Commercial Bank Of Dubai(psc) · DFM:CBD
Commercial Bank Of Dubai(psc) — Commercial Bank of Dubai — H1 2017 Earnings Presentation
28 slides from Commercial Bank Of Dubai(psc)'s earnings presentation, June 2017
Slide 1: Commercial Bank of Dubai Investor Presentation June 2017
COMMERCIAL BANK OF DUBAI INVESTOR PRESENTATION June 2017 Slide 1
Slide 2: Disclaimer
Disclaimer In accessing the Information in this document, you agree to be bound by the following terms and conditions. The Information is provided to you solely for your information and may not be retransmitted, further distributed to any other person or published, in whole or in part, by any medium
Slide 3: Overview of the United Arab Emirates
Overview of the United Arab Emirates Snapshot of the UAE UAE Stock Market The United Arab Emirates (rated Aa2 by Moody’s) comprises seven Emirates with Abu Dhabi and Dubai being the largest contributors to its gross domestic DFM ADX product (“GDP”). The UAE benefits from several buffers, includi
Slide 4: Overview of Dubai
Overview of Dubai Snapshot of Dubai Foreign Trade (AED bln) Exports & Re-Exports Imports The Emirate of Dubai is the second largest Emirate in the UAE after the 545 574 502 514 536 Emirate of Abu Dhabi. Dubai is situated on the west coast of the UAE in 442 442 364 the south-western part of the Ara
Slide 5: Overview of UAE Banking Sector
Overview of UAE Banking Sector Snapshot of the UAE Banking Industry Key Industry Indicators (AED bln) May The UAE banking industry, which is the largest banking industry in the 2012 2013 2014 2015 2016 GCC, comprises 49 banks, 23 of which are domestically-incorporated -2017 banks while the remaini
Slide 6: CBD Profile & Ratings
CBD Profile & Ratings 1969 1982 2017 Public Shareholding With the introduction of CBD is owned by UAE entities and nationals Company by an Emiri restrictions on foreign banks’ Decree issued by His operations in the UAE, CBD Highness the late Sheikh converted into a national • CBD shareholders: Gover
Slide 7: Board of Directors and management team
Board of Directors and management team Board of Directors Shareholders Government of Dubai* 20% Al Futtaim Private Co. 10.51% Arab Orient Insurance Co. 8.84% Mr. Saeed Ahmed UAE nationals Abdulla Hamad Al Futtaim 6.95% Ghobash 80% Ghobash Trading & Inv. 6.37% Chairman General public 36.58% Abdul Wah
Slide 8: Corporate Governance
Corporate Governance Board of Directors The Board of Directors provides strategic guidance, effective Organisational Structure monitoring of management, adequate controls and sets the tone Chairman and and culture of the Bank to enhance and ensure sustainable Board of Directors shareholder value. Bo
Slide 9: Credit Strengths
Credit Strengths Bank of Choice to the Leading Stable and Low-Cost Funding Private Sector Companies in Base the UAE 20% ownership by the Strong Capital Base and Government of Dubai Diversified Lending Portfolio Fast Growing Islamic Banking Consistent Profitability and Franchise Returns Experienced M
Slide 10: H1-2017 Highlights
H1-2017 Highlights ► Total assets up 5.9% to AED 67.9 bln compared to Dec 2016 ► Loans and advances up 10.4% to AED 46.3 bln ► Customers’ deposits up 7.1% to AED 46.9 bln ► Total revenue up 9.9% to AED 1,313 mln over H1-2016 ► Operating expenses increased by 7.0% to AED 449 mln ► Operating profit up
Slide 11: 2017 Financial Results
2017 Financial Results Income Statement (AED Mln) H1-17 H1-16 YoY Net Interest Income & Islamic Financing Income 885 827 7% Net Fees, Commission and FX Income 333 308 8% Other Operating Income 95 61 57% Total Revenue 1,313 1,195 10% Operating Expenses 449 420 7% Operating Profit 864 775 12% Net Impa
Slide 12: Overview of Business Segments
Overview of Business Segments CBD categorizes its business into five main business segments: Corporate Banking, Commercial Banking, Business Banking, Personal Banking and Treasury & Investments Corporate Banking: Provides a range of credit and non-credit banking products and services to large corp
Slide 13: Divisional Performance (1/3): Corporate and Commercial Banking
Divisional Performance (1/3) Balance Sheet Trends AED mln Revenue Trends AED mln 11% increase in Assets registered by Corporate +11% banking to reach AED 32.2 bln as at 30th June 2017. +11% +23% Liabilities increased by 11% to reach AED 28.8 bln.. Total revenue increased by 23% from AED 381 ml
Slide 14: Divisional Performance (2/3): Business and Personal Banking
