Abu Dhabi Islamic Bank · ADX:ADIB

Abu Dhabi Islamic Bank — H1 2011 Earnings Presentation

27 slides from Abu Dhabi Islamic Bank's earnings presentation, August 2011

  1. Slide 1: Investor Presentation

    Investor Presentation 30 June 2011 Abu Dhabi: August 2011 ADIB © 2010 adib.ae

  2. Slide 2: Table of contents

    Table of contents Pages  ADIB at a glance 3  Focus on network expansion continues 4  An award winning Islamic Bank 5-6  Financial targets over the medium term 7  Salient features of H1 2011 results 8  30 June 2011 – Balance sheet highlights 9  H1 2011 – Income statement highlights 10  Consol

  3. Slide 3: ADIB at a glance

    ADIB at a glance - Incorporated in 1997 to serve as first Islamic Bank in the Emirate of Abu Dhabi. Overview - Owned (40 %) by Emirates International Investment Co. LLC. - Listed on Abu Dhabi Securities Exchange (ADX). Fitch Moody's (Re-affirmed 21 Dec 2010) (Re-affirmed 21 Feb 2010) Credit Rating L

  4. Slide 4: Focus on network expansion continues

    Focus on networking expansion continues ADIB continues to investment in coverage during the downturn Branch Network Customers ATM +14% +21% 66 439,734 384 387,017 +62% 57 48 305,567 262 44 249,421 160 91 Q2 08 Q2 09 Q2 10 Q2 11 Q2 08 Q2 09 Q2 10 Q2 11 Q2 08 Q2 09 Q2 10 Q2 11  Branches in 11 years.

  5. Slide 5: An award winning Islamic Bank

    An award winning Islamic Bank Franchise Awards “Best Islamic Bank “Best Islamic Bank” 2010” in the Middle East by award by Islamic Business & Bankers Middle East Finance June 2010 December 2010 “Best Islamic Bank” “Best Islamic Bank” in the UAE in the UAE by Islamic Finance News 2010 November 2010 J

  6. Slide 6: An award winning Islamic Bank

    An award winning Islamic Bank Product & Marketing “Best Savings Account “Best Islamic Branding” 2010” in the Middle East for award by Islamic Business & Finance ADIB’s GHINA savings account December 2010 April 2010 “Best Deal in the UAE” “Best SME Card” award by by Islamic Finance News 2010 Banker M

  7. Slide 7: Financial targets over the medium term

    Financial targets over the medium term 1 ROASE of 20% 2 Cost to Income Ratio of less than 35% 3 Earnings increase of 15% p.a. 7

  8. Slide 8: Salient features of H1 2011 results

    Salient features of H1 2011 results Group net profit for H1 2011 was AED 619.8 Mn vs. AED 594.9 Mn in H1 2010, an 1 increase of 4.2%. Group operating profit (“margin”) for H1 2011 was AED 1,015.1 Mn vs. AED 834.7 Mn 2 for H1 2010, an increase of 21.6%. 3 Balance sheet footing stands at AED 72.3 Bn v

  9. Slide 9: 30 June 2011 – Balance sheet highlights

    30 June 2011 – Balance sheet highlights 30 June ‘10 30 June ‘11 % chg AED Bn AED Bn Total Assets 68.3 72.3 6%  Total Assets increased by 6% over Q2 2010 to reach AED 72 bn. Net Customer Financing 45.2 48.1 6%  Customer financing increased by 6% from Q2 2010 to reach AED48.1 bn.  Customer deposits

  10. Slide 10: H1 2011 – Income statement highlights

    H1 2011 – Income statement highlights H1 2010 H1 2011 % chg AED Mn AED Mn  Revenues up by 21% on the back of Revenues 1,424.8 1,717.1 21% higher net revenue from funds (up 14%) and fees & commission (up 60%). Expenses 590.1 702.0 19%  Expenses up by 19% mainly due to continuous investment in our f

  11. Slide 11: Consolidated Statement of Income

    Consolidated Statement of Income % chg Q2 % chg Q2 % chg H1 11 AED Mn Q2 10 Q1 11 Q2 11 H1 10 H1 11 11 vs Q2 10 11 vs Q1 11 vs H1 10 Revenues 744.2 807.5 909.6 22.2% 12.6% 1,424.8 1,717.1 20.5% Net Revenue from Funds 647.6 664.7 722.7 11.6% 8.7% 1,219.2 1,387.4 13.8% Fees & commission 78.9 111.2 105

  12. Slide 12: Key income parameters - Group

    Key income parameters - Group Revenues (AED Mn) Net Profit (AED Mn) Fees, commission & others Net revenue from funds Operating profit Provision for impairment Net Profit 910 552 744 187 437 436 624 97 599 365 84 302 317 195 276 236 723 193 648 162 171 515 135 429 Q2 08 Q2 09 Q2 10 Q2 11 Q2 08 Q2 09

  13. Slide 13: Key income parameters – Bank only

    Key income parameters – Bank only Revenues (AED Mn) Net Profit (AED Mn) Fees, commission & others Net revenue from funds Operating profit Provision for impairment Net Profit 876 542 748 129 466 76 393 588 385 45 332 463 306 26 747 214 672 162 144 171 543 135 149 437 Q2 08 Q2 09 Q2 10 Q2 11 Q2 08 Q2

