Abu Dhabi Islamic Bank · ADX:ADIB

Abu Dhabi Islamic Bank — Q1 2017 Earnings Presentation

31 slides from Abu Dhabi Islamic Bank's earnings presentation, April 2017

  1. Slide 1: Investor Presentation 31 March 2017 results

    Investor Presentation 31 March 2017 results Abu Dhabi: April 2017 ADIB © 2010 adib.ae

  2. Slide 2: Table of Content

    Table of Content Introduction Financial Review Business Review Appendix 2

  3. Slide 3: ADIB at a glance

    ADIB at a glance Overview ADIB – Timeline and milestones  Incorporated in 1997 to serve as first Islamic Bank in the Emirate of Abu Dhabi. •Established by the Govt. of Abu Dhabi in 1997. •Licensed in 1998 as an Islamic bank by the Central bank and  Majority owned by members of the ruling family of

  4. Slide 4: Table of Content

    Table of Content Introduction Financial Review Business Review Appendix 4

  5. Slide 5: Q1 2017 – Key financial highlights – Income statement

    Q1 2017 – Key financial highlights – Income statement AED Mn Q1 16 Q1 17 Change Q4 16 Change  Revenues are up by 4% on the back of % % higher fees and commission and foreign exchange income. Net Revenue from funds 973.0 954.2 -1.9% 981.3 -2.8% Fees, commission and others 344.3 419.9 22.0% 362.9 15.

  6. Slide 6: 31 March 2017 – Key financial highlights – Balance sheet

    31 March 2017 – Key financial highlights – Balance sheet Change Change  Total assets increased by 3% over Q1 2016 AED Bn Mar 16 Mar 17 Dec 16 to reach AED 122.5 Bn. % % Total assets 119.2 122.5 2.8% 122.3 0.2%  Customer financing dropped 1% from Q1 2016 to reach AED 77.3 Bn. Net customer 78.3 77.3

  7. Slide 7: Key ratios

    Key ratios Ratios Mar 2016 Mar 2017 Diluted Earnings per share (EPS in AED) 0.152 0.182 Return on Average Shareholders’ Equity (excluding - Tier 1 capital) 17.8% 19.8% Efficiency Net profit margin (%) 4.4% 4.3% Cost / income ratio 46.7% 45.7% Percentage lent (Financing / Total Assets) 65.7% 63.1% Fi

  8. Slide 8: Operating Performance – Net profit income

    Operating Performance – Net profit income Highlights (Q1 2017 vs. Q1 2016) Revenues (AED Mn) Key movements in Revenues (AED Mn) Fees, commission and others  Revenues, up by 4.3% to AED Net revenue from funds -28 1,374.1 Mn. +4% 95 1,317 1,344 1,374  Net revenue from Funds (NRFF) 26% 27% 31% 1.9% l

  9. Slide 9: Operating Performance – Non-profit income

    Operating Performance – Non-profit income Highlights (Q1 2017 vs. Q1 2017) Non-profit income (AED Mn) Composition of Fees & commission (AED Mn) Other income Investment income Risk Participation Retail and others, net Brokerage  Non-profit income up by 22.0% at Property income Fees & Commission Card

  10. Slide 10: Balance Sheet Strength and Customer Financing

    Balance Sheet Strength and Customer Financing Customer Portfolio lower by 1% mainly due to slowdown in WBG, however Consumer assets grew 5% Composition of Total Assets – AED Bn Liquidity ratio* (%) Investmen Investmen ts: ts: % of total assets Liquid assets (AED Bn) 8.6% 9.8% Fixed Fixed assets & as

  11. Slide 11: Funding Profile

    Funding Profile Healthy Financing to Deposit ratio of 76.6%. Deposit grew 5.2% primarily on the back of growth in Retail segment of 11% Net Customer Financing & Customers’ Deposits (AED Bn) Composition of Liabilities (AED Bn) Customer Financing Fin to Dep ratio Other Liabilities Sukuk Due to FI Depo

  12. Slide 12: Asset quality – Customer financing only

    Asset quality – Customer financing only Total Non performing (NPA) at 4.9% of Gross Customer financing with coverage ratio of 92% Provisions and NPAs – Customer financing (AED Mn) NPA ratio and Provision Coverage ratio NPAs - impaired Write-off Collective / General NPA ratio - Not Impaired Total Pro

  13. Slide 13: Capital Adequacy Ratio (CAR)

    Capital Adequacy Ratio (CAR) Total CAR at 15.8% remains above the minimum requirement of 12% under Basel 2. Capital Adequacy Ratio (%) Capital base – CET, Tier 1 and Tier 2 - AED Bn Total CAR Tier 1 Tier 2 Tier 1 CET 15.8% 15.3 15.4 15.2 15.7 14.9 0.6 0.7 0.6 0.6 0.6 15.2% 15.2% 15.0% 5.5 5.5 5.5 5.

