16 slides from Arab Banking Corporation B S C's earnings presentation, November 2022
Slide 1: Q3 / 9M 2022 Results Presentation
Q3 / 9M 2022 Results Presentation
Slide 2: Key Messages
Key Messages Economic Outlook and Strategic Developments ∕ The economic outlook for the Group is somewhat mixed and uncertain, with headwinds from geopolitical developments and persistent high inflation across some markets, being counterbalanced by tailwinds from sustained high oil and commodity pri
Slide 3: Consistent Strategic Direction: Emphasizes Digital Transformation and our Acquisition in Egypt
Consistent Strategic Direction: Emphasizes Digital Transformation and our Acquisition in Egypt Strategic intent MENA’s leading international Bank Values Client Centric Collaborative Consistent Build our Digital Bank Refocus our Integrate BBE to Strengthen our of the Future Wholesale Banking deepen M
Slide 4: Accelerated progress made "Building our Digital Bank of the Future"
Accelerated progress made “Building our Digital Bank of the Future” ▪ Launch of ila in Jordan in September 2022 ▪ Corporate digital onboarding rolled-out across all our Markets ▪ WB central processing Hub live in Bahrain ▪ 2nd release of Supply Chain finance ▪ 1st release of Doc Trade platform ▪ Lau
Slide 5: Q3 2022 Awards
Bank ABC reinforces its reputation as a digital innovation leader in MENA Q3 2022 Awards GF World’s IBSi Best NeoChallenger Consumer Bank Awards Digital Bank 2022 Awards Red Dot Bank ABC wins The ⁄ Best Consumer Digital Bank Leading Digital Red Dot Branding ⁄ Best User Experience Banker’s Transactio
Slide 6: Bank ABC reinforces its reputation as a digital innovation leader in MENA
Bank ABC reinforces its reputation as a digital innovation leader in MENA 2022 2021 Best Bank for Best Bank for Digital Best Bank in Most Innovative ‘Innovation in Solutions in Bahrain Trade Finance Digital Onboarding Digital Banking in by Euromoney (Bahrain) – at the Rollout by IBSi the Middle East
Slide 7: Financial Highlights – Strong Performance during the Nine Months of 2022
Financial Highlights – Strong Performance during the Nine Months of 2022 with Net Profit to Shareholders of $114m* Total Operating Income, $m Underlying* $806m $636m ∕ Underlying TOI of $806m (27% growth) reflects strong recovery across most of our markets and business lines, benefitting from increa
Slide 8: Strong Headline Revenue Growth Across the Franchise
Strong Headline Revenue Growth Across the Franchise Total Operating Income(TOI), $m ∕ Underlying* TOI of $806m was 27% higher than 9M 2021 levels, reflecting strong Headline recovery across most of our markets and Underlying* business lines, and benefiting from the consolidation of BBE +27% 791 806
Slide 9: Cost Trajectory Returning to Normal Levels
Cost Trajectory Returning to Normal Levels Operating Expenses and Cost to Income Ratio ∕ +24% headline increase in costs is the same as the revenue increase (representing “flat Operating +23.5% jaws”) from a combination of consolidation of Expenses, $m 494 BBE as well as the Group returning to a mor
Slide 10: Strong and resilient capital base, further strengthened by AT1 issuance
Strong and resilient capital base, further strengthened by AT1 issuance Overview CET1 and Tier 1 Ratios, % ⁄ Capital base remains strong, stable and significantly 15.9% 16.5% above regulatory minimum levels ⁄ CET 1 Ratio (14.7%) comprises the majority of Tier 1 Ratio Reg. level 10.5% ⁄ Total CAR of
Slide 11: Well Diversified and Liquid Balance Sheet
Well Diversified and Liquid Balance Sheet September 2022 Assets by Instrument, $bn ⁄ Total assets stood at $34.8 billion at the end 34.9 34.8 of the period, broadly in line with the $34.9 billion at the 2021 year-end 2.5 3.2 Other 6.4 5.8 Liquid Funds(2) 9.3 8.4 Marketable Securities ⁄ More than half
Slide 12: 9M 2022 Summary
9M 2022 Summary Net profit of US$ 114 9M 2022 Operating ECL charge broadly in Continuing to million marks a solid Income on an underlying line with our historic achieve major and profitable 9M 2022 basis grew by +27% year credit loss experience delivery milestones with revenues, costs and on year to
Slide 13: Appendix: Normalised Financials
Appendix: Normalised Financials US$ millions 2018 2019 2020 2021 9M 2021 9M 2022 Interest Income 559 564 516 592 419 564 Non-Interest Income* 309 311 233 277 217 226 Total Operating Income (TOI)* 868 875 749 869 636 790 Total Operating Expenses -474 -524 -486 -569 -400 -494 Profit Operating Profit 3
Slide 14: Appendix: Underlying Performance – Key Adjustments
Appendix: Underlying Performance – Key Adjustments Underlying Total Operating Income 9M 2021 9M 2022 +27% Headline TOI $626m $791m 806 Currency Hedge* $10m ($1m) 636 Normalized TOI $636m $790m FX impacts and one-offs - $16m Underlying TOI $636m $806m 9M 21 9M 22 Underlying Net Operating Profit 9M 20
Slide 15: Contact us
Contact us Bank ABC Head Office P.O. Box 5698, Manama Kingdom of Bahrain For more information, contact us on InvestorRelations@bank-abc.com www.bank-abc.com 15
Slide 16: Disclaimer
Disclaimer IMPORTANT: The following applies to this document, the oral presentation of the information in this document by Arab Banking Corporation B.S.C. ("Bank ABC") or any person acting on behalf of Bank ABC, and any question-and-answer session that follows the oral presentation (collectively, th