Emirates NBD Profile Financial and Operating Performance Strategy and Outlook 12

  13. Slide 13: Profit and Balance Sheet Growth in Recent Years

    Profit and Balance Sheet Growth in Recent Years Revenues and Costs (USD billion) Net Profits (USD billion) Revenue Costs -6% +20% +14% 2.9 1.1 2.6 0.9 1.0 1.0 2.3 0.8 0.9 1.9 0.7 0.8 0.5 0.6 1.3 1.3 1.3 0.4 0.4 0.6 0.4 2006 2007 2008 2009 2010 H1 2006 2007 2008 2009 2010 H1 2011 2011 2006 2007 2008

  14. Slide 14: Financial Highlights

    Financial Highlights 2010 and H1 2011 H1 2011 Financial Results Highlights Key Performance Indicators  Net profit of USD 587 million, +43% vs. H1 2010 Income Statement H1 2011 H1 2010 Change 2010 2009 Change USD million (%) (%)  Gain on Network International transaction of USD 494 million Net inte

  15. Slide 15: Net Interest Income

    Net Interest Income Highlights Net Interest Margin Trends (%)  NIM of 2.52% in 2010; declined by 29 bps from 2.81% in 2009: – negative mix impact of deployment of increased liquidity in lower yielding Qtrly NIM 3.01 interbank and cash-equivalent assets YTD NIM 2.81 2.85 2.79 – increase in deposit f

  16. Slide 16: Operating Costs and Efficiency

    Operating Costs and Efficiency Highlights Cost to Income Ratio Trends  Costs declined by 14% to USD 831 million in 2010 due to management focus on cost optimisation and operating efficiency; the cost to income ratio Cost to income ratio (YTD) improved by 1.5% from 32.9% in 2009 to 31.3% in 2010 38.

  17. Slide 17: Credit Quality

    Credit Quality Group Highlights Loan Portfolio by Type – H1 2011(1)  The impaired loans ratio improved by 1.1% in Q2 2011 to 9.3% 100% = USD 55.6b  Full required provision for Dubai World made in Q3 2010 Contracting Others Manuf. Retail Transport & 3% 4% 3%  Pro-actively provided for a portion of

  18. Slide 18: Credit Quality

    Credit Quality Retail and Corporate Loans & Receivables Corporate & Sovereign Lending Portfolio By Sector(1) Corporate Credit Quality Real Estate & Contracting 100% = USD 45 billion  Impaired loan ratio 8.0% at Q2 2011 vs. 9.4% at Q1 2011  Exposures to Real Estate and Contracting Sector are Other

  19. Slide 19: Capital Adequacy

    Capital Adequacy Highlights Capital Ratios - Basel II (USD billion)  Capital adequacy strengthened further to CAR 21.2% and T1 13.4% 21.2% 20.1%  Tier 1 capital increased by USD 27.2 million in H1 2011 due to strong net 18.7% profit generation partly offset by dividend paid in respect of 2010 fina

  20. Slide 20: Funding and Liquidity

    Funding and Liquidity Highlights Headline Loan to Deposit Ratio (%)  Headline LTD ratio of 96% at Q2 2011 due to pro-active management action to target range of 95%-100% 129%  Liquid assets of USD 14.5 billion as at 30 June 2011 (18.5% of total assets); 126% 127% USD 8.9 billion (11.3% of total as

  21. Slide 21: Associates and Joint Ventures

    Associates and Joint Ventures Composition of Balances Highlights Composition of Associates & Joint Ventures (USD million)  Significant de-risking of investment in Union Properties (UP) since 2009: Income Statement H1 H1 Change Chang 2010 2009 USD million 2011 2010 (%) e (%) - UP investment reduced

  22. Slide 22: Contents

    Contents Operating Environment Emirates NBD Profile Financial and Operating Performance Strategy and Outlook 22

  23. Slide 23: More than two years on from the crisis, the Bank is better positioned

    More than two years on from the crisis, the Bank is better positioned for the future Capital Ratios – Basel II Loan to Deposit Ratios Liquid Assets 21.2% 7.8% 18.5% 9.7% 11.4% Stronger 10.5% 129% 96% capital base 2.0% -9.5% 13.4% and liquidity 8.5% 2008 H1 2011 Net Liquid Assets Ratio (%) 2008 H1 20

  24. Slide 24: Strategic Imperatives are Evolving

    Strategic Imperatives are Evolving Gradual Shift in Focus from Strengthening the Bank to Growth Acceleration 2008 2009 2010 2011 2012 Crisis Growth Manage Strengthening the Bank Acceleration ment 1. Optimise Balance Sheet 1. Optimise Balance Sheet • Capitalisation • Capital allocation • Liquidity •

  25. Slide 25: Outlook

    Outlook  Conditions in the local economy have continued to improve in H1 2011 and UAE GDP growth for 2011 is expected to reach 4.6% compared with our previous expectation of 4.0% – Economic signals offer evidence of take-off in non-oil economy, particularly in trade, logistics and hospitality – Ave

  26. Slide 26: Summary

    Summary Strong financial performance with net profit for H1 2011 of USD 587 million, up 43% from H1 2010 Top-line trends encouraging with pickup in HoH net interest income and non-interest income of 1% and 10% respectively Improvement of 1% in impaired loans ratio and reduced provisioning/NPL format

  27. Slide 27: Investor Relations

    Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: [email protected] Ben Franz-Marwick Patrick Clerkin Head, Investor Relations Director, Global Funding Tel: +971 4 201 2604 Global Markets and Treasury Email: [email protected] Tel: +971

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