Abu Dhabi Commercial Bank · ADX:ADCB
Abu Dhabi Commercial Bank — Abu Dhabi Commercial Bank PJSC — H1 2016 Earnings Presentation
18 slides from Abu Dhabi Commercial Bank's earnings presentation, July 2016
Slide 1: Q2/H1'16 Earnings presentation
Abu Dhabi Commercial Bank PJSC Q2/H1’16 Earnings presentation July 2016
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLELY FOR USE AS AN INVESTOR PRESENTATION AND IS PROVIDED AS INFORMATION ONLY. THIS PRESENTATION DOES NOT CONTAIN ALL OF THE INFORMATION THAT IS MATERIAL TO AN INVESTOR. BY READING THE PRESENTA
Slide 3: Balance sheet highlights
Balance sheet highlights Strong balance sheet driven by strategically targeted growth opportunities Highlights (30 June 2016) Change% Balance sheet highlights (AED million) June’16 Dec’15 June’15 YTD YoY Total assets grew 13% year on year and 5% year to date to AED 241 billion Loans and advances to
Slide 4: Income statement highlights
Income statement highlights Resilient performance despite challenging market conditions Operating performance (30 June 2016) Half yearly trend Quarterly trend Change% Q2’16 Change% Half year comparison: H1’16 vs. H1’15 Income statement highlights (AED mn) H1'16 H1'15 YoY Q2'16 Q1'16 Q2'15 QoQ YoY Ne
Slide 5: Increase in cost of funds reflective of current market conditions
Increase in cost of funds reflective of current market conditions Net interest and Islamic financing income (AED million) Evolution of NIMs & yields Interest income Interest expense H1’16 Yield on interest earning assets Net interest margin H1’15 3,099 3,184 3.47% 4.24% 4.26% 3.11% 1,573 1,526 1,641
Slide 6: Relentless focus on diversifying revenues, higher non-interest income contribution
Relentless focus on diversifying revenues, higher non-interest income contribution Operating income (AED million) Gross fee income breakdown (AED million) Non interest income (%) Net interest income (%) H1’16 H1’16 H1’15 4,255 H1’15 59% 52% 4,234 2,112 2,143 AED AED 2,192 2,041 2,011 2,016 954 902 2
Slide 7: Disciplined cost management, Cost to income ratio remains within our target range
Disciplined cost management, Cost to income ratio remains within our target range Cost to income ratio Operating expenses (AED million) within our target range Staff costs General administration expenses Depreciation & amortization H1’16 H1’15 1,404 1,372 740 738 700 715 33.0% 32.4% 672 34 666 40 34
Slide 8: Net loans and advances
Loan book remains well diversified and focused in our core geography Highlights Gross loans by economic sector June’16 Dec’15 Net loans to customers increased 13% year on year and 6% year to date to Gross loans = AED 160,771 million Gross loans = AED 152,426 million AED 154,853 million, comprising 6
Slide 9: Customer deposits
Customer deposits continue to increase with growing CASA contribution Highlights Customer deposits increased 13% year on year and 4% year to date to Composition of liabilities Customer deposit breakdown AED 149,055 million, comprising 70% of total liabilities (Dec’15:72%) June’16 June’16 Total liabi
Slide 10: Wholesale funding and maturity profile
Wholesale funding and maturity profile Diversified sources of funding by markets, tenors, currencies and products Maturity profile As at 30 June 2016 (AED million) Wholesale funding including Euro commercial paper (AED billion) CAGR: +9% +3% 11,313 Repo Sukuk 10,471 990 MTN/GMTN Sub debt 100 Syndica
Slide 11: Capital and liquidity position continue to be at industry leading levels
Capital and liquidity position continue to be at industry leading levels Highlights Capital adequacy ratio Tier I and core tier I ratios As at 30 June 2016, the Bank’s capital adequacy ratio (Basel II) was 18.40% and Tier I ratio was 15.07% compared to 19.76% and 16.29% respectively, as 19.76% 16.29
Slide 12: Investment securities - 98% of total portfolio invested in bonds
Investment securities - 98% of total portfolio invested in bonds Highlights Investments Investment securities portfolio increased to AED24,680 million as By issuer By region at 30 June 2016 Bonds Banks Domestic 98% of the total portfolio was invested in bonds issued by and FI 51% government, corpora
Slide 13: Asset quality - committed to maintaining a disciplined risk profile
Asset quality - committed to maintaining a disciplined risk profile Highlights Cost of risk As at 30 June 2016, non-performing loans (NPL) and provision 1.20% 0.90% 0.48% 0.29% 0.80% 0.79% coverage ratios were 2.7% and 132.9% respectively, compared to 3.0% and 128.5% as at 31 December 2015 Non-perfo
Slide 14: Summary
Summary Our focus on the UAE market remains a key strategic pillar and a differentiator for ADCB Net profit of AED 2.147 billion in H1’16 with ROAE of 17.0%, Q2’16 net profit of AED 1.126 billion, up 10% quarter on quarter Diversified revenue stream, with increased non-interest income contribution C
Slide 15: Awards
Awards H1’16 awards “Best Bank for Liquidity “Best Brand Initiative of the Year” “Best Property Management “Best Bank for Cash “Best Retail Bank in Management in the Middle East” across Asia, Middle East and Africa Team– UAE” for ADCP management in the UAE” the UAE” Global Finance Asian Banker Capit
Slide 16: Balance sheet
Balance sheet AED million June’16 Dec’15 Change% Cash and balances with Central Banks 17,698 20,180 (12) Deposits and balances due from banks , net 22,323 22,382 (0) Reverse-repo placements 1,014 4,256 (76) Investment securities 24,909 20,926 19 Loans and advances, net 154,853 146,250 6 Other assets
Slide 17: Income statement
Income statement 3 months ended June 30 6 months ended June 30 AED million 2016 2015 Change % 2016 2015 Change % Interest income and income from Islamic financing 2,130 1,922 11 4,228 3,913 8 Interest expense and profit distribution (604) (379) 60 (1,129) (729) 55 Total net interest and Islamic fina
Slide 18: ADCB Investor Relations
ADCB Investor Relations Sheikh Zayed Street P. O. Box: 939, Abu Dhabi Email: adcb_investor_relations@adcb.com Tel: +971 2 696 2084 Fax: +971 2 610 9845 Internet: http://adcb.com/about/investorrelations/investor-relations.aspx
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