Abu Dhabi Commercial Bank · ADX:ADCB
Abu Dhabi Commercial Bank — Abu Dhabi Commercial Bank PJSC — FY2018 Earnings Presentation
24 slides from Abu Dhabi Commercial Bank's earnings presentation, January 2019
Slide 1: Q4/FY'18 Earnings presentation
Abu Dhabi Commercial Bank PJSC Q4/FY’18 Earnings presentation January 2019
Slide 2: Disclaimer
Disclaimer Q4/FY 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.
Slide 3: 2018 highlights
2018 highlights Q4/FY 2018 Results / 3 MEASURED CREATING STRONG GROWTH SHAREHOLDER VALUE METRICS NET LOANS NET PROFIT CET1 AED 166 bn (+2% YoY) AED 4.840 bn (+13% YoY) 13.40% (-56 bps YoY) CUSTOMER DEPOSITS ROAE COST OF RISK AED 177 bn (+8% YoY) 16.3% (+130 bps YoY) 0.57% (-24 bps YoY) Continued exe
Slide 4: Balance sheet highlights
Balance sheet highlights Q4/FY 2018 Results / 4 Highlights (YoY comparison) % Change vs. Total assets grew 6% to AED 280 billion. Deposits and balances due from banks increased by AED 8 billion to AED AED mn Dec’18 Sep’18 Dec’17 20 billion Total assets 279,830 2 6 Investment securities increased 6%
Slide 5: Income statement highlights
Income statement highlights Q4/FY 2018 Results / 5 Highlights (2018 vs. 2017) Net profit increased by 13% to AED 4.840 billion, mainly % Change % Change vs. driven by a healthy expansion in NIMs, driven by optimal AED mn 2018 2017 Q4’18 Q3’18 Q4’17 management of cost of funds, combined with lower im
Slide 6: Key performance indicators
Key performance indicators Q4/FY 2018 Results / 6 Net profit Return on average equity (%) 16.3% (AED mn) 15.0% +27% 1,357 17.3% 19.0% 15.2% 16.8% 15.5% 1,207 1,125 1,151 1,072 Return on average assets (%) 1.95% 1.71% 1.71% 1.68% 1.58% 1.62% 1.54% Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Earnings per share (AED
Slide 7: Balance sheet metrics
Balance sheet metrics
Slide 8: Loan and deposit growth
Loan and deposit growth Q4/FY 2018 Results / 8 Net loans Gross loans by economic sector (AED mn) +3.6% AED 173,153 mn (As at 31 December 2018) +2% 96,236 Wholesale 95,427 94,926 163,282 162,824 165,733 165,213 166,426 90,375 91,662 Banking Personal 21% (WBG) Real estate investment & Consumer hospita
Slide 9: Further breakdown of loans and deposits
Further breakdown of loans and deposits Q4/FY 2018 Results / 9 Islamic Banking continues Asset mix Gross loans to be a key driver of growth AED 279,830 mn (As at 31 December 2018) AED 173,153 mn (As at 31 December 2018) Abu Dhabi Corporate Net financing 58% loans 76% Dubai assets (AED mn) -2% Net lo
Slide 10: Wholesale funding and maturity profile
Wholesale funding and maturity profile Q4/FY 2018 Results / 10 Liability base Wholesale funding Maturity profile AED 247,025 mn (As at 31 December 2018) 14,412 19,987 As at 31 December 2018 AED mn Global medium term notes (GMTN) 28,571 6,556 15,887 Subordinated debt 2,660 8,107 Customer Euro Commerc
Slide 11: Investment securities
Investment securities Q4/FY 2018 Results / 11 Investment securities Investment securities AED 52,362 mn (As at 31 December 2018) Non-Government bond portfolio: +6% By region By issuer Rated A- or better: 67% AED 52,362 Rated investment grade: mn Government Domestic (i.e. BBB+ to BBB-): 29% securitie
Slide 12: Capital ratios
