Abu Dhabi Islamic Bank · ADX:ADIB

Abu Dhabi Islamic Bank — Q3 2010 Earnings Presentation

24 slides from Abu Dhabi Islamic Bank's earnings presentation, Oct 18, 2010

  1. Slide 1: Investor Presentation

    Investor Presentation 30 September 2010 Abu Dhabi: 18 October 2010 ADIB © 2010 adib.ae

  2. Slide 2: Table of contents

    Table of contents Pages  ADIB at a glance 3  Focus on network expansion 4  Financial targets over the medium term 5  Salient features of Q3 / YTD 2010 6  Q3 2010 – Balance sheet highlights 7  YTD 2010 – Income statement highlights 8  Consolidated Statement of Income 9  Key income parameters

  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 23 Feb 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 +17% +26% 409,247 60 284 +62% 50 323,342 44 259,196 189 108 Q3 08 Q3 09 Q3 10 Q3 08 Q3 09 Q3 10 Q3 08 Q3 09 Q3 10  60 Branches in 11 years.  26% CAGR growth in Customer

  5. Slide 5: Financial targets over the medium term

    Financial targets over the medium term 1 Core business ROE of 25% over the medium term 2 Cost to Income Ratio of less than 33% 3 Earnings increase of 20% p.a. over the medium term 5

  6. Slide 6: Salient features of Q3 / YTD 2010 results

    Salient features of Q3 / YTD 2010 results Group net profit for Q3 2010 was a record AED 314.5 Mn vs. AED 239.5 Mn in Q3 2009, an 1 increase of 31.3%. Group operating profit (“margin”) for 9 months 2010 was AED 1,314.9 Mn vs. AED 1,087.2 Mn 2 for 9 months 2009, an increase of 20.9%. 3 Balance sheet f

  7. Slide 7: Q3 2010 – Balance sheet highlights

    Q3 2010 – Balance sheet highlights Consolidated 30 Sept ‘10 % chg % chg Balance Sheet AED (Bn) (vs Dec '09) (vs Sept '09)  Total Assets increased by 21% from Q3 2009 Assets 71.2 11% 21% to reach AED 71.2 bn.  Customer financing increased by 20% from Customer Financing 47.2 17% 20% Q3 2009 to reach

  8. Slide 8: YTD September 2010 – Income statement highlights

    YTD 30 September 2010 – Income statement highlights Consolidated Income 30 Sep ‘09 30 Sep ‘10 % chg Statement AED (Mn) AED (Mn)  Revenues up by 25% on the back of Revenues 1,786.9 2,235.1 25% higher net revenue from funds (up 22%) and fees & commissions (up 87%). Expenses 699.7 920.2 31%  Expenses

  9. Slide 9: Consolidated Statement of Income

    Consolidated Statement of Income % chg Q3 % chg Q3 YTD YTD % chg Sep 10 AED Mn Q3 09 Q2 10 Q3 10 10 vs Q3 09 10 vs Q2 10 Sep 09 Sep 10 vs Sep 09 Revenues 608.6 744.2 810.3 33.1% 8.9% 1,786.9 2,235.1 25.1% Net Revenue from Funds 529.1 647.6 668.8 26.4% 3.3% 1,545.8 1,888.0 22.1% Fees & commission 66.

  10. Slide 10: Key income parameters

    Key income parameters Revenues (AED Mn) Net Profit (AED Mn) Fees, commission & others Net revenue from funds 810 Operating profit Net Profit 480 141 585 609 361 79 324 315 132 240 217 319 669 174 81 529 137 453 238 Q3 07 Q3 08 Q3 09 Q3 10 Q3 07 Q3 08 Q3 09 Q3 10 Return on Shareholders’ Equity (%) Co

  11. Slide 11: Consolidated Balance Sheet

    Consolidated Balance Sheet % chg 30 Sep % chg 30 Sep AED Mn 30 Sep 2009 31 Dec 2009 30 Sep 2010 2010 vs 30 Sep 2010 vs 31 Dec 2009 2009 Cash and balances with Central Banks 3,523 3,331 4,522 28.4% 35.8% Due from financial institutions 10,340 14,658 13,365 29.3% -8.8% Net Customer financing 39,253 40

  12. Slide 12: 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 +20% +23%  Total Assets increased by 21% 47,159 54,038 in Q3 2010 to reach AED 71.2 39,253 43,999 Bn. 32,085 33,650  Net Customer financing increased by 20% in Q3 2010 to reach

  13. Slide 13: Assets and Liquidity

    Assets and Liquidity Average Earning Assets (AED Bn) & Net Profit Margin (%) Composition of Assets – AED 71 Bn NPM % Average Earning Assets 59.2 60 57.0 4.8 55.6 Investments; 52.4 2.9% 48.4 49.4 Customer 45.2 financing; 4.5% 4.5% 66.3% Fixed assets & Other Assets; 4.4 5.7% 30 4.4 4.3% 4.3% 4.3% Due

  14. Slide 14: Customer Financing

    Customer Financing Gross Customer Financing by Segment Gross Customer Financing by Customer Type Retail Wholesale Private +20% Individual; -Individuals – 22.4 bn 60.4% 46.9% -SMEs – 0.7 bn Corporate; 30.1% 48.6% 44.7% -Corporate – 14.8 bn 38.3% -PS & ,Govt – 2.6 bn 34.1% -FIs – 1.5 bn 39.0% Govt. &

  15. Slide 15: Customers’ Deposits

    Customers’ Deposits Gross Customers’ Deposits by Segment Gross Customers’ Deposits by Customer Type Wholesale Retail Private Non-profit organisations; 5.4% SMEs; 5.4% +23% Government; 16.7% -Government – 9.0 bn Public 49.5% -Public Sector– 9.6 bn Sector; 48.9% -Corporates – 6.5 bn 17.8% -FIs – 1.6 b

  16. Slide 16: NPAs & Provisions

    NPAs & Provisions Cumulative Provisions 2008 2009 Q3 10 Key points Financing Portfolio  NPAs increase by AED 226.1 Mn in Q3 2010 to AED 2,925 Mn at end of Q3 2010. Individual/Specific 455 1,233 1,377  NPAs ratio at 5.9% as at end Q3 2010 (6.0% at end 09) Collective/General 135 518 703 with a cover

  17. Slide 17: Capital Adequacy

    Capital Adequacy ADIB’s CAR of 16.52% 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% 16.8% 13.2 16.6% 16.5% 10.8 15.2% 8.5 7.9 8.1 12.0% 12.0% 11.0% 11.0% 5.6 1

  18. Slide 18: Shareholders Return

    Shareholders Return Despite the economic downturn ADIB still delivered a total shareholder return of 19% in 2009  30 September 2010 Share price was AED 2.71 per share.  30 June 2010 Share price was AED 2.48 per share (includes impact of 20 % bonus share dividend - Dec 09 Share price AED 2.89).  B

  19. Slide 19: Outlook - 2010

    Outlook - 2010 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

  20. Slide 20: 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

  21. Slide 21: Executive Management Biographies

    Executive Management Biographies 21

  22. Slide 22: 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

  23. Slide 23: 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

  24. Slide 24: 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 Human Resource, UAE Chartered Human Resource Consultant (CHRC), Canada and Chartered in Personal Development (CIPD), UK. He has 5 years banking experience.

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