Abu Dhabi Islamic Bank · ADX:ADIB

Abu Dhabi Islamic Bank — FY2010 Earnings Presentation

27 slides from Abu Dhabi Islamic Bank's earnings presentation, March 2011

  1. Slide 1: Investor Presentation

    Investor Presentation 31 December 2010 Abu Dhabi: March 2011 ADIB © 2010 adib.ae

  2. Slide 2: Table of contents

    Table of contents Pages  ADIB at a glance 3  Focus on network expansion continues 4  An award winning Islamic Bank 5-6  Financial targets over the medium term 7  Salient features of FYR 2010 results 8  31 December 2010 – Balance sheet highlights 9  FYR 2010 – Income statement highlights 10 

  3. Slide 3: ADIB at a glance

    ADIB at a glance - Incorporated in 1997 to serve as first Islamic Bank in the Emirate of Abu Dhabi. Overview - Owned (40 %) by Emirates International Investment Co. LLC. - Listed on Abu Dhabi Securities Exchange (ADX). Fitch Moody's (Re-affirmed 21 Dec 2010) (Re-affirmed 21 Feb 2010) Credit Rating L

  4. Slide 4: Focus on network expansion continues

    Focus on networking expansion continues ADIB continues to investment in coverage during the downturn Branch Network Customers ATM +18% 66 323 +28% 425,730 +63% 52 342,097 44 204 40 269,037 202,276 116 75 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010  66 Branches in 11 years.  28% CAG

  5. Slide 5: An award winning Islamic Bank

    An award winning Islamic Bank Franchise Awards “Best Islamic Bank 2010” in the Middle East “Best Islamic Bank” December 2010 by Bankers Middle East June 2010 Best Islamic Bank Institutional in the UAE Excellence Award November 2010 November 2010 Customer Services Awards ADIB ranked 3rd in UAE Best B

  6. Slide 6: An award winning Islamic Bank

    An award winning Islamic Bank Product & Marketing “Best Savings Account Best Islamic Branding” 2010” in the Middle East awards in 2010 for ADIB’s GHINA savings account December 2010 April 2010 Best Deal in the UAE by Islamic Finance News 2010 (Emirates Steel ) January 2011 Human resources developmen

  7. Slide 7: Financial targets over the medium term

    Financial targets over the medium term 1 ROASE of 20% 2 Cost to Income Ratio of less than 35% 3 Earnings increase of 15% p.a. 7

  8. Slide 8: Salient features of FYR 2010 results

    Salient features of FYR 2010 results Group net profit for 2010 was a record AED 1,023.6 Mn vs. AED 78.0 Mn in 2009, an 1 increase of 1,211.8%. Group operating profit (“margin”) for 2010 was AED 1,772.8 Mn vs. AED 1,526.8 Mn 2 for 2009, an increase of 16.1%. 3 Balance sheet footing has crossed AED 75

  9. Slide 9: 31 December 2010 – Balance sheet highlights

    31 December 2010 – Balance sheet highlights 31 Dec ‘09 31 Dec ‘10 % chg AED Bn AED Bn Total Assets 64.1 75.3 17%  Total Assets increased by 17% over 2009 to reach AED 75.3 bn. Net Customer Financing 40.5 48.0 18%  Customer financing increased by 18% from 2009 to reach AED 48.0 bn.  Customer depos

  10. Slide 10: FYR 2010 – Income statement highlights

    FYR 2010 – Income statement highlights FYR 2009 FYR 2010 % chg AED Mn AED Mn  Revenues up by 22% on the back of Revenues 2,520.3 3,074.0 22% higher net revenue from funds (up 23%) and fees & commission (up 73%). Expenses 993.4 1,301.2 31%  Expenses up by 31% mainly due to continuous investment in

  11. Slide 11: Consolidated Income Statement

    Consolidated Income Statement % chg FYR % chg Q4 % chg Q4 FYR FYR AED Mn Q4 09 Q3 10 Q4 10 2010 vs 10 vs Q4 09 10 vs Q3 10 2009 2010 FYR 2009 Revenues 733.4 810.3 839.0 14.4% 3.5% 2,520.3 3,074.0 22.0% Net Revenue from Funds 562.7 668.8 707.7 25.8% 5.8% 2,108.6 2,595.7 23.1% Fees & commission 63.0 1

  12. Slide 12: Key income parameters - Group

    Key income parameters - Group Revenues (AED Mn) Net Profit (AED Mn) Fees, commission & others Net revenue from funds 3,074 1,773 Operating profit 478 Provision for impairment 1,527 2,520 1,449 Net Profit 1,311 2,199 412 470 1,024 1,438 886 851 769 749 485 2,596 2,109 460 1,728 952 117 78 2007 2008 2

  13. Slide 13: Key income parameters – Bank only

    Key income parameters – Bank only Revenues (AED Mn) Net Profit (AED Mn) Fees, commission & others Net revenue from funds Operating profit 1,844 3,050 Provision for impairment 355 1,516 Net Profit 1,405 2,387 169 1,162 1,215 1,905 121 765 791 1,261 2,695 648 630 284 2,218 1,784 371 976 117 111 2007 2

