Abu Dhabi Commercial Bank · ADX:ADCB
Abu Dhabi Commercial Bank — Abu Dhabi Commercial Bank PJSC — Investor Presentation (2013)
39 slides from Abu Dhabi Commercial Bank's investor presentation, 2013
Slide 1: Abu Dhabi Commercial Bank PJSC 2013 Investor Presentation
Abu Dhabi Commercial Bank PJSC 2013 Investor Presentation
Slide 2: Disclaimer
Disclaimer 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 READING THE PRESENTA
Slide 3: Macro overview
Macro overview Business overview Financial highlights Appendix 3 | 2013 Investor presentation
Slide 4: Macro overview
Macro overview United Arab Emirates Abu Dhabi The UAE has 7th highest 2nd highest GDP per Capita in Stable economic growth Strong hydrocarbon revenues Conservative debt proven reserves among the GCC, and 7th across the GCC and have boosted available public management strategy and GCC and CIS oil exp
Slide 5: UAE banks overview
UAE banks overview Highlights UAE Banking sector is ranked highest in the GCC in terms of assets As of December 2013, deposit growth of 9.5% outpaced loan growth of 7.1%. Loan to deposit ratio for the sector was 92%. (Source: UAE Central Bank) The banking system maintains significant capital and liq
Slide 6: Business overview
Macro overview Business overview Financial highlights Appendix 6 | 2013 Investor presentation
Slide 7: ADCB overview
ADCB overview Ownership structure ADCB franchise Dec’13 Dec’12 Total number of retail customers 520,000 465,000 Abu Dhabi Investment Council (ADIC) 58.08% Total number of wholesale clients 41,000 37,000 Government of Market cap (AED bn)¹ 34 17 Abu Dhabi entity 61.6% owned 3.51% Branch network (UAE)²
Slide 8: Key financial highlights of 2013
ADCB overview Key financial highlights of 2013 183 bn Total assets (AED) 15.5% ROE 25 bn Total equity (AED) 1.72% ROA 3,620 mn Net profit (AED) 21.21% CAR 8 | 2013 Investor presentation
Slide 9: Our strategy
OUR STRATEGY Sustainability through liability growth +6% increase in customer deposits over 2012 Growth through Maintain a culture of a UAE centric 93% service excellence approach & 95% customer and efficiency through Improved 15.5% controlled of loans (net) within ‘internationalisation’ the UAE sat
Slide 10: Core strengths
Core strengths Situated to benefit Strong domestic Experienced Supportive principal from UAE economic Capital base franchise with a well management team and shareholders growth and liquidity known and trusted innovative banking brand products Resilience in earnings The Government owns Total Capital
Slide 11: Diversified revenue stream
Diversified revenue stream Percentage contribution to operating income Consumer Wholesale Treasury and Property Banking Banking investments management AED mn 2013 2012 2013 2012 2013 2012 2013 2012 Wholesale Banking 26% Net interest and Islamic 2,138 2,335 1,465 1,466 1,705 1,282 120 124 financing i
Slide 12: Financial highlights
Macro overview Business overview Financial highlights Appendix 12 | 2013 Investor presentation
Slide 13: 2013 highlights
2013 highlights Strong and conservative balance sheet Net loans grew 7% over 2012 and 10% AED mn 2013 2012 Change % over the last quarter despite a large Net loans 131,649 123,195 7 repayment in September 2013 Investment securities 20,855 18,713 11 Customer deposits increased 6%, Total assets 183,14
Slide 14: Performance indicators
Performance indicators Improved profitability Strong performance indicators Net profit Return on equity Return on average assets (AED mn) (ROE %)* (ROAA %)* 2012 2013 2012 2013 +40% +29% 3,620 13.0% 15.5% 1.37% 1.72% 2,810 Basic earnings per share Total shareholder return (EPS- AED) (TSR %) 2012 201
Slide 15: Operating performance
Operating performance Highlights (2013 vs. 2012) Record operating income up 11% at Operating income Net interest income* AED 7,320 mn (AED mn) (AED mn) +11% +4% Net interest income 4% higher, 7,320 Interest income Interest expense 5,207 primarily driven by 36% reduction Non-interest income % of oper
