emirates nbd
play

Emirates NBD Creating a Banking Leader in the Middle East 1 - PowerPoint PPT Presentation

CONFIDENTIAL Emirates NBD Creating a Banking Leader in the Middle East 1 Financial overview and key indicators Rationale for the merger Strategy Index Merger context and aspirations What merger has led to so far Creation of


  1. CONFIDENTIAL Emirates NBD Creating a Banking Leader in the Middle East

  2. 1 • Financial overview and key indicators • Rationale for the merger • Strategy Index

  3. Merger context and aspirations What merger has led to so far … Creation of UAE champion • Largest UAE bank by assets and market capitalisation What merger should allow going forward … • Enhanced distribution To become the leading regional financial network and business mix 1 institution, with an increasing international strengthening competitive presence position Increased financial strength/ Leverage financial strength, scale and 2 scale market positioning to capture domestic • Largest bank in GCC by and regional opportunities assets and Top 5 player by To become the partner of choice for market capitalisation 3 • Increased regional presence corporate and retail clients seeking financial services in the GCC Superior value creation potential • Significant cost and revenue synergies driving value creation 2

  4. The merger will provide significant benefits to all the bank’s stakeholders • Enhanced regional and international expansion opportunities • Increasing financial strength and capital position to support future growth • Value creation through established management expertise and best practices Share- holders • Greater convenience through • Enhanced career opportunities broader domestic branch and • Improved training and career ATM networks development capacity • Wider access to regional and • Greater ability to attract and retain inter-national markets top talent • Broader product suite Customers Employees 3

  5. Structuring of merger Emirates NBD offered to buy shares in EBI and NBD by way of a share for share Equal representation on Board and exchange through an unregulated management Committee of 2 banks contractual offer working side- by-side • 6 members from EBI and 6 members of EBI NBD NBD appointed to Board of Emirates NBD, Shareholders Shareholders under Chairmanship of H.E Ahmed Humaid Al Tayer and Deputy Chairman Abdullah Mohammad Saleh 66%* 34%* • Executive Management Committee of Emirates NBD comprises of senior appointments from both EBI and NBD Emirates NBD reflecting the new group’s intention of (public company) bringing in best practice from both banks - key appointments upon announcement of merger: – Rick Pudner, CEO – Sanjay Uppal, CFO – Douglas Dowie, Advisor to the Board, EBI NBD Board member and Chairman of Investment Bank – Shahzad Shahbaz, CEO Investment Bank * Assumed 100% acceptance of EBI and NBD shareholders Source: Merger Offer Document 4

  6. Emirates NBD will become the dominant player in the UAE . . . Last 12 months to 1H 2007 Net profits Assets Equity $m, Last 12 months to 1H 2007 $b, 1H 2007 $b, 1H 2007 Emirates Emirates Emirates 4.0 906 53.4 NBD NBD NBD ADCB 2.8 DIB 601 NBAD 30.5 ADCB 26.2 NBAD 2.5 ADCB 592 Mashreq 2.5 NBAD 472 DIB 20.6 FGB 2.5 Mashreq 457 Mashreq 19.2 DIB 2.2 FGB 443 FGB 15.6 UNB 1.7 UNB 319 UNB 12.3 ADIB 1.4 CBD 194 ADIB 11.2 CBD 1.1 ADIB 174 CBD 6.0 Source: Bank websites; Press releases; Zawya; team analysis 5

  7. . . . with largest domestic market share… 2006 Corporate loans market share* 2006 Personal loans market share** $22bn $8bn 8% 8% 20% 24% 16% 12% EBI NBD Emirates EBI NBD Emirates NBD NBD 2006 Islamic assets market share UAE*** Islamic assets 94.8% Emirates NBD 5.2% ($2bn) * Includes government loans; Islamic loans; gross of provisions; excludes interbank loans ** Includes Islamic loans; gross of provisions *** Based on 2006 assets for Tamweel, Amlak, SIB, DIB, ADIB and EIB based on 2006 Annual Reports 6 Source: Retail and corporate loans are included net of provisions

  8. . . . in a fast growing but highly competitive market UAE has seen high growth in the recent . . . but the market remains relatively past . . . fragmented 2000–06 bank assets CAGR, % Market share of top 3 banks (by assets, %)* 25 31 UAE 21 46 KSA 15 59 Kuwait 12 62 Bahrain 11 11 67 Oman 69 Qatar 52 France 57 U.K. Qatar UAE Bahrain Kuwait KSA Oman 7

