Abu Dhabi Islamic Bank · ADX:ADIB
Abu Dhabi Islamic Bank — FY2023 Earnings Presentation
32 slides from Abu Dhabi Islamic Bank's earnings presentation, Jan 24, 2024
Slide 1: FY 2023 Earnings Presentation
ADIB IR Website FY 2023 Earnings Presentation Analyst & Investor Conference Call IR App Download link: Abu Dhabi, 24 January 2024
Slide 2: Contents
Contents FY 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 FY 2023 Earnings Presentation 6 7 8 3
Slide 4: Key Highlights
Key Highlights 45% YoY increase in net income to AED 5.25bn in FY 2023 driven by broad-based revenue growth FY 23 Net Income growth YoY Revenue up 36% to AED 9.3bn driven by 47% growth in funded income and 18% growth in non- funded income +45% ROE improving 5.7 percentage points YoY to reach 27.1% i
Slide 5: Executing ADIB Strategy
1 2 Executing ADIB Strategy 3 4 5 FY 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: We Are Building the World's Most Innovative Islamic Bank
We Are Building the World’s Most Innovative Islamic Bank Continuous innovation Segment focused Digital Excellence Sustainable Future ▪ Innovate Sharia-compliant ▪ Grow and strengthen ▪ Elevate customer ▪ Optimize, grow & develop banking products existing segments convenience through human capital ▪
Slide 8: Update on Strategy Progress
Update on Strategy Progress ADIB continued to deliver on its strategy in 2023 Continuous Key product launches Amwali Youth Account Asset Management Payment Service Innovation • Salary cash back campaign • Exceed loyalty program • Volt auto finance 6600 Accounts opened in $135 mn AED 3.9 mn 2023 • Di
Slide 9: Financial Performance
1 2 3 Financial Performance 4 5 FY 2023 Earnings Presentation 6 7 8 9
Slide 10: Financial Performance Highlights
Financial Performance Highlights Delivered record net income of AED 5.25bn, growing 45% YoY on solid balance sheet growth, NIM expansion and fee generation Strong YoY Growth in Profitability Solid Balance Sheet Growth YoY Strong Capital Position and Return YoY 5.25bn 193bn 16.8% Net Income Total Ass
Slide 11: Income Statement
Income Statement 45% YoY growth in Net income in FY 2023 underscored by increase volume transactions and margins Net Income (AEDmn) Net Income Movement YoY (AEDmn) 2,000 1,501 +45% 1,424 1,500 1,224 487 1,167 1,102 1,971 9 5,251 1,000 3,619 -675 -160 500 0 4Q 22 1Q 23 2Q 23 3Q 23 4Q 23 Profit after
Slide 12: Funded Income
Funded Income Strong growth in funded income driven by strong business volumes and higher rates with NPM improving 94bps Net Profit Margin (%) Net Profit Margin Movement YoY (%) 8% 6.78% 7% 6.14% 6.36% 6.61% +94bps 6% 0.40% 0.73% 0.11% 0.69% 4.50% 5% 4.35% 4.41% 4.48% 4.50% 0.37% 3.56% 4% 4.33% 3.56
Slide 13: Non-Funded Income
Non-Funded Income Strong non-funded income growth on F&C and FX income, underlining strategic focus on revenue diversification Non-Funded Income (AEDmn) Non-Funded Income Movement YoY (AEDmn) +1% +18% 970 984 624 113 3,172 853 724 2,684 611 247 -497 4Q 22 1Q 23 2Q 23 3Q 23 4Q 23 Non-funded Investmen
Slide 14: Operating Expenses
Operating Expenses Significant cost to income ratio improvement helped by higher income and operational efficiency amid ongoing transformation investments Cost To Income Ratio (%) Expenses Movement YoY (AEDmn) -198bps +28% 34.9% 35.7% 33.9% 32.9% 243 21 3,061 32.6% 310 2,387 100 FY 22 1Q 23 1H 23 9M
Slide 15: Impairments
Impairments Broadly stable impairment charge YoY and COR is at a comfortable 49bps for FY 2023 Impairments Movement YoY (AEDmn) Impairments (AEDmn) -1% -55% 93 112 416 769 69 760 -90 -163 223 202 -29 189 146 Impairments Retail Wholesale Private Treasury Associates Others Impairments 4Q 22 1Q 23 2Q 2
Slide 16: Non-Performing Financing
