First Abu Dhabi Bank · ADX:FAB
First Abu Dhabi Bank — Q3 2024 Earnings Presentation
22 slides from First Abu Dhabi Bank's earnings presentation, Oct 18, 2024
Slide 1: Q3/9M’24 Earnings Presentation
Q3/9M’24 Earnings Presentation 18th October 2024
Slide 2: Disclaimer
Disclaimer The information contained herein has been prepared by First Abu Dhabi Bank P.J.S.C ("FAB"). The information contained in this presentation may not have been reviewed or reported on by the Group's auditors. FAB relies on information obtained from sources believed to be reliable but does no
Slide 3: 9M’24 key highlights
9M’24 key highlights • Group net profit at AED 12.9Bn +4% yoy, driven by strong business momentum, diversified revenue growth, and continued cost and risk discipline. Profit before tax at AED 15.3Bn +15% yoy. • 17.1% RoTE comfortably ahead of >16% medium-term target; Group well on track with all oth
Slide 4: Strong underlying performance drives 15% increase in 9M’24 Profit Before Tax
Strong underlying performance drives 15% increase in 9M’24 Profit Before Tax PBT at AED 15.3Bn +15% yoy, driven by double-digit Income Statement - Summary (AED Mn) 9M’24 9M’23 yoy % growth in revenues. 1 Net interest Income 14,677 13,433 9 Non-interest Income 9,246 7,105 30 Net profit at AED 1
Slide 5: Q3’24 net profit at AED 4.5Bn, up 5% sequentially and yoy
Q3’24 net profit at AED 4.5Bn, up 5% sequentially and yoy Income Statement - Summary (AED Mn) Q3’24 Q2’24 qoq % Q3’23 yoy % PBT at AED 5.3Bn +16% yoy, and +8% sequentially, Net interest Income 4,890 4,927 (1) 4,583 7 driven by strong revenue momentum and well- managed expenses. Non-interest Income
Slide 6: Well on track with FY’24 financial guidance metrics
Well on track with FY’24 financial guidance metrics Macro outlook UAE real GDP growth to remain solid 2024 guidance 9M’24 actuals UAE real GDP growth 8.0% 5.4% 3.4% 3.7% 4.5% 2.3% Scale Loan growth Mid to High single-digit +9% ytd 2019 2020 2021 2022 2023 2024e 2025e -6.1% UAE well-placed to weather
Slide 7: Group revenue of AED 23.9Bn delivered through a diversified franchise
Group revenue of AED 23.9Bn delivered through a diversified franchise by division… …geography... …and income source AED Bn AED Bn AED Bn Investment International Banking 8.1 ↑22% yoy UAE ↑16% yoy 23.9 18.6 5.4 Global 20.5 Markets1 5.7 ↑22% yoy ↑12% yoy ↑33% yoy 39% 35% Corporate & Commercial Banking
Slide 8: NII growth supported by margin expansion
NII growth supported by margin expansion qoq ↓7bps, yoy ↑8bps yoy ↑17bps • 9M’24 Group NIM of 1.93% +17bps yoy, predominantly reflecting higher benchmark 1.96 rates. Group NIM 1.89 1.92 1.93 (%) 1.89 • Q3’24 Group NIM of 1.89% +8bps yoy, -7bps 1.81 1.76 qoq, as disciplined pricing was offset by the
Slide 9: Growth and diversification of non-funded income
Growth and diversification of non-funded income Non-interest income Q3’24 qoq% yoy% 9M’24 yoy% • F&C +27% yoy, driven higher fees from credit cards and trade products, and (In AED Mn) solid deal pipeline execution. F&C +15% qoq, reflecting strong performances Fees & commissions, net (F&C) 1,009 +
Slide 10: Robust operating efficiency
Robust operating efficiency Opex drivers (AED Mn) Cost-to-Income Ratio ↑11% 24.3% (9M’23: 25.4%) +182 +47 +363 5,817 5,226 • Operating expenses at AED 5.8 billion, up 11% yoy, with ongoing investments in talent, technology and AI-related initiatives, while retaining focus on productivity. • The Gr
Slide 11: Strong liquidity profile underpinned by diversified funding sources
Strong liquidity profile underpinned by diversified funding sources Balance Sheet Summary (AED Bn) Sep’24 Dec’23 ytd % Sep’23 yoy % • Total assets grew 4% yoy, and 5% ytd, to AED 1.2Tn. Cash and balances with central banks 239 233 2 268 (11) • Loans, advances and Islamic financing grew 10% yoy, and 9
