Dubai Islamic Bank Pjsc · DFM:DIB
Dubai Islamic Bank Pjsc — Dubai Islamic Bank — Q3 2019 Earnings Presentation
28 slides from Dubai Islamic Bank Pjsc's earnings presentation, Sep 30, 2019
Slide 1: Investor Presentation
Investor Presentation For the period ending 30 September 2019
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION IS NOT FOR PUBLICATION, RELEASE, OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, INTO AUSTRALIA, CANADA, SOUTH AFRICA, JAPAN OR THE UNITED STATES. THIS PRESENTATION DOES NOT CONSTITUTE OR FORM PART OF AN OFFER TO SELL OR TO ISSUE ANY SECURITIES OR SOLICITATION OF AN OFFER TO PU
Slide 3: Contents
Contents 1. Overview of Economic Environment 2. Overview of Dubai Islamic Bank 3. Financial Performance 4. Strategic Focus 5. Appendix 3
Slide 4: UAE continues to progress supported by strategic economic reforms
UAE continues to progress supported by strategic economic reforms… World GDP Forecast (IMF) – Jul 2019 World Oil Prices (US $) Fiscal Breakeven Oil Price (Brent, $/barrel) World (Apr 2019) World (July revised) 120 100 3.7% 3.6% 3.6% 3.6% 90 3.6% 100 80 3.5% 3.5% 70 80 60 3.4% 50 60 3.3% 3.3% 40 3.2%
Slide 5: Contents
Contents 1. Overview of Economic Environment 2. Overview of Dubai Islamic Bank 3. Financial Performance 4. Strategic Focus 5. Appendix 5
Slide 6: Dubai Islamic Bank at a Glance
Dubai Islamic Bank at a Glance A leading Islamic bank with a growing international footprint • Dubai Islamic Bank (“DIB” or the “Bank”) was Ownership UAE Branch Network (as at 30 Sep 2019) established in 1975 as the world’s first full service Islamic bank by an Emiri Decree. Government Nearly 70 bra
Slide 7: Contents
Contents 1. Overview of Economic Environment 2. Overview of Dubai Islamic Bank 3. Financial Performance 4. Strategic Focus 5. Appendix 7
Slide 8: Overall Financial Performance (for the period ending 30 Sept 2019)
Overall Financial Performance (for the period ending 30 Sept 2019) Growing market share driven by robust growth in core businesses Balance Sheet Financial Highlights AED million Dec 2018 Sept 2019 Change Key Ratios Dec 2017 Dec 2018 Sept 2019 Net Financing Assets & Net Financing to Deposit Ratio 91%
Slide 9: Operating Performance & Profitability
Operating Performance & Profitability Robust Robust & & Growing Growing Profitability Profitability (AED (AED million) mn) Sustained Strong Margins 8,202 225,000 3.14% 3.16% 3.20% 7,687 3.11% 3.15% 6,877 6,055 175,000 3.10% 3.05% 5,004 4,504 125,000 3.00% 3,701 4,015 201,919 205,582 2.95% 185,228 75
Slide 10: Overview of Deployment of Funds / Financings
Overview of Deployment of Funds / Financings Deployed Funds Composition (AED bn) Deployment by Segment (AED bn) 224 230 Dec 2017 Dec 2018 Sept 2019 207 7 10 10 101 106 10 10 8 9 10 15 89 9 21 24 31 34 24 40 39 41 145 152 31 34 133 24 24 21 15 9 10 10 10 10 11 Dec 2017 Dec 2018 Sept 2019 Corporate Co
Slide 11: Segmental Overview - Consumer
Segmental Overview - Consumer Management Commentary Breakdown by Portfolio – Sept 2019 Revenue Trends (AED mn) 2,600 2,432 2,367 7.44% • Consumer financing currently stands at AED 2,400 7.39% Home 2,200 470 506 41 billion, supported by gross new consumer 2,000 7.34% Finance, Personal 7.29% financing
Slide 12: Segmental Overview - Corporate
Segmental Overview - Corporate Management Commentary Breakdown by Portfolio – Sept 2019 Revenue Trends (AED mn) 3,000 6.50% • Gross corporate financing currently stands Utilities, Automobile, 2,800 2,713 5.3% 2,600 6.00% Trade, 3.0% 2,333 493 at AED 115 billion, thus representing an 2,400 8.0% 2,200
Slide 13: Segmental Overview - Treasury
Segmental Overview - Treasury Management Commentary Breakdown by Portfolio – Sept 2019 Revenue Trends (AED mn)* 1,000 7.00% Manufacturing • Gross Treasury Financing and Sukuk 900 828 6.50% & Services, Investments increased by nearly 9% YTD 11% 800 6.00% to reach AED 36 billion. 700 642 Aviation, 321
Slide 14: Asset Quality
Asset Quality Non-Performing Financing (“NPF ”)1 Financing Provisions and Coverage Ratios NPF Ratio Impaired Financing Ratio Overall Coverage Ratio² Provision Coverage Ratio 3.6% 3.6% 157% 150% 136% 118% 112% 3.4% 3.4% 104% 3.3% 3.2% Dec 2017 Dec 2018 Sep 2019 Dec 2017 Dec 2018 Sept 2019 Cumulative
Slide 15: Funding Sources and Liquidity
