Abu Dhabi Islamic Bank · ADX:ADIB
Abu Dhabi Islamic Bank — 1H 2023 Earnings Presentation
30 slides from Abu Dhabi Islamic Bank's earnings presentation, Jul 27, 2023
Slide 1: 1H 2023 Earnings Presentation
ADIB IR Website 1H 2023 Earnings Presentation Analyst & Investor Conference Call IR App Download link: Abu Dhabi, 27 July 2023 Confidential
Slide 2: Contents
Contents 1H 2023 Earnings Presentation Key Highlights ADIB Strategy Financial Performance Outlook & Guidance Questions & Answers Appendix Contacts Disclaimer 2 Confidential
Slide 3: Key Highlights
1 2 Key Highlights 3 4 5 1H 2023 Earnings Presentation 6 7 8 Confidential 3
Slide 4: Key Highlights
Key Highlights Another solid set of results with a net profit in 1H 2023 of AED 2.3 bn up 61% from last year 61% YoY increase in net profit to AED 2.3 billion in 1H 2023 driven by broad-based revenue growth 1H’23 Net Profit growth YoY Revenue up 50% to AED 4.3 billion driven by 75% growth in funded
Slide 5: Executing ADIB Strategy
1 2 Executing ADIB Strategy 3 4 5 1H 2023 Earnings Presentation 6 7 8 Confidential 5
Slide 6: 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 $147 mn AED 3.9 mn • New cash back card
Slide 7: Financial Performance
1 2 3 Financial Performance 4 5 1H 2023 Earnings Presentation 6 7 8 Confidential 7
Slide 8: 1H 2023 Financial Performance Highlights
1H 2023 Financial Performance Highlights Strong results in 1H 2023, maintaining our growth momentum by delivering a 61% growth of net income to AED 2.3bn Strong YoY Growth in Profitability Solid Balance Sheet Growth YoY Strong Capital Position and Return YoY 2.3bn 182bn 17.7% Net Income Total Assets
Slide 9: Income Statement
Income Statement 61% YoY growth in 1H 2023 Net income underscored by strong funded and non-funded revenue growth Net Income (AEDmn) Net Income Movement YoY (AEDmn) 1,400 1,167 1,224 +61% 1,200 1,102 1,010 1,000 726 800 1,260 166 2,326 600 1,442 -286 400 -142 -114 200 0 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23
Slide 10: Funded Income
Funded Income Strong growth in funded income driven by strong business volumes and higher rates with NPM improving 128 bps Net Profit Margin (%) Net Profit Margin Movement YoY (%) 7% 6.14% 6.36% +128bps 6% 4.33% 0.45% 5% 4.35% 4.41% 0.94% 0.18% 0.98% 4.41% 3.47% 3.44% 3.41% 3.44% 3.73% 4% 3.23% 0.38
Slide 11: Non-Funded Income
Non-Funded Income Strong non-funded income growth on higher investment income, F&C and FX income, underlining strategic focus on revenue diversification Non-Funded Income (AEDmn) Non-Funded Income Movement YoY (AEDmn) +14% +32% 970 33 89 34 9 1,335 1,169 724 549 546 611 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23
Slide 12: Operating Expenses
Operating Expenses Cost to income ratio improved by 697bps to 33.9% on revenue growth Cost To Income Ratio (%) Expenses Movement YoY (AEDmn) +25% -697bps 40.9% 111 9 1,446 37.6% 34.9% 35.7% 166 33.9% 1,160 1H 22 9M 22 FY 22 1Q 23 1H 23 Expenses Employee costs General & Other Expenses 1H 22 administr
Slide 13: Impairments
Impairments COR is at comfortable 48bps in 1H 2023 Impairments Movement YoY (AEDmn) Impairments (AEDmn) +62% 51 24 369 +95% 58 33 416 227 -25 223 114 125 146 Impairments Retail Wholesale Private Treasury Others Impairments 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 1H 22 1H 23 +53% +73% -110% +1,018% +41% QoQ +1
Slide 14: Non-Performing Financing
Non-Performing Financing Healthy asset quality metrics with NPA ratio at its lowest level since 2019 and coverage ratio improving NPA (AEDmn) NPA Movement YoY (AEDmn) NMC Group +5% +5% 85% NPA Coverage 804 8,619 8,705 8,710 8,175 8,175 8,597 8,619 1,273 1,273 1,273 1,273 1,273 -131 -85 -144 2Q 22 3Q
