Abu Dhabi Islamic Bank · ADX:ADIB
Abu Dhabi Islamic Bank — 9M 2023 Earnings Presentation
30 slides from Abu Dhabi Islamic Bank's earnings presentation, Oct 26, 2023
Slide 1: 9M 2023 Earnings Presentation
ADIB IR Website 9M 2023 Earnings Presentation Analyst & Investor Conference Call IR App Download link: Abu Dhabi, 26 October 2023 Confidential
Slide 2: Contents
Contents 9M 2023 Earnings Presentation Key Highlights ADIB Strategy Financial Performance Outlook & Guidance Questions & Answers Contacts Disclaimer 2 Confidential
Slide 3: Key Highlights
1 2 Key Highlights 3 4 5 9M 2023 Earnings Presentation 6 7 Confidential 3
Slide 4: Key Highlights
Key Highlights Another solid set of results with a net income in 9M 2023 of AED 3.75 bn up 53% from last year 53% YoY increase in net income to AED 3.75bn in 9M 2023 driven by broad-based revenue growth 9M’23 Net Income growth YoY Revenue up 48% to AED 6.7bn driven by 61% growth in funded income and
Slide 5: Executing ADIB Strategy
1 2 Executing ADIB Strategy 3 4 5 9M 2023 Earnings Presentation 6 7 Confidential 5
Slide 6: ADIB Strategy
ADIB Strategy Our purpose, values and vision are supported by a clear set of strategic goals Purpose Lifelong partner for customers, colleagues and community Vision To be the world’s most innovative Islamic bank We keep it We are We work for We nurture hospitality We are Values simple and sensible t
Slide 7: Update on Strategy Progress
Update on Strategy Progress ADIB continues to deliver on its strategy in 2023 Continuous Key product launches Amwali Youth Account Asset Management Payment Service Innovation • Salary cash back campaign • Digital on-boarding for business banking 15000 Accounts $142 mn AED 3.9 mn • New cash back card
Slide 8: Financial Performance
1 2 3 Financial Performance 4 5 9M 2023 Earnings Presentation 6 7 Confidential 8
Slide 9: Financial Performance Highlights – 9M 2023
Financial Performance Highlights – 9M 2023 Exceeded the record performance of full year 2022 in 9M 2023 by delivering a net income of 3.75bn with a growth of 53% Strong YoY Growth in Profitability Solid Balance Sheet Growth YoY Strong Capital Position and Return YoY 3.75bn 184bn 18.03% Net Income To
Slide 10: Income Statement
Income Statement 53% YoY growth in Net income in 9M 2023 underscored by increase volume transactions and margins Net Income Movement YoY (AEDmn) Net Income (AEDmn) 1,600 1,424 +53% 1,400 1,167 1,224 1,102 1,200 1,010 1,000 1,705 473 800 3,750 600 2,452 -486 -218 -175 400 200 0 3Q 22 4Q 22 1Q 23 2Q 2
Slide 11: Funded Income
Funded Income Strong growth in funded income driven by strong business volumes and higher rates with NPM improving 113 bps Net Profit Margin (%) Net Profit Margin Movement YoY (%) 8% +113bps 6.36% 6.61% 7% 6.14% 6% 0.45% 0.83% 0.14% 1.07% 4.48% 5% 4.33% 4.41% 4.48% 3.73% 3.35% 0.39% 4% 3.44% 3% 4.35
Slide 12: Non-Funded Income
Non-Funded Income Strong non-funded income growth on higher investment income, F&C and FX income, underlining strategic focus on revenue diversification Non-Funded Income (AEDmn) Non-Funded Income Movement YoY (AEDmn) +56% +28% 199 57 120 2,188 970 98 853 1,715 724 546 611 3Q 22 4Q 22 1Q 23 2Q 23 3Q
Slide 13: Operating Expenses
Operating Expenses Significant improve in cost to income ratio helped by higher income and cost discipline amid ongoing transformation investments Cost To Income Ratio (%) Expenses Movement YoY (AEDmn) -497bps +6% 37.6% 34.9% 35.7% 33.9% 32.6% * 67 1,916 269 2,185 1,799 72 -22 9M 22 FY 22 1Q 23 1H 2
Slide 14: Impairments
Impairments COR is at comfortable 50bps in 9M 2023 Impairments Movement YoY (AEDmn) Impairments (AEDmn) +62% 162 +61% 571 71 57 70 416 352 -107 -35 223 202 125 146 Impairments Retail Wholesale Private Treasury Associates & Others Impairments 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 9M 22 Subs. 9M 23 +107% +46%
Slide 15: Non-Performing Financing
Non-Performing Financing Lowest NPA ratio since 1Q 20 with cost of risk in line with guidance while coverage ratio trending within the guidance NPA (AEDmn) NPA Movement YoY (AEDmn) -10% -10% 8,597 8,597 8,705 8,710 8,619 7,762 7,762 -599 -121 -115 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 NPA Corporate Individu
Slide 16: Balance Sheet
Balance Sheet Total assets increased by 25% YoY driven by 15% growth in customer financing supported by a very strong funding position Total Assets (AEDbn) Total Assets Movement YTD (AEDbn) 210 184.1 +9% 182.2 190 168.5 172.1 170 147.2 3.2 3.6 4.9 3.6 0.3 184.1 150 168.5 130 110 90 70 50 3Q 22 4Q 22
Slide 17: Customer Financing
Customer Financing AED 14.4bn growth in financing assets vs last year mainly due strong volumes from Retail, Government and Public sector Customer Financing, Net (AEDbn) Customer Financing, Customer Financing, Net Movement YTD (AEDbn) 115.0 112.6 Gross by Segment (%) 110.0 107.7 107.3 109.3 +5% 105.
