Abu Dhabi Islamic Bank · ADX:ADIB
Abu Dhabi Islamic Bank — 9M 2024 Earnings Presentation
30 slides from Abu Dhabi Islamic Bank's earnings presentation, Oct 31, 2024
Slide 1: 9M 2024 Earnings Presentation
ADIB IR Website 9M 2024 Earnings Presentation Analyst & Investor Conference Call IR App Download link: Abu Dhabi, 31 October 2024 Confidential
Slide 2: Contents
Contents 9M 2024 Earnings Presentation Key Highlights Financial Performance Outlook & Guidance Questions & Answers Appendix Contacts Disclaimer Confidential 2
Slide 3: Key Highlights
1 2 Key Highlights 3 4 5 9M 2024 Earnings Presentation 6 7 8 Confidential 3
Slide 4: Financial highlights
Financial highlights Another strong set of financial results driven by strong business momentum, diversified revenue growth & cost and risk discipline Record 9M 2024 performance with net income after tax of AED 4.6bn up 24% YoY and up 33% 9M’24 Net Income growth YoY before tax to AED 5.2bn, translat
Slide 5: Strategic Highlights
Strategic Highlights Well on track in executing the key elements of our strategy Launch ADIB 2035 vision Launch ADIB Ventures to accelerate innovation and collaboration with the global fintech sector Develop a Gen AI related framework & adopting Gen AI ‘use cases’ in areas such as fraud management,
Slide 6: Financial Performance
1 2 3 Financial Performance 4 5 9M 2024 Earnings Presentation 6 7 8 Confidential 6
Slide 7: Financial Performance Highlights
Financial Performance Highlights Delivered net income of AED 4.6bn in the first 9M 2024, growing 24% YoY on strong customer financing and non-funded income growth Strong YoY Growth in Profitability Robust Balance Sheet Growth YoY Strong Capital Position and Return YoY 4.6bn 223bn 17.6% Net Income To
Slide 8: Key financial metrics – 9M 2024 vs 9M 2023
Key financial metrics – 9M 2024 vs 9M 2023 Record set of results with ROE reaching 29.0% driven by robust growth in balance sheet and diversified revenue streams 9M 2023 9M 2024 Change % Profitability (AED mn) Revenue 6,694 7,995 19% Expenses -2,185 -2,324 6% Margin 4,509 5,671 26% Cost of Credit -5
Slide 9: Income Statement
Income Statement 9M 2024 net income growth of 24% YoY driven by strong revenue momentum, operating efficiency and balance sheet growth Net Income (AEDmn) Net Income Movement YoY (AEDmn) 1,501 1,578 1,605 +24% 1,424 1,451 904 123 4,635 397 3,750 -139 -400 Profit after zakat Funded income Non-funded E
Slide 10: 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% 7.47% 6.78% -2bps 6.61% 0.22% 0.24% 0.04% 4.50% 4.67% 4.60% 4.46% 4.48% 0.11% 4.46% 4.48% 2.43% 2.49% 2
Slide 11: Non-Funded Income
Non-Funded Income Strong non-funded income growth YoY on F&C and investment income, underlining strategic focus on revenue diversification Non-Funded Income (AEDmn) Non-Funded Income Movement YoY (AEDmn) +25% +41% 1,201 224 3,092 984 1,064 348 41 853 827 291 2,188 3Q 23 4Q 23 1Q 24 2Q 24 3Q 24 Non-f
Slide 12: Operating Expenses
Operating Expenses C/I ratio improving despite ongoing business growth and investments, offset by cost savings driven by digital initiatives Cost To Income Ratio (%) Expenses Movement YoY (AEDmn) -358bps +6% 32.6% 32.9% 2,185 62 72 4 2,324 30.4% 28.6% 29.1% 9M 23 FY 23 1Q 24 1H 24 9M 24 Expenses Emp
Slide 13: Impairments
Impairments Impairment charge down 22% YoY and COR is at a comfortable 49bps for 9M 2024 Impairments Movement YoY (AEDmn) -22% 88 571 0 448 -102 -28 -32 -49 Impairments Retail Wholesale Private Treasury Associates and subs Others Impairments 9M 23 9M 24 +65% -45% +19% -37% -20% -195% Cost Of Risk (%
