Abu Dhabi Islamic Bank · ADX:ADIB
Abu Dhabi Islamic Bank — FY2015 Earnings Presentation
34 slides from Abu Dhabi Islamic Bank's earnings presentation, February 2016
Slide 1: Investor Presentation 31 December 2015 results
Investor Presentation 31 December 2015 results Abu Dhabi: February 2016 ADIB © 2010 adib.ae
Slide 2: Agenda
Agenda Introduction Financial Review Business Review Appendix 2
Slide 3: ADIB at a glance
ADIB at a glance Overview ADIB – Timeline and milestones Incorporated in 1997 to serve as first Islamic Bank in the Emirate of Abu Dhabi. •Established by the Govt. of Abu Dhabi in 1997 •Licensed in 1998 as an Islamic bank by the Central bank and Majority owned by members of the ruling family of
Slide 4: Ownership & Corporate Structure
Ownership & Corporate Structure ADIB Ownership ADIB is mainly owned by over 46,000 UAE nationals and Other members and associates of the Abu companies. Dhabi Royal family: 9.2% The Bank’s main shareholder is National Holding via EIIC, which is EIIC: 40.4% a private holding company, wholly-owned
Slide 5: Key Strengths
Key Strengths Majority owned by members of the ruling family of Abu Dhabi and Strong and sovereign wealth fund. Influential 4th Largest Shareholder Robust Fastest growing major Islamic Bank Islamic Bank Financial Sustained growth in profits; consistently Globally by Health and one of the most
Slide 6: UAE Banking Sector
UAE Banking Sector Highlights UAE Banking Sector (AED Bn) Dec 13 Dec 14 Dec15 Total Assets - Gross 2,100.3 2,304.9 2,474.4 UAE Banking sector is the largest by assets in the GCC; the UAE banking sector accounts for ~38% of the GCC total. Certificates of deposit held by Banks 107.9 99.5 139.8 Ban
Slide 7: Financial Snapshot (1/2)
Financial Snapshot (1/2) Total Assets (AED Bn) Net Customer Financing (AED Bn) Customer Deposits (AED Bn) +12% +13% +15% 111.9 118.4 78.4 94.9 103.2 73.0 84.8 61.7 75.5 86.1 74.3 48.8 51.2 61.3 55.2 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Equity (AED Bn) Revenues (
Slide 8: Financial Snapshot (2/2)
Financial Snapshot (2/2) Return on Avg Shareholders’ Equity (%) Financing to Deposits Ratio (%) Advances to Stable Funds Ratio (%) 18.7% 88.5% 82.6% 86.5% 18.4% 86.1% 84.6% 16.3% 81.8% 75.7% 15.6% 15.5% 83.5% 83.4% 77.9% 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 CAR
Slide 9: Agenda
Agenda Introduction Financial Review Business Review Appendix 9
Slide 10: FYR 2015 – Key financial highlights – Income statement
FYR 2015 – Key financial highlights – Income statement AED Mn FYR 2014 FYR 2015 Change % Revenues are up by 12% on the back of higher Net Revenue from funds 3,505.0 3,771.3 7.6% Fees, commission, foreign exchange and Investment income. Fees, commission and others 1,078.0 1,363.1 26.5% Expenses u
Slide 11: 31 December 2015 – Key financial highlights – Balance sheet
31 December 2015 – Key financial highlights – Balance sheet Total assets increased by 6% over Q4 2014 AED Bn Dec 14 Dec 15 Change % to reach AED 118.4 Bn. Customer financing increased by 7% from Total assets 111.9 118.4 5.8% Q4 2014 to reach AED 78.4 Bn. Net customer financing 73.0 78.4 7.4% C
Slide 12: Key ratios
Key ratios Ratios 2014 2015 Diluted Earnings per share (EPS in AED) 0.465 0.529 Return on Average Shareholders’ Equity (excluding GoAD - Tier 1 capital) 18.4% 18.7% Efficiency Net profit margin (%) 4.1% 4.4% Cost / income ratio 45.2% 46.2% Percentage lent (Financing / Total Assets) 65.2% 66.2% Finan
Slide 13: Operating Performance – Net profit income
Operating Performance – Net profit income Highlights (FYR 2015 vs. FYR 2014) Revenues (AED Mn) Key movements in Revenues (AED Mn) Fees, commission and others Revenues, up by 12.0% at AED Net revenue from funds +12% 119 5,134 Mn. 147 20 5,134 4,583 266 Net revenue from Funds (NRFF) 24% 27% 7.6% h
