Abu Dhabi Commercial Bank · ADX:ADCB
Abu Dhabi Commercial Bank — Abu Dhabi Commercial Bank PJSC — Q3 2014 Earnings Presentation
18 slides from Abu Dhabi Commercial Bank's earnings presentation, 2014
Slide 1: Q3'14/9M'14 Earnings presentation
Abu Dhabi Commercial Bank PJSC Q3’14/9M’14 Earnings presentation
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 and conservative balance sheet providing a solid foundation… As at 30 September 2014 AED mn Sep’14 Dec’13 Change % Total assets grew 8% year to date, mainly on account of higher cash and balances with central Net loans 3 135,887 131,649 banks, deposits and balances du
Slide 4: Income statement highlights
Income statement highlights Sustained profitability and strong operating performance… 9M’14 vs. 9M’13 Highlights AED mn 9M’14 9M1’13 Change % Q3'14 Q3'13 Change % 9M’14 net profit up 16% at AED 3,179 mn Total net interest income1 4,193 4,086 3 1,400 1,366 2 Diversified sources of income: Operating i
Slide 5: Key performance indicators
Key performance indicators… Net profit Earnings per share (AED mn) (EPS – AED) +16% 3,179 9M’14 2,741 0.16 0.20 0.18 0.55 +11% Q1’14 Q2’14 Q3’14 1,103 1,058 1,018 920 879 9M’13 0.13 0.16 0.14 0.15 0.43 Q1’13 Q2’13 Q3’13 Q4’13 9M'13 9M'14 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Return on average assets (ROAA %
Slide 6: Operating performance: Significant improvement in cost of funds
Operating performance Significant improvement in cost of funds… 9M’14 vs. 9M’13 Highlights Net interest income up 3% at AED 4,193 mn Cost of funds improved to 90 bps compared to 123 bps in 9M’13, mainly driven by the Bank’s ongoing efforts to increase low cost customer deposits (CASA contribution at
Slide 7: Operating performance: Diversified revenue stream, robust fee income growth
Operating performance Diversified revenue stream, robust fee income growth… 9M’14 vs. 9M’13 Highlights Non interest income (AED mn) Non- interest income contribution to total operating income -1% unchanged at 26% 1,470 1,452 Net fees and commission income increased 19% to AED 896 mn, primarily attri
Slide 8: Operating expenses
Operating expenses Efficiently managed cost base…. 9M’14 vs. 9M’13 Highlights Cost to income ratio for 9M’14 was 32.8%, within our target range Operating expenses in 9M’14 increased 11% year on year to AED 1,854 mn Staff costs as a percentage of total operating expenses remained unchanged at 57% 30.
Slide 9: Composition of assets and loan book
Composition of assets and loan book Resilient balance sheet, UAE centric loan book… Highlights Composition of assets Total assets = AED 198,425 mn Net loans and advances comprised 69% of total assets compared to 72% at year end. The significant increase in cash and balances with Central Banks and, d
Slide 10: Composition of liabilities and customer deposits
Composition of liabilities and customer deposits CASA contribution significantly higher… Highlights Composition of liabilities Sep’14 Diversified sources of funding, customer deposits comprised 70% Total liabilities = AED 172,809 mn of total liabilities. Euro commercial paper and borrowings increase
Slide 11: Wholesale funding and maturity profile
Wholesale funding and maturity profile Stable funding and liquidity profile… Diversified sources of funding by markets, tenors, currencies and products Maturity profile Wholesale funding split As at 30 September 2014 (AED mn) As at 30 September 2014 13,873 Source of funds AED mn 12,915 GMTN/EMTN¹ 18
Slide 12: Asset quality
Asset quality Continued improvement in asset quality metrics… Highlights Cost of risk¹ Cost of risk for 9M’14 was 52 bps compared to 1.07% for 9M’13 and 0.90% as at 31 December 2013 3.21% 2.61% NPL ratio improved to 3.4% vs. 4.1% at year end, and provision coverage ratio improved to 128.7% from 109.
Slide 13: Strong liquidity and capital position at industry leading levels
Strong liquidity and capital position at industry leading levels… Highlights Capital adequacy ratio As at 30 September 2014, the Bank’s capital adequacy ratio was Risk weighted assets (AED bn) 21.25% compared to 21.21% as at 31 December 2013 138 147 149 153 149 Tier I ratio was 16.90% compared to 16
Slide 14: Summary
Summary Continue to follow a corporate strategy based on measured growth and discipline Sustained profitability and strong operating performance Significant improvement in cost of funds and efficiently managed cost base Continued improvement in asset quality Strong liquidity and capital position at
Slide 15: Appendix
Appendix
Slide 16: 9M'14 awards
9M’14 awards The Banker Middle East Product Awards 2014; “Best New SME World Finance Magazine Award; Product”, “Best SME Customer Service” and “Best Trade Finance “Best Corporate Governance in Offering” UAE” Banker Middle East Industry Awards; Global Finance Magazine; “Best Overall Bank for Cash “Be
Slide 17: Balance sheet
Balance sheet AED mn Sep’14 Dec’13 Change % Cash and balances with Central Banks 14,309 9,961 44 Deposits and balances due from banks 16,549 11,345 46 Trading securities 176 885 (80) Derivative financial instruments 4,144 3,616 15 Investment securities 21,800 20,855 5 Loans and advances, net 135,887
Slide 18: Income statement
Income statement AED mn 9M’14 9M’13 Change % Interest income and income from Islamic financing 5,248 5,410 (3) Interest expense and profit distribution (1,056) (1,324) (20) Net interest and Islamic financing income 4,193 4,086 3 Net fees and commission income 896 751 19 Net trading income 334 409 (1
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