Abu Dhabi Islamic Bank · ADX:ADIB
Abu Dhabi Islamic Bank — Q1 2019 Earnings Presentation
27 slides from Abu Dhabi Islamic Bank's earnings presentation, May 2019
Slide 1: Investor Presentation 31 March 2019 results
Investor Presentation 31 March 2019 results Abu Dhabi: May 2019 ADIB © 2010 adib.ae
Slide 2: Table of Content
Table of Content Introduction Financial Review Business Review Appendix 2
Slide 3: ADIB at a glance
ADIB at a glance Overview Incorporated in 1997 to serve as first Islamic Bank in the ADIB – Timeline and milestones Emirate of Abu Dhabi. Majority owned by members of the ruling family of Abu Dhabi •Established by the Govt. of Abu Dhabi in 1997. and sovereign wealth fund. Early History •Licensed
Slide 4: Table of Content
Table of Content Introduction Financial Review Business Review Appendix 4
Slide 5: Q1 2019 – Key financial highlights – Income statement
Q1 2019 – Key financial highlights – Income statement AED Mn Q1 18 Q1 19 Change % Net revenue from Funds (NRFF) increased 0.8%, driven by growth in customer Net Revenue from funds 948.4 955.7 0.8% financing of 2.8% which is partially offset Fees, commission and others 415.5 480.9 15.7% by higher c
Slide 6: 31 Mar 2019 – Key financial highlights – Balance sheet
31 Mar 2019 – Key financial highlights – Balance sheet Change Change Total assets increased by 0.4% over Q1 2018 AED Bn Mar 18 Mar 19 Dec 18 to reach AED 124.6 Bn primarily growth in % % financing and sukuk investments. Total assets 124.1 124.6 0.4% 125.2 -0.4% Customer financing increased by 2.
Slide 7: Key ratios
Key ratios Ratios Mar 2018 Dec 2018 Mar 2019 Diluted Earnings per share (EPS in AED) 0.176 0.637 0.138 Return on Average Shareholders’ Equity 19.7%1 19.3% 18.3%1 (excluding - Tier 1 capital) Efficiency Net profit margin (%) 4.22%1 4.29% 4.24%1 Cost of funds (%) 0.55%1 0.70% 0.86%1 Cost / income rati
Slide 8: Operating Performance – Net profit income
Operating Performance – Net profit income Highlights (Q1 2019 vs. Q1 2018) Revenues (AED Mn) Key movements in Revenues (AED Mn) Net revenue from Funds (NRFF) Fees, commission and others Net revenue from funds 0.8% higher, driven by growth in +5.3% customer financing volumes by 65 2.8%. Year-on-Yea
Slide 9: Operating Performance – Non-profit income
Operating Performance – Non-profit income Highlights (Q1 2019 vs. Q1 2018) Non-profit income (AED Mn) Composition of Fees & commission (AED Mn) Other income Investment income Brokerage Takaful related Retail and others, net Non-profit income higher by 15.7% Property income Fees & Commission Proper
Slide 10: Balance Sheet Strength and Customer Financing
Balance Sheet Strength and Customer Financing Gross customer portfolio increased 2.4% vs. Mar 18, mainly due to Retail banking which grew by 2.7% and WBG assets by 2.2%. Composition of Total Assets – AED Bn Liquidity ratio* (%) Investmen Investmen ts: ts: % of total assets Liquid assets (AED Bn) 10.
Slide 11: Funding Profile
Funding Profile Healthy Financing to Deposit ratio of 77.7%. Net Customer Financing & Customers’ Deposits (AED Bn) Composition of Liabilities (AED Bn) Tier 1 Sukuk (USD 1 Bn) Due to FI Customer Financing Fin to Dep ratio Other Liabilities Depositors’ accounts Customers Deposits Adavnces to Stable fu
Slide 12: Asset quality – Customer financing only
Asset quality – Customer financing only Provisioning now calculated in accordance with IFRS 9. Cost of risk trending down. Provisions and NPAs – Customer financing (AED Mn) NPA ratio and Provision Coverage ratio NPAs NPA ratio Total Provision coverage ratio * Specific / Stage 3 provisions 4,066 4,34
Slide 13: Capital Adequacy Ratio (CAR)
Capital Adequacy Ratio (CAR) Well above the Regulatory thresholds Capital Adequacy Ratio (%) Capital base – CET 1, Tier 1 and Tier 2 - AED Bn CAR Basel III Tier 1 CET 1 Tier 2 Tier 1 CET 1 16.8% 17.2% 17.5% 17.6 16.0% 16.5% 16.4% 16.4 16.5 17.1 15.7% 16.1% 15.7 1.1 14.9% 15.4% 1.1 1.1 1.1 1.1 4.8 4.
