First Abu Dhabi Bank · ADX:FAB
First Abu Dhabi Bank — Q1 2019 Earnings Presentation
20 slides from First Abu Dhabi Bank's earnings presentation, Apr 29, 2019
Slide 1: Q1’19 Earnings Presentation
Q1’19 Earnings Presentation 29 April 2019 Strictly private and confidential
Slide 2: Disclaimer
Disclaimer Comparative figures have been reclassified where appropriate to conform to the presentation and accounting policies adopted in the condensed consolidated financial statements. The information contained herein has been prepared by First Abu Dhabi Bank P.J.S.C (“FAB”). FAB relies on informa
Slide 3: Q1’19 Key Performance Highlights
Q1’19 Key Performance Highlights Off to a solid start in 2019 with record net profit of AED 3.1 Billion Good business momentum underpins resilient operating performance in first quarter post integration Robust foundation across asset quality, liquidity, and capital metrics Outlook unchanged: on trac
Slide 4: Solid start to the year: Q1’19 performance vs. 2019 financial guidance
Solid start to the year Q1’19 performance vs. 2019 financial guidance Q1’19 actual 2019 Guidance Loans +6% yoy High single digit GROWTH Revenue +1% yoy Mid-single digit EFFICIENCY C/I Ratio 26.1% 25-26% (ex-integration costs) ASSET QUALITY Cost of Risk 50bps 55-65bps Net profit growth +4% yoy Mid-si
Slide 5: Delivering our strategic priorities
Delivering our strategic priorities Good business momentum, marked by continued strength in CIB o Healthy pipeline materialising despite competitive pricing o FAB continues to demonstrate regional leadership in capital markets: ranked #1 bookrunner and agent for MENA and GCC loans in Q1’19 Executing
Slide 6: Good business momentum, strong liquidity position
Good business momentum, strong liquidity position Key highlights Loans and advances (AED Bn) QoQ ↑2%, YoY↑6% • Loan book grew 6% yoy (+AED 21Bn) and 2% sequentially (+AED 6Bn) led by CIB and selective growth in retail 344.6 353.8 353.0 359.0 338.2 • Public sector lending and trade financing were the
Slide 7: Net Interest Income and Margin trends
Net Interest Income and Margin trends Key highlights • Net Interest Income (NII) trend yoy and qoq reflects Quarterly YTD competitive pricing and risk optimisation, partially offset by Net interest margin (%) volume growth and rate hike benefits 2.45 2.41 2.35 • Q1’19 Group NIM lower 33bps yoy and 5
Slide 8: Continued strength in non-interest income
Continued strength in non-interest income Non-interest income (AED Mn) Non-interest income Non-interest income % (to Revenue) QoQ ↑19%, YoY↑14% • Non-interest income recorded a double-digit growth yoy and 1,602 1,697 1,582 1,539 1,828 qoq, growing their contribution to 37% of group revenue (vs. 33%
Slide 9: Industry-leading cost efficiency
Industry-leading cost efficiency Key highlights • BAU costs are broadly flat sequentially and +3% yoy, as continued savings were offset by higher depreciation costs and new investments (incl. KSA, digital spend, new talent hires) • C/I ratio (ex-integration costs) stood at 26.1% vs. a target range o
Slide 10: Healthy asset quality metrics
Healthy asset quality metrics Key highlights1 Impairment charges, net (AED Mn) & CoR1,2 • Non-performing loans (net of IIS) were up sequentially led Net impairment charges CoR (L&A) (bps) by retail and a few corporate accounts • Group asset quality is healthy with a NPL ratio at 3.3% as of March-end
Slide 11: Robust capital position
Robust capital position CET11 ratio progression >13% Guidance • CET1 (post-dividend) improved 34bps FY’19 pre-dividend yoy to 12.7% on the back of internal 14.0% capital generation, partially offset by 12.4% 0.63% 0.15% 12.7% RWA increase 1.64% • CET1 remains above the fully-phased in 0.44% 11% 10%
Slide 12: Appendix
Appendix Strictly private and confidential
Slide 13: Q1’19 Financial Highlights
Q1’19 Financial Highlights P&L summary In AED Mn Q1’19 Q4’18 QoQ % Q1’18 YoY % • Q1’19 NPAT up 6% qoq and 4% yoy Revenue 4,942 4,810 3 4,871 1 • Group revenue +3% qoq, +1% yoy, driven by strong growth Operating expenses (1,314) (1,355) (3) (1,326) (1) in non-interest income, partially offset by lowe
Slide 14: Segmental performance (by business)
Segmental performance (by business) Corporate & Investment Banking (CIB) of Group 57% Revenue In AED Mn Q1’19 YoY % • CIB Revenue is up 15% yoy driven by a broad-based momentum across the 3 main Revenues 2,805 15 product lines: Operating expenses (492) 10 › Global Transaction Banking: strong operati
Slide 15: Segmental performance (by geography)
Segmental performance (by geography) UAE of Group 85% In AED Mn Q1’19 YoY % Revenue Revenues 4,220 1 • UAE revenues and profitability continue to grow despite challenging environment and competition Operating expenses (1,068) (2) • Revenues grew 1% yoy, contributing 85% of Group’s total revenues, wh
Slide 16: Asset & loan mix
Asset & loan mix Asset Mix Gross loans by counterparty (AED Bn) Others 9% 373.3 Banking Sector Cash & CB 366.8 Investments Balances Personal/Retail 17% 8% 8% 19% Sector DFB and 20% 19% AED 733.2Bn Corporate/Private Reverse Mar’19 Sector Repos 6% 54% 53% Public Sector 17% 18% Government Sector Loans
Slide 17: Investments breakdown
Investments breakdown Investments by type Investments by ratings BBB HFT - Debt A 15% 12% HFT - Equity & 29% Funds 2% BB & below AED 126.7Bn Held to Maturity AED 126.7Bn 12% AFS - Debt Mar’19 (Debt) Mar’19 81% 4% Unrated - Debt AFS - Equity & 2% Funds Equity & Funds 1% AA AAA 3% 28% 11% Investments
Slide 18: Customer deposits
Customer deposits Customer deposits (AED Bn) Customer deposits by account type (AED Bn) Notice and time deposits Current Accounts2 Total Customer Deposits CASA Saving Accounts Certificates of deposits Margin Accounts 431.3 455.3 465.2 432.8 404.0 465.2 432.8 1% 1% 7% 7% 2% 2% 32% 35% 41% 34% 34% 34%
Slide 19: Liability mix and funding profile
Liability mix and funding profile Liability Mix Medium-term wholesale funding (AED Bn) Term MTN/MTB Borrowings Syndicated loan 5.5 & Sub Debt Syndicated Loan 7% Sukuk 0.4 Others Medium Term Notes/Bonds 34.1 Subordinated debt 3.7 Customer 7% AED 635.2Bn Deposits Mar’19 Due to Sukuk 6.1 68% Banks & 5.
Slide 20: THANK YOU!
THANK YOU! For more information, please visit www.bankfab.com or contact FAB Investor Relations team at ir@bankfab.com You can also download FAB’s Investor Relations App from App Store /Google Play to access latest corporate updates, FAB pro forma financial information and FGB/NBAD archives. Scan to