Dubai Islamic Bank Pjsc · DFM:DIB
Dubai Islamic Bank Pjsc — 9M 2024 Earnings Presentation
34 slides from Dubai Islamic Bank Pjsc's earnings presentation, November 2024
Slide 1: Investor Presentation
Investor Presentation For the period ending 30 September 2024
Slide 2: Disclaimer
Disclaimer By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: This presentation may contain statements about future events and expectations that are forward-looking statements. These statements typicall
Slide 3: Contents
Contents Overview 2 Financial Performance 3 Strategic Focus & Theme 4 Appendix 3
Slide 4: Resilient global economic growth but slower monetary easing
Resilient global economic growth but slower monetary easing Global Real GDP Growth (%) Brent Oil (USD/barrel) Global Advanced Economies 100 8.0% Emerging Markets & Developing Economies 6.8% 7.0% 6.3% 6.0% 5.4% 5.0% 4.4% 4.1% 4.2% 4.2% 80 4.0% 3.5% 3.3% 3.2% 3.2% 3.0% 2.6% 1.7% 1.8% 1.8% 2.0% 1.0% 0.
Slide 5: UAE continue its expansionary mode
UAE continue its expansionary mode UAE GDP (%) Dubai Q1 2024 GDP Breakdown (%) Overall GDP Non-hydrocarbon GDP Hydrocarbon GDP Wholesale & Trade, 23% Others, 32% 0% 8.5% 7.5%7.1% 7.7% 0% 6.5% AED 115 bn 6.2% 6.0% 0% 5.2% 5.3% (+3.2% YoY) 4.4% 4.0% 3.6% 0% Accomodation & Transportation & storage, 13%
Slide 6: Contents
Contents Overview 2 Financial Performance 3 Strategic Focus & Theme 4 Appendix 6
Slide 7: Key Highlights – 9M 2024
Key Highlights – 9M 2024 ▪ Steady balance sheet growth of 4.7% YTD to AED 329 billion, underpinning the bank’s robust growth agenda ▪ Net financing and sukuk investments grew by 7% YTD to AED 286 billion, exceeding guidance. ▪ Net Profit (pre-tax) of AED 6.0 billion, up 23% YoY. ▪ Long-term issuer r
Slide 8: Balance Sheet
Balance Sheet YTD QoQ AED million 9M 2024 Dec 2023 Jun 2024 9M 2024 Highlights Change Change Net financing assets & sukuk investments 285,783 267,626 277,891 7.0% 2.8% • Total assets now stands at AED 329 billion Total Assets 329,169 314,292 322,651 4.7% 2.0% growing by 4.7 YTD. Customer Deposits 23
Slide 9: Income Statement
Income Statement YOY QoQ QoQ AED million 9M 2024 9M 2023 3Q 2024 3Q 2023 2Q 2024 % Change % Change % Change Total Income 16,995 14,548 16.8% 5,703 5,239 8.9% 5,684 0.3% Net Operating Revenue 9,085 8,547 6.3% 3,027 2,967 2.0% 3,060 (1.1%) Operating Expenses (2,554) (2,262) 12.9% (869) (791) 9.9% (836
Slide 10: Profitability & Cost Structure
Profitability & Cost Structure Non Funded Income Composition (AED million) OPEX trends (AED million) Fees/Comm & FX Other Income Inc. from Assoc. 17% 4% 26% 13% Inc. from Prop HFS Inc. from Inv. Prop. Inc. / loss other inv. Q3 2024 330 143 136 90 182 1 882 Q2 2024 429 42 34 76 338 7 925 6 Q1 2024 48
Slide 11: Overview of Deployment of Funds/Financing
Overview of Deployment of Funds/Financing Deployed Funds Composition (AED bn) Net Deployed by Segment (AED bn) Net Financing Assets Sukuk Investments Cash & CB balances Investment in equities & properties Dec 2022 Dec 2023 Sep 2024 Others Due from banks & FI 143 146 134 Sep 2024 207 79 21 9 9 4 329
Slide 12: Segmental Overview – Consumer
Segmental Overview – Consumer Management Commentary Breakdown by Portfolio – Sept 2024 Revenue Trends (AED mn)* • Steady growth across all products with 4,500 (18%) 10.00% Personal 4,064 portfolio up by nearly 9% YTD to AED 61 Home YoY Finance, 4,000 9.00% billion. Finance, 673 34% 3,500 3,326 42% 8
Slide 13: Segmental Overview – Corporate
