Q2-18 Financial Results Highlights slide image

Q2-18 Financial Results Highlights

Appendix Strategy Q2-18 Financial Results Highlights Key Performance Indicators Financial & Operating Performance Emirates NBD Profile Operating Environment Highlights • . Net profit of AED 2,631 Mn for Q2-18 increased 30% y-o-y and 10% q-o-q Net interest income improved 20% y-o-y and 9% q-o-q on loan growth coupled with an improvement in margins Non-interest income declined 3% y-o-y and 1% q-o-q due to lower income from investment securities Costs increased 21% y-o-y and 7% q-o-q due to higher staff and IT costs relating to our digital transformation and technology refresh. Costs were also higher as a result of international branch expansion Provisions of AED 315 Mn improved 49% y-o-y and 29% q-o-q on a lower cost of risk whilst coverage ratio strengthened to 128.4% NPL ratio stable at 6.0% LCR of 158.7% and AD ratio of 94.4% demonstrates the Group's healthy liquidity position NIMS improved 33 bps y-o-y and 14 bps q-o-q to 2.82% as rate rises flowed through to loan book which more than offset a rise in deposit costs on a modest change in deposit mix Emirates NBD AED Mn Q2-18 Q2-17 Better/ (Worse) Q1-18 Better / (Worse) Net interest income Non-interest income Total income Operating expenses 3,245 2,699 20% 2,984 9% 1,103 1,137 (3%) 1,119 (1%) 4,348 3,836 13% 4,103 6% (1,370) (1,136) (21%) (1,276) (7%) Pre-impairment 2,977 2,699 10% 2,828 5% operating profit Impairment allowances (315) (621) 49% (440) 29% Operating profit 2,663 2,078 28% 2,388 12% Share of profits from 18 (26) 170% 31 (41%) associates Taxation charge (50) (31) (60%) (32) (55%) Net profit 2,631 2,021 30% 2,386 10% Cost: income ratio (%) Net interest margin (%) 31.5% 2.82% 29.6% 2.49% (1.9%) 31.1% (0.4%) 0.33% 2.68% 0.14% AED Bn 30-Jun-18 31-Dec-17 % 31-Mar-18 % Total assets 477.5 470.4 2% 475.6 0% Loans 316.4 304.1 4% 311.4 2% Deposits 335.0 326.5 3% 331.9 1% AD ratio (%) 94.4% 93.1% (1.3%) 93.8% (0.6%) NPL ratio (%) 6.0% 6.2% 0.2% 6.0% 0.0% 15
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