  14. Slide 14: Consolidated Balance Sheet

    Consolidated Balance Sheet % chg 30 June % chg 30 June 30 June 31 Dec 30 June AED Mn 2011 vs 31 Dec 2011 vs 30 June 2010 2010 2011 2010 2010 Cash and balances with Central Banks 4,291 5,400 7,950 47.2% 85.3% Due from financial institutions 12,670 15,730 10,123 -35.6% -20.1% Net Customer financing 45

  15. Slide 15: Balance Sheet Strength

    Balance Sheet Strength Remains one of the most liquid bank’s in the UAE on the back of above market balance sheet growth +6% +3%  Total Assets increased by 6% in 45,201 48,128 51,883 53,192 Q2 2011 to reach AED 72.3 Bn. 43,566 37,447  Net Customer financing 30,140 33,710 increased by 6% in Q2 2011

  16. Slide 16: Assets and Liquidity

    Assets and Liquidity Average Earning Assets (AED Bn) & Net Profit Margin (%) Composition of Assets – AED 72.3 Bn NPM % Average Earning Assets Investments; 70 5.2 1.8% 62.1 61.1 60 57.0 59.2 59.3 Fixed assets & 55.6 Customer 52.4 Other Assets; 48.4 49.4 financing; 50 6.7% 4.8 66.5% 4.9% 40 4.5% 4.5%

  17. Slide 17: Customer Financing

    Customer Financing Gross Customer Financing by Segment Gross Customer Financing by Customer Type Retail Wholesale Private +18% 50.7 47.1 Individual; -Individuals – 23.9 bn 60.2% 38.4 -SMEs – 0.8 bn Corporate; 48.6% 30.2% 46.5% 30.7 44.5% 44.0% -Corporate – 15.3 bn -PS & ,Govt – 2.8 bn 37.8% 38.0% -F

  18. Slide 18: Customers’ Deposits

    Customers’ Deposits Customers’ Deposits by Segment Customers’ Deposits by Customer Type Wholesale Retail Private Non-profit organisations; SMEs; 6.3% 4.9% +16% 53.2 51.9 Government; 14.9% Public 43.6 Sector; -Government – 7.9 bn 40.3% -Public Sector– 7.3 bn 13.7% 46.1% -Corporates – 3.6 bn 33.7 -FIs

  19. Slide 19: NPAs & Provisions - Group

    NPAs & Provisions - Group Cumulative Provisions 2008 2009 2010 H1 2011 Key points Customer Financing Portfolio Individual/Specific 455 1,233 1,702 1,954  NPAs increase by AED 1,084 Mn in Q2 2011 to reach AED 4,854 Mn at end of Q2 2011. Collective/General 135 518 575 615  NPAs ratio at 9.6% as at 3

  20. Slide 20: Capital Adequacy

    Capital Adequacy ADIB’s CAR of 16.10% remains above the new Central Bank threshold of 12% for CAR Capital Adequacy (%) Capital Resources (AED Bn) CAR Basel II UAE Central Bank requirement Equity Total Capital Resources 16.6% 16.0 16.1% 12.8 14.2% 10.6 8.4 8.1 7.7 12.2% 12.0% 12.0% 5.5 7.7 10.0% 10.0

  21. Slide 21: Shareholders’ Return

    Shareholders’ Return  30 June 2011 share price was AED 3.29 per share.  Cash dividend of 21.64% for 2010 (Bonus share dividend of 20% for 2009).  Dividend Yield for FYR 2010 of ADIB share is 7.3%. ADIB vs ADX ADIB ADX 4.00 3,400 3.50 3,200 3.00 ADIB Price (AED) 3,000 2.50 ADX Points 2,800 2.00 2,

  22. Slide 22: Outlook - 2011

    Outlook - 2011 On the back of our rebranding we are implementing a broad range of initiatives to enhance our product 1 portfolio, improve our processes and introduce new banking channels, all of which is designed to provide support to our customers, with best in market service and Shari’a inspired s

  23. Slide 23: 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

  24. Slide 24: Executive Management Biographies

    Executive Management Biographies 24

  25. Slide 25: Executive Management Profile (I)

    Executive Management Profile (I) Joined ADIB in March 2008. He holds a Bachelor degree (major in Corporate Finance) from Loyala of Tirad Marouf Mahmoud Concordia University in Montreal, Canada and has also completed the Executive Management Program at Chief Executive Officer Wharton. He has previous

  26. Slide 26: Executive Management Profile (II)

    Executive Management Profile (II) Joined ADIB on the 1st of May 2011. He holds a Graduate Degree from the Royal Military Academy Stuart Crocker Sandhurst. His previous position was CEO HSBC Private Bank in UAE & Oman (2007-2011) and was a Member Global Head of of the General Management heading clien

  27. Slide 27: Executive Management Profile (III)

    Executive Management Profile (III) Waheeb Al Khazraji Joined ADIB on 10 December 2005 . He holds Chemical Engineering and MBA degrees along with Chartered Head of Human Resource, Human Resource Consultant (CHRC), Canada and Chartered in Personal Development (CIPD), UK. He has UAE 6 years banking exp

Abu Dhabi Islamic Bank — H1 2011 Earnings Presentation on 6ix