Slide 16: Operating expenses
Operating expenses Highlights (2013 vs. 2012) Cost to income ratio* Operating expenses (AED mn) Operating expenses totaled +34% +14% AED 2,358 mn, 14% higher, primarily attributable to increase Depreciation and amortisation 2,358 31.4% 158 in staff expenses 33.1% 32.2% General administration exp
Slide 17: Composition of assets
Composition of assets Highlights (2013 vs. 2012) Composition of assets 2013 2012 Total assets at AED 183,143 mn, Total assets = AED 183,143 mn Total assets = AED 180,796 mn compared to AED 180,796 mn, up 1% Net loans and advances increased 7% and comprised 72% of total assets compared to Net loans a
Slide 18: Customer loans
Customer loans Highlights (2013 vs. 2012) Evolution of net loans 2013 2012 Wholesale banking loans Net loans = AED 131,649 mn Net loans = AED 123,195 mn comprised 55% of total loans (net), compared to 52% in 2012 As at 31 December 2013, loan to deposit ratio was 114.1% Consumer Consumer 45% 48% Thro
Slide 19: Customer loans
Customer loans Highlights (2013 vs. 2012) Gross loans increased 7% Gross loans by industry to AED 138,539 mn, 2013 2012 despite a large repayment Gross loans = AED 138,539 mn Gross loans = AED 129,659 mn in September 2013, which significantly reduced Personal Personal 22% concentration exposure 21%
Slide 20: Investment securities
Investment securities Investment securities (AED mn) Maturity profile of Highlights Investment securities portfolio (AED mn) +11% Investment securities portfolio totaled 20,855 6,265 6,184 AED 20,855 mn, at the end of 2013 98% of the investment portfolio is 19,669 4,062 19,463 invested in bonds issu
Slide 21: Composition of liabilities
Composition of liabilities Highlights (2013 vs. 2012) Total liabilities at AED 158,321 Composition of liabilities mn, compared to AED 156,088 2013 2012 mn, up 1% Total liabilities = AED 158,321 mn Total liabilities = AED 156,088 mn Customer deposits increased 6% to AED 115,428 mn Deposits from custo
Slide 22: Customer deposits
Customer deposits Highlights (2013 vs. 2012) Consumer Banking deposits comprised 27% of total customer deposits, remaining stable over 2012 Treasury deposits increased from AED 34,399 mn in 2012 to AED 43,663 mn, up 27% Substantial increase in CASA deposits, contributing to 39% of total deposits com
Slide 23: Wholesale funding & maturity profile
Wholesale funding & maturity profile Maturity profile Wholesale funding split As at 31 December 2013 (AED mn) As at 31 December 2013 Source of funds AED mn 2,275 GMTN/EMTN 13,013 ECP ECD Sub Debt 5,254 4,291 Loans Interbank 4,291 Sub Debt 4,224 Euro Commercial Paper 5,940 MTN/GMTN¹ 1,652 Sukuk Other
Slide 24: Asset quality
Asset quality Highlights Non-performing loan ratio improved to 4.1% from 5.4% as at 31 December 2012 Non-performing loans were at AED 5,722 mn compared to AED 6,939 mn as at 31 December 2012, 18% lower Past due but not impaired loans decreased by 50% over 31 December 2012 Provision coverage ratio im
Slide 25: Capital and liquidity position
Capital and liquidity position Highlights (2013 vs. 2012) As at 31 December 2013, the Capital adequacy ratio Tier I and core tier I ratios Risk weighted assets (AED bn) Bank bought back 392,741,711 17.47% ordinary shares at a total 15.90% 16.62% 138 138 147 consideration of AED 1,797 mn, 2.89% 23.05
Slide 26: Summary
Summary Record levels of net profit and Capital position at industry operating income leading levels NIM improvement underpinned Improved cost of risk, provision by lower cost of funds coverage ratio significantly higher Net loans grew 7% despite a large repayment in September ROE and EPS significan
Slide 27: Appendix
Macro overview Business overview Financial highlights Appendix 27 | 2013 Investor presentation
Slide 28: ADCB 5 year overview
