Abu Dhabi Islamic Bank · ADX:ADIB
Abu Dhabi Islamic Bank — Q1 2016 Earnings Presentation
33 slides from Abu Dhabi Islamic Bank's earnings presentation, April 2016
Slide 1: Investor Presentation 31 March 2016 results
Investor Presentation 31 March 2016 results Abu Dhabi: April 2016 ADIB © 2010 adib.ae
Slide 2: Agenda
Agenda Introduction Financial Review Business Review Appendix 2
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
Slide 4: Ownership & Corporate Structure
Ownership & Corporate Structure ADIB Ownership ADIB is mainly owned by over 46,000 UAE nationals and Other members and associates of the Abu companies. Dhabi Royal family: 9.2% The Bank’s main shareholder is National Holding via EIIC, which is EIIC: 40.4% a private holding company, wholly-owned
Slide 5: 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 l
Slide 6: UAE Banking Sector
UAE Banking Sector Highlights UAE Banking Sector (AED Bn) Dec 14 Dec15 Feb16 Total Assets - Gross 2,304.9 2,474.4 2,462.2 UAE Banking sector is the largest by assets in the GCC; the UAE banking sector accounts for ~35% of the GCC total. Certificates of deposit held by Banks 99.5 139.8 116.5 Bank
Slide 7: Financial Snapshot (1/2)
Financial Snapshot (1/2) Total Assets (AED Bn) Net Customer Financing (AED Bn) Customer Deposits (AED Bn) +12% +13% +15% 111.9 118.4 78.4 94.9 103.2 73.0 84.8 61.7 75.5 86.1 74.3 48.8 51.2 61.3 55.2 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Equity (AED Bn) Revenues (
Slide 8: Financial Snapshot (2/2)
Financial Snapshot (2/2) Return on Avg Shareholders’ Equity (%) Financing to Deposits Ratio (%) Advances to Stable Funds Ratio (%) 18.7% 88.5% 82.6% 86.5% 18.4% 86.1% 84.6% 16.3% 81.8% 75.7% 15.6% 15.5% 83.5% 83.4% 77.9% 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 CAR
Slide 9: Agenda
Agenda Introduction Financial Review Business Review Appendix 9
Slide 10: Q1 2016 – Key financial highlights – Income statement
Q1 2016 – Key financial highlights – Income statement Change Change AED Mn Q1 15 Q1 16 Q4 15 % % Revenues are up by 7.6% on the back of higher Net revenue from funds and Net Revenue from funds 941.3 973.0 3.4% 976.8 -0.4% Investment income. Fees, commission and others 283.0 344.3 21.6% 395.1 -12.8
Slide 11: 31 March 2016 – Key financial highlights – Balance sheet
31 March 2016 – Key financial highlights – Balance sheet Change Change Total assets increased by 4.5% over Q1 2015 AED Bn Mar 15 Mar 16 Dec 15 to reach AED 119.2 Bn. % % Customer financing increased by 8.3% from Total assets 114.1 119.2 4.5% 118.4 0.7% Q1 2015 to reach AED 78.3 Bn. Net customer
Slide 12: Key ratios
Key ratios Ratios Mar 2015 Mar 2016 Diluted Earnings per share (EPS in AED) 0.147 0.152 Return on Average Shareholders’ Equity (excluding - Tier 1 capital) 19.4% 17.8% Efficiency Net profit margin (%) 4.3% 4.4% Cost / income ratio 46.5% 46.7% Percentage lent (Financing / Total Assets) 63.4% 65.7% Fi
Slide 13: Operating Performance – Net profit income
Operating Performance – Net profit income Highlights (Q1 2016 vs. Q1 2015) Revenues (AED Mn) Key movements in Revenues (AED Mn) Fees, commission and others Revenues, up by 8% at AED 1,317 Net revenue from funds Mn. +8% 82 1,372 -15 Net revenue from Funds (NRFF) 3% 1,224 1,317 32 -5 higher, prima
Slide 14: Operating Performance – Non-profit income
Operating Performance – Non-profit income Highlights (Q1 2016 vs. Q1 2015) Non-profit income (AED Mn) Composition of Fees & commission (AED Mn) FX Risk Participation Trade related Non-profit income up by 21% at AED Investment income & others Cards income, net Brokerage 344 Mn. Fees & Commission Re
Slide 15: Balance Sheet Strength and Customer Financing
Balance Sheet Strength and Customer Financing Portfolio growth of 8% since Q115 driven by performance from Retail (12%) and Wholesale bank (8%) Composition of Total Assets – AED Bn Liquidity ratio* (%) Investmen Investmen ts: ts: % of total assets Liquid assets (AED Bn) 7.4% Fixed 8.2% Fixed assets
Slide 16: Funding Profile
Funding Profile Strong ADR ratio of 81.6% on the back of 10% growth in Deposits Net Customer Financing & Customers’ Deposits (AED Bn) Composition of Liabilities (AED Bn) Customer Financing Fin to Dep ratio Other Liabilities Due to FI Customers Deposits Adavnces to Stable funds ratio 88.3% Sukuk Depo
Slide 17: Asset quality – Customer financing only
