Investor Presentaiton
Q2-22 results highlights
*
Highlights
Income
Risk
Expenses
Capital
Liquidity Divisional
Key Highlights
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
Better/
Income Statement (AED bn)
Q2-22
Q2-21
Q1-22*
(Worse)
Better/
(Worse)
Net interest income
5.1
4.1
27%
4.3
21%
•
Non-funded income
2.7
1.3
101%
2.1
25%
Total income
7.8
5.4
45%
6.4
22%
Operating expenses
(2.1)
(1.9)
(10)%
(2.0)
(6)%
Pre-impairment operating profit
5.7
3.5
64%
4.4
30%
Impairment allowances
(0.5)
(0.9)
46%
(1.4)
67%
Tax and others
(0.7)
(0.2)
(439)%
(0.3)
(184)%
Profit after tax and before
4.5
2.5
83%
2.7
64%
hyperinflation
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%
NIM
3.09%
2.44%
30.8%
0.65% 2.60%
4.1%
0.49%
Balance Sheet (AED bn)
30-Jun-22
31-Dec-21
Inc/
(Dec)
31-Mar-22
Total assets
711
687
3%
694
Inc/
(Dec)
2%
Loans
425
422
1%
425
Deposits
468
457
2%
469
CET-1 (%)
15.0%
LCR (%)
NPL ratio (%)
154.8%
6.1%
15.1%
177.6%
6.3%
(0.1)% 15.0%
(22.8)% 157.4%
(0.2)% 6.4%
(2.6)%
(0.3)%
-
Increased local and international card transactions
-
Growth in client flow FX & Derivative transaction income
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
16View entire presentation