First Abu Dhabi Bank · ADX:FAB
First Abu Dhabi Bank — Q1 2020 Earnings Presentation
24 slides from First Abu Dhabi Bank's earnings presentation, Apr 27, 2020
Slide 1: Q1'20 Earnings Presentation
Q1’20 Earnings Presentation 27 April 2020
Slide 2: Disclaimer
Disclaimer Comparative figures have been reclassified where appropriate to conform to the presentation and accounting policies adopted in the consolidated financial statements. The information contained herein has been prepared by First Abu Dhabi Bank P.J.S.C (“FAB”). FAB relies on information obtai
Slide 3: Q1'20 performance key highlights
Q1’20 performance key highlights We have witnessed unprecedented market disruption due to the COVID-19 pandemic We delivered a resilient performance in Q1’20 with a net profit of AED 2.4Bn, despite rate cuts, adverse market conditions and prudent provisioning We maintained a strong balance sheet, wi
Slide 4: We delivered a resilient performance in Q1 2020
We delivered a resilient performance in Q1 2020 Net profit bridge (AED Mn) 3,107 NPAT was lower 22% yoy due to: (376) (331) 2,408 (39) • Lower revenue on the back of rate cuts +47 and adverse market conditions, partly offset by continued momentum in PBG, and positive underlying trends in strategic a
Slide 5: Flight-to-safety benefits FAB in the current environment
Flight-to-safety benefits FAB in the current environment AA- rating2 Deposits up 2% qoq1 Int’l franchise provides liquidity diversification USD 2Bn3 LCR > 100% wholesale funding LDR < 80% raised in Q1’20 Strong Liquidity & Funding USD 1.2Bn3 profile maturities remaining Strong cash balances in 2020
Slide 6: Underlying business momentum continues
Underlying business momentum continues Loans and advances, net (AED Bn) QoQ↓6%, YoY↑6% 407.9 359.0 366.0 377.8 0.2 381.8 1.0 0.8 0.1 • Loans and advances (net) were up 6% yoy (+23Bn), 97.7 95.5 95.4 96.8 down 6% qoq due to a large short-term facility which 94.9 was fully repaid in early January. Exc
Slide 7: A high-quality and diversified asset mix
A high-quality and diversified asset mix Total Assets - Mar’20 AED 835.4Bn Cash & CB Balances 21% 44% of Assets in cash & liquid assets Due from Banks and 7% Reverse Repos • AED 145Bn – cash and balances with CBs1 • 82% of investments are investment-grade 16% Investments 28% exposure to high quali
Slide 8: A more challenging credit environment
A more challenging credit environment Impairment charges, net (AED Mn) & CoR1 NPLs and Provisions (AED Bn) Net impairment charges CoR (L&A) (bps) NPLs Provision Coverage (%) 70 Provisions NPL Ratio (%) 50 49 50 48 738 106 111 109 467 469 499 93 95 407 3.5 3.3 3.1 3.2 3.1 Q1'19 Q2'19 Q3'19 Q4'19 Q1'2
Slide 9: Cost discipline maintained
Cost discipline maintained Opex drivers yoy (AED Mn) • xxx • Operating expenses well under control, down 1,353 4% qoq (AED 63Mn), reflecting cost discipline 1,314 +24 +60 amidst continued strategic and digital (46) investments • Q1’20 C/I ratio at 29.1% from 26.1% , mainly due to lower revenue • AED
Slide 10: Solid capital position
Solid capital position CET11 ratio progression qoq DPS: 74 fils 8.08Bn • CET1 was 12.1%, 142bps lower sequentially mainly due to adverse movement in AFS 15.2% -1.67% +0.5% reserves reflecting market dislocations 13.5% -0.38% -1.54% • CET1 comfortably above Basel III minimum 12.1% regulatory requirem
Slide 11: Looking ahead
Looking ahead Despite downside risks in the near term, our strategic actions position us well to continue to maintain balance sheet strength in the current environment, and deliver sustainable returns Our priorities 2020 Outlook Expected outcome • Protect and raise liquidity leveraging our Economic
Slide 12: Wrapping up
