First Abu Dhabi Bank · ADX:FAB
First Abu Dhabi Bank — Debt Investor Presentation (September 2023)
56 slides from First Abu Dhabi Bank's debt investor presentation, September 2023
Slide 1: Debt Investor Presentation September 2023
Debt Investor Presentation September 2023
Slide 2: Disclaimer
Disclaimer • Comparative figures have been reclassified where appropriate to conform to the presentation and accounting policies adopted in the consolidated financial statements • Integration of Bank Audi Egypt into FABMisr was completed in Q4’22. FABMisr is grouped under Head Office on an interim b
Slide 3: The UAE's leading bank, and one of the world's largest and safest financial institutions
The UAE’s leading bank, and one of the world’s largest and safest financial institutions 3
Slide 4: We are the UAE's leading bank, and one of the world's largest and strongest financial institutions
We are the UAE’s leading bank, and one of the world’s largest and strongest financial institutions The UAE’s Leading Bank and a Regional Banking Powerhouse Among the Strongest Banks Globally Largest Bank in the UAE and A Market Heavyweight, among the Safest banks rankings2 AA- Among the Largest in M
Slide 5: The UAE's Leading Bank and a regional banking powerhouse
The UAE’s Leading Bank and a regional banking powerhouse H1’23 Banking sector assets1 National Net Profit2 Total Assets2 Equity2 Market Cap4 Credit Ratings4 (USD Bn) champion2,3 (USD Bn) (USD Bn) (USD Bn) (USD Bn) (Moody’s/S&P/Fitch) 1,054 2.2 312 31.7 41.0 Aa3 / AA- / AA- UAE 1,017 2.7 265 45.4 58.
Slide 6: AA level Credit Ratings reflect FAB strong credit fundamentals
AA level Credit Ratings reflect FAB strong credit fundamentals MOODY’S S&P Fitch LT Aa3 AA- AA- Strongest combined credit ratings ST P-1 A-1+ F1+ amongst any other bank in MENA Outlook Stable Stable Stable • Strong ties with the Abu Dhabi government, combined • We expect First Abu Dhabi Bank (FAB) t
Slide 7: Among the most profitable AA- rated banks globally
Among the most profitable AA- rated banks globally 25% Al Rajhi TDBank**** Western banks GCC banks Scotia**** APAC banks 20% RBC**** Macquarie* JP Morgan Mashreq ICICI* HDFC Bank* QNB ENBD SNB State Bank of India* NBK Return on Tangible Equity (%) DBS CBA** BofA Morgan Stanley 15% UBS Swedbank KFH A
Slide 8: Our strategic international network facilitates cross-border liquidity, trade and investment flows
Our strategic international network facilitates cross-border liquidity, trade and investment flows Diversified revenues across geographies Europe and Americas France I UK I Switzerland USA I Brazil UAE Middle East and Africa UAE | Egypt | KSA I Oman 80% Bahrain | Kuwait | Libya | Iraq Asia Pacific (
Slide 9: Diversified and client-centric business model
Diversified and client-centric business model Diversified across business lines… …and products % Group revenue1 Segment (H1’23) Industry-leading cross-asset platform: Full range of banking services for institutional clients: Government, FX, Money Markets & rates Investment GREs, SWFs, financial inst
Slide 10: Diversified franchise by business segment and geography
Diversified franchise by business segment and geography Breakdown by Business Breakdown by Geography Investment Banking Corporate & Commercial Banking Consumer Banking Global Private Banking UAE International Head Office3 Operating Income Profit after taxes Operating Income Profit after taxes H1’23