Slide 14: Operating Performance – Non-profit income
Operating Performance – Non-profit income Highlights (FYR 2015 vs. FYR 2014) Non-profit income (AED Mn) Composition of Fees & commission (AED Mn) +26% Risk Participation Trade related +20% FX Non-profit income up by 26% at AED Investment income & others Cards income, net Brokerage 1,363 885 1,363
Slide 15: Balance Sheet Strength and Customer Financing
Balance Sheet Strength and Customer Financing Composition of Total Assets – AED Bn Liquidity ratio* (%) Investmen Investmen ts: ts: % of total assets Liquid assets (AED Bn) 5.7% Fixed 7.4% Fixed assets & assets & 28.9% 27.8% Other Other Assets: Assets: 25.1% 6.7% 6.7% 22.3% 19.7% Customer financing:
Slide 16: Funding Profile
Funding Profile Deposit growth of 12% backed by Retail segment (18%) primarily due to CASA business Net Customer Financing & Customers’ Deposits (AED Bn) Composition of Liabilities (AED Bn) Customer Financing Fin to Dep ratio Other Liabilities Due to FI Customers Deposits Adavnces to Stable funds ra
Slide 17: Asset quality – Customer financing only
Asset quality – Customer financing only Total Impaired NPAs now represent 3.3% of gross customer financing with coverage ratio of 111.4% Provisions and NPAs – Customer financing (AED Mn) NPA ratio and provision coverage ratio NPAs - impaired Write-off Collective / General NPA ratio - Not Impaired To
Slide 18: Capital
Capital Raised AED 504 Mn new equity via right share issuance during Q3 2015 Capital Adequacy (%) Capital base – CET, Tier 1 and Tier 2 - AED Bn Total CAR Tier 1 Tier 2 Tier 1 CET 15.1% 14.4 14.8 13.2 13.7 13.4 0.5 0.6 14.7% 14.7% 0.5 0.5 0.5 5.4 5.5 14.4% 5.4 5.4 5.4 14.0% 14.6% 14.3% 14.1% 13.9% 7
Slide 19: Agenda
Agenda Introduction Financial Review Business Review Appendix 19
Slide 20: ADIB Strategy
ADIB Strategy To become a top tier regional bank by Providing Islamic financial solutions for everyone Build Market Leadership Create an Integrated Pursue International within the UAE Financial Services Group Growth Opportunities • The key customer service sectors are • ADIB continues to build a div
Slide 21: Business unit contribution
Business unit contribution Composition of Total Assets – AED Bn Composition of Total Liabilities – AED Bn Private; Real Private; Private Real Private Real 2% Estate; 3% ; 3% Estate; ; 2% Estate; 2% 0% Capital 1% Capital Others; Capital Wholesal Markets Markets 4% Others; Markets; e; 30% ; 13% Others
Slide 22: Retail Banking overview
Retail Banking overview Assets (AED Bn) Liabilities (AED Bn) Retail Banking contributes 59% of Net Revenues Personal Banking Division provides services for +12% +20% individuals clients, while the Business Banking Division 52.4 54.7 services the needs of SMEs. 46.9 45.7 These services include a
Slide 23: Wholesale Banking overview
Wholesale Banking overview Assets (AED Bn) Liabilities (AED Bn) Wholesale Banking contributes 26% of Net +8% -3% Revenues Wholesale Banking encompasses the large corporates, 35.1 29.6 28.8 32.6 emerging corporates and financial institutions divisions of the Bank. The array of services includes Tra
Slide 24: Private Banking overview
Private Banking overview Assets (AED Bn) Liabilities (AED Bn) Private Banking contributes 2% of Net Revenues +21% -6% Private Banking focuses on high and ultra high net worth individuals. 3.1 2.6 2.5 2.5 Wealth Management concentrates on developing, marketing and servicing a wide range of wealth
Slide 25: Treasury overview
Treasury overview Assets (AED Bn) Liabilities (AED Bn) Treasury contributes 9% of Net Revenues Treasury principally handles money market brokerage, -7% -17% trading and treasury services, as well as the 17.7 16.2 16.5 management of the Bank's funding operations by use of 13.5 investment deposits.