Segmental Overview – Corporate Management Commentary Breakdown by Portfolio – Sep 2024 Revenue Trends (AED mn)* Utilities, 6% Automobile, +5% • Highly diversified portfolio now standing at 6% YoY Trade, 6% 2,159 AED 145.6 billion, up by 3% YTD. Aviation, 9% 2,500 2,059 6.70% 6.39% • Revenues up almo
Slide 14: Segmental Overview – Treasury
Segmental Overview – Treasury Management Commentary Breakdown by Portfolio – Sep 2024 • Treasury portfolio surged to AED 79 billion, up 16% YTD. Sovereign Aviation, 1% Services, Financial exposure constitute nearly 70%. 17% Institutions, 10% • Revenue picked up by 24% YTD to AED 1.9 billion. Real Es
Slide 15: Asset Quality
Asset Quality Impairment charges (AED mil) and cost of risk (COR %) Provisioning (AED mil), NPF1 (AED mil) and Cash Coverage Ratio (%) Impairment charges (AED mil) COR Provisions NPF Coverage Ratio % 1600 0.8% 0.9%120% 0.7% 0.8% 97% 1400 0.7% 100% 90% 1200 0.7% 76% 13,784 78% 0.57% 72% 0.6% 80% 12,0
Slide 16: Asset Quality (contd.)
Asset Quality (contd.) Islamic financing and investing assets (Gross Exposure by stages) Stage 1 (AED million) Stage 2 (AED million) Stage 3 (AED million) Gross Exposure ECL Coverage Gross Exposure ECL Coverage Gross Exposure ECL Coverage 195,000 191,529 0.6% 16,000 80.0% 190,000 25,000 0.6% 8.9% 10
Slide 17: Funding Sources and Liquidity
Funding Sources and Liquidity Funding Sources (AED bn) Liquidity Coverage Ratio (LCR) Due to banks & FIs Other payables Equity Sukuk Customers' Deposits 329 Liquidity Coverage Ratio (%) 288 6 290 13 13 280 3 12 49 9 13 10 47 41 44 24 20 21 22 189% 140% 150% 222 237 129% 136% 206 199 2021 2022 2023 9
Slide 18: Capitalization Overview
Capitalization Overview Regulatory Capital1 (AED billion) Capital Ratios CET 1 AT1 Tier 2 CAR CET1 Ratio Tier 1 47.3 41.4 40.7 42.9 39.1 3.0 18.5% 18.3% 2.6 2.8 8.3 17.1% 17.6% 17.3% 2.6 2.6 8.3 8.3 17.3% 11.9 8.3 16.0% 16.5% 16.1% 17.1% 12.9% 13.9% 12.0% 12.4% 12.8% 31.8 36.1 26.9 28.2 29.8 2020 20
Slide 19: Digital drive continue to support overall growth of DIB
Digital drive continue to support overall growth of DIB Digital Registered User Base* (‘000) Mobile & Internet Banking Transactions (‘000) Quarter Quarter Comparison 30000 MB IB Comparison 1,445 1,328 25000 1,247 +16% 1,174 1,023 YoY 20000 867 15000 +14% YoY 10000 5000 0 2020 2021 2022 2023 Q3 2023
Slide 20: Driving Sustainability at DIB and 2030 ESG Strategy
Driving Sustainability at DIB and 2030 ESG Strategy ESG Strategy at DIB Priority areas Objectives SDGs Q3’ 24 Update DIB successfully facilitated a landmark USD 3.25 billion sustainability-linked financing for GEMS Significantly step up Education, marking the region’s largest leveraged buy-out. This
Slide 21: Contents
Contents Overview 2 Financial Performance 3 Strategic Focus & Theme 4 Appendix 21
Slide 22: Summary Highlights – 9M 2024
Summary Highlights – 9M 2024 FY 2024 9M 2024 Target Metrics Guidance Actual ▪ Robust balance sheet growth of 4.7% to reach AED 329 billion. Net financing & ▪ Net Financing and Sukuk investments grew by 7% on a YTD basis 5.0% 7.0% Sukuk growth beating full year guidance. NPF 5.0% 4.27% ▪ Net financin
Slide 23: Contents
Contents Overview 2 Financial Performance 3 Strategic Focus & Theme 4 Appendix 23
Slide 24: Consolidated Income Statement
