Abu Dhabi Islamic Bank · ADX:ADIB

Abu Dhabi Islamic Bank — Q3 2016 Earnings Presentation

30 slides from Abu Dhabi Islamic Bank's earnings presentation, October 2016

  1. Slide 1: Investor Presentation 30 September 2016 results

    Investor Presentation 30 September 2016 results Abu Dhabi: October 2016 ADIB © 2010 adib.ae

  2. Slide 2: Table of Content

    Table of Content Introduction Financial Review Business Review Appendix 2

  3. Slide 3: ADIB at a glance

    ADIB at a glance Overview ADIB – Timeline and milestones  Incorporated in 1997 to serve as first Islamic Bank in the Emirate of Abu Dhabi. •Established by the Govt. of Abu Dhabi in 1997 •Licensed in 1998 as an Islamic bank by the Central bank and  Majority owned by members of the ruling family of

  4. Slide 4: Table of Content

    Table of Content Introduction Financial Review Business Review Appendix 4

  5. Slide 5: Q3 / YTD Sep 2016 – Key financial highlights – Income statement

    Q3 / YTD Sep 2016 – Key financial highlights – Income statement Change Change AED Mn Q3 15 Q3 16 YTD 15 YTD 16 % %  Revenues are up by 7.4% on the back of Net Revenue from funds 934.4 984.4 5.4% 2,794.4 2,939.7 5.2% higher Net revenue from funds and Investment income. Fees, commission and 349.8 384

  6. Slide 6: 30 September 2016 – Key financial highlights – Balance sheet

    30 September 2016 – Key financial highlights – Balance sheet Change Change  Total assets increased by 4.8% over Q3 2015 AED Bn Sep 15 Sep 16 Dec 15 to reach AED 122.6 Bn. % % Total assets 116.9 122.6 4.8% 118.4 3.6%  Customer financing increased by 1.8% from Q3 2015 to reach AED 78.6 Bn. Net custo

  7. Slide 7: Key ratios

    Key ratios Ratios Sep 2015 Sep 2016 Diluted Earnings per share (EPS in AED) 0.427 0.425 Return on Average Shareholders’ Equity (excluding - Tier 1 capital) 19.5% 17.9% Efficiency Net profit margin (%) 4.3% 4.3% Cost / income ratio 46.0% 44.9% Percentage lent (Financing / Total Assets) 66.1% 64.1% Fi

  8. Slide 8: Operating Performance – Net profit income

    Operating Performance – Net profit income Highlights (YTD 2016 vs. YTD 2015) Revenues (AED Mn) Key movements in Revenues (AED Mn) Fees, commission and others  Revenues, up by 7.4% to AED 4,041 +7% Net revenue from funds Mn. 4,041 118 3,762 27% -6 21  Net revenue from Funds (NRFF) 26% 145 5.2% high

  9. Slide 9: Operating Performance – Non-profit income

    Operating Performance – Non-profit income Highlights (YTD 2016 vs. YTD 2015) Non-profit income (AED Mn) Composition of Fees & commission (AED Mn) Other income Investment income +14% Risk Participation Retail and others, net Brokerage  Non-profit income up by 13.8% at Property income Fees & Commissi

  10. Slide 10: Balance Sheet Strength and Customer Financing

    Balance Sheet Strength and Customer Financing Portfolio growth has slowed down to 2% since Q3 15, but Retail growth still strong at 8% Composition of Total Assets – AED Bn Liquidity ratio* (%) Investmen Investmen ts: ts: % of total assets Liquid assets (AED Bn) 7.4% Fixed 7.9% Fixed assets & assets

  11. Slide 11: Funding Profile

    Funding Profile Healthy Financing to Deposit ratio of 79.7% on back of deposit growth of 10% Net Customer Financing & Customers’ Deposits (AED Bn) Composition of Liabilities (AED Bn) Customer Financing Fin to Dep ratio Other Liabilities Due to FI Customers Deposits Adavnces to Stable funds ratio Suk

  12. Slide 12: Asset quality – Customer financing only

    Asset quality – Customer financing only Total NPAs slightly higher at 4.4% of gross customer financing with coverage ratio of 114.5% Provisions and NPAs – Customer financing (AED Mn) NPA ratio and provision coverage ratio NPAs - impaired Write-off Collective / General NPA ratio - Not Impaired Total

  13. Slide 13: Capital

    Capital CAR above 15% even after 2015 dividend and Tier 1 coupon payments Capital Adequacy (%) Capital base – CET, Tier 1 and Tier 2 - AED Bn Total CAR Tier 1 Tier 2 Tier 1 CET 15.2% 14.8 15.3 14.9 15.4 15.1% 14.4 0.7 15.0% 0.5 0.6 0.6 0.6 14.7% 14.7% 5.5 5.5 14.6% 14.6% 5.4 5.5 5.5 14.4% 14.1% 14.0

  14. Slide 14: Table of Content

    Table of Content Introduction Financial Review Business Review Appendix 14

  15. Slide 15: ADIB Strategy

    ADIB Strategy To become a top tier regional bank by Providing Islamic financial solutions for everyone Build Market Leadership Create an Integrated Pursue International within the UAE Financial Services Group Growth Opportunities • The key customer service sectors are • ADIB continues to build a div

