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EM CEEMEA CREDIT: EBIUH: mandate USD AT1 PNC6

EM CEEMEA CREDIT
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Emirates NBD Bank (EBIUH; A2 pos/ - / A+)

  • Emirates NBD has today mandated banks to arrange investor meetings ahead of potential USD PNC6 bench AT1 issuance as reported by Bloomberg. There is limited information available at this stage, registration link: https://evercall.co/oacc/04173
  • Emirates NBD has junior sub USD debt outstanding with the longest workout date (27 Feb, ’27) EBIUH PNC6 charting @ 6.06% or z+187bp. For comparables, we would look at seasoned, junior-subordinated bonds by peer DIBUH, FABUH and CBDUH. Considering first call dates and vintages, the recent Sukuk deal DIBUH PNC6 is charting @ 5.80% yield area or z+163bp (initially priced in Oct ’24 @ 5.25% yield). Recently, higher rated Saudi Arabia’s Al Rajhi Bank issued a Sukuk PNC6 AT1 @ 6.25% yield, currently charting @ 6.25% yield or z+205bp. Lower rated Turkish ISCTR PNC5.5 charts @ 8% yield or z+382bp (Source: Bloomberg).

  • At the end of January, Emirates NBD Bank posted FY24 results, all in a good read from a credit perspective as previously commented. As a reminder, profitability looked solid with PBT +14.7% YoY @ AED27.1bn, showing strong divisional contributions from both Retail & WM and CIB. NII contributed +7.7% growth YoY, supporting total income @ AED44.1bn, +2.6%. For the full year, loan and deposit growth maintained their positive momentum, with lending up 10% paired with a 14% increase in deposit base (CASA focused). Balance sheet growth continued with total assets up 16% YoY @ AED997bn. Asset quality remained strong, with NPL ratio improving further and continuing trending lower to 3.3% for FY24 (vs 3.9% in 9M24, 4.6% in FY23). Coverage was @156%. Capital ratios are adequate with CET1 @14.67% (vs 14.93% FY23) and CAR @17.08% (vs 17.58% FY23).

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Emirates NBD Bank (EBIUH; A2 pos/ - / A+)

  • Emirates NBD has today mandated banks to arrange investor meetings ahead of potential USD PNC6 bench AT1 issuance as reported by Bloomberg. There is limited information available at this stage, registration link: https://evercall.co/oacc/04173
  • Emirates NBD has junior sub USD debt outstanding with the longest workout date (27 Feb, ’27) EBIUH PNC6 charting @ 6.06% or z+187bp. For comparables, we would look at seasoned, junior-subordinated bonds by peer DIBUH, FABUH and CBDUH. Considering first call dates and vintages, the recent Sukuk deal DIBUH PNC6 is charting @ 5.80% yield area or z+163bp (initially priced in Oct ’24 @ 5.25% yield). Recently, higher rated Saudi Arabia’s Al Rajhi Bank issued a Sukuk PNC6 AT1 @ 6.25% yield, currently charting @ 6.25% yield or z+205bp. Lower rated Turkish ISCTR PNC5.5 charts @ 8% yield or z+382bp (Source: Bloomberg).

  • At the end of January, Emirates NBD Bank posted FY24 results, all in a good read from a credit perspective as previously commented. As a reminder, profitability looked solid with PBT +14.7% YoY @ AED27.1bn, showing strong divisional contributions from both Retail & WM and CIB. NII contributed +7.7% growth YoY, supporting total income @ AED44.1bn, +2.6%. For the full year, loan and deposit growth maintained their positive momentum, with lending up 10% paired with a 14% increase in deposit base (CASA focused). Balance sheet growth continued with total assets up 16% YoY @ AED997bn. Asset quality remained strong, with NPL ratio improving further and continuing trending lower to 3.3% for FY24 (vs 3.9% in 9M24, 4.6% in FY23). Coverage was @156%. Capital ratios are adequate with CET1 @14.67% (vs 14.93% FY23) and CAR @17.08% (vs 17.58% FY23).