Abu Dhabi Islamic Bank · ADX:ADIB
Abu Dhabi Islamic Bank — Q3 2020 Earnings Presentation
30 slides from Abu Dhabi Islamic Bank's earnings presentation, Sep 30, 2020
Slide 1: Investor Presentation Quarterly Results 30 September 2020
Investor Presentation Quarterly Results 30 September 2020
Slide 2: 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
Slide 3: Contents
Contents About ADIB Financial Performance Divisional Performance Strategic Focus Appendix 2
Slide 4: At a Glance
At a Glance Awards in 2020 Incorporated in 1997 ADIB is the fourth Provides a range of o Best Islamic Bank in the UAE and Middle East by EMEA FINANCE to serve as first largest Islamic bank banking and services to Islamic Bank in the globally with total more than 1 million o Best Islamic Bank in the
Slide 5: Returning To Growth: Net Income Up 68% Q3'20 vs Q2'20
Returning To Growth Net Income Up 68% Q3’20 vs Q2’20 +68% +9% -9% Encouraging Net income vs Revenue vs Cost vs Q2 2020 Q2 2020 Q3 2019 Recovery 18.3% 82.6% 82.6% 3.55% Strong Capital adequacy Financing to Net Profit Foundation ratio (CAR) Deposit Ratio Margin 75% #1 +50% Digitally Active rated mobil
Slide 6: Business Momentum Picking Up, Digital Initiatives Create Cost Efficiencies
Business Momentum Picking Up Digital Initiatives Create Cost Efficiencies AED (Mn)) Net Income Revenues +68% +9% 534 1,292 1,264 1,376 270 318 Q1 20 Q2 20 Q3 20 Q1 20 Q2 20 Q3 20 Expenses Cost of Credit -2% 387 -24% 635 624 614 322 245 Q1 20 Q2 20 Q3 20 Q1 20 Q2 20 Q3 20 5
Slide 7: Financial Performance
Financial Performance 6
Slide 8: Resilient Performance Despite Challenging Conditions
Resilient Performance Despite Challenging Conditions Balance Sheet Key Ratios Change % Sept 19 Dec 19 Sept 20 Sept 20 vs Sept 20 vs AED (Mn) Sept 19 Dec 19 Sept 20 Sept 19 Dec 19 Net Financing to Deposit 78.9% 80.0% 82.6% Total assets 124,285 125,987 127,116 2% 1% Total capital adequacy 18.8% 17.9%
Slide 9: Net Profit Margin Remained Amongst Highest In The Market
Net Profit Margin Remained Amongst Highest In The Market All figures in AED Mn Yield and Net profit Margin (%) NRFF / 65% 63% 63% 63% 60% Operating 5.20% 5.17% 5.15% income -13% 4.64% Net Revenue 4.28% 4.26% 4.25% 4.30% 4.13% from funds 2,865 3.84% (NRFF) 3.63% 3.55% 2,497 948 +3% Q2 19 Q3 19 Q4 19
Slide 10: 16% YoY Growth In Wholesale Customer Financing
16% YoY Growth In Wholesale Customer Financing On The Back of Strong Deal Origination Composition of Total Assets (AED Bn) Liquidity ratio* (%) % of total assets Liquid assets (AED Bn) Customer financing 7% 23.3 23.2 7% 22.0 21.7 10% 20.5 Cash & balances with 11% central banks 3% 3% Due from banks D
Slide 11: Funding Mix Improved with CASA at 75% of Deposits
Funding Mix Continued to Improve with CASA Comprising 75% of Total Deposits – Ample Liquidity To Deploy For Growth Net Customer Financing & Customers’ Deposits (AED Bn) Composition of Liabilities (AED Bn) Customer Financing Customers Deposits Fin to Dep ratio Adavnces to Stable funds ratio Other Lia
Slide 12: 19% Quarter on Quarter Growth In Non Profit Income
19% Quarter on Quarter Growth In Non Profit Income as Business Momentum Returns All figures in AED Mn Non – Profit income / 35% 37% 37% 37% 40% Operating income Fees and Commission, net Total Non-Profit -6% income YTD 19 -4% YTD 20 1,526 Property & other 38 1,436 12 15 income 50 229 +19% 36 30 FX in
Slide 13: Digital Efficiencies Yielding Results
Digital Efficiencies Yielding results – 6% YoY And 9% vs. Q3’19 Cost reduction All figures in AED Mn Cost To Income 45.2% 47.6% 44.9% 49.3% 44.6% Ratio % Highlights -6% (YTD Sept 20 vs YTD Sept 19) 1,985 1,872 -9% Other Operating 451 675 Operating expenses at AED 1,872 million, Expenses 403 624 lowe
Slide 14: Cost Of Credit Showing Early Signs of Stabilization
Cost Of Credit Showing Early Signs of Stabilization Provisions and NPAs – Customer financing (AED Mn) NPA ratio and Provision Coverage ratio 7,805 Total Provision coverage 8.4% 9.0% NPAs - impaired 7,195 7.9% 6,495 ratio * 5.0% 6.5% Specific / Stage 5,440 3 provisions 4,142 4,333 4,028 Total Provisi
