Abu Dhabi Islamic Bank · ADX:ADIB
Abu Dhabi Islamic Bank — 9M 2021 Earnings Presentation
37 slides from Abu Dhabi Islamic Bank's earnings presentation, Nov 1, 2021
Slide 1: 9M 2021 Earnings Presentation
9M 2021 Earnings Presentation # 1 Bank in UAE Analyst & Investor Conference Call Abu Dhabi, 01 November 2021
Slide 2: Contents
Contents 9M 2021 Earnings Presentation Key Highlights ADIB Strategy 2025 Financial Performance Outlook & Guidance Questions & Answers Contacts Disclaimer 2
Slide 3: Key Highlights
1 2 Key Highlights 3 4 5 9M 2021 Earnings Presentation 6 7 3
Slide 4: Key Highlights
Key Highlights ADIB continued to deliver a strong performance Delivering strong Y-O-Y Growth 43% increase in net profit with ROE improving to 13.0% Revenue up 4% driven by 8% increase in non-funded income Effective cost control strategy leads to a reduction of 535 basis points in cost to income rati
Slide 5: ADIB Strategy
1 2 ADIB Strategy 3 4 5 9M 2021 Investor Presentation 6 7 5
Slide 6: A changing banking landscape
A changing banking landscape The global banking industry is experiencing an era of transformation and opportunity Digitalization Fintech Regulatory Low Rate Sustainability Drive Disintermediation Pressure Environment Focus 6
Slide 7: 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 7
Slide 8: ADIB 2025 Strategy: Continuous Innovation
ADIB 2025 Strategy Continuous Innovation in Sharia-compliant banking products Continuous Innovation Segment Digital Sustainable Continuous Focused Excellence Future Innovation § Innovate Sharia-compliant banking products § Re-engineer our processes § Develop Islamic banking experts § Launch digital
Slide 9: ADIB 2025 Strategy: Segment Focused
ADIB 2025 Strategy Build on strength in Emirati retail segment and expand underweight business segments Segment Focused Continuous Segment Digital Sustainable Innovation Focused Excellence Future § Grow and strengthen existing segments § Focus on Emirati throughout their lifecycle § Develop Business
Slide 10: ADIB 2025 Strategy: Digital Excellence
ADIB 2025 Strategy Become a digital first financial institution Digital Excellence Continuous Segment Digital Sustainable Innovation Focused Excellence Future § Elevate customer convenience through digital § Build a modern technology foundation for staff § Become a data-driven company through advanc
Slide 11: ADIB 2025 Strategy: Sustainable Future
ADIB 2025 Strategy Embed sustainability and ESG frameworks into our existing Islamic banking DNA Sustainable Future Continuous Segment Digital Sustainable Innovation Focused Excellence Future § Focus on employee wellbeing § Develop ESG risk framework and policies § Develop Group sustainability strat
Slide 12: 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% 12
Slide 13: ADIB's revamped management team will lead the growth strategy
ADIB’s revamped and energetic management team will lead the growth strategy Steering Committee Members " We are building the most innovative " We have a clear path towards growth and " We ensure adequate Governance of credit " We manage and minimise risk within regulatory Islamic bank " sustainable
Slide 14: Financial Performance
1 2 3 Financial Performance 4 5 9M 2021 Earnings Presentation 6 7 14
Slide 15: Financial Performance Highlights
Financial Performance Highlights ADIB reports a strong set of results for 9M 2021 Strong YoY Growth in Profitability Steady Balance Sheet Growth Robust Capital Position and Strong Return 1.6bn 133bn 19.5% Net Income Total Assets CAR +43% +5% +112bps 4.1bn 89bn 13.0% Revenues Gross Customer Financing
Slide 16: ADIB Share Price Performance
7.00 4.00 0.00 6.00 3.00 1.00 2.00 5.00 2020-03-31 3.99 2020-04-08 2020-04-16 2020-04-26 2020-05-04 2020-05-12 2020-05-20 2020-06-02 ADIB Share Price (AED) 2020-06-10 2020-06-18 2020-06-28 2020-07-06 2020-07-14 2020-07-22 2020-08-03 2020-08-11 2020-08-19 2020-08-30 2020-09-07 ADIB Share Price Perfor
Slide 17: Income Statement Highlights
Income Statement Highlights Strong YoY growth in profitability driven by revenue growth and OPEX optimization Profit After Zakat & Tax (AEDmn) Revenues (AEDmn) +4% 3,933 4,093 +43% 1,602 9M 20 9M 21 1,121 Expenses (AEDmn) -8% 1,872 1,729 9M 20 9M 21 9M 20 9M 21 Key Highlights Impairments (AEDmn) - T
Slide 18: Income Statement
Income Statement ADIB witnessed an increase in profitability with 43% growth YoY… Net Income (AEDmn) Net Income Movement YoY (AEDmn) 700 608 +43% 600 534 501 483 500 493 400 318 203 1,602 300 112 143 270 1,121 48 200 -26 100 0 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 Profit after Funded income Non-
