Investor Presentaiton
H1 2020 Financial results highlights
Highlights
Operating profit of AED 4,418 was down 19% y-o-y, or 41% excluding
DenizBank, mainly due to higher provisions. Operating profit 10% lower
than the preceding half year
Results include DenizBank revenue of AED 3,995 Mn and net profit of AED
929 Mn
Net interest income improved 36% y-o-y on loan growth and higher NIMS
from DenizBank and remained flat to H2-19. Excluding DenizBank, net
interest income declined 7% y-o-y
NIMS of 2.84% improved 7 bps y-o-y helped by the positive impact from
DenizBank and declined 14 bps compared to H2-19
Non-funded income improved 24% y-o-y and declined 7% compared to
H2-19 on lower fee income due to Covid-19 shutdown. Excluding
DenizBank, non-funded income declined 15% y-o-y
Costs increased 42% y-o-y due to the DenizBank acquisition and improved
1% y-o-y excluding DenizBank
Costs improved 9% compared to H2-19 on lower staff and marketing
expenses, and lower costs from DenizBank
Impairment allowance of AED 4,211 Mn increased 243% y-o-y and 17%
over H2-19 reflecting higher ECL allowances post Covid-19. Excluding
DenizBank, impairment allowances increased 110% y-o-y
Net profit of AED 4,091 Mn was down 45% y-o-y, or 58% excluding
DenizBank, mainly due to no repeat of the gain on disposal of Network
International shares in 2019. Net profit was down 42% compared to H2-19
NPL ratio increased to 5.8% in H1-20
LCR of 152.5% and ADR of 96.1% demonstrate Group's healthy liquidity
H1-20 net cost of risk is 172 bps as the Group continues to take strong
level of provisions in anticipation of a potential deterioration in credit quality
in subsequent quarters
Impairment allowances
Operating profit
Gain on disposal of stake in NI
and FV gain on retained interest
Share of profits from associates
/ Gain on bargain purchase
Taxation charge
Key performance indicators
AED Mn
H1-20 H1-19
Better /
(Worse)
Better/
H2-19
(Worse)
Net interest income
Non-funded income
Total income
9,305 6,852
36%
9,336
0%
Operating expenses
Pre-impairment operating
3,323 2,676
12,628 9,527
(3,999) (2,826)
8,629
6,701
24%
3,555 (7)%
29%
33% 12,892 (2)%
(42)% (4,381) 9%
8,510
1%
profit
(4,211)
4,418
(1,226) (243)%
5,474 (19)%
2,066 (100)%
(3,592) (17)%
4,919 (10)%
2,323 (100)%
1
Net profit
Cost: income ratio
Net interest margin
12 (90)%
(99)%
(328) (70) (369)% (320) (2)%
4,091 7,482 (45)% 7,022 (42)%
31.7% 29.7% (2.0)% 34.0% 2.3%
2.84% 2.77% 0.07% 2.98% (0.14)%
99
30-Jun-20 30-Jun-19 %
31-Dec-19 %
694.3
537.8
29%
442.9
337.7
31%
683.3
437.4
2%
1%
460.9
366.7
26%
472.2 (2)%
96.1%
92.1% (4.0)%
LCR (%)
152.5%
NPL ratio (%)
5.8%
92.6% (3.5)%
188.8% (36.3)% 160.0% (7.5)%
5.9% 0.1% 5.6% (0.2)%
AED Bn
Total assets
Loans
Deposits
ADR (%)
Financial & Operating Performance
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