Abu Dhabi Islamic Bank · ADX:ADIB

Abu Dhabi Islamic Bank — FY2013 Earnings Presentation

41 slides from Abu Dhabi Islamic Bank's earnings presentation, March 2014

  1. Slide 1: Investor Presentation Q4 / FY 2013

    Investor Presentation Q4 / FY 2013 Abu Dhabi: March 2014 ADIB © 2010 adib.ae

  2. Slide 2: Agenda

    Agenda 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: Ratings Excerpts

    Ratings Excerpts “ADIB's BCA (standalone credit assessment) reflects the bank's strong and expanding Islamic franchise in the UAE particularly in the retail segment and strong core profitability and improved capitalization […] Moody’s assessment of a very high probability of systemic support, in the

  5. Slide 5: Ownership & Corporate Structure

    Ownership & Corporate Structure ADIB Ownership  ADIB is mainly owned by over 46,000 UAE nationals and Other members and companies. associates of the Abu Dhabi Royal family:  The Bank’s main shareholder is National Holding via EIIC, which is 10.1% EIIC: 40.7% a private holding company, wholly-owned

  6. Slide 6: Key Strengths

    Key Strengths  Majority owned by members of the ruling family of Abu Dhabi and Strong and sovereign wealth fund. Influential 4th Largest Shareholder Robust  Fastest growing major Islamic Bank Islamic Bank Financial  Sustained growth in profits; consistently Globally by Health and one of the most

  7. Slide 7: UAE Banking Sector

    UAE Banking Sector Highlights UAE Banking Sector (AED Bn) Dec 11 Dec 12 Dec 13 Total Assets (net of provisions) 1,662.1 1,791.6 2,025.8  UAE Banking sector is the largest by assets in the GCC; the UAE banking sector accounts for ~30% of the GCC total. Certificates of deposit held by Banks 80.4 95.1

  8. Slide 8: Agenda

    Agenda Introduction Financial Review Business Review Appendix 8

  9. Slide 9: Financial Snapshot (1/2)

    Financial Snapshot (1/2) Total Assets (AED Bn) Net Customer Financing (AED Bn) Customer Deposits (AED Bn) +13% +11% +12% 103.2 61.7 75.5 86.1 48.0 48.8 51.2 61.3 75.3 74.3 56.5 55.2 64.1 40.5 48.2 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Capital Resources(AED Bn) Re

  10. Slide 10: Financial Snapshot (2/2)

    Financial Snapshot (2/2) Return on Avg Shareholders’ Equity (%) Financing to Deposits Ratio (%) Advances to Stable Funds Ratio (%) 20.2% 84.8% 91.3% 18.2% 18.2% 83.5% 83.4% 17.7% 77.9% 88.5% 83.9% 81.8% 83.1% 75.7% 1.4% 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 CAR (

  11. Slide 11: 2013 in review – key financial highlights

    2013 in review – key financial highlights Balance sheet highlights Income statement highlights Key performance indicators Change Change Net Profit AED Bn 2012 2013 AED Mn 2012 2013 % % +108% +21% Total assets 86.1 103.2 20% Revenue 3,565.6 3,931.3 10% Net customer Expenses 1,562.1 1,700.7 9% 1,450 5

  12. Slide 12: Operating Performance

    Operating Performance Highlights (2013 vs. 2012) Net Revenue from Funds (AED Mn) Fees, commission and others (AED Mn) Profit paid on funds FX  Records operating income up by 10% Revenue from funds +10% +31% Investment income & others at AED 3,931 Mn. 865 2,905 3,066 Fees & Commission 46  Net reven

  13. Slide 13: Key ratios

    Key ratios Ratios Dec 2012 Dec 2013 Diluted Earnings per share (EPS in AED) 0.457 0.472 Return on Average Shareholders’ Equity (excluding GoAD - Tier 1 capital) 17.7% 20.2% Efficiency Net profit margin (%) 4.4% 4.1% Cost / income ratio 43.8% 43.3% Percentage lent (Financing / Total Assets) 59.5% 60.

