Emirates NBD Financial Performance and Market Update
Appendix
Strategy
Financial & Operating Performance
Emirates NBD Profile
Operating Environment
H1-17 Financial Results Highlights
Key Performance Indicators
Emirates NBD
Highlights
Net profit of AED 3,894 Mn for H1-17 improved 5%
y-o-y
Net interest income improved 2% y-o-y as loan
growth more than offset NIM contraction
Non-interest income declined 12% y-o-y due to
lower one-off gains from the sale of investment
securities. Non-interest income improved 10%
compared to H2-16 as the earlier period was
impacted by the devaluation of the Egyptian Pound
Costs improved 9% y-o-y as cost control measures
introduced in 2016 have taken effect. This gives
Emirates NBD headroom as we embark on a multi-
year planned investment in our digital offering and
a technology refresh
Provisions of AED 1,260 Mn improved 13% y-o-y
as cost of risk continues to normalize on the back
of improving asset quality metrics
NPL ratio improved to 6.1% and coverage ratio
strengthened to 123.5%
Liquidity Coverage Ratio (LCR) of 157.3% and AD
ratio of 95% demonstrates healthy liquidity position
NIMS widened since the beginning of the year as
loans reset at higher EIBOR rates and Deposit and
Wholesale funding costs receded on improved
liquidity
AED Mn
H1-17
H1-16
Net interest income
Non-interest income
5,185
2,268
Total income
Operating expenses
7,453
(2,253)
Better /
|(Worse)
5,099 2%
2,572 (12%) 2,065
7,671 (3%) 7,077
(2,476) 9% (2,412)
H2-16
Better/
(Worse)
5,012
3%
10%
5%
7%
Pre-impairment
operating profit
Impairment allowances
Operating profit
5,201
(1,260)
3,940
5,195
4,665
(1,456) 13% (1,152)
3,739
5% 3,513
0%
11%
(9%)
12%
Share of profits from
associates
Taxation charge
Net profit
12
61
(80%) 74
(83%)
(58)
(82)
3,894
3,718
30.2%
2.41%
32.3%
2.58% (0.17%) 2.37% 0.04%
29% (66) 12%
5%
3,521 11%
2.1% 34.1% 3.9%
Cost: income ratio (%)
Net interest margin (%)
AED Bn
30-Jun-17 30-Jun-16 % 31-Dec-16 %
Total assets
Loans
456.2
425.8
7%
448.0
2%
304.0
286.0
6%
290.4
5%
Deposits
AD ratio (%)
319.9
297.6
7%
310.8
3%
95.0%
96.1%
1.1%
93.4%
(1.6%)
NPL ratio (%)
6.1%
6.6%
0.5%
6.4%
0.3%
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