Abu Dhabi Islamic Bank · ADX:ADIB
Abu Dhabi Islamic Bank — Q1 2024 Earnings Presentation
33 slides from Abu Dhabi Islamic Bank's earnings presentation, Apr 25, 2024
Slide 1: 1Q 2024 Earnings Presentation
ADIB IR Website 1Q 2024 Earnings Presentation Analyst & Investor Conference Call IR App Download link: Abu Dhabi, 25 April 2024
Slide 2: Contents
Contents 1Q 2024 Earnings Presentation Key Highlights ADIB Strategy Financial Performance Outlook & Guidance Questions & Answers Appendix Contacts Disclaimer 2
Slide 3: Key Highlights
1 2 Key Highlights 3 4 5 1Q 2024 Earnings Presentation 6 7 8 3
Slide 4: Key Highlights
Key Highlights ADIB Reports a Strong Start to 2024 driven by strong business momentum, income diversification and cost and risk discipline. Solid quarterly performance with net income of AED 1.45bn up 32% YoY, and up 41% before Zakat 1Q 24 Net Income growth YoY and Tax to AED 1.64bn Revenue up 24% t
Slide 5: Executing ADIB Strategy
1 2 Executing ADIB Strategy 3 4 5 1Q 2024 Earnings Presentation 6 7 8 5
Slide 6: ADIB Strategy
ADIB Strategy Our purpose, values and vision are supported by a clear set of strategic goals Purpose Lifelong partner for customers, colleagues and community Vision To be the world’s most innovative Islamic bank We keep it We are We work for We nurture hospitality We are Values simple and sensible t
Slide 7: We Are Building the World's Most Innovative Islamic Bank
We Are Building the World’s Most Innovative Islamic Bank Continuous innovation Segment focused Digital Excellence Sustainable Future Innovate Sharia-compliant Enhance Emirati lifecycle Elevate customer convenience Optimize, grow & develop banking products proposition through digital human ca
Slide 8: Update on Strategy Progress
Update on Strategy Progress ADIB continued to deliver on its strategy in 1Q 2024 Continuous Key product launches Amwali Youth Account Improve Revenue Mix Asset management AUM Innovation • Salary cash back campaign • Exceed loyalty program Non-funded Income contributes 33% to + 5bn growth 17,177 Acco
Slide 9: Financial Performance
1 2 3 Financial Performance 4 5 1Q 2024 Earnings Presentation 6 7 8 9
Slide 10: Financial Performance Highlights
Financial Performance Highlights Delivered solid net income of AED 1.45bn, growing 32% YoY on solid balance sheet growth, NPM expansion and fee generation Strong YoY Growth in Profitability Solid Balance Sheet Growth YoY Strong Capital Position and Return YoY 1.45bn 195bn 17.2% Net Income Total Asse
Slide 11: Key financial metrics – 1Q 2024 vs 1Q 2023
Key financial metrics – 1Q 2024 vs 1Q 2023 Another set of record results with ROE reaching 27.0% driven by diversified revenues streams 1Q 2023 1Q 2024 Change % Profitability (AED mn) Revenue 2,037 2,517 24% Expenses -726 -765 5% Margin 1,310 1,752 34% Cost of Credit -146 -109 -25% Net Income before
Slide 12: Income Statement
Income Statement 32% YoY growth in Net Income (after Zakat & Tax) in 1Q 2024 underscored by core revenue growth and 41% growth in Net Income (before Zakat & Tax) Net Income (AEDmn) Net Income Movement YoY (AEDmn) 2,000 1,501 +32% 1,424 1,451 1,500 1,224 216 37 1,102 265 1,451 1,102 1,000 -39 -130 50
Slide 13: Funded Income
Funded Income Strong growth in funded income driven by strong business volumes and higher rates with NPM improving 32bps Net Profit Margin (%) Net Profit Margin Movement YoY (%) 8% 7.37% 6.78% 7% 6.36% 6.61% +32bps 6% 6.14% 0.24% 4.67% 0.25% 0.22% 0.35% 4.67% 5% 4.41% 4.48% 4.50% 4.35% 4% 4.35% 2.43
Slide 14: Non-Funded Income
Non-Funded Income Strong non-funded income growth on F&C and investment income, underlining strategic focus on revenue diversification Non-Funded Income (AEDmn) Non-Funded Income Movement YoY (AEDmn) +35% +35% 984 119 5 827 853 827 724 113 611 -21 611 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 Non-funded Investm
Slide 15: Operating Expenses
Operating Expenses Cost to income ratio improved by more than 5 percentage points helped by higher income and operational efficiency Cost To Income Ratio (%) Expenses Movement YoY (AEDmn) -525bps +5% 35.7% 33.9% 726 10 28 2 765 32.6% 32.9% 30.4% 1Q 23 1H 23 9M 23 FY 23 1Q 24 Expenses Employee costs
Slide 16: Impairments
Impairments Impairment charge declined 25% YoY and COR is at a comfortable 38bps for 1Q 2024 Impairments Movement YoY (AEDmn) Impairments (AEDmn) -25% -25% 24 223 146 202 189 0 109 146 -30 109 -16 -12 -4 Impairments Retail Wholesale Private Treasury Associates Others Impairments 1Q 23 2Q 23 3Q 23 4Q
