Abu Dhabi Islamic Bank · ADX:ADIB

Abu Dhabi Islamic Bank — Q3 2011 Earnings Presentation

30 slides from Abu Dhabi Islamic Bank's earnings presentation, October 2011

  1. Slide 1: Investor Presentation

    Investor Presentation 30 September 2011 Abu Dhabi: October 2011 ADIB © 2010 adib.ae

  2. Slide 2: Table of contents

    Table of contents Pages  ADIB at a glance 3  Focus on network expansion continues 4  An award winning Islamic Bank 5-6  Financial targets over the medium term 7  Salient features of 30 Sep 2011 results 8  30 Sep 2011 – Balance sheet highlights 9  p 2011 – Income statement highlights YTD 30 Se

  3. Slide 3: ADIB at a glance

    ADIB at a glance - Incorporated in 1997 to serve as first Islamic Bank in the Emirate of Abu Dhabi. Overview - Owned (40 %) by Emirates International Investment Co. LLC. - Listed on Abu Dhabi Securities Exchange (ADX). Fitch Moody's (Re-affirmed 21 Dec 2010) (Re-affirmed 21 Feb 2010) Credit Rating L

  4. Slide 4: Focus on network expansion continues

    Focus on networking expansion continues ADIB continues to investment in coverage during the downturn Branch Network Customers ATM +14% +20% 66 448,512 417 60 409,247 +57% 50 323,342 44 284 259,196 189 108 Q3 08 Q3 09 Q3 10 Q3 11 Q3 08 Q3 09 Q3 10 Q3 11 Q3 08 Q3 09 Q3 10 Q3 11  66 Branches in 11 yea

  5. Slide 5: An award winning Islamic Bank

    An award winning Islamic Bank Franchise Awards “Best Islamic Bank “Best Islamic Bank” award by 2010 2010” in the Middle East by Islamic Business & Finance Bankers Middle East December 2010 June 2010 “Best Islamic Bank” “Best Islamic Bank” in the UAE in the UAE by Islamic Finance News 2010 November 2

  6. Slide 6: An award winning Islamic Bank

    An award winning Islamic Bank Product & Marketing “Best Savingsg Account g “Best Islamic Branding” 2010” in the Middle East for award by Islamic Business & Finance ADIB’s GHINA savings account December 2010 April 2010 “Best Deal in the UAE” “Best SME Card” award by by Islamic Finance News 2010 Banke

  7. Slide 7: An award winning Islamic Bank

    An award winning Islamic Bank Customer Services Awards Number 1 bank in Customer service in the UAE by Ethos Consultancy October 2011 Most improved bank for Best Bank - Call Centre Service Excellence Performance October b 2010 October 2010 “Best Private Sector Customer “Best Best Ladies Banking Serv

  8. Slide 8: Financial targets over the medium term

    Financial targets over the medium term 1 ROASE of 20% 2 Cost to Income Ratio of less than 35% 3 Earnings increase of 15% p.a. 8

  9. Slide 9: Salient features of Q3 / YTD 2011 results

    Salient features of Q3 / YTD 2011 results Group net profit for 9 months 2011 was AED 938.9 Mn vs. AED 909.5 Mn in 9 months 2010, an 1 increase of 3.2%. Group operating profit (“margin”) for 9 months 2011 was AED 1,485.0 Mn vs. AED 1,314.9 Mn 2 for 9 months 2010, an increase of 12.9%. 3 Balance sheet

  10. Slide 10: 30 September 2011 – Balance sheet highlights

    30 September 2011 – Balance sheet highlights 30 Sep ‘10 30 Sep ‘11 % chg AED Bn AED Bn Total Assets 71.2 74.2 4%  Total Assets increased by 4% over Q3 2010 to reach AED 74.2 bn. Net Customer Financing 47.2 48.4 3%  Customer financing increased by 3% from Q3 2010 to reach AED48.4 bn.  Customer dep

