Commercial Bank Of Dubai(psc) · DFM:CBD
Commercial Bank Of Dubai(psc) — Commercial Bank of Dubai — FY2024 Earnings Presentation
34 slides from Commercial Bank Of Dubai(psc)'s earnings presentation, Jan 29, 2025
Slide 1: Investor Presentation 2024
2024 Investor Presentation for the year ended 31 December 2024 Dr Bernd van Linder Chief Executive Officer Mr Darren Clarke Chief Financial Officer 29 January 2025 www.cbd.ae
Slide 2: Executive Summary
Executive Summary Financial Highlights FY 24 ▪ Exceeding AED 3 billion in net profit for the first time with above system loan growth ▪ Strong return on equity generating Net Profit before tax Operating Profit Gross Lending internal capital for growth AED 3,325m AED 4,087m c 4.6% ▪ Strong balance sh
Slide 3: CBD dividend history
Exceeding AED 3 billion in net profit for the first time and record cash dividend of 50.74 fils per CBD dividend history share, a 190m (14.3%) increase in cash dividend notwithstanding the introduction of Corporation Figures in AED m tax (295m) Net Profit Cash dividend Bonus shares Cash Payout % Tot
Slide 4: Earnings Snapshot
Exceeding AED 3 billion in net profit for the first time with excellent growth in loans and improved Earnings Snapshot Cost of Risk offsetting lower NIM and higher expenses Figures in AED m Change Change (%) 2024 2024 - 2023 2024 - 2023 Net profit before tax 3,325.1 675.1 25.5% Net profit after tax
Slide 5: Financial Performance Snapshot – FY 24
Financial Performance Snapshot – FY 24 Figures in AED b Shareholder Value Creation Strong Balance Sheet Robust Core Ratios Solid Operating Performance Revenues +11.2% Assets +8.7% CET1 Ratio -13bps Operating +10.2% Profit 5.5 140.2 4.1 4.9 129.0 12.1% 12.4% 12.5% 12.4% 3.7 114.3 116.2 3.8 2.8 3.2 2.
Slide 6: Progress against Strategic Execution 2024
Progress against Strategic Execution 2024 Achieve Financial Results Become Employer of Choice Customer Focus Default Digital Interest rate tailwinds Recruiting, developing Deepening customer % of wholesale 94% supported by growth in and retaining UAE relationships through transactions initiated Loan
Slide 7: Financial Guidance 2025 estimate
Underlying business activity and momentum supports forward-looking Financial Guidance 2025 estimate sustainable net profit growth 2025e Financial Guidance Loan Growth Cost of Risk Net Interest Margin Cost to Income Return on Equity (before tax) Mid to high single-digit < 65 bps 2.80% - 2.90% < 28% >
Slide 8: Net Profit Bridge on Prior Year
Exceeding AED 3 billion in net profit for the first time with higher NFI and Net Profit Bridge on Prior Year lower CoR, more than offsetting higher cost of funds, higher expenses and Figures in AED m the introduction of corporate tax NFI higher on credit card Other Operating Expenses Net Credit Impa
Slide 9: Core Performance Trends
Excellent loan growth supported by high interest rates and improved asset quality Core Performance Trends negating higher cost of funds and expenses Figures in AED m Net Profit before tax Revenue NFI NII Net profit after tax is 3,030m +20% 5,491 4,938 3,325 1,692 +32% 1,368 (31%) 3,812 (28%) 2,650 3
Slide 10: Strategic Financial KPI's
Excellent loan growth, lower CoR, offsetting weaker Net Interest Margins and Strategic Financial KPI’s higher expenses Return on Equity (ROE) before tax Cost to Income Ratio ROE after tax is 21.40% -2% 27.18% 26.14% 25.56% 24.87% +21% 23.48% 21.23% +3% 15.99% +11% 13.22% 2021 2022 2023 2024 2021 202
Slide 11: Profitability and Returns
Profitability and Returns Solid returns supported by good recoveries despite lower margins and increased expenses Figures in AED m Expenses Revenue and Expense JAWS Revenue Expenses +17% 1,403 5,491 4,938 1,228 3,812 997 865 3,183 -3% +6% +5% 0% 1,228 1,403 865 997 2021 2022 2023 2024 2021 2022 2023
Slide 12: Net Interest Margin
Higher NII benefitting from loan growth and high market interest rates notwithstanding Net Interest Margin increased funding costs and decreasing credit spreads Figures in AED m Interest Income and Expense Net Interest Margin Interest Income Interest Expense NIM YTD NIM QTD 959 947 943 950 916 3.19
Slide 13: Asset Quality and Impairments
Sharply improved asset quality with a lower NPL ratio, the lowest in Asset Quality and Impairments decades, together with a coverage ratio above 100% Figures in AED m Cost of Risk Credit Impairment Charges and Recoveries Credit Impairment Recoveries Coverage Coverage inc collateral stage 3 1.17% 138
Slide 14: Balance Sheet and Capital Strength
Balance Sheet and Capital Strength Capital ratios remain well above regulatory requirements Capital Adequacy Ratio (CAR) Common Equity Tier 1 (CET1) CAR Regulatory limit (Minimum) CET1 Regulatory limit (Minimum) -1% +1% 15.82% 16.04% 15.95% 12.13% 12.40% 12.54% 12.41% 15.57% 13.00% 13.00% 13.00% 13.
