Abu Dhabi Commercial Bank · ADX:ADCB
Abu Dhabi Commercial Bank — Abu Dhabi Commercial Bank PJSC — Investor Presentation (February 2013)
32 slides from Abu Dhabi Commercial Bank's investor presentation, February 2013
Slide 1: Abu Dhabi Commercial Bank PJSC Investor Presentation FY'12
Abu Dhabi Commercial Bank PJSC Investor Presentation FY’12 1
Slide 2: Disclaimer
Disclaimer This document has been prepared by Abu Dhabi Commercial Bank PJSC (“ADCB”) for information purposes only. The information, statements and opinions contained in this presentation do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an off
Slide 3: Index
Index Macro overview Business overview Financial highlights Appendix 3
Slide 4: Macro overview - financial stability
Macro overview - financial stability… UAE Abu Dhabi Substantial hydrocarbon UAE has one of the highest Robust regional economic Abu Dhabi continues to Conservative investment policy wealth (bboe) GDP per Capita globally growth (Real GDP growth %) benefit from high oil prices and manageable debt posi
Slide 5: UAE banks overview
UAE banks overview … UAE banking system Capital position Net profit growth UAE banking sector UAE banks boast ADCB reported highest growth YoY Nov AED bn 2009 2010 2011 strong capital ratios and 2012 Regulated by the UAE +16% +12% +62% +3% +7% Central Bank* sufficiently provisioned Total Assets (net
Slide 6: Index
Index Macro overview Business overview Financial highlights Appendix 6
Slide 7: ADCB – a leading bank in the UAE
ADCB – a leading bank in the UAE… Overview Investment grade rating • Third largest bank in the UAE and second largest in the Emirate of Abu Long term Short term Outlook Dhabi in terms of total assets, 11.22% market share by loans and 9.53% rating rating market share by deposits* S&P A A-1 Stable • S
Slide 8: Rating agency views
Rating agency views… “... continuing improvement in the financial fundamentals of the bank…” “… an improved and more institutionalised risk management framework and an improved funding profile with a strong emphasis on liquidity…” “…ADCB has made significant progress to restructure its risk manageme
Slide 9: Core strengths
Core strengths… • Resilience in earnings and ability to grow operating income Situated to benefit from • Well managed balance sheet UAE economic growth • Recently announced government projects will provide opportunities for all of ADCB’s businesses • The Government owns 61.6% of the issued share cap
Slide 10: Active across all business lines
Active across all business lines… Contribution to operating income (gross) Business segment Overview 2011 2012 • Covers retail, wealth management and Islamic operations • Growth in consumer banking underpinned by an increased product offering, expansion of sales and distribution infrastructure and e
Slide 11: Awards in 2012
Awards in 2012… “Human Resources Award in the “Best Woman Award in the Banking “Best SME Account” “Best SME Trade Finance” Banking & Financial Sector 2011” & Financial Sector 2011 " for BusinessEdge Free Zone Platinum Account for Business Edge Trade 360 by by By By Human Resources Development Commit
Slide 12: Our strategic pillars
Our strategic pillars… Growth through a UAE centric approach and controlled ‘internationalisation’ Sustainability through liability growth Maintaining a culture of service excellence and efficiency Managing ADCB’s risk in line with a predefined risk strategy Attracting, developing and retaining the
Slide 13: Index
Index Macro overview Business overview Financial highlights Appendix 13
Slide 14: 2012 in review - key highlights
2012 in review - key highlights… Balance sheet highlights Income statement highlights Key performance indicators AED mn 2012 2011 % Change Bps AED mn 2012 2011 % Change Ratios (%) 2012 2011 Change Net interest income² 5,207 4,682 11 Net loans 123,195 124,755 (1) Operating income 6,595 6,069 9 Net in
Slide 15: Sustainable profitability, Q4'12 net profit +32% YoY
Sustainable profitability, Q4’12 net profit +32% YoY, Excluding non-recurring gain last year, 2012 net profit +62% YoY… Net profit 2012 Net profit 3,045* 2,810 AED mn 1,314 Income statement YoY % Gain on sale Q4'11 Q3'12 Q4'12 of RHB Capital AED mn change Berhad Q1 802 Operating income 1,623 1,632 1
Slide 16: Diversified revenue streams, record operating income, improved cost of funds
Diversified revenue streams, record operating income, Improved cost of funds… Operating income (AED mn) Net interest income (NII)* (AED mn) Highlights 2012 vs. 2011 9% 1,383 1,195 1,331 1,298 4,682 5,207 6,595 • Strong growth in operating 6,069 448 income +9% YoY at AED Other income* 6,595 mn 489 94
Slide 17: Significant improvement in cost to income ratio
Significant improvement in cost to income ratio, Operating expenses held flat… Cost to income ratio* Operating expenses (AED mn) 2,063 2,069 34.0% 548 506 537 516 510 33.1% 181 163 47 41 41 40 42 31.7% 31.5% 32.0% 30.4% 188 787 742 31.4% 221 173 178 203 280 292 308 299 265 1,095 1,165 Q4'11 Q1'12 Q2
