First Abu Dhabi Bank · ADX:FAB
First Abu Dhabi Bank — Q4/FY2024 Earnings Presentation
29 slides from First Abu Dhabi Bank's earnings presentation, Feb 6, 2025
Slide 1: Q4/FY'24 Earnings Presentation
Q4/FY’24 Earnings Presentation 6th February 2025
Slide 2: Disclaimer
Disclaimer The information contained herein has been prepared by First Abu Dhabi Bank P.J.S.C ("FAB"). The information contained in this presentation may not have been reviewed or reported on by the Group's auditors. FAB relies on information obtained from sources believed to be reliable but does no
Slide 3: FY'24 key highlights
FY’24 key highlights • NPAT at AED 17.1Bn (+4% yoy), PBT at AED 19.9Bn (+13% yoy) and revenue at AED 31.6Bn (+15% yoy) all at new highs for the Group. • Solid earnings momentum, driven by increased client activity, diversified income streams, ongoing operating efficiencies and a prudent risk approac
Slide 4: Enhanced scale and profitability, driving higher shareholder returns
Enhanced scale and profitability, driving higher shareholder returns 16,405 17,055 13,411 12,531 Net profit (AED Million) 8,286 7,844 Cash dividends 5,745 AED 27.2Bn (AED Million) 5,351 Cumulative cash dividend payout (2021-2024) 2021 2022 2023 2024 Payout1 as % net profit 44% 44% 50% 51% Cash DPS 0
Slide 5: We have met or exceeded ALL financial guidance metrics for FY'24
We have met or exceeded ALL financial guidance metrics for FY’24 2024 guidance FY’24 actuals Scale Loan growth Mid to High single-digit +9% Cost of Risk 65-75bps 75bps Asset Quality Provision > 90% 96% coverage ratio RoTE > 16% 16.8% Profitability & Capital CET1 > 13.5% 15.0% (pre-dividend) 5 | Q4/F
Slide 6: Revenue momentum drives 13% increase in FY'24 Profit Before Tax
Revenue momentum drives 13% increase in FY’24 Profit Before Tax Income Statement - Summary (AED Mn) FY’24 FY'23 yoy % PBT at AED 19.9Bn +13% yoy, led by double-digit Net interest Income1 19,612 18,139 8 revenue growth from diversified sources. Non-interest Income 12,013 9,332 29 Operating Income 3
Slide 7: Q4'24 net profit at AED 4.2Bn, up 4% yoy despite tax and lower rates
Q4’24 net profit at AED 4.2Bn, up 4% yoy despite tax and lower rates Income Statement - Summary (AED Mn) Q4’24 Q3’24 qoq % Q4'23 yoy % Net interest Income 4,936 4,890 1 4,707 5 Non-interest Income 2,768 3,307 (16) 2,227 24 PBT at AED 4.6Bn +7% yoy, driven by strong revenue momentum and well-manage
Slide 8: Driving growth, diversification and innovation across the franchise
Driving growth, diversification and innovation across the franchise DIVERSIFIED GROWTH ACROSS BUSINESSES AND SOURCES OF INCOME STRENGTHENING OUR INTERNATIONAL FRANCHISE • Strong deal pipeline execution as reflected in consistent top tier rankings in MENA • +32% yoy growth in international revenue, w
Slide 9: Group revenue of AED 31.6Bn delivered through a diversified franchise
Group revenue of AED 31.6Bn delivered through a diversified franchise by division… …geography... …and income source AED Bn AED Bn AED Bn Investment UAE International ↑15% yoy2 Banking 10.9 ↑19% yoy 31.6 24.5 7.2 27.5 Global Markets1 7.4 ↑18% yoy ↑11% yoy ↑32% yoy 38% 34% Corporate & Commercial Banki
Slide 10: Margin expansion, volume growth and efficient balance sheet management, drive 8% NII growth
Margin expansion, volume growth and efficient balance sheet management, drive 8% NII growth • FY’24 Group NIM of 1.93% +13bps yoy, driven 1.96 1.92 1.93 1.93 by strong business momentum and higher Group NIM 1.89 1.89 1.80 benchmark rates. (%) • Q4’24 Group NIM of 1.93%, +4bps qoq, as disciplined pri
Slide 11: NFI acceleration underlines franchise strength and sophistication
NFI acceleration underlines franchise strength and sophistication Non-interest income Q4’24 qoq% yoy% FY’24 yoy% • F&C +25% yoy, driven by higher fees from credit cards and trade products, (In AED Mn) and solid deal pipeline execution. F&C -12% qoq, reflecting higher fee Fees & commissions, net (F&C
Slide 12: Cost-to-income ratio at historical low
Cost-to-income ratio at historical low Opex drivers (AED Mn) Cost-to-Income Ratio yoy ↑9% 24.6% (FY’23: 25.9%) • Operating expenses at AED 7.8 +462 +233 billion, up 9% yoy, with ongoing investments in talent, technology (33) 7,787 and AI-related initiatives, while 7,125 retaining focus on productivi
Slide 13: Robust balance sheet and strong liquidity profile
Robust balance sheet and strong liquidity profile Balance Sheet Summary (AED Bn) Dec’24 Dec’23 yoy % • Total assets grew 4% yoy, to AED 1.21Tn. Cash and balances with central banks 214 233 (8) • Loans, advances and Islamic financing (net) grew 9% yoy (+45Bn), reflecting healthy origination across ret
Slide 14: Solid asset quality underpinned by prudent provisioning