  14. Slide 14: Table of Content

    Table of Content Introduction Financial Review Business Review Appendix 14

  15. Slide 15: ADIB Strategy

    ADIB Strategy To become a top tier regional bank by Providing Islamic financial solutions for everyone Build Market Leadership Create an Integrated Pursue International within the UAE Financial Services Group Growth Opportunities • The key customer service sectors are • ADIB continues to build a div

  16. Slide 16: Business unit contribution

    Business unit contribution Composition of Total Assets – AED Bn Composition of Total Liabilities – AED Bn Private; Real Private; Real Real Others; Treasur Real 3% Estate; 2% Estate; Estate; 3% Private y; 8% Estate; 2% 2% 1% ; 3% 0% Others; Treasur Private Treasur Treasury; 4% y; 16% ; 3% y; 14% Othe

  17. Slide 17: Global Retail Banking overview

    Global Retail Banking overview Global Retail Banking contributes 61% of Net Assets (AED Bn) Liabilities (AED Bn) Revenues: +3% +11%  Personal Banking Division provides services for 53.9 55.7 64.4 individuals clients, while the Business Banking Division 57.8 services the needs of SMEs.  These servi

  18. Slide 18: Global Wholesale Banking overview

    Global Wholesale Banking overview Assets (AED Bn) Liabilities (AED Bn) Global Wholesale Banking contributes 25% of Net 0% 0% Revenues:  Global Wholesale Banking encompasses the large 34.6 34.7 26.4 26.4 corporates, emerging corporates and financial institutions divisions of the Bank. The array of s

  19. Slide 19: Private Banking overview

    Private Banking overview Assets (AED Bn) Liabilities (AED Bn) Private Banking contributes 2% of Net Revenues +12% -10%  Private Banking focuses on high and ultra high net worth individuals. 3.0 3.0 2.7 2.7  Wealth Management concentrates on developing, marketing and servicing a wide range of wealt

  20. Slide 20: Treasury overview

    Treasury overview Assets (AED Bn) Liabilities (AED Bn) Treasury contributes 10% of Net Revenues +15%  Treasury principally handles money market brokerage, -32% trading and treasury services, as well as the 19.3 12.8 management of the Bank's funding operations by use of 16.8 investment deposits. 8.6

  21. Slide 21: Table of Content

    Table of Content Introduction Financial Review Business Review Appendix 21

  22. Slide 22: Consolidated Statement of Income

    Consolidated Statement of Income % chg Q1 17 % chg Q1 17 AED Mn Q1 16 Q4 16 Q1 17 vs Q1 16 vs Q4 16 Revenues 1,317.3 1,344.2 1,374.1 4.3% 2.2% Net Revenue from Funds 973.0 981.3 954.2 -1.9% -2.8% Fees & commission 207.4 185.9 225.4 3.9% 21.2% Investment income 159.7 102.6 123.0 -18.1% 19.9% Foreign

  23. Slide 23: Consolidated Balance Sheet

    Consolidated Balance Sheet % chg 31 Mar % chg 31 Mar AED Mn% 31 Mar 2016 31 Dec 2016 31 Mar 2017 2017 vs 31 Mar 2017 vs 31 Dec 2016 2016 Cash and balances with Central Banks 19,215 19,778 20,582 7.1% 4.1% Due from financial institutions 3,849 6,009 4,178 8.5% -30.5% Net Customer financing 78,311 78,

  24. Slide 24: Financial Snapshot (1/2)

    Financial Snapshot (1/2) Total Assets (AED Bn) Net Customer Financing (AED Bn) Customer Deposits (AED Bn) +9% +11% +13% 118.4 122.3 78.4 78.2 94.9 98.8 111.9 73.0 103.2 84.8 61.7 75.5 86.1 51.2 61.3 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Equity (AED Bn) Revenues (

  25. Slide 25: Financial Snapshot (2/2)

    Financial Snapshot (2/2) Return on Avg Shareholders’ Equity (%) Financing to Deposits Ratio (%) Advances to Stable Funds Ratio (%) 18.4% 18.7% 83.5% 81.8% 86.1% 82.6% 84.6% 85.1% 17.2% 77.9% 15.6% 15.5% 79.1% 86.5% 75.7% 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 CAR

  26. Slide 26: An award winning Bank – 2017 (1/3)

    An award winning Bank – 2017 (1/3) Global To be IslamicinBusiness confirmed FebruaryAward Best Online Banking Services 2015by Department of Economic By Banker Middle East Development Mena HR Excellence awards Best Performance Campaign’ by MENA Digital Best Emiratization Initiative Awards Best Islami

  27. Slide 27: An award winning Bank (2/3)

    An award winning Bank (2/3) To be“SKEA – Goldincategory” confirmed February Mohammed Bin Rashid Business Sheikh Khalifa Excellence award -2016 2015 award for 2 consecutive years “Best Overall Bank in Customer “Best Overall Bank in Customer Service” for 4 consecutive years Service” in the GCC in the

  28. Slide 28: An award winning Bank (3/3)

    An award winning Bank (3/3) “Best Private Bank in the Middle East for Islamic “Best Private Bank UAE” Finance” by Private Banker by Global Finance International “Best Branch Award in the “Best Islamic Bank in the UAE” UAE” by Ethos Consultancy by Islamic Finance News “The Leading Arab Islamic Bank B

  29. Slide 29: Dividend Distribution History

    Dividend Distribution History 2009 2010 2011 2012 2013 2014 2015 2016 Net Profit (Mn) 78.0 1,023.6 1,155.1 1,201.2 1,450.2 1,750.7 1,934.0 1,953.6 Cash Dividend Payout Ratio - 50.0% 50.0% 50.0% 50.0% 40.0% 39.8% 39.8% (% of Net Profit) Cash Dividend - 21.6% 24.4% 25.4% 30.7% 23.3% 24.27% 24.52% (% o

  30. Slide 30: ADX Points

    Shareholders’ Return  31 March 2017 share price was AED 3.90 per share (31 Dec 2016: AED 3.80 per share).  Cash dividend of 39.8% of net profit, 24.52% of share capital (2015: 24.27% of share capital).  Total dividend yield of ADIB share – 6.5%. (2015: 6.2%). ADIB vs ADX ADIB ADX 7.50 5,500 7.00

  31. Slide 31: 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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