Results Presentation

H1 2022

28 July 2022

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.

Rounding

Rounding differences may appear throughout the presentation.

Emirates NBD delivers strong results and maintains solid balance sheet in H1-22

Key Highlights

Strong momentum continues with H1-22 profit up 11% to AED 5.3bn

Improved loan & deposit mix with higher interest rates enabling Group to raise margin guidance

Record demand for retail financing and loan growth emerging amongst

corporate customers

International contributing 41% of diversified income, with DenizBank delivering particularly strong income growth

Key Metrics & Guidance

Net ProfitCET 1

AED 5.3bn

15.0%

+11% y-o-y

NIM

LCR

2.86%

154.8%

2022 guidance / Revised:

2.70-2.80% /3.20-3.30%

Cost to Income

Loan Growth

28.7%

1% in H1-22

2022 guidance: Within 33%

2022 guidance: Low-single digit

NPL

NPL Cover

Diversified balance sheet, strong operating profits and solid capital base

6.1%

133.3%

remain core strengths of the Group

2022 guidance: mid 6%

2022 CoR guidance: 100-125 bps

3

Strong diversified income and profit growth in H1-22

Highlights Income Liquidity Risk Expenses Capital

Divisional

Key Highlights

Income Statement

H1-22

H1-21

Better /

H1-22

H1-21

Better /

H1-22

H1-21

Better /

(AED bn)

(Worse)

(Worse)

(Worse)

Net interest income

9.4

8.1

16%

6.4

5.6

14%

3.0

2.5

19%

Non-funded income

4.8

3.4

40%

3.1

2.6

18%

1.7

0.8

117%

Total income

14.2

11.5

23%

9.5

8.2

15%

4.7

3.3

42%

Operating expenses

(4.1)

(3.8)

(8)%

(3.0)

(2.6)

(13)%

(1.1)

(1.1)

4%

Pre-impairment

10.1

7.8

30%

6.5

5.6

16%

3.6

2.2

66%

operating profit

Impairment allowances

(1.9)

(2.6)

28%

(1.6)

(1.7)

5%

(0.2)

(0.9)

72%

Tax and others

(1.1)

(0.4)

(199)%

(0.1)

(0.1)

(37)%

(0.9)

(0.3)

(261)%

Profit after tax and

7.2

4.8

50%

4.7

3.8

26%

2.5

1.0

136%

before hyperinflation

Hyperinflation adjustment

(1.9)

-

n/m

-

-

-

(1.9)

-

n/m

Net profit

5.3

4.8

11%

4.7

3.8

26%

0.6

1.0

(44)%

Cost: income ratio

28.7%

32.6%

3.9%

31.4%

32.0%

0.6%

23.1%

34.2%

11.1%

NIM

2.86%

2.45%

0.41%

2.31%

2.07%

0.24%

5.72%

4.13%

1.59%

  • Group net profit up by 11% and strong diversified income absorbs new hyperinflation adjustment
  • ENBD income higher from improving margins and increased transaction volumes
  • DeinzBank income higher from increased lending, wider margins and hedging
  • Lower provisions with strong writebacks and recoveries as H1 cost of risk improved to 79bp reflecting improving operating environment
  • AED 0.6 bn net profit from DenizBank despite AED 1.9 bn hyperinflation adjustment
  • Higher income enables accelerated investment in international growth and digital
  • NIMs revised upwards by 50bp on rising interest rates and improving DenizBank margins
  • 1% loan growth in H1-22 with healthy new lending on continued strong retail and renewed corporate lending demand

4

Q2-22 results highlights

Income Statement (AED bn)

Q2-22

Q2-21

Better /

Q1-22*

Better /

(Worse)

(Worse)

Highlights

Income

Liquidity

Risk

Expenses

Capital

Divisional

Key Highlights

Net interest income

Non-funded income

Total income

Operating expenses

Pre-impairment operating profit

Impairment allowances

Tax and others

Profit after tax and before hyperinflation

5.1

4.1

27%

4.3

21%

2.7

1.3

101%

2.1

25%

7.8

5.4

45%

6.4

22%

(2.1)

(1.9)

(10)%

(2.0)

(6)%

5.7

3.5

64%

4.4

30%

(0.5)

(0.9)

46%

(1.4)

67%

(0.7)

(0.2)

(439)%

(0.3)

(184)%

4.5

2.5

83%

2.7

64%

•

Strong Q2-22 results with net profit up 42% y-o-y on higher income and lower

impairments

•

Net interest income up 27% y-o-y on improved loan and deposit mix

- Higher interest rates feeding through to margins

- DenizBank experiencing strong loan growth and widening margins

•

Non-funded income up 101% y-o-y from increased transaction activity

- Increased local and international card transactions

- Growth in client flow FX & Derivative transaction income

Hyperinflation adjustment

(1.0)

-

n/m

-

n/m

Net profit

3.5

2.5

42%

2.7

28%

Cost: income ratio

26.7%

35.3%

8.6%

30.8%

4.1%

NIM

3.09%

2.44%

0.65%

2.60%

0.49%

Balance Sheet (AED bn)

30-Jun-22

31-Dec-21

Inc /

31-Mar-22

Inc /

(Dec)

(Dec)

Total assets

711

687

3%

694

2%

Loans

425

422

1%

425

-

Deposits

468

457

2%

469

-

CET-1 (%)

15.0%

15.1%

(0.1)%

15.0%

-

LCR (%)

154.8%

177.6%

(22.8)%

157.4%

(2.6)%

NPL ratio (%)

6.1%

6.3%

(0.2)%

6.4%

(0.3)%

• Expenses well controlled in Q2-22 with positive jaws

- Higher income enables Group to accelerate investment in international

footprint and digital capabilities

• Q2-22 cost of risk 41 bps on writeback and recoveries reflecting improving

operating environment

• Healthy new lending on continued strong retail and renewed corporate

lending demand

• Group maintains strong Capital and Liquidity with coverage ratio highest

amongst regional peers

* As reported. If hyperinflation had been applied in Q1, net profit would be AED 0.9 billion lower in Q1-22

5

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Emirates NBD Bank PJSC published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 05:37:06 UTC.