Slide 18: Investments
Investments Diversified Investment Portfolio Investments (AEDbn) Total Investments Movement YTD (AEDbn) 22.6 23.0 25.0 21.0 +18% 19.1 19.4 20.0 3.4 0.2 23.0 15.0 19.4 10.0 5.0 0.0 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 Investments Investment in sukuk Investments Investments 4Q 22 at amortised cost at fair va
Slide 19: Customer Deposits
Customer Deposits Up 28% YoY reflecting our ability to gain market share with 5.4bn increase in CASA, demonstrating effective deposit gathering strategy Total Deposits (AEDbn) Total Deposits Movement by Segment YTD (AEDbn) 200.0 138.1 141.8 150.4 151.5 +10% 150.0 118.8 100.0 50.0 138.1 7.0 8.0 0.9 0
Slide 20: Capital and Liquidity
Capital and Liquidity Significant improvement in capital position with CET 1 at 13.4% Capitalization Ratios (%) Liquidity Ratios (%) 86.1% 20% 90% 82.1% 80.3% 78.6% 18.0% 78.0% 17.9% 17.5% 17.7% 80% 18% 17.2% 82.7% 70% 78.0% 75.7% 72.7% 74.3% 16% 16.8% 16.9% 60% 16.0% 16.4% 16.5% 50% 14% 40% 30% 18.
Slide 21: Outlook and Guidance
1 2 3 Outlook and Guidance 4 5 9M 2023 Earnings Presentation 6 7 Confidential 21
Slide 22: Outlook and Guidance
Outlook and Guidance Solid financial & strategic foundations drive a promising outlook for 2023 Market Outlook Management Guidance 9M 2023 Actual FY2023 Guidance Solid GDP growth Gross Financing Growth Real GDP growth (%) Executing ADIB’s growth strategy 6% YTD 5% to 8% 7.4% against the backdrop of
Slide 23: Questions & Answers
1 2 3 4 Questions & Answers 5 9M 2023 Earnings Presentation 6 7 Confidential 23
Slide 24: Consistent dividend distribution
Consistent dividend distribution ADIB consistently distribute dividends with average yield of 4.5% Shareholder Return Metrics 10 12% 9 8 9.9% 10% 7 8.0% 8% 6.2% 7.6% 6 7.0% Share Price 6.5% 5 5.1% 6% 4.4% 5.4% Dividend Yield 4 4.1% 4.5% 3 4% 2 2% 1 0 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2
Slide 25: Ratings and Accolades
Ratings and Accolades ADIB's recognition for excellence in Islamic banking Credit Ratings ADIB's MSCI ESG Rating Recent Accolades A2 Stable Outlook #1 #1 Digital Bank in the UAE Transformation (April 2021) Program MSCI Rating Distribution 25% 24% 25% A+ 16% Stable Outlook 6% 2% #1 #1 1% Islamic Bank
Slide 26: ADIB Share Price Performance
ADIB Share Price Performance Over the last 24 months ADIB’s share price is up 94% ADIB Share Price Performance, AED 12.00 11.26 10.00 8.00 6.00 5.79 4.00 2.00 Sep 2021 Nov 2021 Jan 2022 Mar 2022 May 2022 Jul 2022 Sep 2022 Nov 2022 Jan 2023 Mar 2023 May 2023 Jul 2023 Sep 2023 26 Confidential
Slide 27: Contacts
1 2 3 4 Contacts 5 9M 2023 Earnings Presentation 6 7 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 4 Disclaimer 5 6 9M 2023 Earnings Presentation 7 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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