Slide 11: A Regional Pacesetter for Sustainability and Climate Action
A Regional Pacesetter for Sustainability and Climate Action 11
Slide 12: Delivering against our sustainability agenda
Delivering against our sustainability agenda H1’23 ESG Performance at a Glance TRANSITIONING CAPITALISING TRANSFORMING to a Low Carbon Future on our Social Responsibility our Governance Model GREEN FINANCE FINANCIAL INCLUSION GOVERNANCE STRUCTURE & RISK FRAMEWORK First Female Board Director: H.E. Ma
Slide 13: FAB is committed to supporting the country's sustainability agenda
As the UAE’s largest bank, FAB is committed to supporting the country’s sustainability agenda to drive growth and development Sustainability is at the heart of the UAE’s economic strategy The third update of the UAE's second Nationally Determined Contribution (NDC) UAE’s Revision of the 2050 Nationa
Slide 14: We are committed to become a net zero bank by 2050
We are committed to become a net zero bank by 2050 Our timeline to net zero In 2022, we have set production-based carbon intensity targets across three of our highest emitting sectors. Our targets are in line with the emissions reduction trajectory required to reach the International Energy Agency’s
Slide 15: Shaping the Future
The Regional Financial SHAPING Institution of Choice. THE Strategically Driven ACTING WITH PURPOSE FUTURE Value - Driven DELIVERING SUSTAINABLE GROWTH Forward - Driven With purposeful action MOVING BEYOND TRADITIONAL BANKING for sustainable growth September 2023 Debt Investor Presentation 15
Slide 16: Shaping the future with purposeful action for sustainable growth
SHAPING THE FUTURE with purposeful action for sustainable growth STRATEGICALLY DRIVEN VALUE-DRIVEN FORWARD-DRIVEN ACTING WITH PURPOSE DELIVERING SUSTAINABLE GROWTH MOVING BEYOND TRADITIONAL BANKING Five decades at the heart of shaping the region’s Growth strategy underpinned by our position as one o
Slide 17: Consistent performance demonstrates solid strategy execution
Consistent performance demonstrates solid strategy execution Powering economic growth and cross-border trade as a global partner for our clients, while unlocking long-term value for all stakeholders Enhancing digital capabilities and Sustained business momentum Unlocking long-term value People & Cul
Slide 18: Q2/H1'23 Financial Performance
Q2/H1’23 Financial Performance 18
Slide 19: Record underlying revenue and profits delivered in Q2/H1'23
Record underlying revenue and profits delivered in Q2/H1’23 H1’23 3.7 ▲ +44% YoY H1’23 2.2 ▲ +65% YoY1 Key ratios H1’23 Operating USD Bn USD Bn Return on Net Tangible Equity2 Income Q2’23 1.9 ▲ +37% +2% profit Q2’23 1.1 ▲ +61% +7% USD Bn YoY QoQ USD Bn YoY1 QoQ 18.6% ▲ (H1’22: 12.3%)1 KEY HIGHLIGHTS
Slide 20: H1'23 NPAT growth driven by strong NII and FX & investments income
H1’23 NPAT growth driven by strong NII and FX & investments income amid ongoing transformation investments and prudent provisioning H1’23 Summary P&L Net profit bridge (USD Mn) in USD Mn H1’23 YoY%1 +65% YoY1 (+USD 0.9Bn) Net-Interest Income 2,428 +37 Operating Income Non-Interest Income 1,265
Slide 21: Record underlying quarterly performance in Q2'23
Record underlying quarterly performance in Q2’23; NPAT +7% QoQ, +61% YoY Q2’23 Net profit bridge (USD Mn) Q2’23 Summary P&L in USD Mn Q2’23 QoQ% YoY%1 +61% YoY1 (+USD 0.4Bn) Net-Interest Income 1,223 +1 +32 Non-Interest Income 638 +2 +48 +206 +300 Operating Income 1,861 +2 +37 78 791
