Emirates NBD Investor Presentation 2019 2019 Sep Septe tember 20 Presentation Title 1
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 investors or potential investors and does not take in to account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice when deciding if an investment is appropriate. The information contained here in has been prepared by Emirates NBD. Some of the information relied on by Emirates NBD is obtained from sources believed to be reliable but does not guarantee its accuracy or completeness. 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 to historical or current facts. Forward-looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could or other words of similar meaning. Undue reliance should not be placed on any such statements because, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and the Group’s plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. There are several factors which could cause actual results to differ materially from those expressed or implied in forward looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business, competitive, market and regulatory forces, future exchange and interest rates, changes in tax rates and future business combinations or dispositions. Emirates NBD undertakes no obligation to revise or update any forward looking statement contained within this presentation, regardless of whether those statements are affected as a result of new information, future events or otherwise. 2
1. Emirates NBD Profile 2. Financial & Operating Performance 3. Economic Environment 4. Divisional Performance 7 3
Emirates NBD at a glance. Lead ers in t h e Reg io n . I nter n ation a l P resen c e. Market share in the UAE* Assets 18.5%; Loans 21.7%; Deposits 20.8% Moscow London Germany China Austria Largest financial institution in Dubai , 3 rd largest in the GCC Turkey Bahrain India Egypt KSA UAE Leading retail banking franchise with a branch network of around 1,000 branches throughout the MENAT region with Singapore operations in 13 countries Indonesia Leader in digital banking: 6th best banking app worldwide with expanding customer acquisition Fully fledged diversified financial offering covering a full Branch Rep office range of services in Wholesale Banking, Retail Banking, Private Egypt (77 branches) Banking, Islamic Banking and Asset Management Turkey (749 branches - incl. 44 in other territories) 55.8% indirectly owned by the Government of Dubai through its investment arm (Investment Corporation of Dubai) Emirates NBD Profile 4 * As at Q2 2019
Emirates NBD at a glance. C red it R at in g s. La rgest B ra n c h N et wo r k in t h e UA E. The Bank has stable long-term credit ratings 25 Long Term/Short Term Outlook Most Recent Rating 2 Action 95 Ratings Affirmed 3 A+ / F1 Stable (04-Feb-2019) 5 19 Ratings Affirmed 2 A3 / P-2 Stable (23-May-18) Total: 151 Ratings Affirmed A+/ A1 Stable (09-Oct-2018) Emirates NBD Profile 5
Key Strengths Flagship ip Own Owners rship ip Flagship bank for the Government of 56% owned by the Government of Dubai Dubai and the UAE, playing a strategic (via Investment Corporation of Dubai) role in developing the economy Ba Balance Sh Shee eet Geogra Geo raphic ic Presence Well-capitalized, with a strong asset Sizeable footprint in the UAE (with the standing positioned to grow and deliver largest branch network); international outstanding value to its stakeholders presence in Asia, Europe and MENAT Profit itable Lea eader r in Di Digit ital l Ba Bankin ing Consistently profitable; higher quality 6th best banking app worldwide, of earnings to sustain potential strong customer acquisition by Liv. in headwinds. its first two years of operations Di Diversif ifie ied Of Offeri ring Fully fledged diversified financial offering covering a complete range of services across all segments 6
Digital lifestyle banking continuing innovation Recent Launches Liv. Sure, Smartphone insurance – a range of insurance products for millennials Olivia, a Millennial chatbot – a conversational AI (artificial intelligence) based chatbot Goal accounts – multiple goal based saving options for the customers Key Achievements Fastest growing retail bank in the UAE with more than 10,000 customers added to the network per month Expanded its range of services to over 20 countries with capabilities like international transfers Crossed the 250,000 customer mark within two years of commencing operations Strong customer engagement with an average of 14 logins per customer per month Highest rated amongst all banking applications with a Google Play Store rating of 4.6 out of 5 Emirates NBD Profile 7
Direct Remit – an innovative remittance service Allows customers to do instant money transfers to their home country for free Direct Remit transaction can be initiated via Online Banking, Mobile Banking and selected ATMs Direct Remit option is currently available for the following countries in INR, PHP, PKR, EGP, LKR and GBP Unlimited number of Direct Remit transactions for free with a minimum of AED 100 in their respective home currency All Direct Remit transfers are subjected to strict compliance controls and regulatory reviews as part of transaction screening to ensure adherence with global payment screening standards In Jan-May 2019, Direct Remit represented over 90% of all individual transfers done by Emirates NBD customers and has started disrupting legacy money transfer services via exchange houses in the UAE, with an estimated 4% market share Emirates NBD Profile 8
Emirates NBD is one of the largest banks in the GCC % June 2019 vs. June 2018 As Asset ets Depo De posits its Loans ans Net et Pro rofit fit USD Bn, 30 30-Ju Jun n 2019 19 USD Bn, 30 30-Ju Jun n 2019 19 USD Bn, 30 30-Ju Jun n 2019 19 USD Mn Mn, , H1 H1 2019 19 242 5% 178 4% 176 4% 2,037 49% 211 12% 103 6% 126 7% 2,016 4% 146 13% 99 6% 100 9% 1,723 4% 128 5% 76 4% 87 3% 1,380 5% 114 53% 70 49% 80 7% 796 70% Emirates NBD Profile 9
Emirates NBD is one of the largest banks in the GCC CET 1 ratio Coverage rat atio io CAR ratio 30 30-Ju Jun n 2019 19 30-Ju 30 Jun n 2019 19 30-Ju 30 Jun n 2019 19 234.3 19.5 21.5 17.4 20.5 125.8 16.5 18.7 111.0 16.0 18.4 106.2 13.6 18.4 106.0 Emirates NBD Profile 10
Profit and balance sheet growth in recent years Reve evenue ues an and Costs (AE AED Bn) Profi fits (AE AED Bn) Revenues Costs Pre-Provision Operating Net Profits Profits +4% +6% +5% +18% 11.8 10.0 17.4 5.6 10.6 10.5 15.5 10.1 15.2 9.9 8.3 4.9 14.7 4.8 14.4 4.7 4.4 7.2 7.1 5.1 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Asset As ets an and Loans ans (AE AED Bn) Depo De posits its an and Equi uity (AE AED Bn) Assets Loans Deposits Equity +8% +7% +9% +8% 348 58 328 327 54 311 500 304 290 287 48 470 271 448 45 258 407 246 41 363 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Equity is Tangible Shareholder’s Equity excluding Goodwill and Intangibles. All P&L numbers are YTD, all Emirates NBD Profile 11 Balance Sheet numbers are at end of period Source: Financial Statements
Emirates NBD delivered a strong set of results in H1-19 Key Metrics 2019 Macro themes H1 2019 2019 Guidance Reg egional Glob Global AED 7.5 Bn Net Profit +49% y-o-y Profit • Slowing but still NIM 2.77% 2.75-2.85% growing US economy • GCC growth Cost to income 29.7% 33% • Positive outlook on supported by stable NPL 5.9% oil production Emerging Markets Stable Credit Quality Coverage 125.8% CET 1 17.4% Capital Tier 1 20.4% CAR 21.5% • Impact of US-China • Geo-politics trade war on markets AD Ratio 92.1% 90-100% • Softening UAE real Liquidity • Brexit uncertainty LCR Ratio 188.8% estate prices mid-single Assets Loan Growth 3.0% digit 12 Financial & Operating Performance
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