Abu Dhabi Islamic Bank · ADX:ADIB
Abu Dhabi Islamic Bank — H1 2024 Earnings Presentation
28 slides from Abu Dhabi Islamic Bank's earnings presentation, Jul 25, 2024
Slide 1: 1H 2024 Earnings Presentation
ADIB IR Website 1H 2024 Earnings Presentation Analyst & Investor Conference Call IR App Download link: Abu Dhabi, 25 July 2024
Slide 2: Contents
Contents 1H 2024 Earnings Presentation Key Highlights Financial Performance Outlook & Guidance Questions & Answers Appendix Contacts Disclaimer 2
Slide 3: Key Highlights
1 2 Key Highlights 3 4 5 1H 2024 Earnings Presentation 6 7 8 3
Slide 4: 1H 2024 Key Highlights
1H 2024 Key Highlights Very solid set of financial results showing consistent growth trend on strong customer financing growth and healthy funding strategy Record 1H 2024 performance with net income after tax of AED 3.03bn up 30% YoY and up 40% 1H’24 Net Income growth YoY before tax to AED 3.42bn, t
Slide 5: Financial Performance
1 2 3 Financial Performance 4 5 1H 2024 Earnings Presentation 6 7 8 5
Slide 6: Financial Performance Highlights
Financial Performance Highlights Delivered solid net income of AED 3.03bn in 1H 2024, growing 30% YoY on solid balance sheet growth and non-funded income growth Strong YoY Growth in Profitability Solid Balance Sheet Growth YoY Strong Capital Position and Return YoY 3.03bn 213bn 17.2% Net Income Tota
Slide 7: Key financial metrics – 1H 2024 vs 1H 2023
Key financial metrics – 1H 2024 vs 1H 2023 Another set of record results with ROE reaching 28.8% driven by solid growth in balance sheet and diversified revenues streams 1H 2023 1H 2024 Change % Profitability (AED mn) Revenue 4,264 5,349 25% Expenses -1,446 -1,528 6% Margin 2,819 3,821 36% Cost of C
Slide 8: Income Statement
Income Statement 1H 2024 net income up 30% YoY on accelerated core revenue momentum and operational discipline Net Income (AEDmn) Net Income Movement YoY (AEDmn) 2,000 1,501 1,578 +30% 1,424 1,451 1,500 1,224 693 3,029 392 2,326 1,000 -83 -33 -266 500 0 Profit after zakat Funded income Non-funded Ex
Slide 9: Funded Income
Funded Income Strong growth in funded income with NPM trending strong reflecting discipline on both asset and liability pricing Net Profit Margin (%) Net Profit Margin Movement YoY (%) 7.37% 7.41% 6.78% 6.61% +19bps 6.36% 0.15% 4.67% 0.25% 0.24% 0.21% 4.60% 4.48% 4.50% 4.60% 4.41% 4.41% 2.43% 2.49%
Slide 10: Operating Expenses
Operating Expenses Outstanding operating efficiency with C/I ratio improving by more than 500 bps YoY helped by higher income and cost discipline Cost To Income Ratio (%) Expenses Movement YoY (AEDmn) -533bps +6% 33.9% 32.6% 32.9% 1,446 34 46 3 1,528 30.4% 28.6% 1H 23 9M 23 FY 23 1Q 24 1H 24 Expense
Slide 11: Impairments
Impairments Impairment charge up 9% YoY and COR is at a comfortable 55bps for 1H 2024 Impairments Movement YoY (AEDmn) Impairments (AEDmn) +31% +9% 293 44 123 402 223 369 1 202 189 109 -64 -23 -49 Impairments Retail Wholesale Private Treasury Associates Others Impairments 2Q 23 3Q 23 4Q 23 1Q 24 2Q
Slide 12: Non-Performing Financing
Non-Performing Financing Asset quality continues to significantly improve with NPA ratio of 4.7% lowest since 4Q 18 while coverage ratio increased to 77% NPA (AEDmn) NPA Movement YTD (AEDmn) -26% -12% 8,619 7,292 7,762 7,292 6,625 6,384 6,384 -791 -113 -5 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 NPA Corporate
Slide 13: Balance Sheet