Slide 19: Non-Funded Income
Non-Funded Income …due to a strong 8% YoY rise in non-funded income from higher cards, investment income and forex income,… Non-Funded Income (AEDmn) Non-Funded Income Movement YoY (AEDmn) -11% +8% 549 598 551 109 37 1,548 462 506 491 1,436 424 -28 -5 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 Non-fu
Slide 20: Funded Income
Funded Income …while maintaining sector-leading cost of funding and net profit margin. Net Profit Margin (%) Net Profit Margin Movement YoY (%) 6% -23bps 4.64% 5% 4.24% 4.13% 4.04% 3.50% 3.47% 3.64% 3.55% 4% 0.17% 3.32% 0.26% 3% 3.84% 3.58% 3.55% 3.51% 3.32% 3.15% 3.13% -0.39% 2% -0.27% 0.72% 0.61%
Slide 21: Operating Expenses
Operating Expenses Profit growth was further boosted by an 8% YoY reduction in 9M 2021 expenses, reflecting disciplined cost control and early benefits of the digital strategy. Cost To Income Ratio (%) Expenses Movement YoY (AEDmn) -541bps -8% 49.1% 49.3% 44.6% 44.3% 43.6% 40.6% 39.2% 10 1,872 1,729
Slide 22: 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) Amwali Youth Facial Recognition 80% 60% 54% Bank Account Account Opening 70% 70% 51% 51% 70% 62% 63% 64% 46
Slide 23: Impairments
Impairments A 21% YoY decline in impairments due to an improved economic outlook,... Impairments Movement YoY (AEDmn) Impairments (AEDmn) -21% +57% 954 387 360 384 150 751 322 245 233 -118 -202 134 -23 -10 Impai rments Retail Wholesale Private Treasury Others Impai rments 1Q 20 2Q 20 3Q 20 4Q 20 1Q
Slide 24: Non-Performing Financing
Non-Performing Financing …resulting in modest NPA growth and a stable NPA ratio, with NPA coverage at 118.2% including the benefit of significant and high-quality collaterals. NPA (AEDmn) NPA Ratio (%) 10% +4% 9.0% 8.9% 8.8% 9% 8.8% 9.0% 7,805 7,689 7,746 7,786 8,025 7,195 8.4% 6,495 8% 7.9% 7% 1Q 2
Slide 25: Balance Sheet
Balance Sheet ADIB reported steady balance sheet growth during 9M 2021… Total Assets (AEDbn) Total Assets Movement YTD (AEDbn) 136 +4% 134 130.7 130.6 133.4 132 130 127.1 127.8 1.0 1.1 133.4 127.8 1.5 2.3 128 126 124.4 124 -0.4 122 122.7 120 118 116 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 Total as
Slide 26: Customer Financing
Customer Financing …with customer financing growth driven mainly by 6% YTD growth in Government and PSE financing… Customer Financing, net (AEDbn) Customer Financing, Gross Movement YTD (AEDbn) 85 83.4 83.7 84.4 +2% 84 83.2 83.1 83 82.0 82 Wholesale 81 87.4 0.6 0.7 0.5 0.1 89.1 80 79 79.4 -0.2 78 77
Slide 27: Customer Deposits
Customer Deposits …and solid 6% deposit growth from strong CASA and STI generation, mainly in the Retail segment… Total Deposits (AEDbn) Total Deposits Movement by Segment YTD (AEDbn) 110 107.0 105.2 103.1 +6% 105 100.7 101.3 98.9 98.6 100 101.3 4.3 1.3 0.3 0.4 107.0 95 -0.6 90 1Q 20 2Q 20 3Q 20 4Q
Slide 28: Capital and Liquidity
Capital and Liquidity …while maintaining robust capitalization and liquidity positions, well within regulatory requirements. Capitalization Ratios (%) Liquidity Ratios (%) 20% 18.8% 19.2% 19.1% 100% 18.3% 19.5% 86.6% 87.1% 85.8% 84.4% 83.1% 18.2% 85.1% 82.4% 18%18.1% 18.4% 80% 17.0% 18.1% 18.0% 80.3
Slide 29: Outlook and Guidance
1 2 3 Outlook and Guidance 4 5 9M 2021 Earnings Presentation 6 7 29
Slide 30: Outlook and Guidance
Outlook and Guidance Improving economic fundamentals and solid YTD financial performance drive a promising outlook for FY 2021 Market Outlook Management Guidance 9M 2021 Reported FY 2021 Guidance GDP growth from rising oil prices Net Income Growth Real GDP growth (%) ADIB is well-positioned for a pe
Slide 31: Questions & Answers
1 2 3 Questions & Answers 4 5 9M 2021 Earnings Presentation 6 7 31
Slide 32: Consistent dividend distribution
Consistent dividend distribution ADIB consistently distribute dividends with average yield of 4% and TSR of 36% Shareholder Return Metrics 8.00 6 0 % 7.00 5 0 % 6.00 36% 4 0 % Total Shareholder Return 5.00 4.00 3 0 % 3.00 Share Price 2 0 % 2.00 9.9% 8.0% 7.6% 7.0% 6.2% 6.5% 5.1% 4.4% 10 % 1.00 4.1%
Slide 33: Ratings and Accolades
Ratings and Accolades ADIB's recognition for excellence in Islamic banking Credit Ratings ADIB's MSCI ESG Rating Recent Accolades A2 Negative 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 Ba
Slide 34: Contacts
1 2 3 Contacts 4 5 9M 2021 Earnings Presentation 6 7 34
Slide 35: 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 36: Disclaimer
1 2 3 Disclaimer 4 5 6 9M 2021 Earnings Presentation 7 36
Slide 37: 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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