Slide 22: Underlying operating performance improves across all business lines
Underlying operating performance improves across all business lines, underpinned by strong commercial momentum in a favourable regional backdrop Dec'22 Jun'23 (USD Bn) Operating income bridge (USD Mn) +44% YoY IB CCB CB GPB Int’l ↑5% ↑5% ↑6% ↑2% ↑3% ↑21% ↑3% ↑11% ↑3% ↓-3% +262 3,693 129 39 +347 +
Slide 23: Solid balance sheet fundamentals supported by a very strong liquidity position
Solid balance sheet fundamentals supported by a very strong liquidity position Loans (net) increased 5% ytd (+USD 6Bn) driven by sustained demand from our core clients across the corporate Asset Mix – Dec’22 +3% Ytd Asset Mix – Jun’23 & private sectors, and growth in trade finance activity, partiall
Slide 24: A well-diversified, high quality loan book
A well-diversified, high quality loan book Gross loans trend Figures in USD Bn Gross loans by counterparty QoQ ↑2%, YoY ↑6%, Ytd ↑5% 130.6 137.3 Trade-related 16% 134.5 137.2 16% 130.1 131.9 130.6 Personal/ Retail Corporate/ Private 51% 52% Banks 1% 4% 10.4 11.8 13.6 Public Sector 9.0 9.1 19% 17
Slide 25: Double-digit NII growth from strong business volumes and rate hike benefits
Double-digit NII growth from strong business volumes and rate hike benefits Net interest income (USD Bn) • H1’23 Net Interest Income (NII) was up 37% yoy, strongly benefitting Performing loan yields (%) from higher deposit margins as well as healthy business volumes Quarterly Ytd QoQ ↑1%, YoY ↑32
Slide 26: Healthy sales & trading performance drive non-interest income growth
Healthy sales & trading performance, and continued strength in fee-based businesses drive non-interest income growth and revenue diversification Non-interest income trend (USD Mn) Non-interest income % of Group operating income Fees & commissions, net (USD Mn) Loan-related Trade-related Other F&C Qo
Slide 27: Cost discipline maintained amid continued investments
Cost discipline maintained amid continued investments to drive digitisation, further efficiencies and future growth; Higher income supporting significant improvement in C/I ratio Operating expenses trend (USD Mn) and C/I ratio (%) Opex drivers YoY (USD Mn) 31.2 33.4 32.2 C/I ratio1 28.7 25.3 +10%
Slide 28: Healthy asset quality metrics with stable NPL ratio
Healthy asset quality metrics with stable NPL ratio, adequate provision buffers Impairment charges, net (USD Mn) & CoR1 (%) NPLs2 and ECLs3 (%) Net impairment charges CoR (L&A) (bps) Provision Coverage (%) NPL Ratio (%) NPLs (USD Bn) Provisions (USD Bn) 86 100 103 98 101 103 52 60 62 55 58 47 3.6 3.
Slide 29: Healthy asset quality and adequate provision buffers
Healthy asset quality and adequate provision buffers Loans by stage ECL2 by stage (USD Bn) (USD Bn) USD 135.4Bn USD 5.2Bn (Gross loans net of IIS) as of Jun’23 as of Jun’23 Ratio % of gross loans Jun'23 Dec'22 (net of IIS)1 Jun'23 126.3 93.3% 0.5 Dec'22 Stage 1 Stage 1 120.2 0.5 4.0 3.0% 1.4 Adj
Slide 30: Capital, funding & liquidity
Capital, funding & liquidity 30
Slide 31: Solid capital generation drives expansion in CET1 to 13.6%
Solid capital generation drives further expansion in Common Equity Tier 1 (CET1) to 13.6% CET11 ratio progression RoRWA4 (% ytd) and RWAs (USD Bn) 1.8 2.8 2.8 1.7 1.8 +101bps Ytd 162 159 156 155 158 -32bps 5% +1bps 6% 6% 6% 6% +74bps 10% 8% 7% 7% 8% Cash DPS: USD 0.14 1.0% 13.6% • RWA USD 1.57Bn 13.
