Abu Dhabi Islamic Bank · ADX:ADIB
Abu Dhabi Islamic Bank — H1 2022 Earnings Presentation
32 slides from Abu Dhabi Islamic Bank's earnings presentation, Jul 21, 2022
Slide 1: 1H 2022 Earnings Presentation
ADIB IR Website 1H 2022 Earnings Presentation Analyst & Investor Conference Call IR App Download link: Abu Dhabi, 21 July 2022 Confidential
Slide 2: Contents
Contents 1H 2022 Earnings Presentation Key Highlights ADIB Strategy 2025 Financial Performance Outlook & Guidance Questions & Answers Contacts Disclaimer 2 Confidential
Slide 3: Key Highlights
1 2 Key Highlights 3 4 5 1H 2022 Earnings Presentation 6 7 Confidential 3
Slide 4: Key Highlights
Key Highlights ADIB delivers strong 1H 2022 performance underpinned by growth in core business 30% growth in net profit vs 1H2021 with ROE improving to 17.3% Revenue up 7% driven by 26% growth in fees and commissions and 5% growth in funded income Effective cost control strategy delivers positive ja
Slide 5: Executing ADIB Strategy
1 2 Executing ADIB Strategy 3 4 5 1H 2022 Earnings Presentation 6 7 Confidential 5
Slide 6: ADIB Strategy 2025
ADIB Strategy 2025 ADIB has launched strategy 2025 with a renewed purpose and vision Purpose Lifelong partner for customers, colleagues and community Vision The world’s most innovative Islamic bank 4-Pillar Strategy Continuous Segment Digital Sustainable Innovation Focused Excellence Future 6 Confid
Slide 7: Update on Strategy Progress
Update on Strategy Progress ADIB continues to deliver on its strategy in 1H 2022 Continuous Key product launches Amwali Youth Account Asset Management Payment Service Innovation - Launch of API Developer Portal plot - New land finance product +7,478 $162 mn AED 3.9 mn - Exclusive partnership deal wi
Slide 8: ADIB Strategy 2025 Strategic Targets
ADIB Strategy 2025 Strategic Targets A commitment to driving value ROE Net Profit C/I Ratio NPS STP 20% 2x <36% #1 >85% 8 Confidential
Slide 9: Financial Performance
1 2 3 Financial Performance 4 5 1H 2022 Earnings Presentation 6 7 Confidential 9
Slide 10: Financial Performance Highlights
Financial Performance Highlights ADIB delivers strong 1H 2022 performance Strong YoY Growth in Profitability Solid Balance Sheet Growth YTD Robust Capital Position and Strong Return 1.4bn 142bn 18.0% Net Income Total Assets CAR +30% +4% -101bps 2.8bn 97bn 17.3% Revenues Gross Customer Financing Retu
Slide 11: Income Statement
Income Statement 30% growth in profitability underscored by positive increases in our assets, revenue and gross financing Net Income (AEDmn) Net Income Movement YoY (AEDmn) 800 728 715 700 726 600 608 501 493 +30% 500 400 300 112 2 139 1,442 1,109 82 200 100 -2 0 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22
Slide 12: Non-Funded Income
Non-Funded Income Robust fee generation drives 11% YoY growth in non-funded income Non-Funded Income (AEDmn) Non-Funded Income Movement YoY (AEDmn) +8% +11% 667 620 48 1,169 551 549 1,057 118 506 491 -3 -51 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 Non-funded Investment Fees and Foreign exchange Other inc
Slide 13: Funded Income
Funded Income Net profit margin saw a 21bps rebound from 1Q 2022 Net Profit Margin (%) Net Profit Margin Movement QoQ (%) 4% 3.50% 3.47% 3.64% 3.56% 3.44% 4% 3.23% 3% +21bps 3.15% 3.13% 3.32% 3.25% 3.13% 3% 2.92% 2.92% 0.07% 0.08% 0.02% 0.02% 0.03% 3.13% 2% 2% 0.00% 1% 0.35% 0.33% 0.31% 0.31% 0.31%
Slide 14: Operating Expenses
Operating Expenses Relatively stable expenses YoY with cost to income ratio improving on positive jaws Cost To Income Ratio (%) Expenses Movement YoY (AEDmn) -306bps -0% 44.3% 43.9% 42.2% 40.7% 40.9% 40.9% 1,162 5 1,160 -1 -6 1Q 21 1H 21 9M 21 FY 21 1Q 22 1H 22 Expenses Digital Infrastructure Other
Slide 15: Digital Banking
Digital Banking Progress made on ADIB's digital strategy is reflected in UAE's highest customer ratings and other key digital metrics. Digitally Active Customers (%) Digital Sales (% of Total) Auto Digital 80% 70% 70% 71% 60% 54% Ecosystem 65% 67% 51% 51% 70% 62% 63% 64% 46% 47% 57% 60% 50% 44% 40%
Slide 16: Impairments
Impairments A 38% decline in impairments and 43bps decline in cost of risk YoY due to an improved economic outlook Impairments Movement YoY (AEDmn) Impairments (AEDmn) -38% -51% 367 10 384 4 227 233 203 134 113 114 -103 -28 -23 Impairments Retail Wholesale Private Treasury Others Impairments 1Q 21 2
