Emirates NBD Bank (P.J.S.C) · DFM:EMIRATESNBD
Emirates NBD Bank (P.J.S.C) — Emirates NBD — Investor Presentation (March 2011)
35 slides from Emirates NBD Bank (P.J.S.C)'s investor presentation, March 2011
Slide 1: Emirates NBD Investor Presentation
Emirates NBD Investor Presentation February / March 2011 1
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
Slide 3: Contents
Contents Operating Environment Emirates NBD Profile Financial and Operating Performance Strategy and Outlook 3
Slide 4: UAE Economic Update
UAE Economic Update Highlights Real GDP Growth Forecasts The IMF joined the private sector consensus in upgrading its growth forecast 2008 2009 2010 2011 for the UAE late last year, taking it to 2.4% for 2010 and 3.2% in 2011. At Emirates NBD we expect 2.5% and 4.0% respectively. UAE 7.4% (3.0%) 2
Slide 5: 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% = AED 934b Dubai GDP by Sector (2008) Dubai is a strategically located international trading hub with some of th
Slide 6: UAE Banking Market Update
UAE Banking Market Update Highlights UAE Banking Sector Growth (AED billion) UAE Banking sector is the largest by assets in the GCC 1,800 1,662 1,562 The sector is dominated by 23 local banks which account for more than 75% of banking 1,600 1,480 assets; 28 foreign banks account for the remainde
Slide 7: Contents
Contents Operating Environment Emirates NBD Profile Financial and Operating Performance Strategy and Outlook 7
Slide 8: 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
Slide 9: 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 96 – Assets c.18%; Loans c.19% Abu Dhabi 18 Umm al-Quwain (2) – Deposits c.19% Sharjah 12 Fujairah (2) Other Emirates 9 Ajman (2) Retail market shares (estimated): To
Slide 10: 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 2010 UAE Ranking by Assets (AED billion) UAE Ranking by Equity (AED billion) UAE Ranking by Profits (AED million) (1) Emirates NBD 286.2 Emirates NBD 27.7 NBAD 3,683 NBAD 211.4 NBAD 24.1 FGB 3,420 ADCB 178.3 FGB 24.1 Emi
Slide 11: Contents
Contents Operating Environment Emirates NBD Profile Financial and Operating Performance Strategy and Outlook 11
Slide 12: Profit and Balance Sheet Growth in Recent Years
Profit and Balance Sheet Growth in Recent Years Revenues and Costs (AED billion) Net Profits (AED billion) Revenue Costs -4% 3.9 +20% +19% 3.7 10.8 3.3 9.7 3.6 3.4 3.0 8.4 3.1 2.8 2.7 2.3 7.1 4.7 1.8 3.9 1.3 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 As
Slide 13: 2010 Financial Results
2010 Financial Results 2010 Financial Results Highlights Key Performance Indicators Total income of AED 9,721m; -10% from AED 10,794m in 2009 AED million 2010 2009 Change Q4 Q4 Change (%) 2010 2009 (%) Income includes write-downs of investment properties of AED 214m Net interest income 6,795 7,4
Slide 14: Income
Income Net Interest Margin Trends (%) Q4 2010 NIM of 2.41%; -10bps from 2.51% in Q3 2010: 3.01 – Negative mix impact of declining loan balances and rising customer Qtrly NIM 2.85 2.76 deposits with deployment of increased liquidity in lower yielding 2.65 2.60 2.59 2.54 2.51 assets 2.41 2010 NIM
Slide 15: Operating Costs and Efficiency
Operating Costs and Efficiency Highlights Cost to Income Ratio Trends The cost to income ratio improved by 1.5% from 32.9% in 2009 to 31.4% in 2010 Cost to income ratio (YTD) Operating costs declined by 14% to AED 3,053 million in 2010: 37.6 38.5 37.4 – 11% improvement in staff costs driven prim
Slide 16: Credit Quality
Credit Quality Loans & Receivables and Islamic Financing Highlights Loan Portfolio by Type – 2010(1) The Bank continues to pro-actively manage credit quality 100% = AED 205.4b Impaired loans as a percentage of gross loans increased to 10.0% in Q4 2010 from 8.1% in Q3 2010 and 2.6% in Q4 2009 Ret
Slide 17: Credit Quality
Credit Quality Retail and Corporate Loans & Receivables Corporate & Sovereign Lending Portfolio By Sector(1) Corporate Credit Quality Real Estate & Contracting 100% = AED 165.2b • Impaired loan ratio 9.2% at Q4 2010 vs.0.97% at Q4 2009 • Exposures to Real Estate and Contracting Sector are AED 25.9b
Slide 18: Capital Adequacy
