Emirates NBD Financial Performance Q1 2020
Q1 2020 Financial results highlights.
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Highlights
Net profit of USD 567 Mn was down 24% y-o-y, or 43% excluding
DenizBank, mainly due to higher provisions. Net profit up 3% q-o-q
Results include DenizBank revenue of USD 614 Mn and net profit of
USD 137 Mn
Net interest income improved 45% y-o-y on loan growth and higher
NIMs from DenizBank and declined 3% q-o-q as lower interest rates
fed through to the loan book
Excluding DenizBank net interest income declined 1% y-o-y on
lower interest rates in Q1-20 partially offset by 6% loan growth
NIMS of 3.02% improved 19 bps y-o-y helped by the positive impact
from DenizBank and declined 9 bps q-o-q
Non-interest income improved 48% y-o-y and 8% q-o-q on account
of higher core fee income
Excluding DenizBank non-interest income declined 4% y-o-y due to
lower fee, commission and investment securities related income
Costs increased 47% y-o-y due to the DenizBank acquisition, or
increased 2% excluding DenizBank
Costs improved 18% q-o-q on lower staff and marketing expenses
and improved cost management by DenizBank
Impairment allowance of USD 697 Mn increased 349% y-o-y and
24% q-o-q due to higher stage 1 and 2 ECL allowances. Excluding
DenizBank impairment allowances increased 177% y-o-y
NPL ratio settled at 5.5% in Q1-20
LCR of 149.7% and AD ratio of 94.8% demonstrate the Group's
healthy liquidity position
Gain on bargain purchase
Taxation charge
LCR (%)
Key performance indicators
USD Mn
Q1-20
Q1-19
Better/
(Worse)
Better/
Q4-19
(Worse)
Net interest income
Non-interest income
1,345
926
45%
1,380
(3)%
531
359
48%
494
8%
Total income
1,876
1,285
46%
1,874
0%
Operating expenses
(558)
(381) (47)%
(681)
18%
Pre-impairment operating
1,318
905
46%
1,193
10%
profit
Impairment allowances
Operating profit
Share of profits from
associates
(697)
(155) (349)%
(562)
(24)%
621
749
(17)% 630
(2)%
0
7
(100)% 0.5
(94)%
n/a
(13)
n/a
(54)
(479)%
(67)
20%
Net profit
567
747
(24)%
551
3%
Cost: income ratio
Net interest margin
29.8%
3.02%
29.6%
(0.2)% 36.4%
6.6%
2.83%
0.19% 3.11% (0.09)%
USD Bn
31-Mar-20 31-Mar-19
%
31-Dec-19
%
Total assets
188.5
143.3
32%
186.2
1%
Loans
120.7
92.0
31%
119.2
1%
Deposits
127.3
97.9
30%
128.7
(1)%
149.7% 198.8% (49.1)% 160.0%
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Net cost of risk increased to 210 bps in recognition of the potential
deterioration in credit quality in subsequent quarters related to the
COVID-19 pandemic
ADR (%)
NPL ratio (%)
94.8%
5.5%
94.0% (0.8)% 92.6%
5.9% 0.4% 5.6%
(10.3)%
(2.2)%
0.1%
Financial & Operating Performance 11View entire presentation