Slide 17: Non-Performing Financing
Non-Performing Financing Lowest NPA ratio since 4Q 19 while coverage ratio trending within guidance NPA (AEDmn) NPA Movement YTD (AEDmn) -24% -9% 8,710 8,619 7,292 7,762 7,292 6,625 6,625 -637 -21 -9 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 NPA Corporate Individual FI & Other NPA 4Q 23 1Q 24 QoQ -1% -10% -6% -
Slide 18: Balance Sheet
Balance Sheet (1) Total assets increased by 5% YTD (excl. FX impact) driven by 5% growth in customer financing supported by a very strong funding position Total Assets (AEDbn) Total Assets Movement YTD (AEDbn) 250 192.8 194.6 +1% 200 172.1 182.2 184.1 +5% 0.7 5.3 1.8 0.5 202.9 150 192.8 1.7 194.6 10
Slide 19: Customer Financing
Customer Financing AED 8.5bn growth in gross financing assets vs last year mainly due strong volumes from Retail, Corporate, Government and Public sector Customer Financing, Net (AEDbn) Customer Financing, Gross Customer Financing, Gross Movement YTD (AEDbn) 120 by Segment (%) 116.9 +1% 115.0 +4% 11
Slide 20: Investments
Investments Diversified Investment Portfolio Investments (AEDbn) Investments Movement YTD (AEDbn) 35 30 26.3 +7% 23.0 24.5 22.6 2.0 26.3 25 21.0 24.5 20 -0.1 -0.1 15 10 5 0 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 Investments Investments carried Investments carried Investments carried Investments 4Q 23 at amor
Slide 21: Customer Deposits
Customer Deposits Deposits increased by 6% YTD (excl. FX impact) reflecting our ability to gain market share with 2.9bn increase in CASA Total Deposits (AEDbn) Total Deposits Movement YTD (AEDbn) 170.0 157.1 160.3 +2% 160.0 150.4 151.5 +6% 150.0 0.5 0.7 0.2 1.9 166.2 157.1 3.7 2.2 160.3 140.0 141.8
Slide 22: Capital and Liquidity
Capital and Liquidity Robust foundation across all key metrics including strong capital and liquidity ratios Capitalization Ratios (%) Liquidity Ratios (%) 20% 90% 80.3% 78.0% 78.6% 76.0% 76.6% 17.7% 18.0% 80% 17.5% 17.2% 18% 16.8% 70% 75.7% 72.7% 74.3% 73.2% 73.0% 16% 60% 16.5% 16.9% 16.4% 16.0% 50
Slide 23: Outlook and Guidance
1 2 3 Outlook and Guidance 4 5 1Q 2024 Earnings Presentation 6 7 8 23
Slide 24: Outlook and Guidance
Outlook and Guidance Solid financial & strategic foundations drive a promising outlook for 2024 Market Outlook Management Guidance 1Q 2024 Actual FY 2024 Guidance Solid GDP growth Gross Financing Growth Real GDP growth (%) Executing ADIB’s growth strategy against a 8% YoY 5% to 7% positive economic
Slide 25: Questions & Answers
1 2 3 Questions & Answers 4 5 1Q 2024 Earnings Presentation 6 7 8 25
Slide 26: Appendix
1 2 3 Appendix 4 5 1Q 2024 Earnings Presentation 6 7 8 26
Slide 27: Investment Highlights
Investment Highlights Strong Management, Solid Fundamentals and Clear Strategy Clear Strategy Experienced management Strengthen Islamic leadership position Deepening customer relationships 1 2 Best in class management team Extensive banking experience with Create productivity and efficienc
Slide 28: Consistent dividend distribution
Consistent dividend distribution ADIB consistently distribute dividends with average yield of above 5% Shareholder Return Metrics 13 12 12% 11 9.9% 10 10% 10.12 9 8.0% 8 8% 7.6% 7.0% 7.1% Share Price 7 6.2% 6.5% 6 6% 5.1% 5.4% Dividend Yield 5 4.4% 4.5% 4.1% 4 4% 3 2.49 2 2% 1 0 0% 2012 2013 2014 20
Slide 29: Ratings and Accolades
Ratings and Accolades ADIB's recognition for excellence in Islamic banking Credit Ratings ADIB's MSCI ESG Rating Recent Accolades A2 #1 Stable Outlook #1 Marktet leader in Islamic Retail digital bank MSCI Rating Distribution 25% 24% 25% A+ 16% Stable Outlook 6% 2% #1 #1 1% Bank in the UAE Safest Isl
Slide 30: Contacts
1 2 3 Contacts 4 5 6 1Q 2024 Earnings Presentation 7 8 30
Slide 31: Additional Information
Additional Information Please contact the Investor Relations team for additional information or download ADIB's IR App ADIB Investor Relations Contact ADIB Investor Relations App Mrs. Lamia Khaled Hariz Head of Public Affairs and Investor Relations E: Lamia.Hariz@adib.com T: +917 2 634 3000 M: +971
Slide 32: Disclaimer
1 2 3 Disclaimer 4 5 6 1Q 2024 Earnings Presentation 7 8 32
Slide 33: 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
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