Asset quality – Customer financing only Total Impaired NPAs now represent 3.4% of gross customer financing with coverage ratio of 112.6% Provisions and NPAs – Customer financing (AED Mn) NPA ratio and provision coverage ratio NPAs - impaired Write-off Collective / General NPA ratio - Not Impaired To
Slide 18: Capital
Capital Capital Adequacy (%) Capital base – CET, Tier 1 and Tier 2 - AED Bn Total CAR Tier 1 Tier 2 Tier 1 CET 15.2% 14.8 15.3 15.1% 14.4 13.7 13.4 0.5 0.6 0.6 14.7% 14.7% 0.5 0.5 14.7% 5.5 5.4 5.5 5.4 5.4 14.0% 14.6% 14.3% 14.1% 7.8 8.4 8.8 9.2 7.4 13.5% Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q1 15 Q2 15 Q3
Slide 19: Agenda
Agenda Introduction Financial Review Business Review Appendix 19
Slide 20: 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
Slide 21: Business unit contribution
Business unit contribution Composition of Total Assets – AED Bn Composition of Total Liabilities – AED Bn Real Private; Real Private Real Private Real Private; Estate; 3% Estate; ; 3% Estate; ; 3% Estate; 2% 2% 2% 0% Capital 0% Capital Capital Capital Others; Markets Markets; Others; Markets; Market
Slide 22: Global Retail Banking overview
Global Retail Banking overview Global Retail Banking contributes 62% of Net Assets (AED Bn) Liabilities (AED Bn) Revenues: +13% +19% Personal Banking Division provides services for 53.9 57.8 individuals clients, while the Business Banking Division 47.5 services the needs of SMEs. 48.7 These serv
Slide 23: Global Wholesale Banking overview
Global Wholesale Banking overview Assets (AED Bn) Liabilities (AED Bn) Global Wholesale Banking contributes 23% of Net +7% Revenues: -12% Wholesale Banking encompasses the large corporates, 34.6 29.9 32.2 emerging corporates and financial institutions divisions 26.4 of the Bank. The array of servi
Slide 24: Private Banking overview
Private Banking overview Assets (AED Bn) Liabilities (AED Bn) Private Banking contributes 2% of Net Revenues +20% 0% Private Banking focuses on high and ultra high net worth individuals. 3.0 2.7 2.7 2.5 Wealth Management concentrates on developing, marketing and servicing a wide range of wealth
Slide 25: Treasury overview
Treasury overview Assets (AED Bn) Liabilities (AED Bn) Treasury contributes 14% of Net Revenues Treasury principally handles money market brokerage, -16% -10% trading and treasury services, as well as the 20.0 14.3 management of the Bank's funding operations by use of 12.8 16.8 investment deposits
Slide 26: Agenda
Agenda Introduction Financial Review Business Review Appendix 26
Slide 27: Consolidated Statement of Income
Consolidated Statement of Income % chg Q1 16 % chg Q1 16 AED Mn Q1 15 Q4 15 Q1 16 vs Q1 15 vs Q4 15 Revenues 1,224.3 1,371.9 1,317.3 7.6% -4.0% Net Revenue from Funds 941.3 976.8 973.0 3.4% -0.4% Fees & commission 222.5 244.3 207.4 -6.8% -15.1% Investment income 78.2 107.4 159.7 104.2% 48.8% Foreign
Slide 28: Consolidated Balance Sheet
Consolidated Balance Sheet % chg 31 Mar % chg 31 Mar AED Mn% 31 Mar 2015 31 Dec 2015 31 Mar 2016 2016 vs 31 Mar 2016 vs 31 Dec 2015 2015 Cash and balances with Central Banks 21,163 18,629 19,215 -9.2% 3.1% Due from financial institutions 5,839 4,742 3,849 -34.1% -18.8% Net Customer financing 72,324
Slide 29: Dividend Distribution History
Dividend Distribution History 2008 2009 2010 2011 2012 2013 2014 2015 Net Profit (Mn) 851.1 78.0 1,023.6 1,155.1 1,201.2 1,450.2 1,750.7 1,934.0 Cash Dividend Payout Ratio 50.0% - 50.0% 50.0% 50.0% 50.0% 40.0% 39.8% (% of Net Profit) Cash Dividend (% of Share 21.6% - 21.6% 24.4% 25.4% 30.7% 23.3% 24
Slide 30: ADX Points
ADIB Price (AED) - 2.50 3.00 6.50 0.50 1.00 1.50 2.00 3.50 4.00 4.50 5.00 5.50 6.00 7.00 7.50 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Shar
Slide 31: An award winning Bank (1/2)
An award winning Bank (1/2) To be“SKEA – Goldincategory” confirmed February Mohammed Bin Rashid Business 2015Sheikh Khalifa Excellence award award for 2 consecutive years “Best Overall Bank in Customer “Best Overall Bank in Customer Service” for 4 consecutive years Service” in the GCC in the UAE by
Slide 32: An award winning Bank (2/2)
An award winning Bank (2/2) “Best Private Bank in the Middle East for Islamic “Best Private Bank UAE” Finance” by Private Banker by Global Finance International “Best Branch Award in the “Best Islamic Bank in the UAE” UAE” by Ethos Consultancy by Islamic Finance News “The Leading Arab Islamic Bank B
Slide 33: 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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