Abu Dhabi Islamic Bank · ADX:ADIB
Abu Dhabi Islamic Bank — Q1 2023 Earnings Presentation
31 slides from Abu Dhabi Islamic Bank's earnings presentation, Apr 27, 2023
Slide 1: 1Q 2023 Earnings Presentation
ADIB IR Website 1Q 2023 Earnings Presentation Analyst & Investor Conference Call IR App Download link: Abu Dhabi, 27 April 2023
Slide 2: Contents
Contents 1Q 2023 Earnings Presentation Key Highlights ADIB Strategy Financial Performance Outlook & Guidance Questions & Answers Appendix Contacts Disclaimer 2
Slide 3: Key Highlights
1 2 Key Highlights 3 4 5 1Q 2023 Earnings Presentation 6 7 8 3
Slide 4: Key Highlights
Key Highlights Another solid set of results with a net profit of AED 1.1 bn up 54% from last year 1Q’23 Net Profit growth YoY 54% YoY increase in net income to AED 1.1 billion in 1Q 2023 driven by broad-based revenue growth Revenue up 45% to AED 2.0 billion driven by 81% growth in funded income +54%
Slide 5: Executing ADIB Strategy
1 2 Executing ADIB Strategy 3 4 5 1Q 2023 Earnings Presentation 6 7 8 5
Slide 6: ADIB Strategy
ADIB Strategy Our purpose, values and vision are supported by a clear set of strategic goals Purpose Lifelong partner for customers, colleagues and community Vision To be the world’s most innovative Islamic bank We keep it We are We work for We nurture hospitality We are Values simple and sensible t
Slide 7: Update on Strategy Progress
Update on Strategy Progress ADIB continues to deliver on its strategy in 2023 Continuous Key product launches Amwali Youth Account Asset Management Payment Service Innovation • Salary cash back campaign • Digital on-boarding for business banking 10,701Accounts $153 mn AED 3.9 mn • New cash back card
Slide 8: Financial Performance
1 2 3 Financial Performance 4 5 1Q 2023 Earnings Presentation 6 7 8 8
Slide 9: Financial Performance Highlights
Financial Performance Highlights Successful start into 2023, maintaining our growth momentum by delivering a 54% growth of net income to AED 1.1bn Strong YoY Growth in Profitability Solid Balance Sheet Growth YoY Robust Capital Position and Strong Return 1.1bn 172bn 17.5% Net Income Total Assets CAR
Slide 10: Income Statement
Income Statement 54% YoY growth in net income underscored by increase in financing assets and funded revenues Net Income (AEDmn) Net Income Movement YoY (AEDmn) 1,400 1,167 +54% 1,200 1,102 1,010 1,000 715 726 800 636 1,102 600 715 -9 400 -149 -33 -58 200 0 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 Profit after
Slide 11: Funded Income
Funded Income Continued increase in yields driven by higher rates and expansion of net profit margin to 4.35% Net Profit Margin (%) Net Profit Margin Movement YoY (%) +143bps 8% 7% 6.14% 0.40% 6% 0.22% 0.92% 4.35% 4.33% 0.94% 5% 3.73% 0.44% 3.23% 3.44% 2.92% 4% 4.35% 3% -1.48% 3.35% 3.56% 1.70% 2% 2
Slide 12: Non-Funded Income
Non-Funded Income Stable non-funded income as growth in trade finance and FX income was offset by lower investment income Non-Funded Income (AEDmn) Non-Funded Income Movement YoY (AEDmn) -1% -1% 970 620 13 8 611 12 620 549 546 611 -41 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 Non-funded Investment Fees and Fore
Slide 13: Operating Expenses
Operating Expenses Cost to income ratio improved by 528bps to 35.7% on revenue growth Cost To Income Ratio (%) Expenses Movement YoY (AEDmn) -528bps +26% 40.9% 40.9% 37.6% 34.9% 35.7% 55 9 726 85 577 1Q 22 1H 22 9M 22 FY 22 1Q 23 Expenses Employee costs General & Other Expenses 1Q 22 administrative
Slide 14: Impairments
Impairments 29% increase in provisions at a Group level with COR improving to 29 bps Impairments Movement YoY (AEDmn) Impairments (AEDmn) +29% +29% 36 28 4 146 416 113 -30 -5 146 113 114 125 Impai rments Retail Wholesale Private Treasury Others Impai rments 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 1Q 22 1Q 23
Slide 15: Non-Performing Financing
Non-Performing Financing NPA ratio moderating and coverage ratio improving NPA (AEDmn) NPA Movement YoY (AEDmn) +4% 85% NPA +4% Coverage 8,597 8,705 8,710 8,355 612 8,710 8,355 8,175 1,273 1,273 1,273 1,273 1,273 -133 -114 -10 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 NPA Corporate FI Individual Other NPA 1Q 22
