Dubai Islamic Bank Pjsc · DFM:DIB
Dubai Islamic Bank Pjsc — Dubai Islamic Bank — Investor Presentation (2012)
31 slides from Dubai Islamic Bank Pjsc's investor presentation, 2012
Slide 1: Dubai Islamic Bank: The Better Way to Bank
Dubai Islamic Bank “The Better Way to Bank” Investor Relations YE 2011 Investor Relations
Slide 2: Disclaimer
Disclaimer The information provided in this presentation should not be used as a substitute for any form of advice. Decisions based on this information are for your own account and risk. Although DIB attempts to provide accurate, complete and up-to-date information, which has been obtained from sour
Slide 3: Contents
Contents About DIB DIB Financials Bank Business Strategy Stock Information 3 Investor Relations
Slide 4: About DIB
About DIB The world’s first Islamic Bank Established in 1975 UAE 74 Branches Reaching 1,400,000 customers Pakistan 60+ Branches in 30+ cities Jordan Jordan Dubai Islamic Bank Turkey DIB Representative office 4 Investor Relations
Slide 5: Formidable Name in Islamic Banking
Formidable Name in Islamic Banking Significant government ownership – 3rd largest Islamic bank in the world Innovators and drivers of Islamic Government of Dubai 29.81% and Banking trends Federal Pension Fund 4.29% and largest in the UAE Strong geographical coverage within Choice employer for Islami
Slide 6: DIB Group Structure and Strategic Stakes
DIB Group Structure 100 % owned Strategic Stakes 6 Investor Relations
Slide 7: DIB's Core Businesses
DIB’s Core Businesses • Largest business Group within DIB • Full range of products and services Retail & Business • Customer segments: Mass Affluent, HNWI, SMEs Banking • One of the largest Retail customer base in UAE • Market leaders: Deposits products and Auto finance, Islamic mortgages, Islamic c
Slide 8: Mega Deals: Capital Market Transactions
Mega Deals: Capital Market Transactions AED 3.20 Billion Sukuk AED 3.60 Billion Sukuk AED 1.1 Billion Sukuk AED 1.1 Billion Sukuk AED 3.75 Billion Sukuk AED 7.50 Billion Sukuk Joint Lead Manager & Joint Lead Manager & Joint Lead Manager & Joint Lead Manager & Joint Lead Manager & Bookrunner Bookrunn
Slide 9: PF & Syndications Transactions
PF & Syndications Transactions $ 2.2 billion equiv. Multi currency $ 2.50 billion PFZW $ 6 billion $ 2.2 billion equiv. AED 3.6 billion Multi Tranche Ijara & Dual currency $ 1.25 billion Dual Tranche Dual currency Ijara Dual currency Conventional Islamic and Conventional Conventional & Facility Conv
Slide 10: Key Awards
Key Awards Bank of the Best Islamic Bank in the Middle East 2006 Best Global Sukuk House Euromoney Islamic Finance Award Best Debt House in UAE Euromoney Award for Excellence Year (UAE) The Banker Awards Best Islamic Bank in the Middle East Banker Middle East Award 2007 and PCFC deal recognized as t
Slide 11: Key Awards - Recent
Key Awards - Recent Mudaraba Deal of The Year - ENOC Forbes Middle East’s Credit Cards Ranking: Dubai Islamic AED 1.1 billion Bank ranked No. 1 in Gold and Classic Cards Tiers and Islamic Finance News Award No. 2 in the Platinum Cards Tier in the UAE 2011 11 Investor Relations
Slide 12: Contents
Contents About DIB √ DIB Financials Bank Business Strategy Stock Information 12 Investor Relations
Slide 13: Key Financials Year End 2011
Key Financials Year End 2011 Assets (USD Bln) Net Profit (USD Mil) 30 800 680 23 23.2 23.7 24.7 700 25 21.3 600 20 17.5 470 500 430 15 11.7 400 290 330 280 8.3 300 220 10 6.2 4.2 5.3 200 130 5 2.5 3.2 50 70 100 30 30 40 0 0 2000 2001 2002 1999 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002 2006 1
Slide 14: Balance Sheet Summary
Balance Sheet Summary (All figures in AED billion) 95.0 Assets Deposits Financing & Sukuk 90.0 89.9 90.6 85.0 84.8 84.3 80.0 75.0 70.0 65.4 64.2 64.8 65.0 63.9 64.1 63.4 60.0 62.6 59.2 55.0 2008 2009 2010 2011 • Total assets grew by 7% from 2008 to 2011 • Deposits increased by 9% from 2008 to 2011 •
Slide 15: Portfolio Snapshot Year End 2011: Deposit Breakdown
Portfolio Snapshot Year End 2011 Deposit Breakdown 0% A large and stable deposit base 2% providing core funding for the bank 26% Banking generation of UAE Nationals 72% Primary funding coming form Retail deposits and hence well diversified Branch expansion strategy and franchise value have been inst
Slide 16: Portfolio Snapshot Year End 2011: Deposit by Type