Balance Sheet Total assets surpassed AED 200bn driven by 21% growth in customer financing supported by a very strong funding position Total Assets (AEDbn) Total Assets Movement YTD (AEDbn) 250 213.4 182.2 184.1 192.8 194.6 +11% 200 +15% 20.7 3.6 222.6 213.4 150 192.8 4.5 1.4 100 -0.3 -9.2 50 0 2Q 23
Slide 14: Customer Financing
Customer Financing AED 17 bn YTD growth in customer financing reflecting retail gaining market share and corporate banking closing landmark deals Customer Financing, Net (AEDbn) Customer Financing, Gross Movement YTD (AEDbn) 135 132.1 +14% 130 +17% 120.2 9.5 7.9 0.4 2.7 140.4 136.6 125 -0.3 -3.8 120
Slide 15: Investments
Investments Diversified Investment Portfolio growing 20% vs 2Q 23 Investments (AEDbn) Investments Movement YTD (AEDbn) 35 30 24.5 26.3 27.2 +11% 22.6 23.0 25 2.8 27.2 24.5 20 -0.1 -0.0 15 10 5 0 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 Investments Investments carried Investments carried Investments carried Inv
Slide 16: Customer Deposits
Customer Deposits Up 10% YTD reflecting our ability to gain market share with 5.5 bn increase in CASA, demonstrating effective deposit gathering strategy Total Deposits (AEDbn) Total Deposits Movement YTD (AEDbn) 180.0 172.2 +10% 170.0 160.3 157.1 +14% 160.0 151.5 150.4 3.1 0.5 4.3 179.1 172.2 150.0
Slide 17: Capital and Liquidity
Capital and Liquidity Robust foundation across all key metrics including strong capital and liquidity ratios Capitalization Ratios (%) Liquidity Ratios (%) 20% 90% 79.5% 78.0% 78.6% 76.0% 76.6% 17.7% 18.0% 80% 18% 16.8% 17.2% 17.2% 70% 76.7% 72.7% 74.3% 73.2% 73.0% 16% 60% 16.5% 16.9% 16.0% 16.0% 50
Slide 18: Outlook and Guidance
1 2 3 Outlook and Guidance 4 5 1H 2024 Earnings Presentation 6 7 8 18
Slide 19: Outlook and Guidance
Outlook and Guidance Solid financial & strategic foundations drive a promising outlook for 2024 Market Outlook Management Guidance 1H 2024 Actual FY 2024 Guidance Solid GDP growth Gross Financing Growth > 16% Real GDP growth (%) Executing ADIB’s growth strategy against a 14% YTD positive economic ba
Slide 20: Questions & Answers
1 2 3 4 Questions & Answers 5 1H 2024 Earnings Presentation 6 7 8 20
Slide 21: Appendix
1 2 3 4 Appendix 5 1H 2024 Earnings Presentation 6 7 8 21
Slide 22: Investment Highlights
Investment Highlights Strong Management, Solid Fundamentals and Clear Strategy Clear Strategy Experienced management ▪ Strengthen Islamic leadership position ▪ Best in class management team ▪ Deepening customer relationships 1 2 ▪ Extensive banking experience with ▪ Create productivity and efficienc
Slide 23: Consistent dividend distribution
Consistent dividend distribution ADIB consistently distribute dividends with average yield of above 5% Shareholder Return Metrics 13 12 12% 11 9.9% 10 10% 10.12 9 8.0% 8 8% 7.6% 7.0% 7.1% Share Price 7 6.2% 6.5% 6 6% 5.1% 5.4% Dividend Yield 5 4.4% 4.5% 4.1% 4 4% 3 2.49 2 2% 1 0 0% 2012 2013 2014 20
Slide 24: Ratings and Accolades
Ratings and Accolades ADIB's recognition for excellence in Islamic banking Credit Ratings ADIB's MSCI ESG Rating Recent Accolades A2 #1 Stable Outlook #1 Market leader in Islamic Retail digital bank MSCI Rating Distribution 25% 24% 25% A+ 16% Stable Outlook 6% 2% #1 #1 1% Bank in the Safest Islamic
Slide 25: Contacts
1 2 3 4 Contacts 5 6 1H 2024 Earnings Presentation 7 8 25
Slide 26: 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 27: Disclaimer
1 2 3 4 Disclaimer 5 6 1H 2024 Earnings Presentation 7 8 27
Slide 28: 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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