Abu Dhabi Islamic Bank · ADX:ADIB
Abu Dhabi Islamic Bank — H1 2021 Earnings Presentation
27 slides from Abu Dhabi Islamic Bank's earnings presentation, Jul 28, 2021
Slide 1: 1H 2021 Earnings Presentation
ADIB IR Website 1H 2021 Earnings Presentation Analyst & Investor Conference Call IR App Download link: Abu Dhabi, 28 July 2021
Slide 2: Contents
Contents 1H 2021 Earnings Presentation Key Highlights Financial Performance Outlook & Guidance Questions & Answers Contacts Disclaimer 2
Slide 3: Key Highlights
Key Highlights 1H 2021 Earnings Presentation 3
Slide 4: Key Highlights
Key Highlights Strong 1H 2021 performance driven by fee income growth and effective cost control Delivering strong Y-O-Y Growth 89% surge in net profit with ROE improving to 13.7% Revenue up 3% driven by 19% increase in non-funded income Effective cost control strategy leads to a reduction of 529 ba
Slide 5: Financial Performance
Financial Performance 1H 2021 Earnings Presentation 5
Slide 6: Financial Performance Highlights
Financial Performance Highlights ADIB reports a strong set of results for 1H 2021 Strong YoY Growth in Profitability Steady Balance Sheet Growth Robust Capital Position and Strong Return 1.1bn 131bn 19.1% Net Income Total Assets CAR +89% +5% +87bps 2.6bn 88bn 13.7% Revenues Gross Customer Financing
Slide 7: Income Statement Highlights
Income Statement Highlights Strong YoY growth in profitability driven by income growth and OPEX optimization Profit After Zakat & Tax (AEDmn) Revenues (AEDmn) +3% +89% 2,644 2,557 1,109 1H 20 1H 21 588 Expenses (AEDmn) -8% 1,258 1H 20 1H 21 1,162 1H 20 1H 21 Key Highlights Impairments (AEDmn) - The
Slide 8: Income Statement
Income Statement ADIB witnessed a strong rebound in profitability with 89% growth YoY… Net Income (AEDmn) Net Income Movement YoY (AEDmn) 700 608 +89% 600 534 483 500 501 400 318 342 1,109 300 170 97 270 588 -5 200 100 -83 0 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 Profit after Funded income Non-funded E
Slide 9: Non-Funded Income
Non-Funded Income …due to a strong 19% YoY rise in non-funded income from higher investment, cards and forex income,… Non-Funded Income (AEDmn) Non-Funded Income Movement YoY (AEDmn) +9% +19% 44 23 0 1,057 549 598 551 103 462 506 887 424 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 Non-funded Investment Fees
Slide 10: Funded Income
Funded Income …while maintaining sector-leading cost of funding and net profit margin. Net Profit Margin (%) Net Profit Margin Movement YoY (%) 6% -45bps 4.64% 5% 4.24% 4.13% 4.04% 4% 3.50% 3.47% 3.58% 0.33% 3.13% 3% 3.84% 3.58% 3.55% 3.51% 3.15% 3.13% 2% -0.42% -0.33% -0.03% 0.72% 0.61% 0.54% 0.49%
Slide 11: Operating Expenses
Operating Expenses Profit growth was further boosted by an 8% YoY reduction in 1H 2021 expenses, reflecting disciplined cost control and early benefits of the digital strategy. Cost To Income Ratio (%) Expenses Movement YoY (AEDmn) -576bps -8% 49.1% 49.3% 44.6% 40.6% 44.3% 43.6% 14 1,258 1,162 -66 -
Slide 12: 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 (%l) ADIB main Mobile App 80% 70% 60% 62% 63% 64% 70% 60% 50% 54% 46% 51% 51% 44% #1 60% 57% 40% 31% Banking 30% 50% in
Slide 13: Impairments