Divisional Performance (2/3) Balance Sheet Trends AED mln Revenue Trends AED mln 0% Business banking assets decreased by 25% from -25% +1% AED1.4 bln as of Dec-16 to reach AED 1.1 bln as at Jun-17. 3,511 3,501 144 145 Liabilities were flat at 3.5 bln as at end of Jun-17. Business Banking NFI 49
Slide 15: Divisional Performance (3/3): Treasury & Investment
Divisional Performance (3/3) Balance Sheet Trends AED mln Revenue Trends AED mln Treasury assets decreased by 9% to reach AED 0% 16.5 bln as at H1-2017. +16% -9% Total treasury revenues increased by 16% from 18,035 146 16,471 Treasury & Investment AED 127 mln in H1-16 to AED 146 mln in H1-2017:
Slide 16: CBD Balance sheet and Profit growth over the years
CBD Balance sheet and Profit growth over the years Revenues and Costs (AED billion) H-2 H-1 Profits (AED billion) H-2 H-1 Revenues Costs Operating profits Net Profits +4% +6% +9% +4% 2.4 2.5 0.9 0.9 1.6 1.2 2.2 0.8 1.4 1.5 1.5 1.1 2.0 1.3 1.3 1.0 1.0 1.9 1.9 0.6 1.3 0.6 0.6 0.5 0.8 0.9 1.2 0.4 0.7 0
Slide 17: Net Interest Income
Net Interest Income Interest income increased by 10.1% over H1-2016, despite rising cost of funds Interest income (AED mln) Interest expense (AED mln) Net Interest Income (AED mln) 2,288 563 1,725 1,583 1,640 1,963 1,827 +19% +10% 323 318 +7% 885 1,094 1,204 267 827 244 2014 2015 2016 H1-16 H1-17
Slide 18: Non Interest Income
Non Interest Income Non interest income (AED mln) Movement in non interest income (AED mln) 712 737 34 1 657 -19 44 +16% 428 368 428 368 2014 2015 2016 H1-16 H1-17 H1-16 Fees and FX Investment Other income H1-17 commission income Components of non interest income % Highlights 2017 Fees & Commission
Slide 19: Profitability
Profitability Despite a challenging economic environment, CBD has managed to improve its cost to income ratio Operating Expense (AED mln) Cost Efficiency (Cost to Income Ratio, %) 859 871 36.5% 754 33.7% 35.4% 34.2% +7% 449 420 2014 2015 2016 H1-2016 H1-2017 2014 2015 2016 H1-2017 Profitability ra
Slide 20: Balance Sheet Parameters
Balance Sheet Parameters CBD’s loan portfolio has maintained the growth of recent years, by focusing on selected sectors. Assets and Loans (AED mln) Breakdown of Gross Loans, Advances & Islamic Financing AED mln H1-17 Dec-16 Δ % H1-17 / 64,080 67,888 61,363 Dec-16 57,864 46,316 Manufacturing 1,162
Slide 21: Funding Sources & Liquidity
Funding Sources & Liquidity CBD grew its deposit base to maintain liquidity ratios in tight market conditions Steady Growth in Deposit Base (AED mln) Overview of Funding Sources (AED bln) Breakdown of Customer Deposits (%) 68 64 As at 30th June 2017 46,883 1 43,774 58 2 40,475 1 Corporate Individu
Slide 22: Asset Quality
Asset Quality Marginally improved assets quality as non-performing loans ratio continues its downward trend improving to 6.2% Marginally better Asset Quality (AED mln) Loan Loss Coverage Ratio(%) 10.1% 9.3% 101.6% 93.7% 92.4% 91.5% 84.9% 6.9% 6.9% 8.5% 6.2% 8.7% 5.7% 6.4% 6.9% 3,334 3,242 2,895 3,
Slide 23: Overview of Capitalisation
Overview of Capitalisation CBD has maintained a strong capital base to support the growth of its business Composition of Equity1 (AED mln) Overview of Capitalisation (%) 8,229 8,680 8,495 7,810 7,216 2,193 2,519 19.0% 1,827 2,851 18.1% 1,779 16.6% 15.8% 14.9% 17.7% 3,358 16.8% 3,742 3,233 2,841 15
Slide 24: CBD Purpose, Mission and Values
CBD Purpose, Mission and Values Purpose Building sustainable prosperity through extraordinary banking experiences. Mission To be loved for our passion and excellence. Slide 24
Slide 25: CBD Awards: 2017
CBD Awards: 2017 • The ‘Best Cash Management’ Bank in UAE Banker Middle East Awards Dubai Trade Awards • Awarded as a key strategic banking partner. • Overall best mobile app Service Olympian Awards • Best live chat performance 2017 Transform Awards Mena • Best visual Identity • Best rebrand of a di
Slide 26: Corporate Social Responsibility: 2017
Corporate Social Responsibility: 2017 • CBD participated in the Humanitarian Work day during Ramadan 2017 , encouraging the Bank’s staff to participate in volunteering activities. • CBD sponsored the Dubai Tour Jan-Feb 2017, in Dubai City Walk for the third year in a row, which witnessed the partici
Slide 27: Events during the first half of 2017
Events during the first half of 2017 Humanitarian day during Banker Middle East Awards CBD Partners on Imtiyazat Jumeirah Zabeel Saray Ramadan Program with FAHR payment & cash management Partnership with RERA-RAK CBD and RKM group Cash CBD NOW awarded Best Visual CBD partners with University College
Slide 28: End of presentation
End of presentation Slide 28
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