Slide 16: Balance Sheet
Balance Sheet Total assets increased by 24% YoY driven by 11% growth in customer financing Total Assets (AEDbn) Total Assets Movement YTD (AEDbn) 200 168.5 172.1 +2% 138.6 141.9 147.2 150 168.5 2.4 1.5 0.4 172.1 100 -0.2 -0.4 50 0 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 Total assets Cash & Due from Customer I
Slide 17: Customer Financing
Customer Financing AED 17 billion growth in financing assets versus last year mainly from Retail, Government and Public sector Customer Financing, Net (AEDbn) Customer Financing, Customer Financing, Gross Movement YTD (AEDbn) 107.7 107.3 Gross by Segment (%) 120 92.2 98.2 90.2 100 Private Other -0%
Slide 18: Customer Deposits
Customer Deposits Strong CASA growth despite higher rates environment Total Deposits (AEDbn) Deposits Movement by Segment YTD (AEDbn) 138.1 141.8 150.0 115.2 118.8 +3% 100.0 110.8 50.0 138.1 4.6 2.8 144.3 141.9 0.0 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 -1.2 -0.1 -2.4 Total deposits Total Deposits by Segment
Slide 19: Capital and Liquidity
Capital and Liquidity Robust capitalization and liquidity positions, well within regulatory requirements Capitalization Ratios (%) Liquidity Ratios (%) 86.6% 85.1% 86.1% 20% 18.1% 18.0% 17.9% 17.5% 90% 82.1% 80.3% 17.2% 17.0% 16.9% 16.8% 81.4% 80.0% 82.7% 15% 16.0% 16.4% 78.0% 75.7% 60% 10% 12.7% 12
Slide 20: Outlook and Guidance
1 2 3 Outlook and Guidance 4 5 1Q 2023 Earnings Presentation 6 7 8 20
Slide 21: Outlook and Guidance
Outlook and Guidance Solid financial & strategic foundations drive a promising outlook for 2023 Market Outlook Management Guidance 1Q 2023 Actual FY2023 Old Guidance FY2023 Revised Guidance Solid GDP growth Gross Financing Growth Real GDP growth (%) Executing ADIB’s growth strategy 19% YoY 5% to 8%
Slide 22: Questions & Answers
1 2 3 Questions & Answers 4 5 1Q 2023 Earnings Presentation 6 7 8 22
Slide 23: Consistent dividend distribution
Consistent dividend distribution ADIB consistently distribute dividends with average yield of 4.5% Shareholder Return Metrics 10 9 9.9% 8 7 8.0% 7.6% 7.0% 6 6.5% Share Price 6.2% 5 5.1% 4 4.4% 4.5% 4.5% 4.1% Dividend Yield 3 2 1 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Net Profit in
Slide 24: Ratings and Accolades
Ratings and Accolades ADIB's recognition for excellence in Islamic banking Credit Ratings ADIB's MSCI ESG Rating Recent Accolades A2 Stable Outlook #1 #1 Digital Bank in the UAE Transformation (April 2021) Program MSCI Rating Distribution 25% 24% 25% A+ 16% Stable Outlook 6% 2% #1 #1 1% Islamic Bank
Slide 25: ADIB Share Price Performance
ADIB Share Price Performance Over the last 24 months ADIB’s share price is up 105% ADIB Share Price Performance, AED 9.98 11.0 10.0 9.0 8.0 7.0 6.0 5.0 4.88 4.0 3.0 2.0 Mar 2021 May 2021 Jul 2021 Sep 2021 Nov 2021 Jan 2022 Mar 2022 May 2022 Jul 2022 Sep 2022 Nov 2022 Jan 2023 Mar 2023 25
Slide 26: Appendix
1 2 3 Appendix 4 5 1Q 2023 Earnings Presentation 6 7 8 26
Slide 27: Digital Banking
Digital Banking Progress made on ADIB's digital strategy is reflected in UAE's highest customer ratings and other key digital metrics. Digitally Active Customers (%) Digital Sales (% of Total) 22 ITM machines Fully digital application 80% 76% 60% deployed across the process for cards, 71% 47% 48% 75
Slide 28: Contacts
1 2 3 Contacts 4 5 6 1Q 2023 Earnings Presentation 7 8 28
Slide 29: Additional Information
Additional Information Please contact the Investor Relations team for additional information or download ADIB's IR App ADIB Investor Relations Contact ADIB Investor Relations App Mrs. Lamia Khaled Hariz Head of Public Affairs and Investor Relations E: Lamia.Hariz@adib.com T: +917 2 634 3000 M: +971
Slide 30: Disclaimer
1 2 3 Disclaimer 4 5 6 1Q 2023 Earnings Presentation 7 8 30
Slide 31: 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
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