Abu Dhabi Commercial Bank · ADX:ADCB
Abu Dhabi Commercial Bank — Abu Dhabi Commercial Bank PJSC — H1 2018 Earnings Presentation
23 slides from Abu Dhabi Commercial Bank's earnings presentation, July 2018
Slide 1: Abu Dhabi Commercial Bank PJSC Q2/H1'18 Earnings presentation
Abu Dhabi Commercial Bank PJSC Q2/H1’18 Earnings presentation July 2018
Slide 2: Disclaimer
Disclaimer Q2 2018 Results / 2 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
Slide 3: H1'18 highlights
H1’18 highlights Q2 2018 Results / 3 MEASURED CREATING STRONG GROWTH SHAREHOLDER VALUE METRICS NET LOANS NET PROFIT CET1 AED 166 bn (+2% YtD) AED 2.332 bn (+10% YoY) 12.37% (-159 bps YtD) CUSTOMER DEPOSITS ROAE COST OF RISK AED 172 bn (+5% YtD) 16.5% (+100 bps YoY) 0.68% (-13 bps YoY) Continued exec
Slide 4: Balance sheet highlights
Balance sheet highlights Q2 2018 Results / 4 Highlights (YtD comparison) % Change vs. Total assets grew 3% to AED 272 billion. Deposits and balances due from banks increased by AED 7.0 billion to AED AED mn Jun’18 Mar’18 Dec’17 Jun’17 18.5 billion Total assets 271,722 2 3 5 Investment securities at
Slide 5: Income statement highlights
Income statement highlights Q2 2018 Results / 5 Highlights (H1'18 vs. H1'17) % Change % Change vs. Net profit increased by 10% to AED 2.332 billion, mainly AED mn H1'18 H1'17 Q2’18 Q1’18 Q2’17 driven by higher margins and lower impairment charges Net interest income 3,612 9 1,784 (2) 7 Total net int
Slide 6: Key performance indicators
Key performance indicators Q2 2018 Results / 6 Net profit Return on average equity (%) 16.5% (AED mn) 17.3% 15.5% +12% 16.8% 1,207 15.5% 15.2% 14.9% 1,092 1,125 1,072 1,008 Return on average assets (%) 1.71% 1.68% 1.69% 1.62% 1.59% 1.55% 1.55% Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Earnings per share (AED) 0
Slide 7: Balance sheet metrics
Balance sheet metrics
Slide 8: Loan and deposit growth
Loan and deposit growth Q2 2018 Results / 8 Gross loans by economic sector Net loans +2% AED 172,727 mn (As at 30 June 2018) (AED mn) +2% 95,427 Wholesale 91,662 90,375 163,282 162,824 165,733 Banking Personal 22% (WBG) Real estate 72,907 71,162 investment & 70,306 Consumer hospitality 39% banking (
Slide 9: Further breakdown of loans and deposits
Further breakdown of loans and deposits Q2 2018 Results / 9 Islamic Banking continues Asset mix Gross loans to be a key driver of growth AED 271,722 mn (As at 30 June 2018) AED 172,727 mn (As at 30 June 2018) Abu Dhabi Corporate Net financing +2% 56% Loans 75% Dubai assets (AED mn) Net loans 30% 22,
Slide 10: Wholesale funding and maturity profile
Wholesale funding and maturity profile Q2 2018 Results / 10 Liability base Wholesale funding Maturity profile 19,455 AED 241,170 mn (As at 30 June 2018) As at 30 June 2018 AED mn 12,745 Global medium term notes (GMTN) 27,233 15,873 2,652 6,575 Subordinated debt Customer 6,540 Euro Commercial paper 4
Slide 11: Investment securities
Investment securities Q2 2018 Results / 11 Investment securities Investment securities AED 49,082 mn (As at 30 June 2018) Non-Government bond portfolio: By region By issuer Rated A- or better: 64% +20% Rated Investment grade Government (i.e. BBB+ to BBB-): 31% 49,192 49,082 Domestic securities 50% 6
Slide 12: Capital ratios
