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

Emirates NBD Bank (P.J.S.C) — Emirates NBD — Investor Presentation (November 2010)

31 slides from Emirates NBD Bank (P.J.S.C)'s investor presentation, Nov 8, 2010

  1. Slide 1: Emirates NBD Investor Presentation

    Emirates NBD Investor Presentation 8 – 10 November 2010 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: Investment Highlights

    Investment Highlights Emirates NBD is the largest bank in the UAE and the GCC Diversified Business Model with Fully Fledged Financial Services Leading Banking Offering Strong Asset and Group in the UAE Profit Growth over and the GCC the Past 5 Years Solid 56% Dubai Capitalization Government Tier 1 =

  4. Slide 4: Contents

    Contents Operating Environment Emirates NBD Profile Financial and Operating Performance Strategy and Outlook 4

  5. Slide 5: UAE Economic Update

    UAE Economic Update Highlights UAE Real GDP Growth in Context (%)  The IMF recently joined the private sector consensus in upgrading its growth forecast for the UAE, taking it to 2.4% for 2010 and 3.2% in 2011. At Emirates 14 NBD we expect 2.5% and 4.0% respectively. 9  Local growth is benefiting

  6. Slide 6: Dubai Economic Update

    Dubai Economic Update Highlights Dubai 2008 GDP breakdown  Dubai is the 3rd largest centre for re-exports in the world which itself UAE GDP by Emirate (2008) represents 44% of GDP 100% = USD 254b Dubai GDP by Sector (2008)  Dubai is a strategically located international trading hub with some of th

  7. Slide 7: UAE Banking Market Update

    UAE Banking Market Update Highlights UAE Banking Sector Growth (USD billion)  UAE Banking sector is the largest by assets in the GCC 450 425 403  The sector is dominated by 23 local banks which account for more than 75% of 400 banking assets; 28 foreign banks account for the remainder 350 333  UA

  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; the No.1 bank in the UAE by income and net profits Fully fledged, diversified financial services offering Ever increasing presence i

  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: Ras al-Khaimah (3) Dubai 95 – Assets c.18%; Loans c.20% Abu Dhabi 16 Umm al-Quwain (2) – Deposits c.20% Sharjah 12 Fujairah (2) Other Emirates 9 Ajman (2)  No. 1 Retail market shares (estimate

  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 31 December 2009 UAE Ranking by Assets (USD billion) UAE Ranking by Equity (USD billion) UAE Ranking by Profits (USD million) (1) Emirates NBD 76.7 Emirates NBD 7.0 Emirates NBD 910 NBAD 53.6 First Gulf Bank 6.2 First Gulf Bank 901

  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 (USD billion)(1) Net Profits (USD billion)(1) 4% 2.94 32% 1.07 1.00 2.30 0.68 0.91 1.94 0.82 0.05 1.29 2.26 2.03 0.86 0.53 2006 2007 2008 2009 Q3 2010 YTD 2006 2007 2008 2009 Q3 2010 YTD Assets and Loans (USD billion) Deposits and Equity (USD

  14. Slide 14: Q3 2010 Financial Results

    Q3 2010 Financial Results Q3 2010 YTD Financial Results Highlights Key Performance Indicators  Total income of USD 2,031m; -10% from USD2,260m in Q3 2009 YTD Q3 Q3 Change Q3 Q3 Change USD million 2010 2009 (%) 2010 2009 (%)  Income includes a write-down of investment properties of USD 44m YTD YTD

  15. Slide 15: Income

    Income Net Interest Margin Trends (%)  Q3 2010 NIM of 2.51%; -3bps from 2.54% in Q2 2010: 3.01 – Negative mix impact of declining loan balances Qtrly NIM 2.85 2.76 – Partly offset by increased deposit spreads due to easing competition 2.65 2.60 2.59 2.54 2.51 for deposits 2.21 2.01 2.05 Q1 08 Q2 08

  16. Slide 16: Operating Costs and Efficiency

    Operating Costs and Efficiency Highlights Cost to Income Ratio Trends(1)  The headline cost to income ratio improved by 2.6% from 33.5% in Cost:income ratio 2009 to 30.9% in Q3 2010 YTD Core cost:income ratio  The core cost to income ratio improved by 3.4% from 35.5% in 38.3 37.6 35.3 37.1 2009 to