Slide 14: Non-Performing Financing
Non-Performing Financing Asset quality continues to improve significantly with NPA ratio of 4.4% lowest since 1Q 17 while coverage ratio increased to 78% NPA (AEDmn) NPA Movement YTD (AEDmn) -16% -21% 7,292 7,762 7,292 6,625 6,384 6,116 6,116 -987 -136 -53 3Q 23 4Q 23 1Q 24 2Q 24 3Q 24 NPA Corporate
Slide 15: Balance Sheet
Balance Sheet Total assets surpassed AED 220bn driven by 20% growth in customer financing supported by strong and diversified funding position Total Assets (AEDbn) Total Assets Movement YTD (AEDbn) 222.6 194.6 213.4 +15% 192.8 184.1 +21% 24.0 5.3 0.4 233.2 222.6 6.8 3.9 192.8 -10.6 3Q 23 4Q 23 1Q 24
Slide 16: Customer Financing
Customer Financing AED 20 bn YTD growth reflecting market share gains in retail and corporate market Customer Financing, Customer Financing, Net (AEDbn) Customer Financing, Gross Movement YTD (AEDbn) Gross by Segment (%) 135.1 +16% 132.1 +20% Other 120.2 13.0 6.3 0.8 3.3 0.2 143.7 139.6 Private 1.2%
Slide 17: Investments
Investments Diversified Investment Portfolio grew 25% vs 3Q 23 Investments (AEDbn) Investments Movement YTD (AEDbn) 26.3 27.2 28.8 +18% 23.0 24.5 4.1 0.1 0.2 28.8 24.5 3Q 23 4Q 23 1Q 24 2Q 24 3Q 24 Investments Investments carried Investments carried Investments carried Investments 4Q 23 at amortised
Slide 18: Customer Deposits
Customer Deposits YTD growth of 14% with AED 6.4bn increase in CASA, demonstrating strategic initiatives to grow market share Total Deposits (AEDbn) Total Deposits Movement YTD (AEDbn) 179.7 +14% 172.2 +19% 157.1 160.3 4.8 0.6 6.8 187.6 151.5 10.3 0.9 179.7 157.1 7.2 -7.9 3Q 23 4Q 23 1Q 24 2Q 24 3Q
Slide 19: Capital and Liquidity
Capital and Liquidity Robust fundamentals across all key metrics reflecting strong capital and liquidity ratios comfortably above regulatory requirements Capitalization Ratios (%) Liquidity Ratios (%) 78.6% 76.0% 76.6% 79.5% 76.9% 18.0% 17.2% 17.2% 17.6% 16.8% 74.3% 73.2% 76.7% 75.2% 73.0% 16.9% 16.
Slide 20: Outlook and Guidance
1 2 3 Outlook and Guidance 4 5 9M 2024 Earnings Presentation 6 7 8 Confidential 20
Slide 21: Outlook and Guidance
Outlook and Guidance Solid financial & strategic foundations drive a promising outlook for 2024 Market Outlook Management Guidance 9M 2024 Actual FY 2024 Guidance Solid GDP growth Gross Financing Growth > 16% Real GDP growth (%) Executing ADIB’s growth strategy against a 16% YTD positive economic ba
Slide 22: Questions & Answers
1 2 3 Questions & Answers 4 5 9M 2024 Earnings Presentation 6 7 8 Confidential 22
Slide 23: Appendix
1 2 3 Appendix 4 5 9M 2024 Earnings Presentation 6 7 8 Confidential 23
Slide 24: Investment Highlights
Investment Highlights Strong Management, Solid Fundamentals and Clear Strategy Clear Strategy Experienced management Strengthen Islamic leadership position Deepening customer relationships 1 2 Best in class management team Extensive banking experience with Create productivity and efficienc
Slide 25: 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 26: 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 27: Contacts
1 2 3 Contacts 4 5 6 9M 2024 Earnings Presentation 7 8 Confidential 27
Slide 28: 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 29: Disclaimer
1 2 3 Disclaimer 4 5 6 9M 2024 Earnings Presentation 7 8 29 Confidential
Slide 30: 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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