  14. Slide 14: Competitive landscape – ADIB vs. UAE Banks

    Competitive landscape – ADIB vs. UAE Banks Peer Group Analysis for FYR 2013 ADIB ADCB FGB NBAD UNB MASHREQ DIB CBD ENBD RAK Revenue – FYR AED Mn 3,931 7,320 8,421 9,398 3,212 4,837 4,235 2,033 11,856 3,150 Operating Profit – AED Mn 2,231 4,961 6,655 6,159 2,357 2,796 2,546 1,405 7,662 1,771 Margin –

  15. Slide 15: Balance Sheet Strength

    Balance Sheet Strength Consistently remains one of the most liquid banks in the UAE Net Customer Financing & Customers’ Deposits (AED Bn) Composition of Total Assets – AED Bn Customer Financing Financing to Deposits ratio Investmen Investmen ts: Fixed ts: Customer Deposits Adavnces to Stable funds r

  16. Slide 16: Customer Financing Assets

    Customer Financing Assets Portfolio growth of 20% since Q4 12 driven by strong performance from Wholesale bank and Retail Gross Customer Financing by Segment Gross Customer Financing by Customer Segment Private Retail FI: 1.6% Govt. & FI: 1.2% SME & Govt. & SME & PSE: Others: Wholesale +11% +19.9% P

  17. Slide 17: Asset quality – Customer financing only

    Asset quality – Customer financing only Provisions and NPAs – Customer financing (AED Mn) NPA ratio and provision coverage ratio NPAs - impaired Individual / Specific NPA ratio - Not Impaired Total Provision coverage ratio - Impaired only * Write-off Collective / General NPA ratio - Impaired 4,509 4

  18. Slide 18: Funding Profile

    Funding Profile Composition of Liabilities (AED Bn) Customers’ Deposits by Segment (AED Bn) 75.5 Private Wholesale Retail Q4 12 Q4 13 61.3 +12% +23.2% 6.2 75.5 7.2 6.7 9.5% 61.3 4.5 4.6 56.5 55.2 10.9% 30.6 3.7 48.2 13.4% 11.7% 23.1 40.5% 3.1 14.4% 37.6% 2.3 2.2 50.3% 42.7% 48.9% 37.7 51.4% 31.5 50.

  19. Slide 19: Capital

    Capital Well capitalised and strong capital base after Tier 1 Hybrid issue Capital Adequacy (%) Capital base - Tier 1 and Tier 2 - AED Bn Total CAR UAE Central Bank CAR requirement Tier 2 Tier 1 Minimum Tier-1 requirement 14.3 Tier1 13.1 21.4% 2.0 0.3 10.5 17.4% 9.9 17.0% 16.9% 9.0 16.0% 2.4 18.4% 2

  20. Slide 20: Shareholders’ Return

    ADIB Price (AED)    - 3.00 0.50 1.00 1.50 2.00 2.50 3.50 4.00 4.50 5.00 5.50 6.00 Dec-08 Jan-09 Feb-09 capital. Mar-09 Apr-09 May-… Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-… Jun-10 Shareholders’ Return Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-1

  21. Slide 21: Dividend Distribution History

    Dividend Distribution History 2007 2008 2009 2010 2011 2012 2013* Net Profit (Mn) 769.0 851.1 78.0 1,023.6 1,155.1 1,201.2 1,450.2 Cash Dividend Payout Ratio 51.2% 50.0% - 50.0% 50.0% 50.0% 50.0% (% of Net Profit) Cash Dividend 20.0% 21.6% - 21.6% 24.4% 25.4% 30.7% (% of Share Capital) Cash Dividend

  22. Slide 22: Agenda

    Agenda Introduction Financial Review Business Review Appendix 22

  23. Slide 23: 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

  24. Slide 24: Business unit contribution

    Business unit contribution Composition of Total Assets – AED Bn Composition of Total Liabilities – AED Bn Private Private Real Real ; 6% ; 3% Estate; Capital Real Real Private; Private; Estate; Estate; 0% Markets; Estate; 3% Capital Capital 7% 5% 3% Capital 0% 33% Markets; Markets Markets 31% ; 25%

  25. Slide 25: Retail Banking overview

    Retail Banking overview Retail Banking contributes 65% of Net Revenues Assets (AED Bn) +14%  Personal Banking Division provides services for +18% individuals clients, while the Business Banking Division services the needs of SMEs. 27.6 32.7 23.5 25.8  These services include a variety of Shari’a co

  26. Slide 26: Wholesale Banking overview

    Wholesale Banking overview Assets (AED Bn) Wholesale Banking contributes 26% of Net +16% Revenues +36%  Wholesale Banking encompasses the large corporates, 27.3 emerging corporates and financial institutions divisions 18.6 18.9 20.1 15.0 of the Bank. The array of services includes Transaction Banki

  27. Slide 27: Private Banking overview

    Private Banking overview Assets (AED Bn) Private Banking contributes 5% of Net Revenues -7%  Private Banking focuses on high and ultra high net 6.9 7.2 worth individuals. 6.0 6.0 5.1  Wealth Management concentrates on developing, marketing and servicing a wide range of wealth management products (