  17. Slide 17: Credit Quality

    Credit Quality Loans & Receivables and Islamic Financing Highlights Loan Portfolio by Type – Q3 2010(1)  The Bank continues to pro-actively manage credit quality 100% = USD 57.2b  NPL ratio, excluding impaired investment securities, increased to 3.66% in Q3 2010 from 2.90% in Q2 2010 and 2.30% in

  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 45.8b • Corporate credit quality remains satisfactory despite challenging • Exposures to Real Estate and Contracting Sector are e

  19. Slide 19: Asset Quality

    Asset Quality Investments & Trading Securities Highlights MTM Impact  The recovery of equity and bond markets in 2009 and H1 2010 resulted in USD million 2008 2009 Q1 10 Q2 10 Q3 10 positive net impact of mark to markets and impairments on investment securities Income (188) 115 47 (2) 39  Underlyi

  20. Slide 20: Capital Adequacy

    Capital Adequacy Highlights Capital Ratios - Basel II (USD billion)  Capital adequacy ratio at 20.1% in Q3 2010 vs. 18.7% in Q4 2009 19.6% 19.4% 20.1% 18.7%  Tier 1 ratio increased from 11.9% in Q4 2009 to 12.8% in Q3 2010 as 11.9% 12.4% 12.4% 12.8% 10.5% profit generation for the period exceeded

  21. Slide 21: Funding and Liquidity

    Funding and Liquidity Highlights Loan to Deposit Ratios (%)  Liquidity continues to improve and deposit mobilisation initiatives Headline LTD Ratio % proved successful; headline LTD ratio 101% at end-Q3 2010 Adjusted LTD Ratio % 129%  Continue to access stable interbank lines and source bilateral

  22. Slide 22: Divisional Performance

    Divisional Performance USD billion USD million  Corporate Banking recorded a positive year to date -5% 46.9  Key focus during the period was on balance sheet optimisation, 44.8 960 Corporate Banking 907 continued proactive management of credit quality, building non-risk based and fee generating bu

  23. Slide 23: Divisional Performance (cont'd)

    Divisional Performance (cont’d) USD million  Revenues in Q3 2010 YTD were USD 133m compared with USD 178m in Q3 2009 YTD, the decline being primarily due to Global Markets & -25% contraction in the spreads generated from interbank funding and 178 Treasury the mix impact of increased net liquid asse

  24. Slide 24: Contents

    Contents Operating Environment Emirates NBD Profile Financial and Operating Performance Strategy and Outlook 24

  25. Slide 25: Strategic Imperatives for 2010

    Strategic Imperatives for 2010 Objectives Evidence of success in Q3 2010  Prudent lending growth  CAR strengthened to 20.1% from 18.7% at end-  Focus on funding 2009 – Leverage distribution network  Tier 1 increased to 12.8% from 11.9% at end- 2009 Optimise – Maintain & develop wholesale sources

  26. Slide 26: Outlook

    Outlook  While economic activity remained relatively subdued in Q3 2010 due to seasonal factors, the satisfactory agreement on Dubai World restructuring has improved sentiment and confidence and core economic sectors in Dubai continue to show signs of recovery  Dubai remains well-positioned:  Due

  27. Slide 27: Summary

    Summary  Robust financial performance with steady core income compared with Q2 2010 and Q1 2010  Cost rationalisation initiatives proving successful evidenced by reductions in absolute levels of expenses and in the cost to income ratio  Significantly improved liquidity metrics and strong capital

  28. Slide 28: Appendix

    APPENDIX Emirates NBD

  29. Slide 29: 2010 Awards

    2010 Awards October 2010 – “Best Investor Relations in the Middle East” Award by ME-IR Society / Thomson Reuters Extel June 2010- Banker Middle East Award 2010 in the “Best Use of Technology” April 2010- Banker Middle East - Products Award for “Best Personal Loan” March 2010- 2010 Financial Sector T

  30. Slide 30: 2010 Awards

    2010 Awards March 2010- Sh. Mohammed bin Rashid Al Maktoum “Supporters of the Arts Award” February 2010- “The number one banking brand in the Middle East” Award by The Banker February 2010- “Best Private Bank in the UAE” in Euromoney Private Banking survey for 2010 30

  31. Slide 31: 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 Head, Investor Relations Tel: +971 4 201 2604 Email: [email protected] Chaden Boustany Investor Relations Analyst Tel: +971 4 201 2628 Email: ChadenB@

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