Slide 15: Well Capitalized With CET1 Ratio Above Regulatory Requirement
We Remain Well Capitalized With CET1 Ratio Above Regulatory Requirement Capital Adequacy Ratio (%) Capital base – CET 1, Tier 1 and Tier 2 (AED Bn) CAR Basel III Tier 1 CET 1 Tier 2 Tier 1 CET 1 18.8% 19.0 18.2 18.3 18.6 19.0 17.9% 18.1% 18.2% 18.3% 17.7% 16.8% 17.0% 17.1% 17.3% 1.1 1.1 1.1 1.1 1.1
Slide 16: Divisional Performance
Divisional Performance 15
Slide 17: Divisional Performance – Global Retail Banking
Divisional Performance – Global Retail Banking Group Financing Assets Deposits (AED Bn) (AED Bn) Gross Retail Financing Portfolio (AED Bn) 0% +3% 47.5 46.6 47.5 68.2 69.2 Car Finance 67.0 Personal Finance Covered Cards Home Finance Mortgage SME & Others 10% 10% 9% 9% 9% 33% 32% 3% 9% 3% AED 47.6 Bn
Slide 18: Divisional Performance – Global Wholesale Banking
Divisional Performance – Global Wholesale Banking Group Financing Assets Deposits (AED Bn) (AED Bn) Gross Wholesale Financing Portfolio (AED Bn) +16% -14% 28.5 32.5 33.0 21.4 Corporates Government & PSE FI & IBG 18.3 17.0 10% 7% 8% 10% 9% 9% 32% 33% 3% 3% 29% AED 30.2 Bn 3% AED 33.0 Bn 52% 4% 64% Q3
Slide 19: Divisional Performance – Treasury
Divisional Performance – Treasury Assets (AED Bn) Liabilities (AED Bn) Investments (AED Bn) -6% -14% 21.1 19.7 19.9 7.7 Amortised cost FVTOCI - Sukuk FVTPL FVTOCI - Equities 7.0 7.7 0% 0% 10% 9% 10% 14% 9% 9% 9% 32% 33% 3% 13% 3% AED 11.3 Bn 3% AED 12.3 Bn 4% 64% Q3 19 Q2 20 Q3 20 Q3 19 Q2 20 Q3 20
Slide 20: Strategic Focus
Strategic Focus 19
Slide 21: Our Strategy
Our Strategy 4-Pillar Strategy Client relationship Revenues Operating efficiency Risk and control Growing and strengthening our Diversifying our business mix by Achieving greater operating efficiency Enhancing our risk existing businesses by increasing our fee-based income, across all areas. managem
Slide 22: Deep Digital – Digitizing All Parts Of ADIB
Deep Digital – Digitizing All Parts Of ADIB Transforming the Front End Transforming the Back End Acquire: Increase digital acquisition of customers o Develop high preforming agile teams o Launch of different customer journeys o 30% of personal finance is done through digital o Build AI capabilities
Slide 23: COVID Update
COVID 19 Update Staff Retail Customers o Phased return to office o Deferral of financing and additional o Strict sterilization protocols across all facilities waiving of fees o IT infrastructure scaled up to accommodate WFH o Leveraged digital infrastructure to serve clients o Chat bot services for
Slide 24: IR Contacts
IR Contacts Lamia Hariz Head of Public Affairs Email: Lamia.Hariz@adib.com Tel: 02-634-3000 www.adib.ae 23
Slide 25: Appendix
Appendix 24
Slide 26: Consolidated Statement Of Income
Consolidated Statement Of Income Change % Change % Q3 20 vs Q3 20 vs YTD YTD YTD Sep 20 vs AED Mn Q3 19 Q2 20 Q3 20 Q3 19 Q2 20 Sept 19 Sept 20 YTD Sep 19 Revenues 1,504 1,264 1,376 -8.5% 8.8% 4,391 3,933 -10.4% Net revenue from funds 948 802 827 -12.8% 3.1% 2,865 2,497 -12.9% Fees & commission 280
Slide 27: Consolidated Balance Sheet
Consolidated Balance Sheet Change % AED Mn 30 Sep 2019 31 Dec 2019 30 Sep 2020 Sep 20 vs Sep 19 Sep 20 vs Dec 19 Cash and balances with Central Banks 19,581 19,823 18,159 -7.3% -8.4% Due from financial institutions 3,769 3,363 3,502 -7.1% 4.1% Net Customer financing 79,236 81,108 83,205 5.0% 2.6% In
Slide 28: Dividend Distribution History (AED)
Dividend Distribution History (AED) A consistent dividend distribution record AED 2012 2013 2014 2015 2016 2017 2018 2019 Net Profit (Mn) 1,201.2 1,450.2 1,750.7 1,934.0 1,953.6 2,300.1 2,500.8 2,601.1 Cash Dividend Payout Ratio 50.0% 50.0% 40.0% 39.8% 39.8% 39.8% 39.8% 38.2% (% of Net Profit) Cash
Slide 29: ADIB vs ADX Shareholder's Return
ADIB Price (AED) 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00 6.50 7.00 7.50 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 ADIB vs ADX Mar-12 Jun-12 Sep-12 Shareholder’s Return Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 ADIB Sep-14 Dec-14
Slide 30: Thank you
Thank you 29
Abu Dhabi Islamic Bank — Q3 2020 Earnings Presentation on 6ix