First Abu Dhabi Bank · ADX:FAB
First Abu Dhabi Bank — First Gulf Bank — Q1 2011 Earnings Presentation
31 slides from First Abu Dhabi Bank's earnings presentation, April 2011
Slide 1: First Gulf Bank Profile
First Gulf Bank Profile April - June 2011 (based on Q1’ 2011 financials) 1/31
Slide 2: First Gulf Bank Overview
First Gulf Bank Overview Incorporated in 1979 and headquartered in Abu Dhabi. Majority (AED billion unless stated owned by ruling family of Abu Dhabi representing an ownership 2009 YE 2010 Y Q1'11 otherwise) of 67% Total Assets 125.5 140.8 142.8 A strong network of 19 branches across the UAE, wi
Slide 3: FGB in the UAE Context – Q1'11
FGB in the UAE Context – Q1’ 11 Loans & Advances and Customer Deposits Net Profit 1.6 250 212.0 1.4 1.4 200 194.4 AED Billions 1.2 143.2 141.1 AED Billions 150 121.1 1.0 0.9 0.9 109.1 97.1 98.5 100 0.8 56.3 59.6 0.6 45.1 51.9 50 0.6 0.5 0.4 0.3 0 ENBD NBAD ADCB FGB UNB ADIB 0.2 0.0 Loans & Advances
Slide 4: Financial Performance Trends
Financial Performance Trends Total Assets1 Total Equity1 30,000 24,126 23,947 160,000 142,805 25,000 22,518 140,758 140,000 125,473 AED M illions 20,000 AED M illions 120,000 107,522 16,245 100,000 15,000 73,198 10,120 80,000 10,000 60,000 40,000 5,000 20,000 - - 2007 2008 2009 2010 Q1'11 2007 2008
Slide 5: Financial Performance Trends (Cont'd)
Financial Performance Trends (Cont’d) Net Interest Margin2 Interest Income / Total Income2 4.0 3.7 3.7 80.0 71.9 3.6 66.9 3.5 3.1 70.0 62.7 58.3 3.0 2.7 60.0 49.7 2.5 50.0 % % 2.0 40.0 1.5 30.0 1.0 20.0 0.5 10.0 - - 2007 2008 2009 2010 Q1'11 2007 2008 2009 2010 Q1'11 Cost / Income Ratio2 Loans / Dep
Slide 6: Strong Financial Performance
Strong Financial Performance Key Performance Indicators Net Profit — Quarterly Trends 1,000 930 920 875 Total Assets: 2007 – 2010 CAGR of +24% 900 850 848 800 750 855 865 675 808 775 787 700 AED Million 600 671 Shareholders’ equity: 2007 – 2010 CAGR of +34% 500 507 621 406 400 474 300 Revenue:
Slide 7: 2011 – Performance Analysis
2011 – Performance Analysis Mar 2010 (AED) Growth Mar 2011 (AED) Assets (Bn) 132.8 + 8% Assets (Bn) 142.8 Loans & Advances (Bn) 93.3 + 4% Loans & Advances (Bn) 97.1 Deposits (Bn) 89.4 + 10% Deposits (Bn) 98.5 Shareholders’ Equity (Bn) 22.5 + 6% Shareholders’ Equity (Bn) 23.9 Revenue (Mn) 1,659 - 3%
Slide 8: Key Ratios 2007 – Q1'11
Key Ratios 2007 – Q1’11 Dec-07 Dec-08 Dec-09 Dec-10 Q1'11 Ratio % % % % % Return On Average Assets 3.3 3.3 2.8 2.6 2.5 Return On Average Equity 21.0 22.5 16.8 14.7 14.6 Non-Interest Income / Total Income 50.3 41.7 37.3 33.1 28.1 Net Interest Margin 2.7 3.1 3.7 3.6 3.7 Cost to Income Ratio 21.6 24.2
Slide 9: Overall Strategy
Overall Strategy A leading financial institution in the UAE by focusing on sustainable growth Organic Growth of Core Establishment of Associated International and Targeted Banking Activities Companies and Subsidiaries Regional Growth Build on opportunities with strategic Separate subsidiaries to
Slide 10: FGB Key Business Lines
FGB Key Business Lines Corporate Banking Retail Banking Treasury and Real Estate Activities Other Operations Investments 2010 Q1'11 2010 Q1'11 2010 Q1'11 2010 Q1'11 2010 Q1'11 Assets 44% 43% 23% 25% 23% 22% 5% 5% 5% 5% Operating 38% 39% 45% 49% 7% 7% 7% 1% 3% 4% Income * * Operating income excluding
Slide 11: Business Lines — Corporate Banking