Non-Performing Financing Lowest NPA ratio since 4Q 19 with cost of risk in line with guidance while coverage ratio trending within the guidance NPA (AEDmn) NPA Movement YoY (AEDmn) -16% -16% 8,705 8,710 8,619 8,705 7,762 7,292 7,292 -1,022 -195 -195 4Q 22 1Q 23 2Q 23 3Q 23 4Q 23 NPA Corporate Indivi
Slide 17: Balance Sheet
Balance Sheet Total assets increased by 14% YoY driven by 7% growth in customer financing supported by a very strong funding position Total Assets (AEDbn) Total Assets Movement YoY (AEDbn) 250 182.2 184.1 192.8 +14% 200 168.5 172.1 7.3 5.1 0.8 192.8 168.5 7.3 3.9 150 100 50 0 4Q 22 1Q 23 2Q 23 3Q 23
Slide 18: Customer Financing
Customer Financing AED 6.8bn growth in gross financing assets vs last year mainly due strong volumes from Retail, Corporate, Government and Public sector Customer Financing, Net (AEDbn) Customer Financing, Customer Financing, Gross Movement YoY (AEDbn) 120.0 Gross by Segment (%) +6% 115.0 Other +8%
Slide 19: Investments
Investments Diversified Investment Portfolio Investments (AEDbn) Investments Movement YoY (AEDbn) 30.0 25.0 22.6 23.0 24.5 +26% 21.0 19.4 4.5 0.7 24.5 20.0 19.4 15.0 -0.1 10.0 5.0 0.0 4Q 22 1Q 23 2Q 23 3Q 23 4Q 23 Investments Investments carried Investments carried Investments carried Investments 4Q
Slide 20: Customer Deposits
Customer Deposits Up 14% YoY reflecting our ability to gain market share with 8.7bn increase in CASA, demonstrating effective deposit gathering strategy Total Deposits (AEDbn) Total Deposits Movement by Segment YoY (AEDbn) 157.1 160.0 150.4 151.5 +14% 150.0 141.8 9.2 1.1 0.3 0.6 157.1 140.0 10.1 138
Slide 21: Capital and Liquidity
Capital and Liquidity Robust foundation across all key metrics including strong capital and liquidity ratios Capitalization Ratios (%) Liquidity Ratios (%) 20% 90% 82.1% 80.3% 78.6% 78.0% 76.0% 17.7% 18.0% 80% 17.2% 17.5% 18% 16.8% 70% 78.0% 75.7% 72.7% 74.3% 73.2% 16% 60% 16.5% 16.9% 16.0% 16.4% 50
Slide 22: Outlook and Guidance
1 2 3 Outlook and Guidance 4 5 FY 2023 Earnings Presentation 6 7 8 22
Slide 23: Outlook and Guidance
Outlook and Guidance Solid financial & strategic foundations drive a promising outlook for 2024 Market Outlook Management Guidance FY 2023 Actual FY 2024 Guidance Solid GDP growth Gross Financing Growth Real GDP growth (%) Executing ADIB’s growth strategy against a 6% 5% to 7% 7.9% positive economic
Slide 24: Questions & Answers
1 2 3 4 Questions & Answers 5 FY 2023 Earnings Presentation 6 7 8 24
Slide 25: Appendix
1 2 3 4 Appendix 5 FY 2023 Earnings Presentation 6 7 8 25
Slide 26: Investment Highlights
Investment Highlights Strong Management, Solid Fundamentals and Clear Strategy Clear Strategy Experienced management ▪ Strengthen Islamic leadership position ▪ Best in class management team ▪ Deepening customer relationships 1 2 ▪ Extensive banking experience with ▪ Create productivity and efficienc
Slide 27: Consistent dividend distribution
Consistent dividend distribution ADIB consistently distribute dividends with average yield of above 5% Shareholder Return Metrics 13 12 12% 11 9.9% 10 10% 10.12 9 8.0% 8 8% 7.6% 7.0% 7.1% Share Price 7 6.2% 6.5% 6 6% 5.1% 5.4% Dividend Yield 5 4.4% 4.5% 4.1% 4 4% 3 2.49 2 2% 1 0 0% 2012 2013 2014 20
Slide 28: Ratings and Accolades
Ratings and Accolades ADIB's recognition for excellence in Islamic banking Credit Ratings ADIB's MSCI ESG Rating Recent Accolades A2 #1 Stable Outlook #1 Marktet leader in Islamic Retail digital bank MSCI Rating Distribution 25% 24% 25% A+ 16% Stable Outlook 6% 2% #1 #1 1% Bank in the Safest Islamic
Slide 29: Contacts
1 2 3 4 Contacts 5 6 FY 2023 Earnings Presentation 7 8 29
Slide 30: 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 31: Disclaimer
1 2 3 4 Disclaimer 5 6 FY 2023 Earnings Presentation 7 8 31
Slide 32: 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
Abu Dhabi Islamic Bank — FY2023 Earnings Presentation on 6ix