  11. Slide 11: YTD 30 September 2011 – Income statement highlights

    YTD 30 September 2011 – Income statement highlights YTD 2010 YTD 2011 % chg AED Mn AED Mn  Revenues up by 14% on the back of Revenues 2,235.1 2,541.7 14% higher net revenue from funds (up 10%) and fees & commission (up 32%). Expenses 920.2 1,056.7 15%  Expenses up by 15% mainly due to continuous i

  12. Slide 12: Consolidated Statement of Income

    Consolidated Statement of Income % chg % chg % chg YTD YTD AED Mn Q3 10 Q2 11 Q3 11 Q3 11 vs Q3 11 vs YTD 11 vs Sep 10 Sep 11 Q3 10 Q2 11 YTD 10 Revenues 810 3 810.3 909 6 909.6 824.6 1.8% -9.4% 9.4% 2 235 1 2,235.1 2,541.7 13.7% Net Revenue from Funds 668.8 722.7 692.4 3.5% -4.2% 1,888.0 2,079.7 10

  13. Slide 13: Key income parameters – Group

    Key income parameters – Group YTD 30 Sep Revenues (AED Mn) Net Profit (AED Mn) Fees, commission & others Net revenue from funds Operating profit Provision for impairment Net Profit +15% 2,542 +12% 12% 1 485 1,485 2,235 462 1,315 1,787 347 1,087 1,685 1,044 241 909 939 425 737 701 2,080 546 1,888 1 5

  14. Slide 14: Key income parameters – Group

    Key income parameters – Group Q3 Revenues (AED Mn) Net Profit (AED Mn) Fees, commission & others Net revenue from funds Operating profit Provision for impairment Net Profit 810 825 480 470 141 132 585 609 361 79 324 315 319 133 240 217 669 692 166 529 151 453 108 121 Q3 08 Q3 09 Q3 10 Q3 11 Q3 08 Q3

  15. Slide 15: Key income parameters – Bank only

    Key income parameters – Bank only YTD 30 Sep Revenues (AED Mn) Net Profit (AED Mn) Fees, commission & others Net revenue from funds Operating profit Provision for impairment Net Profit +22% 2,522 2,220 +22% 22% 1,531 369 1,369 258 1,736 1,124 1,086 1,400 110 964 101 838 742 1,962 2,153 531 1 626 1,6

  16. Slide 16: Key income parameters – Bank only

    Key income parameters – Bank only Q3 Revenues (AED Mn) Net Profit (AED Mn) Fees, commission & others Net revenue from funds Operating profit Provision for impairment Net Profit 813 833 508 499 121 115 604 387 343 354 507 45 40 274 263 693 718 167 166 559 124 145 468 108 Q3 08 Q3 09 Q3 10 Q3 11 Q3 08

  17. Slide 17: Consolidated Balance Sheet

    Consolidated Balance Sheet % chg 30 Sep % chg 30 Sep 30 Sep 31 Dec 30 Sep AED Mn 2011 vs 31 Dec 2011 vs 30 Sep 2010 2010 2011 2010 2010 Cash and balances with Central Banks 4,522 5,400 9,856 82.5% 117.9% Due from financial institutions 13,365 15,730 8,920 -43.3% -33.3% Net Customer financing 47,159

  18. Slide 18: Balance Sheet Strength

    Balance Sheet Strength Remains one of the most liquid bank’s in the UAE on the back of above market balance sheet growth +3% +1%  Total Assets increased by 4% in 47,159 48,443 54,038 54,398 Q3 2011 to reach AED 74.2 Bn. 39 253 39,253 43 999 43,999  Net Customer financing 32,085 33,650 increased by

  19. Slide 19: Assets and Liquidity

    Assets and Liquidity Average Earning Assets (AED Bn) & Net Profit Margin (%) Composition of Assets – AED 74.2 Bn NPM % Average Earning Assets Investments; 70 5.2 2.7% 62.1 61.1 61.3 60 57 0 57.0 59.2 59.3 Fixed assets & 55 6 55.6 Customer C t 52.4 Other Assets; 49.4 financing; 50 6.7% 4.8 65.3% 4.9%

