Abu Dhabi Islamic Bank · ADX:ADIB
Abu Dhabi Islamic Bank — FY2021 Earnings Presentation
34 slides from Abu Dhabi Islamic Bank's earnings presentation, Feb 8, 2022
Slide 1: FY 2021 Earnings Presentation
ADIB IR Website FY 2021 Earnings Presentation Analyst & Investor Conference Call IR App Download link: Abu Dhabi, 08 February 2022 Confidential
Slide 2: Contents
Contents FY 2021 Earnings Presentation Key Highlights ADIB Strategy 2025 Financial Performance Outlook & Guidance Questions & Answers Contacts Disclaimer 2 Confidential
Slide 3: Key Highlights
1 2 Key Highlights 3 4 5 FY 2021 Earnings Presentation 6 7 Confidential 3
Slide 4: Key Highlights
Key Highlights ADIB delivered a strong performance in a year of economic rebound Delivering strong Y-O-Y Growth 45% increase in net profit with ROE improving to 14.3% Revenue up 4% driven by 9% increase in non-funded income Effective cost control strategy leads to a reduction of 507 basis points in
Slide 5: Executing ADIB Strategy
1 2 Executing ADIB Strategy 3 4 5 FY 2021 Earnings Presentation 6 7 Confidential 5
Slide 6: ADIB Strategy 2025
ADIB Strategy 2025 ADIB has launched strategy 2025 with a renewed purpose and vision Purpose Lifelong partner for customers, colleagues and community Vision The world’s most innovative Islamic bank 4-Pillar Strategy Continuous Segment Digital Sustainable Innovation Focused Excellence Future 6 Confid
Slide 7: Update on Strategy Progress
Update on Strategy Progress ADIB continues to deliver on its strategy Continuous Key product launches Amwali Youth Account Asset Management Payment Service Innovation +3000 $160 million AED 6 Mn Account Global Sukuk Fund Revenue Segment UAE nationals Grow Corporate banking Grow total UAE market shar
Slide 8: ADIB Strategy 2025 Strategic Targets
ADIB Strategy 2025 Strategic Targets A commitment to driving value ROE Net Profit C/I Ratio NPS STP 20% 2x <36% #1 >85% 8 Confidential
Slide 9: ADIB's revamped and energetic management team will lead the growth strategy
ADIB’s revamped and energetic management team will lead the growth strategy Key management team Nasser Al Awadhi Mohamed Abdel Bary, CFA Sandeep Chouhan Group CEO Group CFO Group COO 30+ years international banking as CIO 30+ years of banking experience in 25+ years of finance roles in Corporate and
Slide 10: Financial Performance
1 2 3 Financial Performance 4 5 FY 2021 Earnings Presentation 6 7 Confidential 10
Slide 11: Financial Performance Highlights
Financial Performance Highlights Strong set of results for FY 2021 driven by positive momentum across our businesses Strong YoY Growth in Profitability Solid Balance Sheet Growth Robust Capital Position and Strong Return 2.3bn 137bn 18.6% Net Income Total Assets CAR +45% +7% -23bps 5.6bn 93bn 14.3%
Slide 12: Income Statement Highlights
Income Statement Highlights Strong YoY growth in profitability driven by revenue growth and OPEX optimization Profit After Zakat & Tax (AEDmn) Revenues (AEDmn) +4% 5,358 5,560 +45% 2,330 FY 20 FY 21 1,604 Expenses (AEDmn) -8% 2,450 2,260 FY 20 FY 21 FY 20 FY 21 Key Highlights Impairments (AEDmn) - T
Slide 13: Income Statement
Income Statement ADIB witnessed an increase in profitability with 45% growth YoY… Net Income (AEDmn) Net Income Movement YoY (AEDmn) 800 +45% 700 608 728 600 534 501 483 493 500 400 318 360 2,330 181 190 300 1,604 20 270 -25 200 100 0 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 Profit after Fund
Slide 14: Non-Funded Income
Non-Funded Income Strong 9% YoY growth in non-funded income from higher cards, investment income and forex income Non-Funded Income (AEDmn) Non-Funded Income Movement YoY (AEDmn) +9% +12% 203 25 2,215 598 667 2,034 549 551 506 491 424 462 -34 -13 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 Non-f
Slide 15: Funded Income
Funded Income …while maintaining sector-leading cost of funding and net profit margin. Net Profit Margin (%) Net Profit Margin Movement YoY (%) 6% -27bps 4.64% 5% 4.25% 4.13% 4.04% 3.50% 3.47% 3.64% 3.57% 4% 3.51% 0.21% 0.11% 3.25% 3% 3.84% 3.58% 3.55% 3.51% 3.32% 3.15% 3.13% 3.25% 2% -0.35% -0.24%