Impairments A 48% YoY decline in impairments due to an improved economic outlook,... Impairments Movement YoY (AEDmn) Impairments (AEDmn) -48% -27% 708.6 387.1 360.0 321.5 -33.7 11.5 366.8 245.5 233.3 133.5 -303.6 -14.0 -2.0 Impairments Retail Wholesale Private Treasury Others Impairments 1Q 20 2Q 2
Slide 14: Non-Performing Financing
Non-Performing Financing …resulting in modest NPA growth and a stable NPA ratio, with NPA coverage at 115.2% including the benefit of significant and high-quality collaterals. NPA (AEDmn) NPA Ratio (%) 10% +1% 9.0% 8.9% 9% 8.8% 7,195 7,805 7,689 7,746 7,786 8.8% 6,495 8.4% 8% 7.9% 7% 1Q 20 2Q 20 3Q
Slide 15: Balance Sheet
Balance Sheet ADIB reported steady balance sheet growth during 1H 2021… Total Assets (AEDbn) Total Assets Movement YTD (AEDbn) 132 130.7 +2% 130 130.6 127.8 128 127.1 127.8 1.6 0.3 0.5 0.4 130.6 126 124.4 124 -0.0 122 122.7 120 118 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 Total assets Cash & balances Due
Slide 16: Customer Financing
Customer Financing …with customer financing growth driven mainly by 7% YTD growth in Government and PSE financing… Customer Financing (AEDbn) Customer Financing, Gross Movement YTD (AEDbn) 85 83.4 +1% 84 83.2 83.1 83.7 83 82.0 82 Wholesale 81 87.4 0.1 0.9 0.3 0.5 88.1 80 79 79.4 -1.1 78 77 1Q 20 2Q
Slide 17: Customer Deposits
Customer Deposits …and solid 4% deposit growth from strong CASA and STI generation, mainly in the Retail segment… Total Deposits (AEDbn) Total Deposits Movement by Segment YoY (AEDbn) 110 105.2 +4% 105 103.1 100.7 101.3 98.9 98.6 101.3 3.5 1.0 0.5 0.5 105.2 100 95 -1.5 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21
Slide 18: Capital and Liquidity
Capital and Liquidity …while maintaining robust capitalization and liquidity positions, well within regulatory requirements. Capitalization Ratios (%) Liquidity Ratios (%) 20% 18.8% 19.2% 100% 18.2% 18.3% 86.6% 87.1% 85.8% 84.4% 19.1% 90% 85.1% 83.1% 18% 18.1% 18.0% 80% 17.0% 17.7% 18.1% 70% 80.3% 8
Slide 19: Outlook and Guidance
Outlook and Guidance 1H 2021 Earnings Presentation 19
Slide 20: Outlook and Guidance
Outlook and Guidance Improving economic fundamentals and solid YTD financial performance drive a promising outlook for FY 2021 Market Outlook Management Guidance 1H 2021 Reported FY 2021 Guidance GDP growth from rising oil prices Net Income Growth Real GDP growth (%) ADIB is well-positioned for a pe
Slide 21: Questions & Answers
Questions & Answers 1H 2021 Earnings Presentation 21
Slide 22: Consistent dividend distribution
Consistent dividend distribution ADIB consistently distribute dividends with average yield of 4% and TSR of 36% Shareholder Return Metrics 8.00 60% 7.00 50% 6.00 36% 40% Total Shareholder Return 5.00 4.00 30% 3.00 Share Price 20% 2.00 9.9% 8.0% 6.5% 7.6% 7.0% 6.2% 5.1% 10% 1.00 4.1% 4.4% Dividend Yi
Slide 23: 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 Negative Outlook Bank in the UAE (April 2021) MSCI Rating Distribution 25% 24% 25% A+ 16% Stable Outlook 6% 2% #1 #1 1% Islamic Bank in Islamic Bank in CCC B BB BBB
Slide 24: Contacts
Contacts 1H 2021 Earnings Presentation 24
Slide 25: 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 26: Disclaimer
Disclaimer 1H 2021 Earnings Presentation 26
Slide 27: 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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