Results Presentation

FY 2021

26 January 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 performance in 2021 on improving economic conditions

Key Highlights

Key Metrics & Guidance

Strong performance recovery trend with FY 2021 profit AED 9.3bn, up 34%

UAE economic activity picking up helped by Expo 2020

Continued strong underlying business momentum with record demand for

retail financing

International expansion continues with additional KSA branches, approval

for further branches in India and significant contribution from DenizBank

Diversified balance sheet and capital base remain a core strength of the

Group

Net Profit

AED 9.3bn

+34% y-o-y

NIM

2.53%

Guidance 2021 / 22: 2.45-2.55% /2.55-2.65%

Cost to Income

33.5%

Guidance 2021 / 22:

Within 35% / within 35%

NPL

6.3%

Guidance 2021 / 22:

mid 6% / mid 6%

CET 1

15.1%

LCR

177.6%

Loan Growth

-5%

Guidance 2021 / 22:

Low-single digit / Low-singledigit

NPL Cover

127.5%

COR Guidance 2021 / 22: 100-125 bps / 100-125bps

3

Financial results highlights FY 2021

Income Statement (AED bn)

FY 2021

FY 2020

Better /

(Worse)

Net interest income

16.9

17.5

(3)%

Non-funded income

6.9

5.7

21%

Total income

23.8

23.2

3%

Operating expenses

(8.0)

(7.9)

(2)%

Pre-impairment operating profit

15.8

15.4

3%

Impairment allowances

(5.9)

(7.9)

26%

Operating profit

9.9

7.4

34%

Taxation charge and others

(0.6)

(0.5)

(38)%

Net profit

9.3

7.0

34%

Cost: income ratio (%)

33.5%

33.8%

0.3%

Net interest margin (%)

2.53%

2.65%

(0.12)%

Balance Sheet (AED bn)

31-Dec-21

31-Dec-20

Inc / (Dec)

Total assets

687.4

698.1

(2)%

Loans

422.3

443.5

(5)%

Deposits

456.5

464.2

(2)%

CET-1 (%)

15.1%

15.0%

0.1%

LCR (%)

177.6%

165.0%

12.6%

NPL ratio (%)

6.3%

6.2%

0.1%

Highlights

Income

Liquidity

Risk

Expenses

Capital

Divisional

Key Highlights

  • Strong 2021 results a continuation of recovery with net profit up 34% y-o-y
    • 38% of income from international operations
  • Income momentum offsetting impact of low interest rates
    • Higher non-funded income from increased transaction activity and growth in FX & Derivative income
    • Record CASA balances keeping funding costs stable
    • Improved loan mix with record demand for retail financing
  • Expenses up 2% as business recovers and investment for future growth
    • CI ratio improved in 2021 supported by positive income momentum
  • Cost of risk of 124 bps within pre-pandemic range
    • Provisions substantially down 26% y-o-y
    • NPL ratio steady at 6.3%
    • Coverage of 127.5%, highest amongst regional peers
  • Strong Retail and DenizBank loan growth in local currency terms
    • ENBD loans stable in 2021; DenizBank's Turkish Lira net loans up 26% in 2021
    • Retail loans up AED 7bn in 2021
    • Offset by AED 4.2bn of deferral repayments and currency translation
  • Group maintains strong Capital and Liquidity
    • CET-1of 15.1%, strongest amongst regional peers
    • LCR of 177.6% reflects healthy liquidity position

4

Financial results highlights Q4 2021

Highlights

Income

Liquidity

Risk

Expenses

Capital

Divisional

Income Statement (AED bn)

Q4-21

Q4-20

Better /

Q3-21

Better /

(Worse)

(Worse)

Net interest income

4.3

4.0

7%

4.4

(3)%

Non-funded income

2.2

0.9

146%

1.3

67%

Total income

6.5

4.9

32%

5.8

13%

Operating expenses

(2.3)

(2.0)

(11)%

(2.0)

(16)%

Pre-impairment operating profit

4.2

2.9

47%

3.8

12%

Impairment allowances

(2.2)

(1.6)

(38)%

(1.1)

(97)%

Operating profit

2.1

1.3

58%

2.7

(23)%

Taxation charge and others

(0.1)

0.0

(994)%

(0.2)

72%

Net profit

2.0

1.3

53%

2.5

(20)%

Cost: income ratio (%)

34.8%

41.5%

6.7%

34.0%

(0.8)%

Net interest margin (%)

2.59%

2.42%

0.17%

2.65%

(0.06)%

Balance Sheet (AED bn)

31-Dec-2131-Dec-20

Inc /

30-Sep-21

Inc /

(Dec)

(Dec)

Total assets

687.4

698.1

(2)%

699.1

(2)%

Loans

422.3

443.5

(5)%

438.3

(4)%

Deposits

456.5

464.2

(2)%

466.5

(2)%

CET-1 (%)

15.1%

15.0%

0.1%

16.1%

(1.0)%

LCR (%)

177.6%

165.0%

12.6%

157.2%

20.4%

NPL ratio (%)

6.3%

6.2%

0.1%

6.2%

0.1%

Key Highlights

  • Net profit up 53% y-o-y with strong income momentum
  • Income up 32% y-o-y and 13% q-o-q on higher non-funded income
    • Increased transaction activity
    • Growth in FX & Derivative income
    • AED 0.3 bn gain relating to Dubai Bank
    • Record CASA balances keeping funding costs stable
  • Expenses well controlled with Q4-21 CI ratio up due to seasonality
    • Higher staff cost due to retail incentives and investment for future growth
    • Other costs up due to seasonality, campaigns and IT investment
  • Q4-21cost of risk of 172 bps with provisions of AED 2.2bn
  • Retail loan growth continued in Q4 2021
  • Group maintains strong Capital and Liquidity

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Emirates NBD Bank PJSC published this content on 26 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 January 2022 04:55:01 UTC.