Slide 16: Operating Expenses
Operating Expenses 8% YoY reduction in FY 2021 expenses with cost to income ratio improving on positive jaws. Cost To Income Ratio (%) Expenses Movement YoY (AEDmn) -507bps -8% 49.1% 49.2% 47.6% 45.7% 44.3% 43.9% 42.2% 40.7% 2,450 2,260 -3 -96 -90 1Q 20 1H 20 9M 20 FY 20 1Q 21 1H 21 9M 21 FY 21 Expe
Slide 17: 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 (% of Total) Auto Digital 80% 71% 60% 54% Ecosystem 70% 70% 51% 51% 70% 62% 63% 64% 46% 57% 60% 50% 44% 40% 42% 60% 40%
Slide 18: Impairments
Impairments A 27% YoY decline in impairments due to an improved economic outlook,... Impairments Movement YoY (AEDmn) Impairments (AEDmn) -27% -44% 1,314 387 360 384 153 954 322 -71 245 233 203 134 -404 -25 -13 Impairments Retail Wholesale Private Treasury Others Impairments 1Q 20 2Q 20 3Q 20 4Q 20
Slide 19: Non-Performing Financing
Non-Performing Financing …resulting in modest NPA growth… NPA (AEDmn) NMC Group +8% 85% NPA Coverage 7,805 7,689 7,746 7,786 8,025 8,286 6,495 7,195 1,273 1,273 1,273 1,273 1,273 1,273 0 526 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 QoQ +11% +8% -1% +1% +1% +3% +3% NPA Composition by Sector (%
Slide 20: Non-Performing Financing
Non-Performing Financing … and a stable NPA ratio, with NPA coverage at 120.0% including the benefit of significant and high-quality collaterals. NPA Ratio (%) NPA Coverage Ratio (%) 10% 120.0% 114.4% 115.2% 118.2% 120.0% 120% 108.6% 110.7% 111.9% 9.0% 8.9% 9.0% 100% 8.8% 8.8% 9% 8.4% 8.9% 80% 60% 6
Slide 21: Balance Sheet
Balance Sheet ADIB reported solid balance sheet growth during FY 2021… Total Assets (AEDbn) Total Assets Movement YTD (AEDbn) 140 +7% 133.4 136.9 135 130.7 130.6 127.8 127.8 2.1 2.1 4.8 0.1 136.9 130 127.1 124.4 125 -0.1 122.7 120 115 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 Total assets Cash
Slide 22: Customer Financing
Customer Financing …with 7% YTD customer financing growth driven mainly by growth in Government and PSE financing… Customer Financing, net (AEDbn) Customer Financing, Customer Financing, Gross Movement YTD (AEDbn) 90 88.3 Gross by Segment (%) +7% 84.4 85 83.2 83.4 83.1 83.7 Other 82.0 Private 4.8% 3
Slide 23: Customer Deposits
Customer Deposits …and solid 8% deposit growth from strong CASA and STI generation, mainly in the Retail segment… Total Deposits (AEDbn) 109.6 Total Deposits Movement by Segment YTD (AEDbn) 110 107.0 105.2 +8% 105 103.1 100.7 101.3 98.9 98.6 100 3.6 0.3 109.6 101.3 5.2 95 -0.7 -0.0 90 1Q 20 2Q 20 3Q
Slide 24: Capital and Liquidity
Capital and Liquidity …while maintaining robust capitalization and liquidity positions, well within regulatory requirements. Capitalization Ratios (%) Liquidity Ratios (%) 19.2% 19.1% 19.5% 20% 18.3% 18.8% 100% 86.6% 87.1% 85.8% 84.4% 18.2% 85.1% 83.1% 82.4% 84.1% 18%18.1% 18.6% 80% 17.0% 18.4% 17.5
Slide 25: Outlook and Guidance
1 2 3 Outlook and Guidance 4 5 FY 2021 Earnings Presentation 6 7 Confidential 25
Slide 26: Outlook and Guidance
Outlook and Guidance Improving economic fundamentals and solid YTD financial performance drive a promising outlook for 2022 Market Outlook Management Guidance FY 2021 Reported FY 2021 Guidance FY 2022 Guidance GDP growth from rising oil prices Gross Financing Growth Real GDP growth (%) Executing ADI
Slide 27: Questions & Answers
1 2 3 4 Questions & Answers 5 FY 2021 Earnings Presentation 6 7 Confidential 27
Slide 28: 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 29: 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 30: ADIB Share Price Performance
ADIB Share Price Performance From 1Q 2020 to 4Q 2021 ADIB’s share price is up 72% ADIB Share Price (AED) 8.00 6.87 7.00 6.00 5.00 3.99 4.00 3.00 2.00 1.00 0.00 30 Confidential
Slide 31: Contacts
1 2 3 4 Contacts 5 FY 2021 Earnings Presentation 6 7 Confidential 31
Slide 32: 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 33: Disclaimer
1 2 3 4 Disclaimer 5 6 FY 2021 Earnings Presentation 7 33 Confidential
Slide 34: 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 — FY2021 Earnings Presentation on 6ix