Capital ratios Q2 2018 Results / 12 Capital adequacy ratio Risk weighted assets Variance analysis (Basel III) (AED bn) YTD reduction in CAR by 2.43% CAR 19.09% 16.66% 12.75% 13.50% 212 202 Capital adequacy ratio movement % 15 Dec'17 Capital adequacy ratio 19.09 Tier 2 ratio 3.17% Operational risk 15
Slide 13: Asset quality
Asset quality Q2 2018 Results / 13 Stage 3 (NPL) and Impairment allowances* Risk indicators (AED mn) 7,022 162.9% Impairment 6,034 Coverage ratio 145.9% 123.8% allowances Stage 1 and 2 4,424 (Collective impairment) 3,172 NPL ratio 2.8% 2.7% Stage 3 2.1% 2,862 2,599 (Individual impairment) Cost of ri
Slide 14: Income statement metrics
Income statement metrics
Slide 15: Net interest income
Net interest income Q2 2018 Results / 15 Net interest income Increase in yields supported by repricing of assets (AED mn) H1’18 yields +50 bps YoY H1’18 Yields H1’17 4.66% 4.79% 1,675 1,828 1,784 3,305 3,612 4.27% 4.39% 4.72% 4.25% 5,493 4.22% 3.11% 3.19% 3.03% 4,849 2.88% 2.89% 2.92% 2.96% 2,671 2,
Slide 16: Non-interest income
Non-interest income Q2 2018 Results / 16 Non-interest income (AED mn) Gross fees and commission income 434 526 504 1,032 1,030 H1’17 +2% H1’18 140 92 AED 1,032 mn AED 1,012 mn Other 44 48 AED 414 mn AED 292 mn AED 437 mn AED 257 mn operating 82 41% 29% 42% 25% income 708 350 755 358 Net fees and 13%
Slide 17: Operating income and performance by business segment
Operating income and performance by business segment Q2 2018 Results / 17 Operating income Business performance (AED mn) (AED mn) 4,338 4,643 Consumer Wholesale Treasury & Property Banking Banking Investments Management 2,109 2,354 2,288 2,059 1,983 Net interest 79% 78% 78% 76% 78% 1,483 income 1,30
Slide 18: Operating expenses
Operating expenses Q2 2018 Results / 18 Cost to income ratio Operating expenses (AED mn) (%) 1,545 770 775 1,411 85 671 43 42 79 Depreciation 40 548 259 289 526 General 31.8% 32.7% 33.9% 32.5% 33.3% administrative 266 expenses Staff costs 365 468 444 806 912 Q2'17 Q1'18 Q2'18 H1'17 H1'18 Operating j
Slide 19: Appendix
Appendix
Slide 20: 2018 Awards
2018 Awards Q2 2018 Results / 20 “Best Cash “Best Cash “Best Affinity Card in Management Bank in Management Bank in Middle East & North the Middle East” the U.A.E” Africa” Global Finance Global Finance MasterCard Leadership Forum Ranked the 2nd in S&P/Hawkamah ESG Pan Arab Index for Leadership in Co
Slide 21: Balance sheet
Balance sheet Q2 2018 Results / 21 AED million June’18 Dec’17 % Change Cash and balances with Central banks 18,849 19,997 (6) Deposits and balances due from banks, net¹ 18,478 11,452 61 Reverse-repo placements 163 99 65 Trading securities 577 485 19 Derivative financial instruments 5,914 3,820 55 In
Slide 22: Income statement
Income statement Q2 2018 Results / 22 AED million H1’18 H1’17 % Change Interest income and income from Islamic financing 5,493 4,849 13 Interest expense and profit distribution (1,881) (1,543) 22 Net interest and Islamic financing income 3,612 3,305 9 Net fees and commission income 708 755 (6) Net t
Slide 23: ADCB Investor Relations
ADCB Investor Relations Sheikh Zayed Bin Sultan Street P. O. Box: 939, Abu Dhabi Email: adcbir@adcb.com Tel: +971 2 696 2084 Fax: +971 2 610 9845 Internet: www.adcb.com/investors
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