Emirates NBD Q2 2022 Financial Results slide image

Emirates NBD Q2 2022 Financial Results

Strong diversified income and profit growth in H1-22 Emirates NBD DenizBank ✡ Highlights Income Liquidity Risk Expenses Capital Divisional • Income Statement (AED bn) H1-22 H1-21 Better / (Worse) H1-22 H1-21 Better / (Worse) H1-22 H1-21 Better / (Worse) • Net interest income 9.4 8.1 16% 6.4 5.6 14% 3.0 2.5 19% • Non-funded income 4.8 3.4 40% 3.1 2.6 18% 1.7 0.8 117% Total income 14.2 11.5 23% 9.5 8.2 15% 4.7 3.3 42% Operating expenses (4.1) (3.8) (8)% (3.0) (2.6) (13)% (1.1) (1.1) 4% Pre-impairment 10.1 7.8 30% 6.5 5.6 16% 3.6 2.2 66% operating profit . Impairment allowances (1.9) (2.6) 28% (1.6) (1.7) 5% (0.2) (0.9) 72% Tax and others (1.1) (0.4) (199)% (0.1) (0.1) (37)% (0.9) (0.3) (261)% • Profit after tax and 7.2 4.8 50% 4.7 3.8 26% 2.5 1.0 136% before hyperinflation Hyperinflation adjustment (1.9) n/m (1.9) n/m Net profit 5.3 4.8 11% 4.7 3.8 26% 0.6 1.0 (44)% Cost: income ratio 28.7% 32.6% 3.9% 31.4% 32.0% 0.6% 23.1% 34.2% 11.1% NIM 2.86% 2.45% 0.41% 2.31% 2.07% 0.24% 5.72% 4.13% 1.59% • Key Highlights Group net profit up by 11% and strong diversified income absorbs new hyperinflation adjustment ENBD income higher from improving margins and increased transaction volumes DeinzBank income higher from increased lending, wider margins and hedging Lower provisions with strong writebacks and recoveries as H1 cost of risk improved to 79bp reflecting improving operating environment AED 0.6 bn net profit from DenizBank despite AED 1.9 bn hyperinflation adjustment Higher income enables accelerated investment in international growth and digital NIMS revised upwards by 50bp on rising interest rates and improving DenizBank margins 1% loan growth in H1-22 with healthy new lending on continued strong retail and renewed corporate lending demand 15
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