Emirates NBD Investor Presentation H1 2021
Q2 2021 Financial results highlights
Highlights
Key performance indicators
• Total income down 6% y-o-y on lower NIMs and lower non-funded income. Total income
down 13% q-o-q on lower non-funded income from DenizBank.
USD million
Q2-21
Q2-20
-
-
•
•
Net interest income declined 7% y-o-y due to lower interest rates and 1% q-o-q
Non-funded income down 4% y-o-y and 37% q-o-q on lower foreign exchange and
derivative income from hedging and swaps relating to DenizBank
Expenses improved 3% y-o-y following earlier cost management actions. Expenses up
2% q-o-q mainly due to incentives related to strong retail growth and higher costs from
DenizBank
Impairment allowances of USD 232m lower by 48% y-o-y, and 52% q-o-q on improving
economic conditions, and following earlier proactive provisioning
• Net profit of USD 671m up 22% y-o-y and 6% q-o-q on improving economic conditions
with DenizBank adding significant diversification to the Group
• Q2-21 results include DenizBank income of USD 347m and net profit of USD 107m
• Net loans up USD 0.6bn q-o-q as strong demand for retail loans and renewed growth in
corporate and Islamic lending offset the FX translation impact from DenizBank
• NPL ratio increased marginally to 6.3% and coverage ratio strengthened to 122.5%
• Net cost of risk of 71 bps lower than 134bp in Q2-20 on improved economic sentiment
Total assets
Net interest income
Non-funded income
1,106
Better/
(Worse)
1,190 (7)%
Better/
Q1-21
(Worse)
1,114
(1)%
359
375
(4)%
565
(37)%
Total income
1,465
1,565 (6)%
1,679 (13)%
Operating expenses
(517)
(532)
3%
(509)
(2)%
Pre-impairment operating profit
948
1,034 (8)%
1,170
(19)%
Impairment allowances
(232)
(450)
48%
(480)
52%
Operating profit
716
583
23%
690
4%
Taxation charge and others
(46)
(35)
(29)%
(57)
21%
Net profit
671
548
22%
633
6%
Cost: income ratio
35.3%
Net interest margin
2.44%
USD billion
30-Jun-21 31-Dec-20
189.0
34.0% (130) bps 30.3%
2.68% (24) bps
Inc /
(Dec)
190.2 (1)% 189.4
(500) bps
2.46%
(2) bps
Inc /
31-Mar-21
(Dec)
0%
•
LCR of 158.8% demonstrates the Group's healthy liquidity position
•
CET-1 strong at 15.6% and remains well above CBUAE minimum requirements
Loans
119.4
120.9 (1)%
118.8
0%
Deposits
124.8
126.5
(1)%
125.1
0%
CET-1 (%)
15.6%
15.0%
50 bps
15.6%
0 bps
LCR (%)
158.8%
NPL ratio (%)
6.3%
165.0%
6.2%
(620) bps 165.1%
10 bps 6.1%
(630) bps
20 bps
Financial and Operating Performance
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