  9. Emirates NBD will also become the largest bank in the GCC by assets Last 12 months to 1H 2007 GCC ranking by assets Equity GCC ranking by profits $b, 1H 2007 $b, 1H 2007 $m, Last 12 months to 1H 2007 Emirates NBD 53.4 Al Rajhi 1,852 NCB 7.2 NCB 49.1 NCB 1,835 Al Rajhi 6.0 SAMBA 34.4 SAMBA 1,438 KFH 5.1 NBK 990 Al Rajhi 33.3 SAMBA 4.2 Emirates NBD 907 NBK 31.8 Emirates NBD 4.1 NBAD 30.5 BSF 827 NBK 3.3 SABB 816 KFH 27.8 Riyad 3.0 Riyad 815 GIB 27.6 ADCB 2.8 ANB 725 ABC 27.3 BSF 2.6 Riyad 26.2 KFH 704 SABB 2.6 ADCB 26.2 QNB 635 QNB 2.5 DIB 601 BSF 23.3 NBAD 2.5 ADCB 592 SABB 22.7 ANB 2.5 GBK 503 ANB 22.0 Mashreq 2.5 Ahli United 21.5 NBAD 472 FGB 2.5 QNB 20.8 Mashreq 457 GIB 2.3 FGB 443 DIB 20.6 DIB 2.1 Mashreq 19.2 GIB 282 ABC 2.1 GBK 16.3 Ahli United 258 Ahli United 1.8 FGB 15.6 ABC 254 GBK 1.5 Source: Bank websites; Press releases; team analysis 8

  10. . . . with significantly enhanced representation in the region’s key markets Country ENBD UAE 99 branches KSA Branch Qatar Branch Iran Rep. Office Turkey India Rep. Office Singapore Rep. Office Tehran UK Branch Syria Jersey Subsidiary branch Lebanon Iraq Iran Israel Jordan Bahrain Kuwait Cairo Riyadh Egypt Qatar Doha UAE Saudi Arabia Mumbai Oman Yemen Emirates NBD (UAE footprint) Emirate # Branches # ATMs Abu Dhabi 13 30 Ajman 4 9 Singapore Fujairah 3 5 Sharjah 4 43 Dubai 68 327 Other Locations Ras Al Khaimah 4 7 Branch in London, UK Umm Al-Quwain 3 8 Subsidiary/branch in Jersey Total 99 429 EBI presence NBD presence 9

  11. Current position of Emirates NBD by geography 2006 Geographies UAE GCC MENA* MENA+Asia** Global Rankings • Assets # 209 # 1 # 23 # 1 # 3 • Profits # 160 # 5 # 21 # 1 # 9 * Including Turkey ** Including Turkey and excluding China and Japan Source: The Banker (Top 1000 rankings), team analysis 10

  12. 11 • Financial overview & key indicators • Rationale for the merger • Strategy Index

  13. Emirates NBD has experienced very strong growth in the last 6 years Assets, $b Loans, $b 53 34 30 +22% 45 +32% 30 19 21 12 18 17 15 10 13 8 6 5 2000 01 02 03 04 05 06 1H07 2000 01 02 03 04 05 06 1H07 Deposits, $b Equity, $b +9% 31 4.1 4.1 +19% 26 3.5 3.0 3.0 3.0 19 2.5 2.2 14 13 12 11 9 2000 01 02 03 04 05 06 1H07 2000 01 02 03 04 05 06 1H07 Source: Bloomberg, Financial Statements, simple aggregation of EBI and NBD results; 1H07 Equity is net of dividends paid on 2006 profits 12

  14. Profits have increased accordingly Revenues, $m 1,362 +21% 1,070 823 849 674 537 462 Net Profits, $m 438 2000 01 02 03 04 05 06 1H07 800 +21% 751 534 498 Costs, $m 404 319 260 250.4 562 +20% 2000 01 02 03 04 05 06 1H07 368 351 290 270 218 201 188 2000 01 02 03 04 05 06 1H07 Source: Bloomberg; aggregated for EBI and NBD 13

  15. Diversified Business mix with growth in each segment… 2006, % Assets Net Profits 100% = $45b 100% = $800m Islamic Islamic 4% 4% 80% 81% Wholesale Wholesale Retail 16% 15% Retail * Wholesale include corporate banking, investment banking and investment management and treasury Source: 2006 annual results 14

  16. Wholesale Banking and in particular Corporate Banking has been a driver of growth in the past CAGR Loans Highlights $b +50% • Wholesale Banking comprises of services provided to 22.8 Multinational, Large Local and Local Corporate as well as Government linked institutions, Financial Institutions and 15.2 Investment Institutions • Product offering comprises mainly Corporate Banking Lending, Deposits, Trade Finance, Syndications, Structuring as well as increasingly Treasury and Investment Banking Income * • Historically, Corporate Banking has been a major $m contributor to the growth of the bank with Corporate +57% 605 lending and deposits growth far in excess of GDP growth • Emphasis increasingly placed on providing tailored 385 Treasury and Investment Banking solutions 2005 2006 * Including fee income and IPO income, excludes investment management 15 Source: Commercial due diligence pack; figures converted to $ at 1$ = 3.67 AED

Recommend


More recommend