Investor Presentaiton
EMIRATES NBD
REVIEW OF
PERFORMANCE
ANNUAL REPORT 2021
During 2021 the Non-Performing Loan ratio increased
by 0.1% to 6.3% whilst the Coverage Ratio strengthened
further by 10.2% to 127.5%, demonstrating the Group's
continued prudent approach towards credit risk
management.
The Group's net profit of AED 9.3 billion for 2021 is 34%
higher y-o-y.
Loans declined 5% y-o-y as record demand for retail
financing was largely offset by the decline in corporate
lending due to repayments and the FX translation
impact from DenizBank.
Liquidity remains strong with the Liquidity Coverage Ratio
at 177.6% and the Advances to Deposits Ratio at 92.5%.
During 2021, the Group raised AED 27.5 billion of senior
term funding, taking advantage of historically low cost of
term funding.
As at 31 December 2021, the Group's CET-1 ratio is 15.1%,
Tier 1 ratio is 17.2% and CAR is 18.3%.
Retail Banking and Wealth Management
Overview
Retail Banking and Wealth Management (RBWM)
delivered a total income of AED 8.045 billion in 2021, 4%
higher than the previous year. Net interest income was
maintained with strong liabilities book growth helping
to counter adverse rate movements. Fee income was
higher by 11% y-o-y led by a strong pick up in FX and
wealth revenues, and accounted for 31% of total income.
Current and Savings Accounts (CASA) balances grew
well, increasing by AED 20 billion (15%) over December
2020, supported by robust acquisitions and marketing
campaigns. Customer advances increased by a healthy
AED 8 billion (17%) during the year led by a significant
ramp up in retail loan acquisitions which were 58%
above the previous year.
New credit card acquisitions were up 57% y-o-y
supported by increased sales productivity and customer
campaigns. Card spends ramped back up sharply after
having been impacted by the crisis and reached record
levels, led by increased contactless usage and
e-commerce activity and supported by innovative
promotions and partnerships.
New product launches and campaigns
The Cards franchise was enhanced with the launch of
the UAE's first eco-friendly payment card using recycled
plastic, and the introduction of the Emirates NBD More
card companion app. The Emirates NBD Expo 2020
Prepaid Card was launched - a digital-first offering
available to resident customers and visitors via a
dedicated mobile app, Joyn. The Retail Loans product
suite was enhanced with the introduction of new
products and partnerships including tie-ups with auto
dealerships, property developers and new digital
platforms.
A new instant account opening process was rolled out
for UAE National customers and an exclusive debit card
launched with exclusive privileges and offers tailored to
Emirati tastes and preferences. Impactful customer
campaigns were introduced to support liabilities
acquisition and balance enhancement, credit cards
usage, personal, auto and home loan sales as well as to
grow remittances, including the Year of the 50th
Winnings in Gold campaign to commemorate the UAE's
golden jubilee celebration.
Liv. Digital Bank
Liv., the lifestyle digital bank by Emirates NBD for
millennials further strengthened its proposition growing
its UAE customer base to more than 500,000 customers
and continuing to be the fastest growing bank in the
country. Liv. credit cards were launched offering
customers the flexibility to choose and easily switch
between reward programmes along with added lifestyle
benefits. The product suite was further enhanced with
the launch of overdraft and insurance offerings along
with integration of ticket and event booking services.
The Liv. Prime
subscription-based membership
programme was launched, offering customers an
enhanced banking and lifestyle experience. Liv. Young
was introduced, enabling parents and guardians to
open a mobile-based account for their children and
wards between the ages of 8 to 17. The Liv. Blog was set
up to help customers stay up-to-date on money matters.
The digital bank continued to scale up its operations and
customer acquisition in KSA with the addition of new
functionalities.
Brand Leadership
The Emirates NBD brand continued to lead the market
with a brand value of USD 3.73 billion according to The
Banker's annual brand valuation league table. The
Group was also ranked 25th globally on the Social Media
Power 100 ranking by The Financial Brand.
المبني
Bulidin
RBWM continued to be recognized with prestigious
awards including the Best Retail Bank in the Middle East
by The Asian Banker, as well as the Best Private Bank in
the UAE by Global Finance.
Distribution
Transaction migration to digital channels continued at a
good pace led by increasing customer digital adoption
due to the COVID-19 pandemic, with 98% of all
transactions being done outside the branch. The branch
network was optimised with the closure of two branches
and conversion of three to teller-less operations,
focusing on providing customer advice and service
assistance. Disability-friendly access was extended to
cover about 60% of the network with frontline staff also
being trained in usage of Emirati Sign language (ESL) to
better assist People of Determination.
AN ELITE GRADUATE PROGRAM
FOR OUR FUTURE LEADERS
First Ruwad cohort officially starts their accelerated, 24-month leadership journey at Emirates NBD Group
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