  16. Slide 16: Business unit contribution

    Business unit contribution Composition of Total Assets – AED Bn Composition of Total Liabilities – AED Bn Private; Real Private; Real Real Others; Private Real 3% Estate; 2% Estate; Estate; 4% ; 2% Estate; 2% 2% 0% Treasur 0% Treasury; Treasur Treasur y; 12% 14% Others; y; 16% Private y; Others; Oth

  17. Slide 17: Global Retail Banking overview

    Global Retail Banking overview Global Retail Banking contributes 60% of Net Assets (AED Bn) Liabilities (AED Bn) Revenues: +9% +15%  Personal Banking Division provides services for 55.0 60.4 individuals clients, while the Business Banking Division 50.6 52.3 services the needs of SMEs.  These servi

  18. Slide 18: Global Wholesale Banking overview

    Global Wholesale Banking overview Assets (AED Bn) Liabilities (AED Bn) Global Wholesale Banking contributes 25% of Net +1% +3% Revenues:  Global Wholesale Banking encompasses the large 35.0 35.4 25.8 26.7 corporates, emerging corporates and financial institutions divisions of the Bank. The array of

  19. Slide 19: Private Banking overview

    Private Banking overview Assets (AED Bn) Liabilities (AED Bn) Private Banking contributes 2% of Net Revenues +3% -16%  Private Banking focuses on high and ultra high net worth individuals. 3.0 2.6 2.6 2.5  Wealth Management concentrates on developing, marketing and servicing a wide range of wealth

  20. Slide 20: Treasury overview

    Treasury overview Assets (AED Bn) Liabilities (AED Bn) Treasury contributes 11% of Net Revenues +13%  Treasury principally handles money market brokerage, -23% trading and treasury services, as well as the 19.0 17.1 management of the Bank's funding operations by use of 16.9 investment deposits. 13.

  21. Slide 21: Table of Content

    Table of Content Introduction Financial Review Business Review Appendix 21

  22. Slide 22: Consolidated Statement of Income

    Consolidated Statement of Income % chg Q3 % chg Q3 16 % chg YTD 16 AED Mn Q3 15 Q2 16 Q3 16 16 vs Q3 15 vs Q2 16 YTD 15 YTD16 vs YTD 15 Revenues 1,284.2 1,355.0 1,369.1 6.6% 1.0% 3,762.5 4,041.3 7.4% Net Revenue from Funds 934.4 982.3 984.4 5.4% 0.2% 2,794.4 2,939.7 5.2% Fees & commission 218.4 215.

  23. Slide 23: Consolidated Balance Sheet

    Consolidated Balance Sheet % chg 30 Sep % chg 30 Sep AED Mn% 30 Sep 2015 31 Dec 2015 30 Sep 2016 2016 vs 30 Sep 2016 vs 31 Dec 2015 2015 Cash and balances with Central Banks 17,363 18,629 20,438 17.7% 9.7% Due from financial institutions 6,055 4,742 5,857 -3.3% 23.5% Net Customer financing 77,244 78

  24. Slide 24: Financial Snapshot (1/2)

    Financial Snapshot (1/2) Total Assets (AED Bn) Net Customer Financing (AED Bn) Customer Deposits (AED Bn) +12% +13% +15% 111.9 118.4 78.4 94.9 103.2 73.0 84.8 61.7 75.5 86.1 74.3 48.8 51.2 61.3 55.2 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Equity (AED Bn) Revenues (

  25. Slide 25: Financial Snapshot (2/2)

    Financial Snapshot (2/2) Return on Avg Shareholders’ Equity (%) Financing to Deposits Ratio (%) Advances to Stable Funds Ratio (%) 18.7% 88.5% 82.6% 86.5% 18.4% 86.1% 84.6% 16.3% 81.8% 75.7% 15.6% 15.5% 83.5% 83.4% 77.9% 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 CAR

  26. Slide 26: Dividend Distribution History

    Dividend Distribution History 2008 2009 2010 2011 2012 2013 2014 2015 Net Profit (Mn) 851.1 78.0 1,023.6 1,155.1 1,201.2 1,450.2 1,750.7 1,934.0 Cash Dividend Payout Ratio 50.0% - 50.0% 50.0% 50.0% 50.0% 40.0% 39.8% (% of Net Profit) Cash Dividend (% of Share 21.6% - 21.6% 24.4% 25.4% 30.7% 23.3% 24

  27. Slide 27: ADX Points

    Shareholders’ Return  30 September 2016 share price was AED 3.65 per share (31 Dec 2015: AED 3.94 per share).  Cash dividend of 39.8% of net profit, 24.27% of share capital (2014: 23.34% of share capital).  Total dividend yield of ADIB share – 6.2%. (2014: 4.1% Cash dividend only). ADIB vs ADX AD

  28. Slide 28: An award winning Bank (1/2)

    An award winning Bank (1/2) To be“SKEA – Goldincategory” confirmed February Mohammed Bin Rashid Business 2015Sheikh Khalifa Excellence award award for 2 consecutive years “Best Overall Bank in Customer “Best Overall Bank in Customer Service” for 4 consecutive years Service” in the GCC in the UAE by

  29. Slide 29: An award winning Bank (2/2)

    An award winning Bank (2/2) “Best Private Bank in the Middle East for Islamic “Best Private Bank UAE” Finance” by Private Banker by Global Finance International “Best Branch Award in the “Best Islamic Bank in the UAE” UAE” by Ethos Consultancy by Islamic Finance News “The Leading Arab Islamic Bank B

  30. 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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