Wrapping up Our Q1’20 performance reflects an unprecedented environment We are focused on maintaining a robust foundation through solid liquidity, funding and capital ratios Our competitive strengths, in addition to the various relief measures implemented by local authorities, underpin our resilient
Slide 13: Appendix
vail pubsicLiy FAB First Abu Dhabi Bank Grow Stronger Appendix
Slide 14: NII and margin trends
NII and margin trends Net interest income (AED Mn) QoQ↑1%, YoY↓2% Quarterly YTD 3,301 3,329 3,114 3,031 3,061 Net interest margin (%) 2.25 2.19 2.11 2.16 1.90 2.21 2.17 1.89 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 loan yields (%) Performing 5.04 4.80 4.84 4.72 Key highlights 4.92 • Q1’20 NII was up 1% qoq dri
Slide 15: Non-interest income
Non-interest income Non-interest income (AED Mn) Net F&C income Net FX & Investment inc Other income QoQ↓27%, YoY↓18% 2,050 1,852 Key drivers 1,828 1,744 Fees & commissions up 3% yoy on the back of higher 783 1,505 asset management-related fees; up 7% sequentially as 816 758 a result of higher loan-
Slide 16: Asset & loan mix
Asset & loan mix Asset Mix Gross loans by counterparty (AED Bn) Mar’20 10% 421.7 AED 835.4Bn Cash & CB Balances 396.6 Banks 21% 16% 8% DFB and Reverse 6% 6% Personal/ Retail 21% Repos 17% 19% 16% Dec’19 Loans and Advances AED 5% Corporate/ Private 822.0Bn 7% 43% 47% Investments Public Sector 50% 18%
Slide 17: Investments breakdown
Investments breakdown Investments by type Investments by ratings FVTPL - Debt BBB A 11% 13% FVTPL - Equity & 32% Funds 2% BB & below AED 132.7Bn Amortised Cost 82% of AED 132.7Bn 10% FVOCI - Debt Mar’20 (Debt Inv) investments are Mar’20 82% 3% Unrated - Debt investment grade 6% FVOCI - Equity 0.4% E
Slide 18: Customer deposits
Customer deposits Customer deposits (AED Bn) Customer deposits by account type (AED Bn) Notice and time deposits Current Accounts 2 Total Customer Deposits CASA Saving Accounts Certificates of deposits 519.2 Margin Accounts 497.1 462.2 476.8 432.8 519.2 497.1 1% 1% 6% 4% 2% 2% 32% 34% 59% 59% 37% 37
Slide 19: Liability mix and funding profile
Liability mix and funding profile Liability Mix Medium-term wholesale funding (AED Bn) Term MTNs Customer Borrowings Medium Term Notes 48.1 Sukuks Deposits & Sub Debt 67% Subordinated debt 0.4 8% Others Sukuks 9.1 AED 741.3Bn 8% Mar’20 4.9 18.6 Due to 2.5 Banks & Subordinated debt 0.4 8.2 1.7 4.2 5.
Slide 20: Segmental performance (by business)
Segmental performance (by business) Corporate & Investment Banking (CIB) 53% of Group Revenue In AED Mn Q1’20 YoY % • CIB Revenue delivered a resilient performance during an unprecedented period marked Revenues 2,423 (13) by heightened volatility that also saw erosion of market liquidity and widenin
Slide 21: Segmental performance (by geography)
Segmental performance (by geography) UAE of Group 84% In AED Mn Q1’20 YoY % Revenue Revenues 3,836 (9) • Revenues were significantly impacted due to rate cuts in H2’19 and negative MTM revaluations in the AFS portfolio Operating expenses (1,068) ↔ • Revenues declined 9% yoy, contributing 84% to Grou
Slide 22: Q1'20 Key financials
Q1’20 Key financials P&L summary In AED Mn Q1’20 Q1’19 YoY% Q4’19 QoQ% Revenue 4,566 4,942 (8) 5,081 (10) Operating expenses (1,353) (1,314) 3 (1,415) (4) Impairment charges (738) (407) 81 (499) 48 Net profit (after minority interest) 2,408 3,107 (22) 3,081 (22) Balance Sheet summary In AED Bn Mar’2
Slide 23: FAB is taking decisive actions in response to COVID-19
FAB is taking decisive actions in response to COVID-19 We activated a robust Business Continuity Plan, enabling We took care of our employees, to safeguard their the bank’s functions to operate with speed and efficiency health and safety while limiting exposure • Activation of Work From Home in UAE
Slide 24: THANK YOU!
THANK YOU! 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 Scan to download