Dubai Islamic Bank Pjsc · DFM:DIB
Dubai Islamic Bank Pjsc — Dubai Islamic Bank — H1 2019 Earnings Presentation
30 slides from Dubai Islamic Bank Pjsc's earnings presentation, 2019
Slide 1: Investor Presentation
Investor Presentation For the period ending 30 June 2019
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION IS NOT FOR PUBLICATION, RELEASE, OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, INTO AUSTRALIA, CANADA, SOUTH AFRICA, JAPAN OR THE UNITED STATES. THIS PRESENTATION DOES NOT CONSTITUTE OR FORM PART OF AN OFFER TO SELL OR TO ISSUE ANY SECURITIES OR SOLICITATION OF AN OFFER TO PU
Slide 3: Contents
Contents 1. Overview of Economic Environment 2. Overview of Dubai Islamic Bank 3. Financial Performance 4. Strategic Focus 5. Appendix 3
Slide 4: UAE maintains regional lead and has climbed to fifth globally in Global Competitiveness 2019
UAE maintains regional lead and has climbed to fifth globally in Global Competitiveness 2019 • Improved UAE GDP forecast due to recovery in oil prices, fiscal UAE Economic Growth Trends and Forecast consolidation and a stable and well capitalized banking sector. 5.1% 5.2% 5.0% • Economic reforms suc
Slide 5: Dubai macro looks encouraging… supported by regulatory reforms…
Dubai macro looks encouraging… supported by regulatory reforms… New Business License Dubai Foreign Direct Inflows (AED bn) Total Dubai annual tourist inflows (mn) +35% +51% +7% 9,489 38.5 15.8 15.9 14.9 6,168 27.3 25.5 22.2 4.65 4.75 7.3 Jan-Apr 2018 Jan-Apr 2019 2016 2017 2018 Q1 2018 Q1 2019 2016
Slide 6: Contents
Contents 1. Overview of Economic Environment 2. Overview of Dubai Islamic Bank 3. Financial Performance 4. Strategic Focus 5. Appendix 6
Slide 7: Dubai Islamic Bank at a Glance
Dubai Islamic Bank at a Glance A leading Islamic bank with a growing international footprint • Dubai Islamic Bank (“DIB” or the “Bank”) was Ownership UAE Branch Network (as at 30 Jun 2019) established in 1975 as the world’s first full service Islamic bank by an Emiri Decree. Government Nearly 70 bra
Slide 8: Dubai Islamic Bank at a Glance
Dubai Islamic Bank at a Glance Industry leading financial institution with a growing balance sheet and franchise Largest Islamic Bank in the UAE, Sector leading Sustained Operating Robust capital Diversified business 2nd largest in the growth Performance position portfolio world • Increasing domesti
Slide 9: Contents
Contents 1. Overview of Economic Environment 2. Overview of Dubai Islamic Bank 3. Financial Performance 4. Strategic Focus 5. Appendix 9
Slide 10: Overall Financial Performance (for the period ended 30 Jun 2019)
Overall Financial Performance (for the period ended 30 Jun 2019) Growing market share driven by robust growth in core businesses Balance Sheet Financial Highlights AED million Dec 2018 Jun 2019 Change Key Ratios Dec 2017 Dec 2018 Jun 2019 Net Financing Assets & Net Financing to Deposit Ratio1 91% 93
Slide 11: Operating Performance & Profitability
Operating Performance & Profitability Robust Robust & & Growing Growing Profitability Profitability (AED (AED million) mn) Sustained Strong Margins 8,202 225,000 3.14% 3.20% 7,687 3.13% 3.11% 3.15% 175,000 3.10% 3.05% 5,004 4,699 4,504 125,000 3.00% 4,036 185,228 201,919 203,117 2.95% 2,441 2,753 75
Slide 12: Overview of Deployment of Funds / Financings
Overview of Deployment of Funds / Financings Deployed Funds Composition (AED bn) Deployment by Segment (AED bn) 224 228 Dec 2017 Dec 2018 Jun 2019 207 10 106 7 10 10 101 8 9 10 10 89 9 21 16 24 31 32 24 40 39 40 145 150 31 32 133 24 24 21 16 10 10 10 9 10 10 Dec 2017 Dec 2018 Jun 2019 Corporate Cons
Slide 13: Segmental Overview - Consumer
Segmental Overview - Consumer Management Commentary Breakdown by Portfolio – Jun 2019 Revenue Trends (AED mn) • Consumer financing currently stands at AED 1,800 1,702 1,678 7.4% 40 billion supported by gross new consumer 1,600 Home 394 340 7.3% financing of AED 7 billion during H1 2019. Finance, Per
Slide 14: Segmental Overview - Corporate
Segmental Overview - Corporate Management Commentary Breakdown by Portfolio – Jun 2019 Revenue Trends (AED mn) 2,000 6.5% • Gross corporate financing currently stands Others, Government, 1,800 1,769 1,569 6.0% at AED 114 billion driven by strong growth 9% 8% Financial 1,600 352 across services, trad
Slide 15: Segmental Overview - Treasury
Segmental Overview - Treasury Management Commentary Breakdown by Portfolio – Jun 2019 Revenue Trends (AED mn)* 7.0% • Gross treasury financing and sukuk Manufacturing 600 584 6.5% investments increased by nearly 5% year & Services, 9% 441 6.0% to date to reach to AED 35 billion. Aviation, 275 5.5% 5
Slide 16: Improving Asset Quality