ADCB 5 year overview Balance sheet Strategically managed balance sheet Investment portfolio providing a liquidity pool Total assets (AED bn) Investment securities portfolio (AED bn) 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 160 178 184 181 183 4 8 15 19 21 Strong capital position Strengthene
Slide 29: ADCB 5 year overview
ADCB 5 year overview Income statement Improved profitability Disciplined cost management Net profit (AED mn) Cost to income ratio** (%) 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 -513 391 1,731* 2,810 3,620 32% 31% 33% 31% 32% Figures have been rounded Strong operating performance Improved as
Slide 30: Recent timeline and milestones
Recent timeline and milestones The sale of stake in Introduced Free RHB Capital Berhad Banking in the UAE Significant improvement Launch of Jersey in ADCB’s capital and Offshore Banking Tier I ratios resulted service in S&P upgrade in June 2011 Strategic partnerships Listed on Abu Dhabi Developed “A
Slide 31: Corporate governance: in line with best international practices
Corporate governance: in line with best international practices Principles and awards Focused around principles of integrity, transparency, responsibility and accountability “BEST CORPORATE “THE HAWKAMAH BANK Selected by World Finance GOVERNANCE OF ANY CORPORATE Magazine as “The Best Corporate COMPA
Slide 32: Rating agency views
Rating agency views “… ADCB has a high-quality “… ADCB is well funded by management team. ..” customer deposits due to its strong franchise and links to the Abu Dhabi “… As a result of management's efforts, government …” the bank has decelerated its lending since 2008 and focused on liability “… the
Slide 33: Active across all business lines
Active across all business lines Consumer Wholesale Treasury and Property banking banking investments Management Covers retail, wealth management Relationship coverage to SMEs Treasury business and investment Includes real estate and property and Islamic operations and large corporate clients, portf
Slide 34: 2013 awards
2013 awards “The Best “Honouring UAE nationals in “Distinguished Woman “Best Trade Bank in Emiratisation CEO Higher Management positions in the Banking & the Middle East — Award” in the Banking Sector Award” Finance sectors Award” Silver” TFR EXCELLENCE THE EMIRATES INSTITUTE FOR BANKING & FINANCIAL
Slide 35: Board of directors
Board of directors H. E. Eissa Mohamed Ghanem Al Suwaidi, H.E. Mohamed Sultan Ghannoum AlHameli, Chairman Vice-Chairman Appointed by the Government of Abu Dhabi to join the ADCB Board of Appointed by ADIA to join ADCB Board of Directors in 2004. Directors and was elected the chairman of ADCB in Sept
Slide 36: Board of directors
Board of directors Mr. Mohamed Ali Al Dhaheri, Sheikh Sultan Bin Suroor AlDhahiri, Non - Executive Director Non - Executive Director Before being appointed by Abu Dhabi Investment Council to join the ADCB Elected by ADCB Shareholders to join the ADCB Board of Directors Board of Directors in May 2007
Slide 37: Management team
Management team From left to right Abdirizak Mohamed, Ali Darwish, Ala’a Eraiqat, Colin Fraser, Group chief Internal Auditor Group Head of Human Resources CEO & Member of the Board of Directors Group Head of Wholesale Banking Joined ADCB: 2006 Joined ADCB: 2010 Joined ADCB in 2004, appointed Deputy
Slide 38: Balance sheet
Balance sheet AED mn 2013 2012 Change % Cash and balances with Central Banks 9,961 9,338 7 Deposits and balances due from banks 11,345 16,517 (31) Loans and advances, net 131,649 123,195 7 Derivative financial instruments 3,616 4,993 (28) Investment securities 21,739 19,355 12 Investment properties
Slide 39: Income statement
Income statement AED mn 2013 2012 Change % Interest and income from Islamic financing 7,117 7,824 (9) Interest expense and profit distribution (1,688) (2,616) (36) Net interest and Islamic financing income 5,429 5,207 4 Net fees and commission income 993 940 6 Net trading income 537 303 78 Decrease
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