Funding Sources and Liquidity Funding Sources (AED bn) Customers’ Deposits (AED bn) Liquidity Position (AED bn) Due to banks & FIs Other payables Liquid Assets Equity Sukuk Customer Deposits Net Financing to Deposit Ratio* Liquid Assets/Total Deposits (%) Customers' Deposits 224 230 12% 11% 207 12 1
Slide 16: Capitalization Overview
Capitalization Overview Regulatory Capital1 (AED billion) Capital Ratios* CET 1 AT1 Tier 2 CAR CET1 Ratio 40.0 33.6 18.3% 35.0 30.8 17.5% 17.6% 2.2 16.0% 17.2% 30.0 27.7 2.0 1.8 6.4 25.0 7.0 7.3 20.0 12.4% 13.1% 15.0 12.0% 11.5% 25.0 9.6% 10.0 18.6 21.8 5.0 0.0 Dec 2017 Dec 2018 Sept 2019 Dec 2015 D
Slide 17: Contents
Contents 1. Overview of Economic Environment 2. Overview of Dubai Islamic Bank 3. Financial Performance 4. Strategic Focus 5. Appendix 17
Slide 18: Strategic Focus 2019
Strategic Focus 2019 CARE IDEOLOGY Digitally Intelligent Bank (DIB) CUSTOMER EXPERIENCE Quality Enhance Credit Customer Growth Experience ENGAGEMENT ACQUISITION Maintain Adopt cost C.A.R.E. discipline Ideology Embrace Align Digital Capacity to RETENTION Transformation Growth 2019 – Target Metrics 10
Slide 19: Contents
Contents 1. Overview of Economic Environment 2. Overview of Dubai Islamic Bank 3. Financial Performance 4. Strategic Focus 5. Appendix 19
Slide 20: DIB's Growth Story – Growth vs Asset Quality
DIB’s Growth Story – Growth vs Asset Quality Gross Financing (Consumer) - AED bn Gross Financing (Corporate) - AED bn Non-performing Financing CAGR: 8% CAGR: 26% 7.1 12.0% 111 10.0% 39 11.1% 5.3 8.0% 26 6.0% 34 4.0% 3.4% 2.0% 0.0% Gross Financing (Consumer) Gross Financing (Corporate) Dec 2013 Dec 2
Slide 21: Our Digital Journey thus far…
Our Digital Journey thus far… PAPERLESS SUCCESSFULLY DIGITAL STRATEGY BRANCHES LAUNCHED: FORMULATION INTRODUCED Tablet-based Simplified branch banking Digitalization visit with handheld Instant Credit Department devices to fill forms Card printing in created and complete branches Introductio
Slide 22: Consolidated Income Statement
Consolidated Income Statement AED million 9M2019 9M2018 2018 2017 Net Income Reviewed Reviewed Audited Audited Income from Islamic financing and investing transactions 8,100 6,894 9,481 7,795 Commission 1,106 1,112 1,476 1,406 Income / (loss) from other investment 65 30 45 31 Income from properties
Slide 23: Balance Sheet
Balance Sheet As at AED million 30 Sept 2019 31 Dec 2018 31 Dec 2017 Assets Reviewed Audited Audited Cash and balances with central banks 20,073 22,546 27,885 Due from banks and financial institutions 4,226 8,297 4,677 Islamic financing and investing assets, net 151,691 144,739 133,334 Investments i
Slide 24: DIB's Key Business Lines
DIB’s Key Business Lines Core Business Profiles The principal activities of DIB are focused around five core business areas: (i) Retail & Business Banking; (ii) Corporate Banking (“CBG”); (iii) Real Estate & Contracting Finance; (iv) Investment Banking; and (v) Treasury. Real Estate & Consumer Banki
Slide 25: 2017 – 2019 Select Awards & Accolades
2017 – 2019 Select Awards & Accolades • CEO Award – Excellence in Islamic • Best Islamic Bank in the UAE Dr. Adnan Chilwan • Islamic Bank of the Year • UAE Deal of the Year Banking awarded to Dr. Adnan Forbes 2018 Top • Best Islamic Retail Bank • Overall Best Islamic Bank Chilwan Indian Leaders •
Slide 26: Select DIB Debt Capital Market Transactions
Select DIB Debt Capital Market Transactions First Abu Dhabi Bank Dubai Islamic Bank First Abu Dhabi Bank Republic of Indonesia Government of Sharjah (Tap) USD 850,000,000 USD 750,000,000 USD 150,000,000 USD 2,000,000,000 USD 1,000,000,000 USD 750mn 3.900% 5.5yr 3.875% 5yr Sukuk 6.250% PerpNC6 Sukuk
Slide 27: Select Syndicated / Club Transactions
Select Syndicated / Club Transactions Allana Emirates Global Aluminium Islami Bank Bangladesh Ltd Allana International Tecom Investments LLC Ziraat Katılım Bankası USD 6,545,000,000 USD 100,000,000 USD 600,000,000 AED 7,000,000,000 USD 245,000,000 MLA & Bookrunner MLA & Bookrunner MLA & Bookrunner M
Slide 28: THANK YOU!
THANK YOU! Our latest financial information, events and announcements can now be accessed by downloading DIB Investor Relations App: You may also contact us as follows: P. O. Box 1080, Dubai, UAE +971 4 2075454 investorrelations@dib.ae www.dib.ae/about-us/investor-relations