Improving Asset Quality Non-Performing Financing (“NPF ”)1 Financing Provisions and Coverage Ratios Overall Coverage Ratio² Provision Coverage Ratio NPF Ratio Impaired Financing Ratio 3.5% 157% 150% 140% 3.4% 3.4% 3.4% 118% 112% 108% 3.3% 3.2% Dec 2017 Dec 2018 Jun 2019 Dec 2017 Dec 2018 Jun 2019 Cu
Slide 17: Funding Sources and Liquidity
Funding Sources and Liquidity Funding Sources (AED bn) Customers’ Deposits (AED bn) Liquidity Position (AED bn) Due to banks & FIs Other payables Liquid Assets Equity Sukuk Customer Deposits Net Financing to Deposit Ratio* Liquid Assets/Total Deposits (%) Customers' Deposits 224 228 207 17 96% 12% 1
Slide 18: Capitalization Overview
Capitalization Overview Regulatory Capital1 (AED billion) Capital Ratios* CET 1 AT1 Tier 2 CAR CET1 Ratio 35.0 32.6 30.8 27.7 2.1 18.3% 17.5% 17.5% 30.0 2.0 16.0% 17.2% 1.8 6.4 25.0 7.0 7.3 20.0 15.0 12.0% 12.4% 12.9% 11.5% 21.8 24.1 9.6% 10.0 18.6 5.0 0.0 Dec 2017 Dec 2018 Jun 2019 Dec 2015 Dec 201
Slide 19: Contents
Contents 1. Overview of Economic Environment 2. Overview of Dubai Islamic Bank 3. Financial Performance 4. Strategic Focus 5. Appendix 19
Slide 20: Strategic Focus 2019
Strategic Focus 2019 CARE IDEOLOGY Digitally Intelligent Bank (DIB) CUSTOMER EXPERIENCE Quality Enhance Credit Customer Growth Experience ENGAGEMENT ACQUISITION Maintain Adopt cost C.A.R.E. discipline Ideology Embrace Align Digital Capacity to RETENTION Transformation Growth 2019 – Target Metrics 10
Slide 21: Contents
Contents 1. Overview of Economic Environment 2. Overview of Dubai Islamic Bank 3. Financial Performance 4. Strategic Focus 5. Appendix 21
Slide 22: DIB's Growth Story – Growth vs Asset Quality
DIB’s Growth Story – Growth vs Asset Quality Gross Financing (Consumer) - AED bn Gross Financing (Corporate) - AED bn Non-performing Financing CAGR: 9% CAGR: 26% 7.1 12.0% 40 113 10.0% 11.1% 5.3 8.0% 26 6.0% 34 4.0% 3.4% 2.0% 0.0% Gross Financing (Consumer) Gross Financing (Corporate) Dec 2013 Dec 2
Slide 23: Our Digital Journey thus far…
Our Digital Journey thus far… PAPERLESS SUCCESSFULLY DIGITAL STRATEGY BRANCHES LAUNCHED: FORMULATION INTRODUCED Tablet-based Simplified branch banking Digitalization visit with handheld Instant Credit Department devices to fill forms Card printing in created and complete branches Introductio
Slide 24: Consolidated Income Statement
Consolidated Income Statement AED million H1 2019 H1 2018 2018 2017 Net Income Reviewed Reviewed Audited Audited Income from Islamic financing and investing transactions 5,413 4,415 9,481 7,795 Commission 770 781 1,476 1,406 Income / (loss) from other investment 63 29 45 31 Income from properties he
Slide 25: Balance Sheet
Balance Sheet As at AED million 30 Jun 2019 31 Dec 2018 31 Dec 2017 Assets Reviewed Audited Audited Cash and balances with central banks 21,260 22,546 27,885 Due from banks and financial institutions 4,512 8,297 4,677 Islamic financing and investing assets, net 150,230 144,739 133,334 Investments in
Slide 26: DIB's Key Business Lines
DIB’s Key Business Lines Core Business Profiles The principal activities of DIB are focused around five core business areas: (i) Retail & Business Banking; (ii) Corporate Banking (“CBG”); (iii) Real Estate & Contracting Finance; (iv) Investment Banking; and (v) Treasury. Real Estate & Consumer Banki
Slide 27: 2017 – 2019 Select Awards & Accolades
2017 – 2019 Select Awards & Accolades • CEO Award – Excellence in Islamic • Best Islamic Bank in the UAE Dr. Adnan Chilwan • Islamic Bank of the Year • UAE Deal of the Year Banking awarded to Dr. Adnan Forbes 2018 Top • Best Islamic Retail Bank • Overall Best Islamic Bank Chilwan Indian Leaders •
Slide 28: Select DIB Debt Capital Market Transactions
Select DIB Debt Capital Market Transactions First Abu Dhabi Bank Dubai Islamic Bank First Abu Dhabi Bank Republic of Indonesia Government of Sharjah (Tap) USD 850,000,000 USD 750,000,000 USD 150,000,000 USD 2,000,000,000 USD 1,000,000,000 USD 750mn 3.900% 5.5yr 3.875% 5yr Sukuk 6.250% PerpNC6 Sukuk
Slide 29: Select Syndicated / Club Transactions
Select Syndicated / Club Transactions Allana Emirates Global Aluminium Islami Bank Bangladesh Ltd Allana International Tecom Investments LLC Ziraat Katılım Bankası USD 6,545,000,000 USD 100,000,000 USD 600,000,000 AED 7,000,000,000 USD 245,000,000 MLA & Bookrunner MLA & Bookrunner MLA & Bookrunner M
Slide 30: THANK YOU!
THANK YOU! Our latest financial information, events and announcements can now be accessed by downloading DIB Investor Relations App: You may also contact us as follows: P. O. Box 1080, Dubai, UAE +971 4 2075454 investorrelations@dib.ae www.dib.ae/about-us/investor-relations