Abu Dhabi Commercial Bank · ADX:ADCB
Abu Dhabi Commercial Bank — Union National Bank — Investor Presentation (December 2018)
17 slides from Abu Dhabi Commercial Bank's investor presentation, December 2018
Slide 1: Investor Presentation December 2018
Investor Presentation December 2018
Slide 2: UNB – Key Highlights
UNB – Key Highlights Majority ownership (50%) and strong support from the Government of Abu Dhabi Stable and conservative management Demonstrated consistent performance of a time tested strategy, even in a challenging environment Reaffirmed strong ratings Diversified loan book and prudent provisioni
Slide 3: Overview of UNB
Overview of UNB Strong Ratings – Constantly Maintained Overview Established in 1982 and headquartered in Abu Dhabi. Joint Abu Dhabi and Dubai Government ownership. A1 Listed on the Abu Dhabi Securities Exchange (ADX). Provides a full array of wholesale and retail banking services through a n
Slide 4: Highlights - Income Statement
Highlights - Income Statement Y-o-Y Q4 Q4 Q-o-Q Net interest income up by 6% on account of AED in Million 2018 2017 % 2018 2017 % increase in net interest margin by 18 basis points to 2.75% for 2018. Net interest income and income from Islamic 2,798 2,647 6% 710 666 7% Non interest income lower
Slide 5: Highlights – Balance Sheet
Highlights – Balance Sheet Net loans and advances increased by 2% year- on-year, due to growth in Corporate banking and 31 December 31 December Financial Institutions offset by decline in Retail AED in Billion YOY 2018 2017 banking. % The Group’s liquidity position continued to remain strong wit
Slide 6: Key Performance indicators
Key Performance indicators Return On Average Equity Return On Average Assets 9.8% 1.6% 7.0% 1.1% 2017 2018 2017 2018 * Excluding Tier I Capital Notes Cost to Income Ratio Capital Adequacy Ratio 37.5% 31.3% 19.4% 18.9% 18.3% 17.7% 2017 2018 2017 2018 Capital Adequacy Ratio Tier 1 Ratio 6
Slide 7: Balance Sheet – Customer Loans
Balance Sheet – Customer Loans Net Loans and advances (AED Billion) Net Loans and advances increased by 2% due to growth +2% witnessed across multiple sectors like Real Estate and Mortgage, 71.1 72.3 Trade, Energy, Financial Institutions and Manufacturing, while consumer sector witnessed a drop du
Slide 8: Funding Structure
Funding Structure Product-wise Deposit break-down (AED Billion) Diversified funding mix, with Customers’ deposits constituting 78.7 77.4 88% of total liabilities. 16.1 15.2 Customers’ deposits marginally dropped, compared to the corresponding period in the previous year to optimize the liquidity
Slide 9: Comfortable Liquidity Position
Comfortable Liquidity Position Liquidity Position Investments – Geographical Break up 90% 93% 30% 28% 2017 2018 Loans to Deposit Ratio Liquid Assets to Total Assets * *Liquid assets includes cash , Due from Banks and Investments Investments - Ratings Investments – By Type As at 31 December 2018 TOTA
Slide 10: Credit Quality
Credit Quality Loan Loss Coverage and NPL Ratio (%) 4.3% 4.3% Overall coverage improved to 116.5% as at 31 December 2018, 116.5% ratio after transition adjustment related to IFRS 9 implementation. 97.1% NPL ratio remained stable compared to last year. 2017 2018 2017 2018 NPLs / Gross Loans Loan
Slide 11: Business Lines
Business Lines AED million, as at 31 Islamic Treasury and Corporate Consumer International December 2018, unless investment Total Banking Banking Banking * and unallocated otherwise stated banking Operating Income 1,166 1,154 36 491 464 3,312 Operating Expenses (231) (668) (114) (84) (145) (1,242) O
Slide 12: Business Lines – Corporate Banking
Business Lines – Corporate Banking Operating Income (AED Million) +3% Net interest income increased by 3%, driven by improvement in deposit margins, while non interest income 1,134 1,166 increased by 1%. 258 261 Customer Assets up by 5% as compared to same period prior year, driven by growth in
Slide 13: Business Lines – Consumer Banking
Business Lines – Consumer Banking Operating Income (AED million) -19% Consumer Banking operating income decreased by 19% Y-o-Y, due to drop in fees and commission income driven by lower 1,418 business volumes in 2018 and lower net interest income on 1,154 account of margin compression on the asset
Slide 14: Business Lines – Treasury and Investment Banking
Business Lines – Treasury and Investment Banking Operating Income (AED million) +42% Net interest income increased by 89%, largely on account of 491 increase in net spreads on the back of efficient asset & liabilities management by appropriate positioning of Balance 346 140 sheet that has benefite
Slide 15: Business Lines – Islamic Banking
Business Lines – Islamic Banking Operating Income* (AED million) -10% Net interest income decreased by 11%, due to drop in net 297 interest margin on account of increase in cost of funds. 268 136 Normalised non financing income dropped by 27% on 99 year on year basis, mainly due to lower fee inc
Slide 16: Strategic transaction to create stronger banking group in UAE
Strategic transaction to create stronger banking group in UAE On 29th January 2019, each of ADCB Board and UNB Board agreed to merge through a statutory merger and together acquire Al Hilal Bank New Merged entity will be the third largest Bank in UAE and fifth largest in the GCC region The combinati
Slide 17: Awards and Certifications
Awards and Certifications UNB CEO was honored with the best business leader award while UNB received the customer delight award at the MENAA Awards 2018. UNB was conferred with the Happiness Champion of the Year Award during Service Excellence and Customer Happiness Week organized by the Interna
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