  28. Slide 28: Treasury overview

    Treasury overview Treasury contributes 8% of Net Revenues Assets (AED Bn)  Treasury principally handles money market brokerage, +28% trading and treasury services, as well as the +1% management of the Bank's funding operations by use of investment deposits 19.5 19.7 12.0 Investments Fair value thro

  29. Slide 29: Agenda

    Agenda Introduction Financial Review Business Review Appendix 29

  30. Slide 30: Consolidated Statement of Income

    Consolidated Statement of Income % chg Q4 % chg Q4 % chg FYR13 AED Mn Q4 12 Q3 13 Q4 13 FYR 12 FYR 13 13 vs Q4 12 13 vs Q3 13 vs FYR 12 Revenues 884.0 1,015.9 1,045.8 18.3% 2.9% 3,565.6 3,931.3 10.3% Net Revenue from Funds 736.9 769.8 815.2 10.6% 5.9% 2,905.3 3,066.4 5.5% Fees & commission 94.3 139.

  31. Slide 31: Consolidated Balance Sheet

    Consolidated Balance Sheet % chg 31 Dec % chg 31 Dec AED Mn% 31 Dec 2012 30 Sep 2013 31 Dec 2013 2013 vs 31 Dec 2013 vs 31 Dec 2012 2012 Cash and balances with Central Banks 11,287 13,446 22,221 96.9% 65.3% Due from financial institutions 13,876 12,785 6,663 -52.0% -47.9% Net Customer financing 51,1

  32. Slide 32: An award winning Bank – 2013 (1/3)

    An award winning Bank – 2013 (1/3) Mohammed Bin Rashid award for Best Supporting Bank for SME by business excellence the Mohammed Bin Rashid Al - Finance Category Maktoum Award for young leaders - 2013 “Islamic Bank of the Year - Middle “Best Islamic Bank in the Middle East Regional Winner” East and

  33. Slide 33: An award winning Bank – 2013 (2/3)

    An award winning Bank – 2013 (2/3) “Best Overall Bank in Customer Best UAE Best Islamic asset management Brokerage firm by Service” in the UAE for three company Global Investor Magazine News 2013 by Islamic Finance consecutive years by Ethos Consultancy “Excellence in Islamic Banking” Best Islamic i

  34. Slide 34: An award winning Bank – 2013 (3/3)

    An award winning Bank – 2013 (3/3) Best commercial bank for 2013 by “Best Sukuk Deal” Islamic Banking and Finance Magazine by EuroMoney “Best Broker in the UAE” “Best website award of the year by Global Investor Magazine Award” in the UAE by Ethos Consultancy Best co-branded car for “Best Syndicated

  35. Slide 35: Key deals in 2013 (1/2)

    Key deals in 2013 (1/2)  The transaction was fully  Highly structured transaction  The Largest corporate underwritten by ADIB and that reaffirms ADIB's Sukuk issue from Dubai witnessed a strong demand commitment to the growth & USD 1Bn Sukuk since 2007 USD 82,000,000 from regional & Local banks d

  36. Slide 36: Key deals in 2013 (2/2)

    Key deals in 2013 (2/2)  Highly important transaction  ADIB closed its 1st UK real estate Westbourne that reaffirms ADIB’s financing transaction based on Shari'a commitment and support to Abu House Limited principles hence providing Shari'a USD 168,000,000 Dhabi Government Entities £20,000,000 com

  37. Slide 37: Executive Management Biographies

    Executive Management Biographies 37

  38. Slide 38: Executive Management Profile (1/3)

    Executive Management Profile (1/3) Joined ADIB in March 2008. He holds a Bachelor degree (major in Corporate Finance) from Loyala of Tirad Mahmoud Concordia University in Montreal, Canada and has also completed the Executive Management Program at Chief Executive Officer Wharton. He has previously wo

  39. Slide 39: Executive Management Profile (2/3)

    Executive Management Profile (2/3) Abdulla Al Shahi Joined ADIB in November 1998. He holds an MBA from the UAE University. He has 19 years banking Head of New Country experience. His previous position was as a branch manager for Oman Housing Bank. Expansion Joined ADIB on 3 June 2008. He holds a Mas

  40. Slide 40: Executive Management Profile (3/3)

    Executive Management Profile (3/3) Joined ADIB on 18 April 2010. He holds a Certified Public Accountant (CPA) from State Board of Abdul Hakim Kanan Accountancy, New Hampshire, US. He also holds professional qualification CIA,CISA,CITP,CFSA,CFE and Global Head of Audit CGEIT. He has over 24 years of

  41. Slide 41: 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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