First Abu Dhabi Bank · ADX:FAB
First Abu Dhabi Bank — Q1 2018 Earnings Presentation
21 slides from First Abu Dhabi Bank's earnings presentation, Apr 29, 2018
Slide 1: Q1’18 Earnings Presentation
Q1’18 EARNINGS PRESENTATION April 29th, 2018
Slide 2: Disclaimer
Disclaimer Please note that FAB pro forma consolidated financials at 31 March 2018 serve as the main basis of reference for our Management Discussion & Analysis Report (MDA) and Investor Relations presentation. Comparative figures have been reclassified where appropriate to conform to the presentati
Slide 3: Q1’18 Key Performance Highlights
Q1’18 Key Performance Highlights • 2018 off to a solid start • Improved profitability and returns both sequentially and yoy • Healthy business momentum supports operating performance • Integration journey and key strategic initiatives firmly on track • Synergy momentum continues - IT integration to
Slide 4: 2018 off to a solid start …
2018 off to a solid start … Financial highlights Q1’18 P&L summary In AED Mn Q1’18 Q4‟17 QoQ % Q1’17 YoY % • Operating income down qoq and yoy primarily due to material extraordinary revenue items realised in prior Revenues 4,871 5,049 (4) 5,188 (6) periods (investment and property-related) which we
Slide 5: 2018 off to a solid start … (adjusted net profit)
2018 off to a solid start … In AED Mn Reported Group net profit 2,926 2,562 2,605 2,822 2,998 Less: Material extraordinary revenue items ~400 - - ~180 - Add: One-off integration costs 104 91 70 198 70 Add: Amortisation of merger-related - - - 138 44 intangibles Adjusted Group net profit 2,630 2,653
Slide 6: Integration & strategy updates
Integration & strategy updates Strategic review of international operations and execution well underway KSA: both CMA and SAMA licenses obtained UAE network rationalisation and rebranding activities continue: • Branch & cash offices network reduced from 103 as of Dec‟17 to 89 as of Mar‟18 • Re
Slide 7: Capital position remains robust
Capital position remains robust Even after PPA, FY‟17 dividends, and IFRS9 1 CET1 ratio progression Minimum UAE CB Basel III requirement Management guidance 14.5% • Robust capital position with Basel III 1.57% 0.62% 0.03% 12.4% >13.0% >13.5% CET11 ratio at 12.4%, comfortably in excess of regulatory
Slide 8: NII outlook remains positive
NII outlook remains positive Key highlights • Group NIM: +4bps yoy and +7bps qoq, reflect margin expansion on Quarterly YTD the back of rate hikes Net interest margin (%) 2.55 • Net Interest Income (NII) marginally up yoy as positive impact of rate 2.49 2.48 hikes and volume growth, were partly offs
Slide 9: Non-interest income supported by strong growth in fees and commissions
Non-interest income supported by strong growth in fees and commissions Fees & commissions, net (AED Mn) +19% +0.1% QoQ % YoY % Loan-related 483 (5) 25 932 934 860 782 788 Trade-related 283 8 19 Others 168 4 7 • Fees and commissions (net) grew 19% yoy driven by higher syndication fees reflecting a st
Slide 10: Remarkable improvement in operating efficiency
Remarkable improvement in operating efficiency Key highlights Cost-income ratio (ex-integration) (%) • Operating expenses BAU reduced 14% yoy, reflecting continued discipline on cost management and realisation of substantial synergies Qtr (%) YTD (%) • Headline operating expenses were lower 13% yoy
Slide 11: CoR benefits from tighter risk appetite and IFRS9 implementation
CoR benefits from tighter risk appetite and IFRS9 implementation Key highlights1 Impairment charges, net (AED Mn) & CoR*1 • Impairment charges (net) down 31% yoy and 22% qoq mainly Net Impairment chrgs (L&A) Net impairment chrgs (Others) reflecting tighter risk appetite in PBG and IFRS9 implementati
Slide 12: Loan and deposit growth momentum continues
Loan and deposit growth momentum continues Key highlights Net loans and advances (AED Bn) Loans and advances 345.2 338.2 321.3 328.3 330.5 • Up 2% qoq driven by a healthy business momentum in CIB (led by UAE public sector and trade FI) • Down 2% yoy due to lower trade FI and higher provisions from P
Slide 13: Liability mix and Wholesale Funding
Liability mix and Wholesale Funding Liabilities mix Wholesale Funding (AED Bn) Mar’18 Customer Deposits 69% Syndicated loan 7.3 Term Borrowings & Medium Term Notes/Bonds 34.3 AED 583.6 Bn Sub Debt Mar’18 8% Sukuk 2.4 Others 8% Subordinated debt 0.4 Due to Banks & Repos 11% Commercial Paper 4% Total
Slide 14: On track to meet/exceed 2018 financial guidance
On track to meet/exceed 2018 financial guidance Q1’18 2018 GUIDANCE 2020 AMBITIONS Loan +2% ytd Mid-single digit GROWTH Revenue -6% yoy Low single-digit C/I Ratio EFFICIENCY (ex-integration costs) 25.8% ~26%-27% ~25% ASSET QUALITY Cost of Risk1 49bps 65-75bps Net profit growth +2% yoy Mid single-dig
Slide 15: Appendix
APPENDIX {2tuer FAB( First Abu Dhabi Bank
Slide 16: Business Performance
Business Performance Corporate & Investment Banking (CIB) of Group 51% Revenue In AED Mn Q1’18 QoQ % YoY % • FAB‟s market-leading CIB franchise is a major contributor to Group Revenues 2,471 5 (1) revenue with a share of 51% • Revenues in Q1‟18 grew 5% sequentially driven by strong performances Oper
Slide 17: Business Performance (continued…)
Business Performance (continued…) Subsidiaries of Group Revenue In AED Mn Q1’18 QoQ % YoY % 3% Revenues 131 (63) (3) • Subsidiaries generated a net profit of AED 82 Million in the first quarter of 2018 (vs. net loss of AED 11 Million in Q1‟17), driven by lower operating expenses and provision write-
Slide 18: Asset & Loan Mix
Asset & Loan Mix Asset Mix Gross loans by counterparty (AED Bn) Others Cash & CB 9% Balances 353.5 20% 345.1 Banking Sector Investments 16% 6% 7% DFB and Personal/Retail Sector Reverse 21% 20% AED 677.8Bn Repos Corporate/Private Mar’18 5% Sector 56% 55% Public Sector Loans and 16% 17% Government Sec
Slide 19: Investments breakdown
Investments1 breakdown Investments by type Investments by ratings A HFT - Debt 29% 16% BBB HFT - Equity & Funds 10% 3% Held to Maturity BB & below AED 106.4 Bn (Debt) AED 106.4 Bn 8% Mar’18 6% Mar’18 Unrated – Debt AFS - Debt AFS - Equity & 2% 75% Funds Equity & Funds 0% AA 3% 34% AAA 14% Investment
Slide 20: Customer deposits
Customer deposits Customer deposits (AED Bn) Customer deposits by account type (AED Bn) CASA (%) 2 Total Customer Deposits Notice and time deposits Current Accounts 2 Saving Accounts Certificates of deposits Margin Accounts 393.9 377.3 378.9 395.8 404.0 395.8 404.0 1% 1% 9% 8% 3% 3% 35% 38% 52% 50%
Slide 21: Thank You!
THANK YOU! For more information, please visit www.bankfab.com or contact FAB Investor Relations team ir@bankfab.com You can also download FAB’s Investor Relations App from App Store / Google Play to access latest corporate updates, FAB pro forma financial information and FGB/NBAD archives Scan to do