Emirates NBD Inv nvesto tor Pr Pres esenta tation 2020 2019 Au August 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 7 4. Divisional Performance 3
Emirates NBD is a Leading Bank in the MENAT Region Key Highlights as of H1 2020 Emirates NBD at a Glance AED 694 Bn AED 475 Bn AED 461 Bn Total Assets Gross Customer Loans Total Customer Deposits 13 944 14.7 million Countries Branches Customers ~20% 3 rd 2 nd Market Share in UAE Largest in GCC* Largest in the UAE** (Assets, Loans, Deposits)*** 56% 40% AED 56.8 Bn Government of Dubai Foreign Market Shareholding Ownership Limit Capitalization*** *By assets as at 30-Jun-20; **Market share in UAE as at 30-Jun-20 Emirates NBD Profile 4 ***Market cap as at 27-Apr-20
Emirates NBD at a glance Emirates NBD’s International Presence Market share in the UAE* Assets 17.7%; Loans 21.8%; Moscow 1 Deposits 19.8% London 15 Germany 1 20 Austria Largest financial institution in Dubai, 3 rd largest in the GCC Turkey Beijing 707 1 Leading retail banking franchise Bahrain with a branch network of around 1,000 67 1 4 branches throughout the MENAT Egypt 126 KSA region with operations in 13 countries Mumbai UAE 1 Leader in digital banking : 6th best Singapore banking app worldwide with expanding 1 customer acquisition 1 Jakarta 55.8% indirectly owned by the Government of Dubai through ICD Emirates NBD Emirates NBD Rep. Offices Stable credit ratings DenizBank Rated A3 / A+ by Moody’s / Fitch Emirates NBD Profile 5 * ENBD as at 30-Jun-20 excluding DenizBank
Emirates NBD is one of the largest banks in the GCC % Jun-20 vs. Jun-19 Total l As Asset ets Total l Depo Deposit its Gro ross Loans ns Net et Pro rofit fit AE AED D Bn, 30 30-Ju Jun n 2020 20 AE AED D Bn, 30-Ju Jun n 2020 20 AED AE D Bn, 30-Ju Jun n 2020 20 AE AED D Mn, H1 2020 20 YoY 6,486 -14% 974 9% 713 10% 725 11% 4,817 -25% 866 12% 519 12% 475 30% 4,720 694 29% 461 26% -6% 397 5% 4,824 -10% 409 13% 328 11% 276 15% 4,091 -45% 406 -3% 250 -8% 249 -4% Emirates NBD Profile 6
Stable Shareholder Base and Diversified Business Model Spli lit of owne wnershi hip p – An Anchor chored d by the e Governm nment nt of Du Dubai bai Hi Highl hlig ight hts Ownership structure as at 30 Jun 2020 • A flagship bank for the Government of Dubai and the UAE • Strong and supportive shareholder base from the Government of Dubai via Investment Corporation of Dubai • International presence in Asia, Europe and MENAT across 13 countries. Others DenizBank acquisition further enhanced geographic profile 39% • Well diversified and balanced asset composition between corporate, consumer and Islamic banking Investment Corporation of • Foreign ownership limit raised to 40% from 20% in July 2020 Dubai 56% Capital Assets 5% Bal alanc anced d as asset et compo posit itio ion Equi uity An Analy alysts Covera rage % by segment as at 30 June 2020 Buy Hold Sell DenizBank 19% Recommendation 9 1 1 In AED GMT CIB Target Price 11.10 17% 47% Price at 30-August-2020 11.00 RBWM 8% Adjusted EPS 30-June-2020 0.60 Islamic Banking 9% 7 Emirates NBD Profile
Leader in Digital Banking and Innovation Key Digital Developments • • The lifestyle digital bank for millennials - launched its innovative Committed to continue with safe operations during C-19 situation digital credit card offering a truly customized experience, and • personal loans to Liv. customers Instant mobile account opening without the need to visit a branch now represent 41% of customer accounts openings for Emirates NBD • Reaching a milestone of 10,000 customers in KSA despite • launch during Covid-19 in the SAMA Sandbox Introduced new touchpoint with Voice Banking on Amazon Alexa • • In partnership with AECB, now enables instant access to credit New contactless sales processes rolled out for retail loans, cards scores to help customers for a healthier financial future • Chat Banking service via WhatsApp simplifies banking experience • Sure, Smartphone insurance – range of insurance products • Launched website based deferments and new account opening • Expanded range of services with international transfers • Digitally active customers enrolled to smart pass - secure soft token • UAE’s fastest growing retail bank ; +10,000 customers p/month • despite economic slowdown Announced the launch of our digital business bank E20 . • Continues to attract an overwhelming base of millennials as their Transactions via Retail Business Corporate clients opting primary spend account; Strong customer engagement digital channels customers digitally active for digital platform • Crossed 390,000 customers – Google Play Store rating 4.4 / 5 94% 75% 74% Emirates NBD Profile 8
Emirates NBD maintains strong balance sheet and good profitability despite increased impairments in H1-20 Key Metrics 2020 Macro themes 2020 Regional Global H1 2020 Guidance AED 4.4 Bn • Stro Strong Government Operating Profit -19% y-o-y and nd Re Regulatory sup upport to miti tigate • Str Strong central ba bank AED 4.1 Bn effects of of Covid-19 19 Profit Net Profit and nd gov overnment -45% y-o-y efforts to o cush shion • PMI ba back in n Covid-19 effects NIM 2.84% 2.55-2.65% exp xpansi sion territory through monetary in n Jun une fol ollowing Cost to income 31.7% 33 % and nd fisc scal sti timulus five months of of con ontracti tion NPL Ratio 5.8% Increasing Credit Quality Coverage Ratio 116.9% Strong • Un Unprecedented CET 1 15.3% • economic impact Sharp global GDP Sh Capital Tier 1 17.3% du due to o Covid-19 19 con ontracti tion in n H1-20 20 related shu hutdowns CAR 18.5% • Financial market • GCC CC oi oil sector likely vol olatility du due to LCR 152.5% Liquidity to o con ontract as uncertain economic un ADR 96.1% Increasing OPEC+ pr production ou outl tlook cuts ts ext xtended Low/mid-single Assets Loan Growth 1% digit 9 Financial & Operating Performance
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