  20. Slide 20: Customer Financing

    Customer Financing Gross Customer Financing by Segment Gross Customer Financing by Industry Type Retail Wholesale Private +16% 51 2 51.2 49.2 Individual; 40.2 60.2% Corporate; 46.9% 49.2% 30.5% 32.7 45.8% . 44.0% 38.3% 38.1% 36.8% 40.0% Govt. & PSE; 17.4% 14.7% 12.7% 5 3% 5.3% 16.0% Others; 4.0% Q3

  21. Slide 21: Customers’ Deposits

    Customers’ Deposits Customers’ Deposits by Segment Customers’ Deposits by Industry Type Wholesale Retail Private SMEs and non- Profit +17% g; 11.6% Org; 54.0 54.4 Government; 13.5% Public 44.0 Sector; 41.8% 13.9% 49.5% 33.6 48.3% Individuals; 49.4% 46.6% 45.4% Financial 36.8% Institutions; 37.3% 35.

  22. Slide 22: NPAs & Provisions - Group

    NPAs & Provisions - Group Cumulative Provisions 2008 2009 2010 Q3 2011 Key points Customer Financing Portfolio Individual/Specific 455 1,233 1,702 2,101  NPAs decreased by AED 276 Mn in Q3 2011 to reach AED 4,578 4 578 Mn at end of Q3 2011. 2011 Collective/General 135 518 575 628  NPAs ratio at 8.

  23. Slide 23: Capital Adequacy

    Capital Adequacy ADIB’s CAR of 16.33% remains above the new Central Bank threshold of 12% for CAR Capital Adequacy (%) Capital Resources (AED Bn) CAR Basel II UAE Central Bank requirement Equity Total Capital Resources 16.5% 16.4 16.3% 15.2% 13.2 10 8 10.8 12.2% 12.0% 12.0% 8.5 8.1 8.5 10.0% 10.0% 5

  24. Slide 24: Shareholders’ Return

    Shareholders’ Return  30 Sep 2011 share price was AED 3.21 per share.  Cash dividend of 21.64% for 2010 (Bonus share dividend of 20% for 2009).  Dividend Yield for FYR 2010 of ADIB share is 7.3%. 7 3% ADIB vs ADX ADIB ADX 4 00 4.00 3,400 3.50 3,200 3.00 AED) 3,000 ADX Pointts 2.50 DIB Price (A 2,

  25. Slide 25: Outlook - 2011

    Outlook - 2011 On the back of our rebranding we are implementing a broad range of initiatives to enhance our product 1 portfolio, improve our processes and introduce new banking channels, all of which is designed to provide support to our customers, with best in market service and Shari’a inspired s

  26. Slide 26: 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

  27. Slide 27: Executive Management Biographies

    Executive Management Biographies 27

  28. Slide 28: Executive Management Profile (I)

    Executive Management Profile (I) Joined ADIB in March 2008. He holds a Bachelor degree (major in Corporate Finance) from Loyala of Tirad Marouf Mahmoud Concordia University in Montreal, Canada and has also completed the Executive Management Program at Chief Executive Officer Wharton. He has previous

  29. Slide 29: Executive Management Profile (II)

    Executive Management Profile (II) Joined ADIB on the 1st of May 2011. He holds a Graduate Degree from the Royal Military Academy Stuart Crocker Sandhurst. His previous position was CEO HSBC Private Bank in UAE & Oman (2007-2011) and was a Member Global Head of of the General Management heading clien

  30. Slide 30: Executive Management Profile (III)

    Executive Management Profile (III) Waheeb Al Khazraji Joined ADIB on 10 December 2005 . He holds Chemical Engineering and MBA degrees along with Chartered Head of Human Resource, Human Resource Consultant (CHRC), Canada and Chartered in Personal Development (CIPD), UK. He has UAE 6 years banking exp

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