Slide 18: Well managed balance sheet, growing investment portfolio
Well managed balance sheet, Growing investment portfolio… Composition of assets Gross loans & advances by type (AED mn) 2012 Total assets = AED 180,796 mn AED 130,467 mn AED 129,659 mn Overdrafts • Total assets at AED Fixed, other and Cash and balances Deposists and 101,565 101,207 Corporate loans 1
Slide 19: Stable loan book, improved loan to deposit ratio
Stable loan book, Improved loan to deposit ratio… Gross loans by industry Evolution of loans, net (AED mn) 2012 Gross loans = AED 129,659 mn 123,195 • Gross loans stable at 124,755 Development AED 130 bn and construction Energy Real estate 122,772 16% 8% investment 24% 116,610 64,415 Others¹ 3% 56,8
Slide 20: Declining cost of risk and improved provision coverage
Declining cost of risk and improved provision coverage… NPL and provision coverage ratios* Cost of risk* 82.2% 80.0% 3.21% 67.8% 69.6% 2.61% 44.1% Includes 11.1% Dubai World 1.73% exposure 1.20% 5.2% 5.8% 5.4% 4.6% 2009 2010 2011 2012 2009 2010 2011 2012 ■ NPL ratio ■ Provision coverage ratio * The
Slide 21: Stable customer deposits, growing CASA contribution
Stable customer deposits, Growing CASA contribution, up 23%... Composition of liabilities Evolution of deposits (AED mn) Composition of customer deposits Total liabilities = AED 156,088 mn 2011 Total deposits = AED 109,171 mn By type By counterparty Other liabilities 4% 24% 17% 22% 105,503 109,171 1
Slide 22: Strong capital base
Strong capital base… Capital adequacy ratio Tier I and Core Tier I ratios Capital base (AED mn) 138 135 138 138 +512 bps 17.47% 30,973 31,897 15.90% +567 bps 23.05% 2.89% 24,068 7,726 2.91% 22,551 9,098 12.35% 11.97% 22.51% 4,000 2.89% 2.95% 6,966 6,335 4,000 17.38% 4,000 4,000 14.58% 12.99% 16.65%
Slide 23: Summary
Summary… Growth Continued growth in core banking business activities Profitability Improved cost of funds and higher margins Efficiency Pro-active cost management, improved cost to income ratio Asset quality Conservative risk management, prudent provisioning policies Capitalisation Strong and health
Slide 24: Index
Index Macro overview Business overview Financial highlights Appendix 24
Slide 25: Consumer banking
Consumer banking… Balance sheet trend (AED mn) Operating income (AED mn) Loans Deposits +4% 65,966 29,125 62,926 25,348 26,889 3,029 2,915 22,453 57,827 58,780 2009 2010 2011 2012* 2009 2010 2011 2012 2011 2012 * Decrease in net loans primarily due to reclassification of loans from consumer to whole
Slide 26: Wholesale banking
Wholesale banking… Balance sheet trend (AED mn) Operating income* (AED mn) Loans Deposits +20% 43,536 43,369 45,693 61,828 64,415 1,897 58,784 56,806 1,583 24,868 2009 2010 2011 2012* 2009 2010 2011 2012 2011 2012 * Increase in net loans due to reclassification of loans from consumer to wholesale ba
Slide 27: Corporate governance and risk management
Corporate governance and risk management… Corporate governance - In line with best international practices Risk management pillars - Achieving sustainable growth Principles and awards • Single borrower, group, industry and country concentration limits • Focused around principles of integrity, transp
Slide 28: Key group subsidiaries
Key group subsidiaries… 100% 100% 100% 100% Abu Dhabi Abu Dhabi Abu Dhabi Al Dhabi Commercial Commercial Commercial Brokerage Engineering Islamic Properties Services Services Finance • Established in 2005 • Established in 2007 • Established in 2009 • Established in 2005 • Real estate property • Agen
Slide 29: Board of Directors
Board of Directors H. E. Eissa Mohamed Ghanem Al Suwaidi, Chairman of the board • Appointed by the Government of Abu Dhabi to join the ADCB Board of Directors and was elected the chairman of ADCB in September 2008 Mr. Ala’a Mohamed Atta Khalil Eraiqat, Executive Director • Over 20 years of experienc
Slide 30: Management team
Management team Ala’a Eraiqat, CEO & Member of the Board of Directors • Joined ADCB in 2004, appointed Deputy CEO in 2007; CEO since February 2009 • Over 20 years of banking experience with previous employers including Citibank and Standard Chartered • Broad-based experience in consumer, wholesale a
Slide 31: Balance sheet
Balance sheet AED mn Dec’12 Dec’11 Change (%) Cash and balances with Central Banks 9,338 6,630 41 Deposits and balances due from banks 16,517 20,840 (21) Derivative financial instruments 4,993 4,845 3 Loans and advances, net 123,195 124,755 (1) Investment securities* 19,355 15,068 28 Investment in a
Slide 32: Income statement
Income statement AED mn Dec’12 Dec’11 Change (%) Interest and income from Islamic financing 7,824 7,699 2 Interest expense and profit distribution (2,616) (3,017) (13) Total net interest and Islamic financing income 5,207 4,682 11 Net fees and commission income 940 898 5 Net trading income 303 335 (
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