Slide 14: Table of Content
Table of Content Introduction Financial Review Business Review Appendix 14
Slide 15: ADIB Strategy
ADIB Strategy The Bank’s overall Strategy has three pillars: Strengthen our Build market leadership Create an integrated International presence within the UAE financial services group and business • Build on our strength as a leading retail • ADIB continues to create a diversified • ADIB internation
Slide 16: Business unit contribution
Business unit contribution Composition of Total Assets – AED Bn Composition of Total Liabilities – AED Bn Real Private; Real Private Treasur Real Treasur Real Private; Estate; 3% Estate; ; 3% y; 8% Estate; Private y; 8% Estate; 3% 2% 2% 0% ; 3% 0% Treasury; Treasur y; 17% Others; 18% Others; Others;
Slide 17: Global Retail Banking overview
Global Retail Banking overview Global Retail Banking contributes 61% of Net Financing Assets (AED Bn) Deposits (AED Bn) Revenues: +3% -2% Personal Banking Division provides services for 46.9 64.7 45.7 63.2 individuals clients, while the Business Banking Division services the needs of SMEs. These
Slide 18: Global Wholesale Banking overview
Global Wholesale Banking overview Financing Assets (AED Bn) Deposits (AED Bn) Global Wholesale Banking contributes 17% of Net +2% Revenues: -9% Global Wholesale Banking encompasses the large 27.7 28.3 25.6 23.3 corporates, emerging corporates and financial institutions divisions of the Bank. The a
Slide 19: Treasury overview
Treasury overview Assets (AED Bn) Liabilities (AED Bn) Treasury contributes 9% of Net Revenues +3% Treasury principally handles money market brokerage, -6% trading and treasury services, as well as the 22.9 21.6 8.7 9.0 management of the Bank's funding operations by use of investment deposits. Inv
Slide 20: Table of Content
Table of Content Introduction Financial Review Business Review Appendix 20
Slide 21: Consolidated Statement of Income
Consolidated Statement of Income % chg Q1 19 vs % chg Q1 19 vs AED Mn Q1 18 Q4 18 Q1 19 Q1 18 Q4 18 Revenues 1,363.9 1,615.3 1,436.6 5.3% -11.1% Net Revenue from Funds 948.4 1,078.1 955.7 0.8% -11.4% Fees & commission 231.3 314.5 213.7 -7.6% -32.0% Investment income 117.7 161.2 185.3 57.5% 14.9% For
Slide 22: Consolidated Balance Sheet
Consolidated Balance Sheet % chg 31 Mar % chg 31 Mar AED Mn 31 Mar 2018 31 Dec 2018 31 Mar 2019 2019 vs 31 Mar 2019 vs 31 Dec 2018 2018 Cash and balances with Central Banks 22,142 18,731 17,045 -23.0% -9.0% Due from financial institutions 3,760 5,812 6,666 77.3% 14.7% Net Customer financing 75,999 7
Slide 23: Financial Snapshot (1/2)
Financial Snapshot (1/2) Total Assets (AED Bn) Net Customer Financing (AED Bn) Customer Deposits (AED Bn) +3% +2% +4% 118.4 122.3 123.3 125.2 78.4 78.2 76.5 78.7 94.9 98.8 100.0 100.4 111.9 73.0 84.8 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Equity (AED Bn) Revenues
Slide 24: Financial Snapshot (2/2)
Financial Snapshot (2/2) Return on Avg Shareholders’ Equity (%) Financing to Deposits Ratio (%) Advances to Stable Funds Ratio (%) 18.7% 19.5% 19.3% 86.1% 82.6% 86.5% 85.1% 82.9% 18.4% 79.1% 76.5% 78.4% 80.0% 17.2% 84.6% 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 CAR
Slide 25: Dividend Distribution History - AED
Dividend Distribution History - AED A consistent dividend distribution record AED 2011 2012 2013 2014 2015 2016 2017 2018 Net Profit (Mn) 1,155.1 1,201.2 1,450.2 1,750.7 1,934.0 1,953.6 2,300.1 2,500.8 Cash Dividend Payout Ratio (% of Net Profit) 50.0% 50.0% 50.0% 40.0% 39.8% 39.8% 39.8% 39.8% Cash
Slide 26: Shareholders’ Return
Shareholders’ Return 31 March 2019 share price was AED 4.38 per share (31 Dec 2018: AED 3.90 per share). Cash dividend of 39.8% of net profit, 27.38% of share capital (2017: 28.87% of share capital). Total dividend yield of ADIB share of 7.0%. (2017: 7.6%). ADIB vs ADX ADIB ADX 7.50 5,500 7.00
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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