Business Lines — Corporate Banking Corporate Banking has been FGB’s core activity Assets 1 since inception offering a range of financial services to 80,000 corporates. Focus industries include oil & gas, 59,221 63,406 61,887 61,071 manufacturing, energy and real estate. 60,000 36,453 Offers a sp
Slide 12: Business Lines — Corporate Banking
Business Lines — Corporate Banking Corporate banking Q4, 08 Q1, 09 Q2, 09 Q3, 09 Q4, 09 Q1, 10 Q2, 10 Q3, 10 Q4, 10 Q1, 11 (AED Mn) Assets 59,221 61,139 61,547 64,386 63,406 64,000 62,713 62,584 61,887 61,071 % Growth 1% 3% 1% 5% -2% 1% -2% -2% -1% -1% Operating income 392 454 548 566 558 614 583 62
Slide 13: Business Lines — Retail Banking
Business Lines — Retail Banking Since 2002 Retail Banking business offers customers a Assets1 range of products and services with a special focus on UAE Nationals 40,000 32,953 35,284 30,000 27,052 The Retail Banking products are offered through 19,481 diversified delivery channels including: %
Slide 14: Business Lines — Retail Banking
Business Lines — Retail Banking Retail banking Q4, 08 Q1, 09 Q2, 09 Q3, 09 Q4, 09 Q1, 10 Q2, 10 Q3, 10 Q4, 10 Q1, 11 (AED Mn) Assets* 19,481 21,914 24,216 25,775 27,052 29,017 30,964 32,788 32,953 35,284 % Growth 14% 12% 11% 6% 5% 7% 7% 21% 1% 7% Operating income 498 570 614 624 597 659 712 767 711
Slide 15: Business Lines — Treasury and Investments
Business Lines — Treasury and Investments Established in 2001, the Treasury & Investments Division Assets2 offers key corporates a set of products across a range of 40,000 asset classes and geographic markets 31,708 31,585 Mainly manages the group’s liquidity 30,000 23,810 22,013 18,843 % Supp
Slide 16: Business Lines – Treasury & Investments
Business Lines – Treasury & Investments Treasury & Investments (AED Mn) Q4, 08 Q1, 09 Q2, 09 Q3, 09 Q4, 09 Q1, 10 Q2, 10 Q3, 10 Q4, 10 Q1, 11 Assets 18,483 15,562 21,469 22,193 22,013 26,978 25,049 29,061 31,708 31,585 Liquid Assets 7,842 3,362 9,794 9,927 8,553 12,307 8,230 13,846 16,654 13,717 US
Slide 17: Business Lines — Real Estate Activities
Business Lines — Real Estate Activities The Real Estate Activities business line was spun off Assets2 in 2007 10,000 7,561 7,695 Primary activities include investment, development, 8,000 7,066 leasing, brokerage, 5,831 6,000 % management and resale of properties 3,887 4,000 Investment proper
Slide 18: Net Profit Analysis: Business Segment Contribution
Net Profit Analysis: Business Segment Contribution Sources of % of % of % of Income 2009 2010 Q1’11 Total Total Total (AED Mn) Core Banking Activities 2,496 75% 3,170 93% 855 98% Subsidiaries and Associate Companies 814 25% 251 7% 20 2% TOTAL 3,310 100% 3,420 100% 875 100% 2009 2010 Subsidiaries Q1’
Slide 19: Group Revenue Analysis
Group Revenue Analysis 2009 2010 Q1’11 Revenue Analysis by Business Segments Treasury & Others Treasury and Investments 1% Investments Retail 7% Retail Treasury and 12% 45% 49% Investments 7% Real Estate Retail Business 39% Others 14% 3% Others Real Estate 4% Corporate Business Real Estate Corporate
Slide 20: Funding Mix
Funding Mix 2009 2010 Q1’11 Medium Term Federal GVT Federal GVT Borrowing + Tier 2 capital Tier 2 capital EMTN 3% Medium Term 3% 5% Borrowing + Medium Federal GVT EMTN Term Tier 2 Capital Others 6% Shareholders Others Borrowing + 4% Others 3% Equity Shareholders 3% EMTN 4% 17% Equity 4% 17% Borrowin
