Emirates NBD Investor Presentation H1 2021
H1 2021 Financial results highlights
Highlights
• Total income up 9% over the preceding half year due to increased transactional activity
during H1-21 and stable NIMs. Total income down 9% y-o-y as higher non-funded
income was offset by decline in net interest income due to lower interest rates
-
Net interest income remained flat to H2-20 as improved deposit mix offset lower
asset yields and declined 12% y-o-y due to lower interest rates and decline in
DenizBank NIMS
Non-funded income up 41% compared to H2-20 and 2% y-o-y due to higher
activity, an increase in foreign exchange and derivative income and higher
investment securities income
Expenses improved 2% over H2-20 due to earlier management actions. Expenses also
improved 6% y-o-y on lower staff and operating costs, and lower costs from DenizBank
Impairment allowances of USD 712m down 30% over H2-20 and 38% y-o-y due to
improving economic conditions, and following proactive provisioning in 2020
• Net profit of USD 1,304m improved 66% compared to H2-20 and 17% y-o-y on
improving economic conditions with DenizBank adding significant diversification to the
Group
•
H1-21 results include DenizBank income of USD 903m and net profit of USD 282m
• Net loans down 1% during the year on repayments of corporate loans including loans
receiving support and the FX translation impact on DenizBank's loan book
• NPL ratio increased marginally to 6.3% and coverage ratio strengthened to 122.5%
• Net cost of risk of 114 bps lower than 172bp in H1-20 on improved economic sentiment
•
LCR of 158.8% demonstrates the Group's healthy liquidity position
•
CET-1 strong at 15.6% and remains well above CBUAE minimum requirements
Key performance indicators
USD million
H1-21
H1-20
Net interest income
2,220
Non-funded income
Total income
Operating expenses
Pre-impairment operating profit
Impairment allowances
Operating profit
Taxation charge and others
Net profit
1,304
Cost: income ratio
Net interest margin
32.6%
2.45%
USD billion
30-Jun-21 30-Jun-20
924
906
3,144 3,441 (9)%
(1,026) (1,090) 6%
2,119 2,351 (10)% 1,833 16%
(712) (1,147) 38% (1,015) 30%
1,406 1,204 17%
(103) (89) (16)% (34)
1,115 17%
31.7% (90) bps
2.84% (39) bps
Inc /
(Dec)
Better/
(Worse)
2,535 (12)% 2,229
2%
H2-20
Better/
(Worse)
0%
654
41%
2,883
9%
(1,051)
2%
818
783
36.4%
2.45%
72%
(198)%
66%
380 bps
0 bps
Inc /
31-Dec-20
(Dec)
189.0
189.2
0%
190.2
(1)%
119.4
120.7 (1)%
120.9
(1)%
Deposits
124.8
125.6
(1)% 126.5
(1)%
CET-1 (%)
15.6%
15.3%
30 bps
15.0%
60 bps
LCR (%)
NPL ratio (%)
158.8%
6.3%
152.5%
5.8%
630 bps
50 bps
165.0%
6.2%
(620) bps
10 bps
Total assets
Loans
Financial and Operating Performance
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