Slide 15: Funding and Liquidity
Funding and Liquidity Diversified funding base with stable franchise deposits Figures in AED b Customer Deposits Other Funding Sources Time CASA Acceptances and Others Notes and Medium Term Borrowing Equity AT1 Capital Due to Banks > 1year Due to Banks < 1year Green Bond +6% 97.6 +11% 88.3 82.7 81.1
Slide 16: Balance Sheet Analysis
Balance Sheet Analysis Backing customer ambitions across all market sectors of the UAE economy Figures in AED b Assets Mix Assets and Loans Net Loans and Advances Total Assets 2.5% 4.9% 12.1% +7% 3.7% Cash and balances with CB 10.4% Due from banks Net loans and advances AED 140.2 billion Investment
Slide 17: Diversified Business Mix
Diversified Business Mix Broad diversification across key financial attributes Revenue Revenue Asset Funding Diversification Segmentation Diversification Diversification 5% 7% 12% 6% 26% 30% 31% 36% 20% 2024 2024 2024 18% 2024 Revenue 39% Revenue Asset Funding 15% 69% 24% 28% 34% 69% 31% 54% 46% 59%
Slide 18: Divisional Contributions
Divisional Contributions Solid performance across all segments with improved segmental balance year on year Figures in AED m Divisional operating profit movement Divisional revenue movement +11% +10% 175 4,087 295 162 205 5,491 3,710 152 210 -113 4,938 -157 2023 Instit Corp Personal Other 2024 2023
Slide 19: Consumers – Digital Innovation
Consumers – Digital Innovation Investing in award winning and industry recognized digital customer experience CBD Digital App and Features CBD Investr App rated 4.8 on App store and 4.2 Best Innovation in Investment on Google Play Banking and Best Robo Advisory Provider – MEA Finance 96% of customer
Slide 20: Businesses – Digital Innovation
Businesses – Digital Innovation Investing in award winning and industry recognized digital customer experience CBD iBusiness Mobile CBD iBusiness Online Best Mobile Banking Service Best Innovation in Corporate Banking Implementation – MEA Finance and Finance – MEA Finance App rated 4.8 on App store
Slide 21: ESG Framework
ESG Framework Four key pillars of the ESG framework Environment People Community Governance We hold ourselves to account We promote Emiratization and We are a local bank, backing We protect our stakeholders by while supporting our society a healthy, up-skilled and businesses and residents of taking
Slide 22: Our Commitment
Our Commitment In 2024 we progressed across all 4 pillars of our ESG Framework Environment People Community Governance Awarded the best green Emiratisation – 38% of Hosted Suhoor gathering Elected new Board with bond by a financial all employees UAENs for customers female membership institution in E
Slide 23: Awards and Achievements
Awards and Achievements Exceptional Efforts in the field of Emiratisation Top 10 UAE Banks Bronze Category Forbes 30 Most Valuable Banks in Middle East 2024 Nafis Awards 2024 Best Anti-Money Laundering Technology Implementation Best Financial Green Bond in EMEA The Asian Banker, Middle East & Africa
Slide 24: Concluding Remarks
Concluding Remarks Exceeding AED 3 billion in Excellent loan growth Targeted investment in net profit for the first time increasing market share and end-to-end digital solutions and record proposed dividend improved asset quality Delivering high shareholder CBD is well placed to returns with momentu