Portfolio Snapshot Year End 2011 Deposit by Type Large Chunk of low cost deposits (45%) Current Accounts 28% Stable deposit base Investment Deposits Saving Accounts 55% 17% Customer loyalty reflects franchise value 3% 16% Demand Deposits 42% 11% Deposits due within 28% 3 months Deposits due within 6
Slide 17: Deposit Profile
Deposit Profile (All figures in AED billion) 70.0 4.00% 62.6 64.2 63.4 64.8 60.0 9.9 10.8 10.0 3.50% 11.2 50.0 14.3 14.2 3.00% 15.3 18.0 40.0 2.87% 2.50% 2.59% 30.0 1.93% 2.00% 36.0 20.0 40.1 37.1 38.1 1.33% 1.50% 10.0 - 1.00% 2008 2009 2010 2011 Savings accounts Current accounts Fixed deposits Cost
Slide 18: Portfolio Snapshot Year End 2011: Financing Breakdown
Portfolio Snapshot Year End 2011 Financing Breakdown The retail financing base has grown to more than a quarter of total Retail Banking bank financing on its own and 23% 31% more than a third with Tamweel Corporate Banking mortgages consolidated 46% Real Estate & Still significant growth opportunity
Slide 19: Financing & Sukuk Investment Portfolio
Financing & Sukuk Investment Portfolio All figures in AED billion Tamweel Consumer Corporate & Real Estate Sukuk 57.2 52.7 51.6 49.9 8.2 11.3 7.8 11.8 13.7 14.1 41.4 38.1 35.3 29.7 11.2 12.6 9.3 8.2 2008 2009 2010 2011 • Consumer financing increased by 25% from 2008 to 2011 • Sukuk investment increa
Slide 20: Impaired Financing Portfolio
Impaired Financing Portfolio (All figures in AED billion) 8.1 25.0% Provision covergae 8.0 Tamweel 195% Proviosn + Colletral covergae 1.0 200% DIB 7.0 20.0% Impaired Loans Ratio 152% 6.0 150% 5.0 14.5% 5.0 15.0% 121% 0.6 112% 4.0 100% 3.1 10.0% 8.3% 7.1 3.0 2.2 63% 59% 56% 6.0% 49% 2.0 50% 4.1% 4.4
Slide 21: Net Profit
Portfolio Snapshot Year End 2011 Net Profit 1,800 1,554 Net Profit declined from 2008 to 2010 1,600 1,400 due to: 1,200 1,208 • Increase in provision for +25% 1,010 impairment 1,000 807 • Decline in profits and losses from 800 associates and other investments 600 400 Core profit increased from 20
Slide 22: Portfolio Snapshot Year End 2011: Revenue Breakdown
Portfolio Snapshot Year End 2011 Revenue Breakdown Retail focused strategy paying rich dividends 12% 18% 49% Retail focus is real visible as retail revenues has grown to almost half of the overall financing portfolio including Tamweel. 21% Corporate finance and corporate banking activity expected to
Slide 23: Key Performance Ratios
Key Performance Ratios Net Spread Cost vs Income 3.60% 3.45% 3.49% 3.47% 3.40% 3.25% 3.20% 43% 42% 3.00% 42% 42% 41% 41% 2.80% 40% 40% 2.60% 39% 38% 2.40% 37% 2.20% Based on total profit 36% 2.00% 35% 2008 2009 2010 2011 2008 2009 2010 2011 Spread improved due to: Cost to income ratio improved due t
Slide 24: Return on Equity and Return on Asset
Portfolio Snapshot Year End 2011 Return on Equity Return on Asset 22.0% 2.30% 19.7% 2.10% 2.04% 20.0% 1.89% Core 1.90% 18.0% 16.7% Core 1.66% 1.65% 15.7% 15.6% 1.70% 1.84% 16.0% 16.2% 1.50% 14.0% 1.30% 1.43% 12.0% 13.6% 1.10% Net 10.0% Net 1.12% 10.8% 0.90% 8.0% 0.92% 8.7% 0.70% 6.0% 0.50% 2008 2009
Slide 25: Key Balance Sheet Ratios
Key Balance Sheet Ratios Finance to Deposit Ratio Capital Adequacy Ratio 19.0% 17.8% 18.1% DIB 17.5% 95% 17.0% 90% 90% 84% 15.0% 85% MOF Tier 2 capital 80% 80% 78% 13.0% 75% 10.7% 11.0% 70% 65% 9.0% 60% 7.0% 55% 50% 5.0% 2008 2009 2010 2011 2008 2009 2010 2011 Strong liquidity position with healthie
Slide 26: Contents
Contents About DIB √ DIB Financials √ Bank Business Strategy Stock Information 26 Investor Relations
Slide 27: Bank Business Strategy
Bank Business Strategy Employee Brand & Product Client Focus Business Growth Engagement Development To get close to our To ensure our people To develop innovative Strategy for existing customers by are fully engaged Islamic financial non-UAE franchise understanding their and committed. products and
Slide 28: Bank Business Strategy
Bank Business Strategy Dubai Islamic Bank Key Operation Areas Strategic Initiatives 1. Consumer Banking 1. Optimally grow its balance sheet and funds 2. Corporate Banking (including Real Estate under management & Contracting) 2. Ensure superior asset allocation and diversification 3. DIB Capital (Eq
Slide 29: Contents
Contents About DIB √ DIB Financials √ Bank Business Strategy √ Stock Information 29 Investor Relations
Slide 30: Dividend payments
Dividend payments Dividend Payment History (%) 60 55 50 40 40 42 30 30 20 20 10 15 10 20 0 10 2002 2003 2004 2005 2006 2007 2008 2009 2010 Proposed dividend of 10% for 2011 30 Investor Relations
Slide 31: Thank You
Dubai Islamic Bank “The Better Way to Bank” THANK YOU 31 Investor Relations