  14. Slide 14: Consolidated Balance Sheet

    Consolidated Balance Sheet % chg 31 Dec % chg 31 Dec AED Mn 31 Dec 2009 30 Sept 2010 31 Dec 2010 2010 vs 30 Sept 2010 vs 31 Dec 2010 2009 Cash and balances with Central Banks 3,331 4,522 5,400 19.4% 62.1% Due from financial institutions 14,658 13,365 15,730 17.7% 7.3% Net Customer financing 40,474 4

  15. Slide 15: Balance Sheet Strength

    Balance Sheet Strength Remains one of the most liquid bank’s in the UAE on the back of above market balance sheet growth +18% +17%  Total Assets increased by 17% 47,953 56,517 in 2010 to reach AED 75.3 Bn. 40,474 48,220  Net Customer financing 34,179 37,486 increased by 18% in 2010 to 24,327 29,62

  16. Slide 16: Assets and Liquidity

    Assets and Liquidity Average Earning Assets (AED Bn) & Net Profit Margin (%) Composition of Assets – AED 75.3 Bn NPM % Average Earning Assets Investments; 90 5.2 2.2% Customer Fixed assets & financing; Other Assets; 59.2 62.1 63.7% 6.0% 60 55.6 57.0 4.8 49.4 52.4 45.2 48.4 4.6% 4.5% 4.4 30 4.3% 4.3%

  17. Slide 17: Customer Financing

    Customer Financing Gross Customer Financing by Segment Gross Customer Financing by Customer Type Retail Wholesale Private 50.2 +27% 42.2 Individual; -Individuals – 22.6 bn 34.8 46.3% -SMEs – 0.7 bn 59.7% Corporate; 30.5% 46.6% 24.7 44.0% 46.1% -Corporate – 15.3 bn 38.6% -PS & ,Govt – 2.6 bn 36.8% -F

  18. Slide 18: Customers’ Deposits

    Customers’ Deposits Gross Customers’ Deposits by Segment Gross Customers’ Deposits by Customer Type Wholesale Retail Private Non-profit organisations; 5.5% 56.5 SMEs; 5.1% +24% Government; 48.2 15.5% Public -Government – 8.7 bn 50.3% -Public Sector– 10.0 bn Sector; 37.5 17.7% -Corporates – 7.4 bn 48

  19. Slide 19: NPAs, Credit Provisions and Impairments - Group

    NPAs, Credit Provisions and Impairments - Group Cumulative Provisions 2007 2008 2009 2010 Key points Customer Financing Portfolio Individual/Specific 135 455 1,233 1,702  Impaired NPAs increase by AED 1,054 Mn in 2010 to reach AED 3,581 Mn at end of 2010. Collective/General 219 135 518 575  Impair

  20. Slide 20: Capital Adequacy

    Capital Adequacy ADIB’s CAR of 16.03% remains above the new Central Bank threshold of 12% for CAR Capital Adequacy (%) Capital Resources (AED Bn) CAR Basel II UAE Central Bank requirement Equity Total Capital Resources 17.0% 15.8 16.0% 12.3 8.6 8.1 12.0% 11.6% 11.0% 7.1 5.6 10.0% 2008 2009 2010 2008

  21. Slide 21: Shareholders’ Return

    Shareholders’ Return  31 December 2010 share price was AED 2.96 per share.  Proposed cash dividend of 21.64% for 2010 (Bonus share dividend of 20% for 2009).  2010 Total Yield of ADIB share – 7.3%. ADIB vs ADX ADIB ADX 4.00 3,400 3.50 3,200 3.00 ADIB Price (AED) 3,000 2.50 ADX Points 2,800 2.00 2

  22. Slide 22: Outlook - 2011

    Outlook - 2011 On the back of our rebranding we are implementing a broad range of initiatives to enhance our product 1 portfolio, improve our processes and introduce new banking channels, all of which is designed to provide support to our customers, with best in market service and Shari’a inspired s

  23. Slide 23: Disclaimer

    Disclaimer The information contained herein has been prepared by Abu Dhabi Islamic Bank PJSC (ADIB). ADIB relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness. This presentation has been prepared for information purposes only and is

  24. Slide 24: Executive Management Biographies

    Executive Management Biographies 24

  25. Slide 25: Executive Management Profile (I)

    Executive Management Profile (I) Joined ADIB in March 2008. He holds a Bachelor degree (major in Corporate Finance) from Loyala of Tirad Marouf Mahmoud Concordia University in Montreal, Canada and has also completed the Executive Management Program at Chief Executive Officer Wharton. He has previous

  26. Slide 26: Executive Management Profile (II)

    Executive Management Profile (II) Abdul Rahman Abdullah Joined ADIB on 12 September 1998. He holds a Bachelor in Science. He has 28 years banking experience Co-Head of Private Banking His previous position was Deputy Head of Private Banking Department at the National Bank of Abu Dhabi. & Wealth Mana

  27. Slide 27: Executive Management Profile (III)

    Executive Management Profile (III) Waheeb Al Khazraji Joined ADIB on 10 December 2005 . He holds Chemical Engineering and MBA degrees along with Head of Human Resource, Chartered Human Resource Consultant (CHRC), Canada and Chartered in Personal Development (CIPD), UK. UAE He has 5 years banking exp

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