Dubai Islamic Bank Pjsc · DFM:DIB
Dubai Islamic Bank Pjsc — Dubai Islamic Bank — Q1 2019 Earnings Presentation
30 slides from Dubai Islamic Bank Pjsc's earnings presentation, 2019
Slide 1: Investor Presentation
Investor Presentation For the period ending 31 March 2019
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION IS NOT FOR PUBLICATION, RELEASE, OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, INTO AUSTRALIA, CANADA, SOUTH AFRICA, JAPAN OR THE UNITED STATES. THIS PRESENTATION DOES NOT CONSTITUTE OR FORM PART OF AN OFFER TO SELL OR TO ISSUE ANY SECURITIES OR SOLICITATION OF AN OFFER TO PU
Slide 3: Contents
Contents 1. Overview of Economic Environment 2. Overview of Dubai Islamic Bank 3. Financial Performance 4. Strategic Focus 5. Appendix 3
Slide 4: UAE: economic environment remains supportive
UAE: economic environment remains supportive • UAE amongst the top business and leisure Ease of Doing Business Index (2019) – Global Rankings destinations of the world (UAE topped GCC countries in Ease of Doing Business Index) Rank: 11 Ease of Doing Business 2019 • Strategy of diversification away f
Slide 5: Dubai's fundamentals continue to be strong
Dubai’s fundamentals continue to be strong Dubai’s Population (000s) Dubai’s Foreign Direct Investment Inflows (AED bn) +37% +33% 38.5 3,183 2,978 2,695 2,450 29.0 28.6 27.3 2,320 25.5 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Breakdown of Dubai’s GDP (2018) Hotel Guests (mn) Hotels & 15.92
Slide 6: Contents
Contents 1. Overview of Economic Environment 2. Overview of Dubai Islamic Bank 3. Financial Performance 4. Strategic Focus 5. Appendix 6
Slide 7: Dubai Islamic Bank at a Glance
Dubai Islamic Bank at a Glance A leading Islamic bank with a growing international footprint • Dubai Islamic Bank (“DIB” or the “Bank”) was Ownership UAE Branch Network established in 1975 as the world’s first full service (as at 31 Mar 2019) Islamic bank by an Emiri Decree. Government Over 70 branc
Slide 8: Dubai Islamic Bank at a Glance
Dubai Islamic Bank at a Glance Industry leading financial institution with a growing balance sheet and franchise Largest Islamic Bank in the UAE, Sector leading Sustained Operating Robust capital Diversified business 2nd largest in the growth Performance position portfolio world • Increasing domesti
Slide 9: Contents
Contents 1. Overview of Economic Environment 2. Overview of Dubai Islamic Bank 3. Financial Performance 4. Strategic Focus 5. Appendix 9
Slide 10: Overall Financial Performance (for the period ending 31 March 2019)
Overall Financial Performance (for the period ending 31 March 2019) Growing market share driven by robust growth in core businesses Balance Sheet Items Financial Highlights AED million Dec 2018 Mar 2019 Change Key Ratios Dec 2017 Dec 2018 Mar 2019 Net Financing Assets & Net Financing to Deposit Rati
Slide 11: Operating Performance & Profitability
Operating Performance & Profitability Robust Robust & & Growing Growing Profitability Profitability (AED (AED million) mn) Sustained Strong Margins 8,202 225,000 3.30% 7,687 3.19% 215,000 3.14% 3.20% 3.11% 5,004 205,000 3.10% 4,504 207,485 206,789 195,000 3.00% 1,971 2,307 185,000 189,980 2.90% 1,21
Slide 12: Overview of Deployment of Funds / Financings
Overview of Deployment of Funds / Financings Deployed Funds Composition (AED bn) Deployment by Segment (AED bn) 224 227 Dec 2017 Dec 2018 Mar 2019 207 7 9 10 10 101 102 8 9 10 10 89 9 21 18 24 31 33 24 40 39 40 145 147 31 33 133 24 24 21 18 10 10 11 9 10 10 Dec 2017 Dec 2018 Mar 2019 Corporate Consu
Slide 13: Segmental Overview - Consumer
Segmental Overview - Consumer Management Commentary Breakdown by Portfolio – Mar 2019 Revenue Trends (AED mn) 1000 7.4% • Gross consumer financing currently 836 841 stands at AED 40 billion supported by 800 7.3% gross new consumer financing of AED 179 175 Home 7.2% 3.5 billion for the quarter. Finan
Slide 14: Segmental Overview - Corporate
Segmental Overview - Corporate Management Commentary Breakdown by Portfolio – Mar 2019 Revenue Trends (AED mn) 1000 944 6.0% • Gross corporate financing currently Others, Government, stands at AED 110 billion driven by 10% 7% Financial 800 212 5.5% 726 growth across services, trade and FI. Instituti
Slide 15: Segmental Overview - Treasury
Segmental Overview - Treasury Management Commentary Breakdown by Portfolio – Mar 2019 Revenue Trends (AED mn)* 7.0% • Gross treasury financing and sukuk Manufacturing 267 6.5% investments increased by 6% to reach & Services, 11% 231 6.0% AED 35 billion. 113 Aviation, 200 5.5% 97 5% 4.4% 5.0% • Net o