Slide 25: Board of Directors
Board of Directors H.E. Ahmad Abdulkarim Julfar Chairman H.E. Ahmad Abdulla Binbyat Mr. Buti Saeed Al Ghandi Dr. Abdulla Mohamed Al Karam Mr. Abdul Wahed Al Fahim Mr. Saod Mohamed Obaidalla Deputy Chairman Director Director Director Director Ms. Moza Omar Abdulla Mr. Ali Fardan Al Fardan Mr. Khalid
Slide 26: Executive Committee
Executive Committee Dr. Bernd van Linder Chief Executive Officer Mr. Darren Clarke Mr. Fahad Al Muhairi Mr. Othman Bin Hendi Mr. Abdul Rahim Al Nimer Mr. Khaled Ahmed AlHammadi Chief Financial Officer General Manager Chief Customer Officer General Manager General Manager Institutional Banking Corpor
Slide 27: Global Economic Update
Global Economic Update Lower inflation and decreasing central bank interest rates US Dollar Index Central Bank Overnight Rates SOFR (USD) SONIA (GBP) STR (EURO) 120.0 6.00 115.0 4.7 5.00 110.0 108.3 4.00 4.5 105.0 3.00 100.0 2.9 2.00 95.0 1.00 90.0 0.00 85.0 Jan-20 Sep-20 May-21 Jan-22 Sep-22 May-23
Slide 28: UAE Economic Update
Public sector strategic intent, investment, broad based business performance UAE Economic Update and population growth driving economic activity and confidence UAE GDP and Inflation Growth Purchasing Managers Index Inflation GDP UAE KSA 7.85% 58.4 3.80% 55.4 3.10% 4.83% 3.40% 4.01% 2.40% 1.70% 2.50%
Slide 29: UAE Economic Update
UAE Economic Update Sound fiscal measures boosting economic growth UAE Stock Market Indices UAE Fiscal Position DFM ADX Surplus / (Deficit) (AEDb) As % of GDP 11,500 250 10.40% 9,416 10% 10,500 200 5.60% 193.7 5.54% 9,500 5.06% 5% 150 1.90% 0.59% 8,500 0.33% 105.8 110.8 105.7 0% 7,500 100 -2.82% -1.
Slide 30: Dubai Economic Update
Business confidence and broad-based economic growth expected to continue Dubai Economic Update into 2025 and beyond Business Confidence Index SME Index Trend China Dubai USA UK Germany 180 180 Dubai’s BCI ranks highest at 110.7 170 170 160 160 150 150 140 140 130 130 120 120 110 110 116.8 110.7 100
Slide 31: Dubai Economic Update
Dubai Economic Update Strong economic activity and business confidence Dubai GDP Growth Dubai Hospitality Oct-23 Oct-24 +2.5% AED 7.60% 6.20% 820 800 +3.9% 3.60% 3.30% 2.70% 2.80% 1.90% 2.20% 674 649 +1.4% 81 82 -3.50% Occupancy % Average daily rate Revenue 1 per available room 2016 2017 2018 2019 2
Slide 32: UAE Banking Sector
UAE Banking Sector Backbone of the UAE economy, supporting business ambition Key Industry Indicators Average Loan Yield & Cost of Deposits vs 3M EIBOR 3M EIBOR Yield on Loans Cost of Deposits 6.80% 6.60% AEDb 2021 2022 2023 Oct-24 YTD 6.00% Total assets 3,322 3,699 4,075 4,457 9.4% 5.50% 5.10% 5.33%
Slide 33: UAE Banking Industry
Market interest rates have started to decline, credit growth is expected to UAE Banking Industry continue in the years ahead System-wide Gross Loans and Deposits Credit Growth in the UAE Banking Sector Gross loans Deposits Domestic Credit Foreign Credit 31.18% 2,803 2,522 19.87% 2,222 2,175 1,997 1,
Slide 34: Disclaimer
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