Slide 21: Assets Mix
Assets Mix 2009 2010 Q1’11 Optimizing efficiency of asset allocation while managing appropriate liquidity level Investment Liquid Other Assets Liquid Assets Other in Assets Investment in 2% 13% Assets Associates 8% Associates Investments Investment Investment in 4% 1% 1% 5% Properties Associates Inv
Slide 22: Loan Portfolio Analysis
Loan Portfolio Analysis AED millions 2009 2010 Q1'11 Performing Loans 89,818 95,236 96,952 Non Performing Loans 3,097 3,687 3,677 Total Gross Loans 92,915 98,923 100,628 Specific Provisions 584 2,523 2,518 General Provisions 1,945 771 1,046 Total Provisions 2,529 3,295 3,564 NET LOANS 90,386 95,628
Slide 23: Capital Adequacy
Capital Adequacy Particulars (AED' Million) 2006 2007 2008 2009 2010 Q1'11 Capital Base: Tier 1 Capital 8,017 9,850 16,122 22,268 23,648 23,939 Tier 2 Capital 54 107 -19 4,420 4,543 4,590 Deductions -255 -326 -553 -562 -517 -523 Capital Base 7,816 9,630 15,550 26,126 27,674 28,005 Risk Weighted Asse
Slide 24: Dividend Distribution
Dividend Distribution DESCRIPTION 2003 2004 2005 2006 2007 2008 2009 2010 NET PROFIT (Mn) 120.9 244.9 1,055.7 1,535.9 2,008.2 3,005.3 3,310.3 3,420.4 CASH DIVIDEND 10% 20% 25% 70% 20% 35% 50% 60% (% of Capital) BONUS SHARES - 5% 25% - 10% - - 5% (% of Capital) DIVIDEND PAYOUT RATIO 32% 40% 47% 57% 1
Slide 25: Short Term Priorities and Future Plans
Short Term Priorities and Future Plans Continue on strengthening the Balance Sheet through appropriate Liquidity and Capitalization levels, balanced Asset allocation with focus on the most profitable businesses. Continue the focus on improvement of asset quality and collections. Continue the d
Slide 26: FGB - A Bright Future Outlook
FGB - A Bright Future Outlook FGB is very well positioned to continue generating value to its shareholders in 2011 and beyond. Why? FGB model is founded on two important criteria: - Solid Balance Sheet - Sound Profitability. Strong and Stable Shareholders’ Base. Visionary, experienced and prof
Slide 27: Appendix
Appendix First Gulf Bank > Ugh arlas} als
Slide 28: Board of Directors (2011 – 2013)
Board of Directors (2011 – 2013) Board of Directors 2006 – 2008 Board of Directors 2011 – 2013 H.H. Sheikh Hazza Bin Chairman (1) H.H. Sheikh Hazza Bin Chairman (1) Zayed Al Nahyan Zayed Al Nahyan H.H. Sheikh Tahnoon Bin Vice Chairman (1) H.H. Sheikh Tahnoon Vice Chairman (1) Zayed Al Nahyan Bin Zay
Slide 29: Board of Directors (2011 – 2013)
Board of Directors (2011 – 2013) H.H. Sheikh Hazza Bin Zayed Al Nahyan, Chairman (1) H.H. Sheikh Tahnoon Bin Zayed Al Nahyan, Vice Chairman (1) Abdulhamid Mohammed Saeed, Managing Director, Board Member Abdulhamid Mohammed Saeed has over 26 years of experience in banking, 18 years of which were with
Slide 30: Enterprise Risk Management Structure
Enterprise Risk Management Structure Group Risk Committee (Board Level) Group CRO Group Risk Management Team Credit Risk Committee Asset Liability Committee Operational Risk Committee Group Operations Group Market Risk Group Credit Risk Team Group Compliance Team Risk Team / ALM Team Group Basel II
Slide 31: Disclaimer
Disclaimer This presentation provides information in summary form only and is not intended to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular inves