Slide 32: High-quality and diversified investment portfolio
High-quality and diversified investment portfolio Investments by type Investments by ratings Jun'23 Dec’22 Jun’23 Jun'23 Dec’22 USD 57.5Bn AAA 24% 24% Jun’23 FVTPL - Debt 18% 14% USD 57.5Bn AA 26% 23% Dec'22 FVTPL - Equity & Funds 2% 2% USD 56.0Bn A 26% 26% Amortised Cost (Debt Inv) 2% 2% BBB 6%
Slide 33: Customer deposits +6% ytd with continued growth in CASA balances
Customer deposits +6% ytd with continued growth in CASA balances Customer deposits trend Customer deposits by counterparty USD Bn USD Bn QoQ ↓-5%, YoY ↑15%, Ytd ↑6% 190.8 202.8 Total Customer Deposits CASA Certificates of deposits 5% 4% 212.5 202.8 14% 13% 203.1 190.8 Personal/retail sector 176
Slide 34: Leading issuer in the MENA region
Leading issuer in the MENA region Liability mix Medium-term wholesale funding Customer Term Borrowings & Sub Issuances1 Maturities1 (USD Mn) Deposits, Debt, 6% 73% Others, 10% 5,074 USD USD 280.4Bn 4,704 Jun'23 Due to Banks & 4,398 3,948 CNH Repos, 10% 3,613 3,384 2,899 3,011 GBP Commercial Paper,
Slide 35: Diversified Term Funding portfolio
Diversified Term Funding portfolio Term Funding Portfolio by Type1 Term Funding Portfolio by Currency1 Asian Currency Other ex-Formosa PP 6% 9% 16% Formosa Bullet EUR Callable 12% US$ Bullet Private 9% 32% Placement CHF 10% 8% Conventional Public GBP European USD 15% US$ Public 5% Currency 64% 27% C
Slide 36: Leader in MENA Green Bond Issuance
Leader in MENA Green Bond Issuance Highlights: FAB Green Bonds Outstanding (as of 30 Jun’23) • In 2022, FAB’s Sustainable Finance Framework was updated to further align with market best practices and to CHF Public expand the scope of financial products. 25% • The framework was developed to align wit
Slide 37: Maintaining FY'23 financial guidance
Maintaining FY’23 financial guidance 2023e financial guidance H1’23 actual • Positive economic outlook for GCC/UAE economies underpinned by continued strength in non-oil sectors Loan growth Mid single-digit +5% ytd • Balance sheet to be efficiently deployed to enhance Group returns Cost of Risk <80b
Slide 38: Well positioned to continue to deliver solid results through the cycles
Well positioned to continue to deliver solid results through the cycles Sustained commercial momentum, Record underlying revenue and Strong top line growth across all profits business business lines & income healthy pipeline execution and lines sources diversified income streams Disciplined transfor
Slide 39: Supplementary financial slides
Supplementary financial slides 39
Slide 40: A strong financial track record
A strong financial track record Balance Sheet & Income Statement TOTAL ASSETS (USD Bn) LOANS & ADVANCES (USD Bn) CUSTOMER DEPOSITS (USD Bn) CAGR CAGR CAGR Jun'23 312.1 Jun'23 131.4 Jun'23 202.8 Dec'22 302.3 Dec'22 125.1 Dec'22 190.8 Dec'21 272.6 Dec'21 111.5 Dec'21 167.4 Dec'20 250.3 10% Dec'20 105.
Slide 41: A strong financial track record (continued)
A strong financial track record (continued) Key ratios COST-TO-INCOME RATIO - YTD (%) NIM - YTD (%) NPL RATIO1 (%) PROVISION COVERAGE1 (%) (EX-INTEGRATION COSTS, EX-MAGNATI GAINS) 2.5 2.4 4.0 4.0 3.9 120 31.6 2.1 3.7 110 101 103 27.7 25.8 26.7 27.0 26.4 1.8 3.1 3.2 3.2 93 95 98 25.2 1.5 1.6 1.7 FY'1
Slide 42: Business segments overview – IB & CCB
Business segments overview – IB & CCB Investment Banking (IB) USD Mn H1’23 YoY% Key highlights Quarterly operating income trend (USD Bn) Loans & Deposits (USD Bn) Operating Income 1,523 47 • IB revenue up 47% yoy driven by strong revenue growth Loans: QoQ ↑2%, Ytd ↑5% in GTB on the back of c
Slide 43: Business segments overview – CB & GPB
Business segments overview – CB & GPB Consumer Banking (CB) Key highlights USD Mn H1’23 YoY% • CB revenue up 35% qoq in Q2’23 underpinned by robust Quarterly operating income trend (USD Bn) Loans & Deposits (USD Bn) Operating Income 513 1 Loans: QoQ ↑2%, Ytd ↑3% sales, with continued focus o
Slide 44: International – financial overview