Slide 16: Improving Asset Quality
Improving Asset Quality Non-Performing Financing (“NPF ”)1 Financing Provisions and Coverage Ratios Overall Coverage Ratio² Provision Coverage Ratio NPF Ratio Impaired Financing Ratio 3.4% 3.4% 3.4% 157% 150% 149% 118% 112% 112% 3.3% 3.2% 3.2% Dec 2017 Dec 2018 Mar 2019 Dec 2017 Dec 2018 Mar 2019 Cu
Slide 17: Funding Sources and Liquidity
Funding Sources and Liquidity Funding Sources (AED bn) Customers’ Deposits (AED bn) Liquidity Position (AED bn) Due to banks & FIs Other payables Liquid Assets Equity Sukuk Customer Deposits Net Financing to Deposit Ratio* Liquid Assets/Total Deposits (%) Customers' Deposits 224 227 93% 92% 12% 207
Slide 18: Capitalization Overview
Capitalization Overview Regulatory Capital1 (AED billion) Capital Ratios* CET 1 AT1 Tier 2 CAR CET1 Ratio 35.0 31.4 30.8 27.7 18.3% 17.5% 17.5% 30.0 2.0 2.1 17.2% 16.0% 1.8 6.4 25.0 7.0 7.3 20.0 15.0 12.0% 12.4% 12.8% 11.5% 10.0 21.8 22.9 9.6% 18.6 5.0 0.0 Dec 2017 Dec 2018 Mar 2019 Dec 2015 Dec 201
Slide 19: Contents
Contents 1. Overview of Economic Environment 2. Overview of Dubai Islamic Bank 3. Financial Performance 4. Strategic Focus 5. Appendix 19
Slide 20: DIB's Growth Story – Growth vs Asset Quality
DIB’s Growth Story – Growth vs Asset Quality Gross Financing (Consumer) - AED bn Gross Financing (Corporate) - AED bn Non-performing Financing CAGR: 9% CAGR: 26% 7.1 12.0% 40 113 10.0% 11.1% 5.3 8.0% 26 6.0% 34 4.0% 3.4% 2.0% 0.0% Gross Financing (Consumer) Gross Financing (Corporate) Dec 2013 Dec 2
Slide 21: Our Digital Journey thus far
Our Digital Journey thus far … PAPERLESS SUCCESSFULLY DIGITAL STRATEGY BRANCHES LAUNCHED: FORMULATION INTRODUCED Tablet-based Simplified branch banking Digitalization visit with handheld Instant Credit Department devices to fill forms Card printing in created and complete branches Introducti
Slide 22: Digitally Intelligent Bank (DIB) – Strategic Focus 2019
STRATEGIC FOCUS 2019 CARE IDEOLOGY Digitally Intelligent Bank (DIB) CUSTOMER EXPERIENCE Quality Enhance Credit Customer Growth Experience ENGAGEMENT ACQUISITION Maintain Adopt cost C.A.R.E. discipline Ideology Embrace Align Digital Capacity to Transformation Growth RETENTION 2019 – Target Metrics 10
Slide 23: Contents
Contents 1. Overview of Economic Environment 2. Overview of Dubai Islamic Bank 3. Financial Performance 4. Strategic Focus 5. Appendix 23
Slide 24: Consolidated Income Statement
Consolidated Income Statement AED million 1Q2019 1Q2018 2018 2017 Net Income Reviewed Reviewed Audited Audited Income from Islamic financing and investing transactions 2,683 2,094 9,481 7,795 Commission 435 411 1,476 1,406 Income / (loss) from other investment 20 21 45 31 Income from properties held
Slide 25: Balance Sheet
Balance Sheet As at AED million 31 Mar 2019 31 Dec 2018 31 Dec 2017 Assets Reviewed Audited Audited Cash and balances with central banks 24,081 22,546 27,885 Due from banks and financial institutions 4,274 8,297 4,677 Islamic financing and investing assets, net 146,766 144,739 133,334 Investments in
Slide 26: DIB's Key Business Lines
DIB’s Key Business Lines Core Business Profiles The principal activities of DIB are focused around five core business areas: (i) Retail & Business Banking; (ii) Corporate Banking (“CBG”); (iii) Real Estate & Contracting Finance; (iv) Investment Banking; and (v) Treasury. Real Estate & Consumer Banki
Slide 27: 2016 – 2018 Select Awards & Accolades
2016 – 2018 Select Awards & Accolades • Best Overall Islamic Bank • Indonesia Deal of the Year • Corporate Finance Deal of the • • CEO Award – Excellence in Islamic Islamic Bank of the Year Year Dr. Dr. • Best Islamic Retail Bank Banking awarded to Dr. Adnan • Cross Border Deal of the Year Adnan C
Slide 28: Select DIB Debt Capital Market Transactions
Select DIB Debt Capital Market Transactions SENAAT General Holding NMC Healthcare Aldar Investment IsDB DP World Corporation USD 400,000,000 USD 500,000,000 USD 1,300,000,000 USD 1,000,000,000 USD 400,000,000 5.950% 5 year Trust 4.750% 7 year Trust 3.389% 5 year Trust 4.848% 10 year Trust 4.760% 7 y
Slide 29: Select Syndicated / Club Transactions
SELECT SYNDICATED / CLUB TRANSACTIONS *Please note that some of these transactions are confidential and prior approval must be obtained for use in any publications Axiom Telecom Govt. of Pakistan, Al Baraka Turk Dubai Properties Group Emaar Malls PJSC Ministry of Finance USD 272,000,000 USD 2,000,00
Slide 30: 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 2075454 investorrelations@dib.ae www.dib.ae/about-us/investor-relations