Capital Adequacy Highlights Capital Ratios - Basel II (AED billion) Capital adequacy ratio at 20.1% at end-2010 vs. 18.7% at end-2009 20.1% 18.7% Tier 1 ratio increased from 11.9% at end-2009 to 12.8% at end-2010 11.9% 12.8% 10.5% as profit generation for the period exceeded the FY 2009 dividend
Slide 19: 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 99% at end-2010 Adjusted LTD Ratio % 129% Liquidity backstop facilities of AED 39.3b unused; net liquid asset
Slide 20: Divisional Performance
Divisional Performance AED billion AED million Key focus during the period was on balance sheet optimisation, -9% continued proactive management of credit quality, building non-risk 172.4 161.1 4,835 Corporate Banking based and fee generating businesses 4,400 Revenue declined 9% year-on-year due
Slide 21: Divisional Performance (cont'd)
Divisional Performance (cont’d) AED million Revenue increased by 19% in 2010 to AED 701m driven +19% Global Markets & primarily by growth in trading revenues partly offset by a 701 contraction in the spreads generated from interbank funding and 590 Treasury the mix impact of increased net liquid a
Slide 22: Contents
Contents Operating Environment Emirates NBD Profile Financial and Operating Performance Strategy and Outlook 22
Slide 23: Two years on from the crisis, the Bank is better positioned for the future
Two years on from the crisis, the Bank is better positioned for the future Capital Ratios – Basel II Loan to Deposit Ratios Liquid Assets 20.1% 7.3% 20.4% Stronger 10.5% 9.7% 11.1% capital base 2.0% 129.0% 109.0% -9.5% 12.8% 99.0% 88.0% and liquidity 8.5% 2008 2010 Net Liquid Assets Ratio (%) 2008 2
Slide 24: Emirates NBD's strong brand, culture and franchise
Emirates NBD’s strong brand, culture and franchise 24
Slide 25: Summary of major achievements in 2010
Summary of major achievements in 2010 Achievements Proactive Liquidity Management by the Group has resulted in significant improvement of CAR strengthened to liquidity, manifested through strong increase in customer deposit base both in Wholesale as 20.1% from 18.7% at well as Consumer Banking e
Slide 26: Summary of major achievements in 2010
Summary of major achievements in 2010 Achievements Stress Testing – The Group advanced its comprehensive multi-period Stress Testing framework, which supports Underlying credit senior management in identifying and managing risks in the portfolio in order to ensure adequate metrics within capital
Slide 27: 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 •
Slide 28: Strategic Imperatives for 2011
Strategic Imperatives for 2011 Objectives Increase lending activities in identified pockets of growth, e.g. SME lending, cards, … Optimise Balance Sheet Further diversifying funding sources with a focus on reducing cost of funding and Capital allocation Review all Group companies (subsidiaries
Slide 29: Network International: Strategic Partnership with Abraaj Capital
Network International Strategic Partnership with Abraaj Capital Transaction Summary & Strategic Rational Financial Impact on Emirates NBD On 22 December 2010, Network International (NI) entered into a In 2010, the assets and liabilities are disclosed as assets held for strategic partnership with
Slide 30: Outlook
Outlook While economic activity remained relatively subdued in 2010, the satisfactory agreement on Dubai World restructuring and confidence and core economic sectors in Dubai continue to show signs of recovery Dubai remains well-positioned: Due to its strategic location and advanced infrastruc
Slide 31: Summary
Summary Robust financial performance despite significant impairments on credit portfolio and associate investments Cost rationalisation initiatives proving successful evidenced by reductions in absolute levels of expenses and in the cost to income ratio Significantly improved liquidity metrics
Slide 32: Appendix
APPENDIX Emirates NBD
Slide 33: 2010 Awards
2010 Awards December 2010 - "Largest Bank in the Middle East" Award by Global Finance 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 - P
Slide 34: 2010 Awards
2010 Awards March 2010- 2010 Financial Sector Technology (FST London) award for “Systems Integration Project of the Year” 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-
Slide 35: 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] Emilie Froger Investor Relations Coordinator Tel: +971 4 201 2606 Email: Emilie