Emirates NBD Bank : Results of BOD meeting

Results Presentation

Q1 2022

21 April 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 higher profits and maintains strong balance sheet in Q1 2022

Key Highlights

Key Metrics & Guidance

Strong momentum continues with Q1-22 profit up 18% to AED 2.7bn

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 37% of diversified income, with DenizBank's profit in dirhams stable y-o-y despite challenging operating environment

Net Profit

AED 2.7bn

+18% y-o-y

NIM

2.60%

2022 guidance / Revised: 2.55-2.65% / 2.70-2.80%

Cost to Income

30.8%

2022 guidance / Revised: Within 35% : Within 33%

CET 1

15.0%

LCR

157.4%

Loan Growth

1%

2022 guidance: Low-single digit

NPL

NPL Cover

Diversified balance sheet, strong operating profits and solid capital base remain core strengths of the Group

6.4%

2022 guidance: mid 6%

128.5%

2022 CoR guidance: 100-125 bps

Financial results highlights Q1 2022

Income Statement (AED bn)

Q1-22

Q1-21

Better / (Worse)Q4-21

Better / (Worse)

Net interest income Non-funded income Total income Operating expenses Pre-impairment operating profit Impairment allowances Operating profit

Taxation charge and others Net profit

Cost: income ratio (%)

Net interest margin (%)

Balance Sheet (AED bn)

4.3 2.1 6.4

4.1 2.1 6.2

(2.0) 4.4

(1.9) 4.3

(1.4) 3.0

(1.8) 2.5

(0.3) 2.7

(0.2) 2.3

30.8% 2.60%

30.3% 2.46%

31-Mar-22 31-Mar-21

4% 2% 3% (5)% 3% 20% 19% (24)% 18% (0.5)% 0.14%

4.3 (2)% 2.2 (3)% 6.5 (2)%

(2.3) 14% 4.2 4% (2.2) 36% 2.1 45% (0.1) (378)% 2.0 36% 34.8% 4.0% 2.59% 0.01%

Inc / (Dec)

31-Dec-21

Inc / (Dec)

Total assets

694.0

695.1

• - 687.4 1%

  Loans

  425.4

  • 436.1 (2)%

• 422.3 1%

  Key Highlights

  • • Strong Q1-22 results with net profit up 18% y-o-y on higher income and lower impairments

  • • Net interest income up 4% y-o-y on improved loan and deposit mix

    - Initial signs of higher rates feeding through to margins

    - Record CASA balances improving funding costs

  • • Non-funded income up 2% y-o-y from increased transaction activity

    - Increased local and international card transactions

    - Growth in client flow FX & Derivative transaction income

  • • Expenses well controlled in Q1-22 with CI ratio within guidance

    • - Higher staff cost y-o-y driving an increase in underlying earnings and future growth

    • - Other costs lower due to seasonality from earlier campaigns

  • • Q1-22 cost of risk of 116 bps lower y-o-y and q-o-q reflecting improving operating environment

    Deposits

    CET-1 (%)

    LCR (%)

    NPL ratio (%)

    469.0

    15.0%

    157.4%

    • 459.1 2%

    6.4%

    15.6% 165.1% 6.1%

• 456.5 3%

  (0.6)%

• 15.1% (0.1)%

  (7.7)%

• 177.6% (20.2)%

  0.3%

• 6.3% 0.1%

• • 1% Loan growth in Q1-22

  - EI lending up 6%, Retail lending up 4% and DenizBank's net loans up 11%

• • Group maintains strong Capital and Liquidity with coverage ratio highest amongst regional peers

Net interest income

3.3 3.2

Key HighlightsNet Interest Margin (%)

• • Q1-22 NIM up 14 bps y-o-y on improved loan and deposit mix

  - Loan yields up 5 bps on higher retail balances

  - Deposit costs improved 9 bps on higher CASA balances

• • Q1-22 NIM broadly flat q-o-q with contribution from expected rate rises yet to fully come through

• • 2022 guidance revised up 15bp to 2.70-2.80% incorporating anticipated rate rises

  - Balance sheet very well positioned to benefit from rate rises