Abu Dhabi Islamic Bank · ADX:ADIB

Abu Dhabi Islamic Bank — Q2 2019 Earnings Presentation

27 slides from Abu Dhabi Islamic Bank's earnings presentation, July 2019

  1. Slide 1: Investor Presentation 30 June 2019 results

    Investor Presentation 30 June 2019 results Abu Dhabi: July 2019 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  Incorporated in 1997 to serve as first Islamic Bank in the ADIB – Timeline and milestones Emirate of Abu Dhabi.  Majority owned by members of the ruling family of Abu Dhabi •Established by the Govt. of Abu Dhabi in 1997. and sovereign wealth fund. Early History •Licensed

  4. Slide 4: Table of Content

    Table of Content Introduction Financial Review Business Review Appendix 4

  5. Slide 5: H1 / Q2 2019 – Key financial highlights – Income statement

    H1 / Q2 2019 – Key financial highlights – Income statement 5.8% Change Change AED Mn Q2 18 Q2 19 H1 18 H1 19 Revenues % % 2,729 2,887 Net Revenue from funds 929.1 961.3 3.5% 1,877.5 1,917.0 2.1% 6.3% Fees and commission 246.4 253.9 3.0% 477.7 467.7 -2.1% 1,365 1,437 1,451 FX income 58.9 71.1 20.8% 1

  6. Slide 6: 30 June 2019 – Key financial highlights – Balance sheet

    30 June 2019 – Key financial highlights – Balance sheet Change Change  Total assets increased by 1.4% over Q2 2018 AED Bn Jun 18 Jun 19 Dec 18 to reach AED 124.7 Bn primarily due to % % growth in financing and sukuk investments. Total assets 122.9 124.7 1.4% 125.2 -0.4%  Customer financing increas

  7. Slide 7: Key ratios

    Key ratios Ratios Jun 2018 Dec 2018 Jun 2019 Diluted Earnings per share (EPS in AED) 0.299 0.637 0.297 Return on Average Shareholders’ Equity 19.4%1 19.3% 18.2%1 (excluding - Tier 1 capital) Efficiency Net profit margin (%) 4.21%1 4.29% 4.25%1 Cost of funds (%) 0.58%1 0.70% 0.83%1 Cost / income rati

  8. Slide 8: Operating Performance – Net profit income

    Operating Performance – Net profit income Highlights (H1 2019 vs. H1 2018) Revenues (AED Mn) Key movements in Revenues (AED Mn)  Net revenue from Funds (NRFF) Fees, commission and others +6% 2.1% higher, driven by growth in Net revenue from funds 2,887 99 customer financing volumes by 2,729 3.4% (R

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

    Operating Performance – Non-profit income Highlights (H1 2019 vs. H1 2018) Non-profit income (AED Mn) Composition of Fees & commission (AED Mn) +14% Brokerage Other income -2%  Non-profit income higher by 14.0% Property income Property mangement at AED 970.1 Mn, now comprised 34% 970 Trade related

  10. Slide 10: Balance Sheet Strength and Customer Financing

    Balance Sheet Strength and Customer Financing Gross Customer Portfolio increased 2.9% vs. Jun 18, mainly due to Retail banking up by 1.9% and WBG up by 4.1%. Composition of Total Assets – AED Bn Liquidity ratio* (%) Investmen Investmen ts: ts: % of total assets Liquid assets (AED Bn) 10.9% Fixed 10.

  11. Slide 11: Funding Profile

    Funding Profile Healthy Financing to Deposit ratio of 79.0%. Net Customer Financing & Customers’ Deposits (AED Bn) Composition of Liabilities (AED Bn) Tier 1 Sukuk (USD 1 Bn) Due to FI Customer Financing Fin to Dep ratio Other Liabilities Depositors’ accounts Customers Deposits Adavnces to Stable fu

  12. Slide 12: Asset quality – Customer financing only

    Asset quality – Customer financing only Provisioning now calculated in accordance with IFRS 9. Cost of risk trending down. Provisions and NPAs – Customer financing (AED Mn) NPA ratio and Provision Coverage ratio NPAs NPA ratio Total Provision coverage ratio * Specific / Stage 3 provisions 4,383 4,32

  13. Slide 13: Capital Adequacy Ratio (CAR)

    Capital Adequacy Ratio (CAR) Well above the Regulatory thresholds Capital Adequacy Ratio (%) Capital base – CET 1, Tier 1 and Tier 2 - AED Bn CAR Basel III Tier 1 CET 1 Tier 2 Tier 1 CET 1 18.3% 18.3 16.8% 17.2% 17.5% 17.6 16.5% 17.2% 16.4 16.5 17.1 1.1 15.7% 16.1% 16.4% 1.1 15.4% 1.1 1.1 1.1 4.8 4.