Capital ratios Q4/FY 2018 Results / 12 Capital adequacy ratio Risk weighted assets Variance analysis (Basel III) (AED bn) YoY reduction in CAR by 1.83% CAR 19.09% 17.26% 12.75% 13.50% 202 212 Capital adequacy ratio movement % 15 Dec'17 Capital adequacy ratio 19.09% Tier 2 ratio Operational risk 15 8
Slide 13: Asset quality
Asset quality Q4/FY 2018 Results / 13 Stage 3 (NPL) and Impairment allowances* Risk indicators (AED mn) 6,761 162.9% Impairment 6,034 Coverage ratio allowances 130.2% Stage 1 and 2 3,834 (Collective impairment) 3,172 NPL ratio 2.88% 2.12% Stage 3 (Individual impairment) 2,862 2,927 Cost of risk (YTD
Slide 14: Income statement metrics
Income statement metrics
Slide 15: Net interest income
Net interest income Q4/FY 2018 Results / 15 Net interest income Increase in yields supported by repricing of assets (AED mn) 2018 yields +60 bps YoY 2018 Yields 4.95% 5.12% 1,718 1,828 1,784 1,804 1,803 6,701 7,219 2017 4.66% 4.79% 4.39% 4.88% 11,592 4.28% 3.04% 9,854 3.19% 3.03% 3.01% 2,972 2.91% 2
Slide 16: Non-interest income
Non-interest income Q4/FY 2018 Results / 16 Non-interest income (AED mn) Gross fees and commission income 592 526 504 490 442 2,194 1,962 +0.9% 2018 2017 130 333 AED 2,071 mn AED 2,090 mn Other operating 44 48 136 income1 49 AED 864 mn AED 583 mn AED 894 mn AED 486 mn -5 42% 28% 43% 23% Net fees and
Slide 17: Operating income and performance by business segment
Operating income and performance by business segment Q4/FY 2018 Results / 17 Operating income 9,181 Business performance 8,895 (AED mn) (AED mn) 79% 75% 2,311 2,354 2,288 2,295 2,244 Consumer Wholesale Treasury & Property Banking Banking Investments Management 74% 78% 78% 79% 80% 4,081 3,918 Net int
Slide 18: Operating expenses
Operating expenses Q4/FY 2018 Results / 18 Cost to income ratio Operating expenses (AED mn) (%) 800 770 775 799 740 2,948 3,084 176 165 34.6% 33.9% 34.8% 33.6% 32.7% 33.0% 33.1% 45 43 42 45 46 1,069 Depreciation 1,073 General 294 259 289 272 249 administrative expenses 461 468 444 481 445 1,709 1,83
Slide 19: Key highlights of 2018 Results
Key highlights of 2018 Results Q4/FY 2018 Results / 19 Net profit of AED 4.840 billion, +13%, mainly on account of higher NIMs and lower impairment charges Total net interest income and Islamic financing income of AED 7.219 billion, +8%. NIM of 3.04% compared to 2.91% in 2017 Non-interest income of
Slide 20: Appendix
Appendix
Slide 21: 2018 Awards
2018 Awards Q4/FY 2018 Results / 21 “Best Cash Management Bank Ranked 2nd in S&P/Hawkamah ESG Pan Arab “Best Affinity Card in Middle in the UAE and Middle East” Index for Leadership in Corporate Sustainability East & North Africa” Global Finance Hawkamah MasterCard Leadership Forum “Most Popular “Cr
Slide 22: Balance sheet
Balance sheet Q4/FY 2018 Results / 22 AED million 2018 2017 % Change Cash and balances with Central banks 19,590 19,997 (2) Deposits and balances due from banks, net¹ 19,627 11,452 71 Reverse-repo placements 2,204 99 NM Trading securities 60 485 (88) Derivative financial instruments 4,447 3,820 16 I
Slide 23: Income statement
Income statement Q4/FY 2018 Results / 23 AED million 2018 2017 % Change Interest income and income from Islamic financing 11,592 9,854 18 Interest expense and profit distribution (4,373) (3,153) 39 Net interest and Islamic financing income 7,219 6,701 8 Net fees and commission income 1,395 1,507 (7)
Slide 24: 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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