International – financial overview International (USD Mn) H1’23 YoY% Key highlights Quarterly operating income trend (USD Bn) Operating Income 731 36 • International revenue +36% yoy reflecting healthy contributions across geographies QoQ ↓-26%, YoY ↑16% YoY ↑36% 0.7 • Revenue from Intern
Slide 45: H1'23 financial highlights – Group financials
H1’23 financial highlights – Group financials Income Statement - Summary (USD Mn) Q2’23 Q1’23 QoQ % Q2’22 YoY % H1’23 H1’22 YoY % Net interest Income 1,223 1,205 1 923 32 2,428 1,776 37 Non- interest Income 638 627 2 432 48 1,265 792 60 Operating Income 1,860 1,832 2 1,355 37 3,693 2,569 4
Slide 46: H1'23 financial highlights – Segmental
H1’23 financial highlights – Segmental H1’23 USD Mn Q2’23 Q1’23 QoQ % Q2’22 YoY % H1’23 H1’22 YoY % Contr% Operating income 1,860 1,833 2 1,355 37 3,693 2,569 44 100% Investment banking (IB) 800 723 11 552 45 1,524 1,037 47 41% Corporate & Commercial banking (CCB) 483 458 5 319 52 941 594 58 25
Slide 47: Operating Environment
doll abo Bo Fist Abu Dhabi Bank Operating Environment 47
Slide 48: UAE economy continues to remain robust despite global headwinds
UAE economy continues to remain robust despite global headwinds Driven by focus on economic growth and diversification UAE to continue to outperform global economy in FY’23… 1 … against a backdrop of relatively high oil prices2 UAE PMI continues to be strong3 UAE vs Global Real GDP growth (%) Oil Pr
Slide 49: Abu Dhabi – the capital
Abu Dhabi – the capital On the road to become a regional and global powerhouse Diverse and sustainable economy facilitated by strong fiscal and external metrics 87% of UAE land area Ras al Khaimah Estimated population2 : 2.9 Mn Ajman Sharjah Umm al Quwain Dubai Fujairah Aa2 / AA / AA 187% #1 (Moody’
Slide 50: Abu Dhabi – the capital
Abu Dhabi – the capital On track to economic prosperity driven by Vision 2030 and related strategic initiatives Vision 2030 laid the foundation for the long-term prosperity of Abu Dhabi and continues to support the people and businesses in the emirate Fiscal Sustainability Macroeconomic Economic Gro
Slide 51: Banking sector fundamentals remain solid
Banking sector fundamentals remain solid Liquidity remains ample while credit growth continues to rebound… … with FAB outperforming and gaining market share3 Credit growth, net (YoY) Deposits growth (YoY) Assets Deposits Gross Loans 13.9% 32% 32% 32% 11.3% 31% 30% 32% 7.9% 29% 31% 5.8% 6.5% 5.9% 28%
Slide 52: Appendix
doll abo Bo Fist Abu Dhabi Bank Appendix 52
Slide 53: Market heavyweight delivering sustainable shareholder returns
Market heavyweight delivering sustainable shareholder returns Overview1 Heavyweight constituents across indices • Listed on Abu Dhabi Securities Exchange (ADX) Among the largest Among the largest MENA & UAE constituents on most widely tracked • Symbol: FAB, ISIN: AEN000101016 constituent on the Abu
Slide 54: Over 5 decades of shaping the UAE and the regional banking industry
Over 5 decades of shaping the UAE and the regional banking industry NBAD FGB FAB 2021 13th Feb 2000 1st Apr 2023 & 1968 NBAD is listed on Abu Dhabi Stock 2017 Bank Audi sal and FAB sign definitive agreement for BEYOND Exchange the sale and purchase of 100% of Bank Audi sae 2007 (Egypt)’s share capit
Slide 55: Prestigious awards highlight FAB's strength and industry expertise
Prestigious awards highlight FAB’s strength and industry expertise • Best Investment Bank in the United Arab Emirates • Best Bank in UAE • Best Bank for Transformation in Middle East • Best Equity Bank in the Middle East 2018-2021 Euromoney • Middle East’s Best Bank for Financing 2019-2021 • Best In
Slide 56: For more information, please visit www.bankfab.com
For more information, please visit www.bankfab.com or contact Group Funding team at debtIR@bankfab.com You can also download FAB’s Investor Relations App from App Store /Google Play to access latest corporate updates Scan to download this presentation Click on the image to access latest reports 2022
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