  14. Slide 14: Table of Content

    Table of Content Introduction Financial Review Business Review Appendix 14

  15. Slide 15: ADIB Strategy

    ADIB Strategy The Bank’s overall Strategy has three pillars: Strengthen our International Build market leadership Create an integrated presence within the UAE financial services group and business • Build on our strength as a leading retail • ADIB continues to create a diversified • ADIB internation

  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 Private Treasur Real Treasur Real 3% Estate; 3% Estate; ; 3% y; 8% Estate; Private y; 7% Estate; 2% 2% 0% ; 3% 0% Treasury; Treasur y; 17% Others; 18% Others; Wholes

  17. Slide 17: Global Retail Banking overview

    Global Retail Banking overview Global Retail Banking contributes 62% of Net Financing Assets (AED Bn) Deposits (AED Bn) Revenues: +2% +3%  Personal Banking Division provides services for 46.6 47.4 66.5 64.3 individuals clients, while the Business Banking Division services the needs of SMEs.  These

  18. Slide 18: Global Wholesale Banking overview

    Global Wholesale Banking overview Financing Assets (AED Bn) Deposits (AED Bn) Global Wholesale Banking contributes 17% of Net Revenues: +4% -11%  Global Wholesale Banking encompasses the large 27.3 28.4 23.8 21.2 corporates, emerging corporates and financial institutions divisions of the Bank. The

  19. Slide 19: Treasury overview

    Treasury overview Assets (AED Bn) Liabilities (AED Bn) Treasury contributes 7% of Net Revenues -1%  Treasury principally handles money market brokerage, -10% trading and treasury services, as well as the 21.7 21.5 8.4 management of the Bank's funding operations by use of 7.6 investment deposits. In

  20. Slide 20: Table of Content

    Table of Content Introduction Financial Review Business Review Appendix 20

  21. Slide 21: Consolidated Statement of Income

    Consolidated Statement of Income % chg Q2 % chg Q2 19 % chg H1 19 AED Mn Q2 18 Q1 19 Q2 19 19 vs Q2 18 vs Q1 19 H1 18 H1 19 vs H1 18 Revenues 1,364.9 1,436.6 1,450.5 6.3% 1.0% 2,728.8 2,887.1 5.8% Net Revenue from Funds 929.1 955.7 961.3 3.5% 0.6% 1,877.5 1,917.0 2.1% Fees & commission 246.4 213.7 2

  22. Slide 22: Consolidated Balance Sheet

    Consolidated Balance Sheet % chg 30 Jun % chg 30 Jun AED Mn 30 Jun 2018 31 Dec 2018 30 Jun 2019 2019 vs 30 Jun 2019 vs 31 Dec 2018 2018 Cash and balances with Central Banks 20,412 18,731 17,541 -14.1% -6.4% Due from financial institutions 4,196 5,812 6,076 44.8% 4.5% Net Customer financing 76,303 78

  23. Slide 23: Financial Snapshot (1/2)

    Financial Snapshot (1/2) Total Assets (AED Bn) Net Customer Financing (AED Bn) Customer Deposits (AED Bn) +3% +2% +4% 118.4 122.3 123.3 125.2 78.4 78.2 76.5 78.7 94.9 98.8 100.0 100.4 111.9 73.0 84.8 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Equity (AED Bn) Revenues

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

    Financial Snapshot (2/2) Return on Avg Shareholders’ Equity (%) Financing to Deposits Ratio (%) Advances to Stable Funds Ratio (%) 18.7% 19.5% 19.3% 86.1% 82.6% 86.5% 85.1% 82.9% 18.4% 79.1% 76.5% 78.4% 80.0% 17.2% 84.6% 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 CAR

  25. Slide 25: Dividend Distribution History - AED

    Dividend Distribution History - AED A consistent dividend distribution record AED 2011 2012 2013 2014 2015 2016 2017 2018 Net Profit (Mn) 1,155.1 1,201.2 1,450.2 1,750.7 1,934.0 1,953.6 2,300.1 2,500.8 Cash Dividend Payout Ratio (% of Net Profit) 50.0% 50.0% 50.0% 40.0% 39.8% 39.8% 39.8% 39.8% Cash

  26. Slide 26: Shareholders’ Return

    Shareholders’ Return  30 June 2019 share price was AED 4.61 per share (31 Dec 2018: AED 3.90 per share).  Cash dividend of 39.8% of net profit, 27.38% of share capital (2017: 28.87% of share capital).  Total dividend yield of ADIB share of 7.0%. (2017: 7.6%). ADIB vs ADX ADIB ADX 7.50 5,500 7.00

  27. Slide 27: 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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