Slide 12: Solid asset quality underpinned by prudent provisioning
Solid asset quality underpinned by prudent provisioning Impairment charges, net (AED Mn) & CoR1 (bps) NPLs2 and ECLs3 (%) Net impairment charges CoR (L&A) (bps) Provision Coverage (%) NPL Ratio (%) 97 95 99 96 95 79 77 74 72 63 57 52 3.9 3.9 3.8 3.7 3.7 qoq ↑2%, yoy ↑50% yoy ↑36% NPLs (AED Bn) Provi
Slide 13: Strong capital position comfortably above regulatory requirements
Strong capital position comfortably above regulatory requirements CET11 ratio progression CET1, Tier 1 and CAR trends (%) 18.0% 17.4% 17.4% 17.2% 17.1% 16.1% 15.9% 15.7% 15.7% 15.4% 15.2% 14.2% 14.3% +72bps 13.8% 14.0% 1.3% +25bps 13.7% Cash DPS: 71 fils AED 7.8Bn -68bps 14.3% 13.8% 14.0% Sep'23 Dec
Slide 14: Wrap-up
Wrap-up • Strong 9M’24 performance reflects solid strategy execution, ongoing business momentum and continued balance sheet expansion. • Consistent focus on growing and diversifying revenue streams, while ensuring balance sheet remains optimally positioned for a lower rate environment. • Well on tra
Slide 15: Appendix – Q3/9M’24 results
Appendix – Q3/9M’24 results
Slide 16: Q3/9M’24 highlights – Group financials
Q3/9M’24 highlights – Group financials Income Statement - Summary (AED Mn) Q3’24 Q2’24 qoq % Q3’23 yoy % 9M’24 9M’23 yoy % Net interest Income 4,890 4,927 (1) 4,583 7 14,677 13,433 9 Non-interest Income 3,307 2,828 17 2,393 38 9,246 7,105 30 Operating Income 8,197 7,755 6 6,976 1
Slide 17: A well-diversified, high quality loan book
A well-diversified, high quality loan book Gross loans trend (Figures in AED Bn) Gross loans by economic sector Manufacturing Construction 5% 2% qoq ↑3%, yoy ↑10%, ytd ↑9% Real Estate Agriculture 17% 1 1% Energy Trade-related 7% Trading 530 534 550 4% 500 505 Personal - Retail Mortgage Transport and
Slide 18: Healthy asset quality and strong provisioning
Healthy asset quality and strong provisioning Loans by stage (AED Bn - as of Sep’24) ECL2 by stage (AED Bn - as of Sep’24) (AED Bn) (AED Bn) AED 542.1Bn AED 19.3Bn (Gross loans net of IIS) as of Sep’24 as of Sep’24 Ratio % of gross loans Coverage by stage Sep'24 Dec'23 (net of IIS)1 Sep'24 Dec'23 (%
Slide 19: Strong and diversified liquidity profile
Strong and diversified liquidity profile Customer deposits trend (AED Bn) Customer deposits by counterparty (AED Bn) qoq ↑7%, yoy ↑4%, ytd ↑8% Total Customer Deposits CASA 760 820 803 820 785 760 766 Certificates of deposits 4% 4% 15% 15% Personal/retail sector 44% 45% Corporate / private sector Pub
Slide 20: High quality and diversified investment portfolio
High quality and diversified investment portfolio Investments by type Investments by ratings Sep’24 Dec’23 Sep’24 Dec’23 Sep’24 Sep’24 AAA AED 251Bn AED 251Bn 12% 12% FVTPL - Debt 19% 18% AA 35% 41% FVTPL - Equity & Funds 2% 2% Dec’23 A 27% 21% AED 226Bn Dec’23 Amortised Cost (Debt Inv) 2% 2% BBB 6%
Slide 21: Segmental overview
Segmental overview Corporate and Investment Banking (IB) Global Markets (GM)1 Consumer Banking (CB) Private Banking (PB) Commercial Banking (CCB) Operating income trend GM Sales GM Trading NII NFI yoy ↑22% yoy ↑22% yoy ↑1% yoy ↑18% yoy ↑16% 8.1 6.7 5.7 2.2 4.7 5.2 5.3 1.8 3.4 2.6 1.0 1.2 2.9 1,008 1
Slide 22: FAB a strategic sponsor of the MEIRA Annual Conference
For more information, please visit www.bankfab.com or contact FAB Investor Relations team at ir@bankfab.com You can also download FAB’s Investor Relations App from App Store / Google Play to access latest corporate updates 2023-24 Sustainable Finance Report 2023 ESG Report 2023 Annual Report FAB a s