Slide 15: Balance Sheet
Balance Sheet Total assets increased by 28% YoY driven by 19% growth in customer financing Total Assets (AEDbn) Total Assets Movement YTD (AEDbn) 200 168.5 172.1 182.2 +8% 141.9 147.2 150 168.5 7.0 1.2 1.6 3.2 0.6 182.2 100 50 0 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 Total assets Cash & Due from Customer Inv
Slide 16: Customer Financing
Customer Financing AED 18 billion growth in financing assets vs last year mainly due to strong volume from Retail, Government and Public Sector Customer Financing, Net (AEDbn) Customer Financing, Customer Financing, Gross Movement YTD (AEDbn) 115.0 Gross by Segment (%) 107.7 109.3 110.0 107.3 105.0
Slide 17: Investments
Investments Diversified Investment Portfolio Investments (AEDbn) Total Investments Movement YTD (AEDbn) 25.0 22.6 19.4 21.0 +16% 18.6 19.1 20.0 15.0 2.8 0.4 22.6 19.4 10.0 5.0 0.0 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 Investments Investment in sukuk Investments Investments 4Q 22 at amortised cost at fair va
Slide 18: Customer Deposits
Customer Deposits Strong customer deposits with continued growth in CASA despite higher rates environment reflecting ADIB’s strong franchise Total Deposits (AEDbn) Total Deposits Movement by Segment YTD (AEDbn) 200.0 138.1 141.8 150.4 +9% 150.0 115.2 118.8 100.0 138.1 6.6 7.5 1.0 151.7 150.4 50.0 0.
Slide 19: Capital and Liquidity
Capital and Liquidity Robust capitalization and liquidity positions, well within regulatory requirements Capitalization Ratios (%) Liquidity Ratios (%) 85.1% 86.1% 20% 90% 82.1% 80.3% 78.0% 18.0% 17.9% 17.7% 17.2% 17.5% 18% 82.7% 70% 80.0% 78.0% 75.7% 72.7% 16% 16.9% 16.8% 16.5% 16.0% 16.4% 50% 14%
Slide 20: Outlook and Guidance
1 2 3 Outlook and Guidance 4 5 1H 2023 Earnings Presentation 6 7 8 Confidential 20
Slide 21: Outlook and Guidance
Outlook and Guidance Solid financial & strategic foundations drive a promising outlook for 2023 Market Outlook Management Guidance 1H 2023 Actual FY2023 Guidance Solid GDP growth Gross Financing Growth Real GDP growth (%) Executing ADIB’s growth strategy 2% YTD 5% to 8% 7.4% against the backdrop of
Slide 22: Questions & Answers
1 2 3 4 Questions & Answers 5 1H 2023 Earnings Presentation 6 7 8 Confidential 22
Slide 23: Consistent dividend distribution
Consistent dividend distribution ADIB consistently distribute dividends with average yield of 4.5% Shareholder Return Metrics 10 12% 9 8 9.9% 10% 7 8.0% 8% 6.2% 7.6% 6 7.0% Share Price 6.5% 5 5.1% 6% 4.4% 5.4% Dividend Yield 4 4.1% 4.5% 3 4% 2 2% 1 0 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2
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 significantly outperformed UAE peers
ADIB share price significantly outperformed UAE peers ADIB is undisputable leader on MCAP growth over the last 24 months 24 Months change of Market Capitalisation for UAE banks 30.0 94% 100% 18.7 20.0 80% 11.6 9.4 10.0 60% 4.7 0.0 40% ADIB ADCB ENBD DIB FAB FAB -10.0 24% 20% 11% 13% -20.0 0% -17% -3
Slide 26: ADIB Share Price Performance
ADIB Share Price Performance Over the last 24 months ADIB’s share price is up 94% ADIB Share Price Performance, AED 12.00 10.64 10.00 8.00 6.00 5.48 4.00 2.00 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023 Jun 2023 26 Confidential
Slide 27: Contacts
1 2 3 4 Contacts 5 6 1H 2023 Earnings Presentation 7 8 Confidential 27
Slide 28: 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 29: Disclaimer
1 2 3 4 Disclaimer 5 6 1H 2023 Earnings Presentation 7 8 29 Confidential
Slide 30: 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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