Slide 17: Non-Performing Financing
Non-Performing Financing High asset quality leading to a lower NPA formation NPA (AEDmn) NMC Group +5% 85% NPA 7,746 7,786 8,025 8,286 8,355 8,175 Coverage 1,273 1,273 1,273 1,273 1,273 1,273 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 QoQ +1% +3% +3% +1% -2% NPA Composition by Sector (%) NPA Movement YTD (
Slide 18: Non-Performing Financing
Non-Performing Financing Lower NPA ratio with higher coverage on non-performing financing NPA Ratio (%) NPA Coverage Ratio (%) 10.0% 140% 118.2% 120.0% 121.1% 123.7% 111.9% 115.2% 9.5% 120% 9.0% 8.9% 8.8% 8.8% 100% 9.0% 8.9% 80% 8.5% 8.4% 60% 65.7% 66.8% 68.7% 71.4% 8.0% 40% 60.1% 64.2% 7.5% 20% 7.0
Slide 19: Balance Sheet
Balance Sheet ADIB reported 9% growth in total assets versus last year Total Assets (AEDbn) Total Assets Movement YTD (AEDbn) 144 +4% 142 138.6 141.9 140 136.9 138 4.9 0.3 141.9 136.9 3.9 136 133.4 134 132 130.6 -2.1 -2.0 130 130.7 128 126 124 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 Total assets Cash &
Slide 20: Customer Financing
Customer Financing …with 4% YTD customer financing growth driven mainly by growth in Retail and Corporate financing… Customer Financing, net (AEDbn) Customer Financing, Customer Financing, Gross Movement YTD (AEDbn) 95 92.2 Gross by Segment (%) +4% 90.2 90 88.3 Private Other 84.4 4.4% 2.8% 85 83.1 8
Slide 21: Customer Deposits
Customer Deposits …and 5% deposit growth with CASA comprising 75% of total customer deposits Total Deposits (AEDbn) Total Deposits Movement by Segment YTD (AEDbn) 120 115.2 115 110.8 +5% 109.6 110 107.0 105.2 105 0.3 0.5 0.7 0.1 115.2 103.1 109.6 4.0 100 95 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 Total
Slide 22: Capital and Liquidity
Capital and Liquidity …while maintaining robust capitalization and liquidity positions, well within regulatory requirements. Capitalization Ratios (%) Liquidity Ratios (%) 25% 100% 86.6% 84.4% 83.1% 82.4% 84.1% 85.1% 19.2% 19.1% 19.5% 18.6% 20% 18.1% 18.0% 80% 80.6% 79.6% 78.9% 80.5% 81.4% 80.0% 15%
Slide 23: Outlook and Guidance
1 2 3 Outlook and Guidance 4 5 1H 2022 Earnings Presentation 6 7 Confidential 23
Slide 24: Outlook and Guidance
Outlook and Guidance Improving economic fundamentals and solid YTD financial performance drive a promising outlook for 2022 Market Outlook Management Guidance 1H 2022 Reported FY 2022 Guidance FY 2022 Guidance Revised as at 1Q 2022 GDP growth from rising oil prices Gross Financing Growth Real GDP gr
Slide 25: Questions & Answers
1 2 3 4 Questions & Answers 5 1H 2022 Earnings Presentation 6 7 Confidential 25
Slide 26: Consistent dividend distribution
Consistent dividend distribution ADIB consistently distribute dividends with average yield of 4% Shareholder Return Metrics 8.00 7.00 6.00 5.00 4.00 3.00 Share Price 9.9% 2.00 8.0% 7.6% 7.0% 6.2% 6.5% 4.1% 5.1% 4.4% 4.5% 1.00 Dividend Yield 0.00 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Net
Slide 27: Ratings and Accolades
Ratings and Accolades ADIB's recognition for excellence in Islamic banking Credit Ratings ADIB's MSCI ESG Rating Recent Accolades A2 Stable Outlook #1 #1 Digital Bank in the UAE Transformation (April 2021) Program MSCI Rating Distribution 25% 24% 25% A+ 16% Stable Outlook 6% 2% #1 #1 1% Islamic Bank
Slide 28: ADIB Share Price Performance
ADIB Share Price Performance From 1Q 2020 to 2Q 2022 ADIB’s share price is up 87.97% ADIB Share Price Chart 11.00 10.00 9.00 8.00 7.50 7.00 6.00 5.00 3.99 4.00 3.00 2.00 28 Confidential
Slide 29: Contacts
1 2 3 4 Contacts 5 1H 2022 Earnings Presentation 6 7 Confidential 29
Slide 30: Additional Information
Additional Information Please contact the Investor Relations team for additional information or download ADIB's IR App ADIB Investor Relations Contact ADIB Investor Relations App Mrs. Lamia Khaled Hariz Head of Public Affairs and Investor Relations E: Lamia.Hariz@adib.com T: +917 2 634 3000 M: +971
Slide 31: Disclaimer
1 2 3 4 Disclaimer 5 6 1H 2022 Earnings Presentation 7 31 Confidential
Slide 32: Disclaimer
Disclaimer The information contained herein has been prepared by Abu Dhabi Islamic Bank PJSC (ADIB). ADIB relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness. This presentation has been prepared for information purposes only and is
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