Consolidated Income Statement AED million 30 Sep 2024 30 Sep 2023 Net Income Income from Islamic financing and investing transactions 14,337 12,513 Commission 1,242 1,292 Income / (loss) from other investments measured at fair value 14 31 Income from properties held for development and sale 229 194
Slide 25: Consolidated Balance Sheet
Consolidated Balance Sheet AED million 30 Sep 2024 31 Dec 2023 31 Dec 2022 Assets Cash and balances with central banks 20,773 24,020 26,489 Due from banks and financial institutions 4,176 4,484 4,607 Islamic financing and investing assets, net 206,790 199,453 186,043 Investments in Islamic Sukuk mea
Slide 26: Strategy 2022 - 2026
Strategy 2022 - 2026 Aligning DIB to the ambitions and the expansionary agenda of the UAE Embarked on a new five-year strategy that will… Strengthen the Group Grow the Group >reinforce > energize > adapt > diversify > innovate > expand Strengthen the capital base, Deliver balance sheet growth enhanc
Slide 27: DIB’S ESG Vision and 2030 ESG Strategy
DIB’S ESG Vision and 2030 ESG Strategy “Own theESG “Own the ESG Space” space” Strategic Pillars Lead by Example Finance a Sustainable Future Priority Areas 1 2 3 4 5 6 7 8 Reduce Champion Embrace Enhance Drive Promote Operational Business Ethics Propel Sustainable Embed ESG in Diversity & Employee T
Slide 28: DIB – A leading global Islamic bank
DIB – A leading global Islamic bank More than 9,000 employees ▪ Dubai Islamic Bank (“DIB” or the “Bank”) was established in 1975. across the Group ▪ Amongst the largest Islamic Bank by assets globally 5 million + customers globally ▪ 4th largest bank by assets in the UAE. Designated (“D-SIB”)* in 20
Slide 29: DIB’s Key Business Lines
DIB’s Key Business Lines Core Business Profiles Consumer Banking Corporate Banking Corporate Banking has sector-specific focus Offering its retail and business banking services units which target clients across both private through a network of 54 branches and more and public sectors. than 518 ATMs
Slide 30: DIB Debt Capital Markets – Deal Experience
DIB Debt Capital Markets – Deal Experience Select Sovereign and Supranational Agency Transactions Kingdom of Bahrain Government of Sharjah was able to tighten The Republic’s 2024 was able to issue AED pricing by 62.5bps, on offering received strong Government of Sharjah 1bn at 5.5%. Republic of Indo
Slide 31: DIB Debt Capital Markets – Deal Experience
DIB Debt Capital Markets – Deal Experience Select Financial Institutions Transactions in 2024 Qatar International Warba Bank Sharjah Islamic Bank Emirates Islamic Bank Al Rajhi Bank Kuwait International Bank Islamic Bank USD 300,000,000 USD 500,000,000 USD 500,000,000 USD 750,000,000 USD 1,000,000,0
Slide 32: DIB Debt Capital Markets – Deal Experience
DIB Debt Capital Markets – Deal Experience GRE and Corporate Transactions in 2024 Saudi Aramco Arada Developments TAP Sobha Realty Tap Public Investment Fund Binghatti Holdings Tap AerCap Holdings USD 500,000,000 USD 3,000,000,000 USD 150,000,000 USD 230,000,000 USD 1,500,000,000 USD 200,000,000 USD
Slide 33: Select Award & Accolades
Select Award & Accolades MEA Finance 16th Annual GCC GOV Youth Banking Euromoney Emirates Awards for Best Deal & Empowerment Technology Institute for 2022 Excellence Solution Awards Banking and Forbes Awards 2023 Financial Finnovex Studies ME • Best Digital Innovation in Middle East • Best Islamic B
Slide 34: 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 4 207 5454 investorrelations@dib.ae www.dib.ae/about-us/investor-relations 34
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