Slide 26: Agenda
Agenda Introduction Financial Review Business Review Appendix 26
Slide 27: Consolidated Statement of Income
Consolidated Statement of Income % chg FYR % chg Q4 % chg Q4 AED Mn Q4 15 Q3 15 Q4 15 FYR 14 FYR 15 15 vs FYR 15 vs Q4 14 15 vs Q3 15 14 Revenues 1,256.2 1,284.2 1,371.9 9.2% 6.8% 4,583.0 5,134.4 12.0% Net Revenue from Funds 944.6 934.4 976.8 3.4% 4.5% 3,505.0 3,771.3 7.6% Fees & commission 221.1 21
Slide 28: Consolidated Balance Sheet
Consolidated Balance Sheet % chg 31 Dec % chg 31 Dec AED Mn% 31 Dec 2014 30 Sep 2015 31 Dec 2015 2015 vs 31 Dec 2015 vs 30 Sep 2014 2015 Cash and balances with Central Banks 18,758 17,363 18,629 -0.7% 7.3% Due from financial institutions 6,270 6,055 4,742 -24.4% -21.7% Net Customer financing 73,006
Slide 29: Dividend Distribution History
Dividend Distribution History 2008 2009 2010 2011 2012 2013 2014 2015* Net Profit (Mn) 851.1 78.0 1,023.6 1,155.1 1,201.2 1,450.2 1,750.7 1,934.0 Cash Dividend Payout Ratio 50.0% - 50.0% 50.0% 50.0% 50.0% 40.0% 39.8% (% of Net Profit) Cash Dividend (% of Share 21.6% - 21.6% 24.4% 25.4% 30.7% 23.3% 2
Slide 30: ADX Points
ADIB Price (AED) - 2.50 3.00 6.50 0.50 1.00 1.50 2.00 3.50 4.00 4.50 5.00 5.50 6.00 7.00 7.50 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Shareholder
Slide 31: An award winning Bank (1/3)
An award winning Bank (1/3) “SKEA To – Gold category” be confirmed in February Mohammed Bin Rashid Business Sheikh Khalifa Excellence award 2014 award for 2 consecutive years 2015 “Best Overall Bank in Customer “Best Overall Bank in Customer Service” for 4 consecutive years Service” in the GCC by Et
Slide 32: An award winning Bank (2/3)
An award winning Bank (2/3) “The Leading Arab Islamic Bank Best Islamic Bank of the year in for 2015”- by Union of Arab Banks the Middle east and UAE - Banker Magazine by Financial Times “Best Branch Award in the UAE” for 2014 by Ethos Consultancy “Best Islamic Bank in the UAE” “Best Islamic Bank” i
Slide 33: An award winning Bank (3/3)
An award winning Bank (3/3) “Best overall Islamic retail “Best retail bank for 2014” by Bank” Islamic Banking and Finance Magazine by Global Finance 2014 “Best Islamic Bank in the Middle “Most Recommended Bank in East and UAE “ by Asia Money the UAE” by Souq Al Mal “Best Treasury services “Best Loya
Slide 34: 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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