Solid asset quality underpinned by prudent provisioning Impairment charges, net (AED Mn) & CoR1 (bps) NPLs2 and ECLs3 (%) Net impairment charges CoR (L&A) (bps) Provision Coverage (%) NPL Ratio (%) 95 99 96 95 96 79 84 75 77 74 63 63 3.9 3.7 3.7 3.8 3.4 qoq ↑20%, yoy ↑10% yoy ↑27% NPLs (AED Bn) Prov
Slide 15: Strong capital position above regulatory requirements
Strong capital position above regulatory requirements CET11 ratio progression CET1, Tier 1 and CAR trends (%) 18.0% 17.4% 17.4% 17.5% 17.1% 15.7% 15.7% 15.9% 15.4% 15.4% +290bps 14.3% +290bps 13.8% 14.0% 13.7% 13.7% 15.2% 15.0% -124bps Cash DPS: 1.3% -52bps Proposed 71 fils 1.3% Cash DPS: Dec'23 Mar
Slide 16: Outlook
Outlook
Slide 17: 2025 macro-outlook
2025 macro-outlook Current Prior Oil c. USD 75/b c USD 77/b UAE real GDP growth c. 5.6% c. 5.4% (2024e: 4.5%) (2024e: 4.5%) Interest rates Up to 2 rate cuts 4 rate cuts 17 | Q4/FY’24 Earnings Presentation
Slide 18: 2025 financial guidance
2025 financial guidance FY’24 actuals 2025 guidance Scale Loan growth +9% yoy High single-digit Cost of Risk 75bps < 75bps Asset Quality Provision 96% > 90% coverage ratio RoTE 16.8% > 16% Profitability & Capital CET1 15.0% > 13.5% (pre-dividend) 18 | Q4/FY’24 Earnings Presentation
Slide 19: Wrap-up
Wrap-up • 2024 marked several consecutive years of expanded scale and improved profitability for the Group, with revenue and profits reaching new highs. • Delivering consistent, tangible progress against our strategic priorities, while cementing our status as the UAE's global bank. • We enter 2025 w
Slide 20: Appendix – Q4/FY'24 results
Appendix – Q4/FY’24 results
Slide 21: Q4/FY'24 highlights – Group financials
Q4/FY’24 highlights – Group financials Income Statement - Summary (AED Mn) Q4’24 Q3’24 qoq % Q4’23 yoy % FY’24 FY’23 yoy % Net interest Income 4,936 4,890 1 4,707 5 19,612 18,139 8 Non-interest Income 2,768 3,307 (16) 2,227 24 12,013 9,332 29 Operating Income 7,704 8,197 (6) 6,934 11 3
Slide 22: A well-diversified, high quality loan book
A well-diversified, high quality loan book Gross loans trend (Figures in AED Bn) Gross loans by product (Figures in AED Bn) qoq ⁓0%, yoy ↑9% 505 1.7 551 1.7 1 30.1 5.5 Gross Islamic financing 5.5 50.5 Vehicle financing loans 29.3 32.2 19.5 530 534 550 551 21.0 505 Credit Cards Personal Loans Trade r
Slide 23: Healthy asset quality and strong provisioning
Healthy asset quality and strong provisioning Loans by stage (AED Bn - as of Dec’24) ECL2 by stage (AED Bn - as of Dec’24) (AED Bn) (AED Bn) AED 542.7Bn AED 17.7Bn (Gross loans net of IIS) as of Dec’24 as of Dec’24 Ratio % of gross loans Coverage by stage Dec'24 Dec'23 (net of IIS)1 Dec'24 Dec'23 (%
Slide 24: Strong and diversified liquidity profile
Strong and diversified liquidity profile Customer deposits trend (AED Bn) Customer deposits by counterparty (AED Bn) qoq ↓5%, yoy ↑3% Total Customer Deposits CASA 760 782 803 820 782 760 766 Certificates of deposits 4% 4% 15% 16% Personal/retail sector Corporate / private sector 44% 46% Public Secto
Slide 25: High quality and diversified investment portfolio
High quality and diversified investment portfolio Investments by type Investments by ratings Dec’24 Dec’23 Dec’24 Dec’23 Dec’24 Dec’24 AAA AED 248Bn AED 248Bn 11% 12% FVTPL - Debt 20% 18% AA 41% 41% FVTPL - Equity & Funds 2% 2% Dec’23 A 20% 21% AED 226Bn Dec’23 Amortised Cost (Debt Inv) 2% 2% BBB 5%
Slide 26: Segmental overview
Segmental overview Corporate and Investment Banking (IB) Global Markets (GM)1 Consumer Banking (CB) Private Banking (PB) Commercial Banking (CCB) Operating income trend NII NFI GM Sales GM Trading NII NFI yoy ↑19% yoy ↑18% yoy ↑5% yoy ↑18% yoy ↑15% 10.9 7.4 7.2 9.1 6.3 6.9 2.9 4.5 3.1 1.3 1.7 3.8 1,
Slide 27: The regional pacesetter for sustainability
The regional pacesetter for sustainability Transitioning to a low carbon future Capitalising on our social responsibility Transforming our governance model Sustainable and Transition Finance: Financial inclusion: ESG & Climate Risk • Total sustainable and transition finance • Supported SMEs wi
Slide 28: Our sustainable transition journey
Our sustainable transition journey 2023 2021 Implemented TCFD recommendations and published first Group ESG strategy TCFD report 2050 finalised and approved Applied emission reduction net zero targets to 8 high- Net Zero emitting sectors within loan portfolio (representing 90% carbon 2020 FAB became
Slide 29: For more information, please visit www.bankfab.com
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’s Nature Report 2024 2023-24 Sustainable Finance Report 2023 ESG Report 2
First Abu Dhabi Bank — Q4/FY2024 Earnings Presentation on 6ix