Abu Dhabi Islamic Bank · ADX:ADIB
Abu Dhabi Islamic Bank — Q1 2013 Earnings Presentation
43 slides from Abu Dhabi Islamic Bank's earnings presentation, May 2013
Slide 1: Investor Presentation Q1 2013 results
IInvestor t P Presentation t ti Q1 2013 results Q Abu Dhabi: May 2013 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: Ratings Excerpts
Ratings Excerpts “BFSR is supported by ADIB's solid financial fundamentals and its rapidly expanding Islamic franchise in the retail segment within the United Arab Emirates […] Moody’s assessment of a very high probability of systemic support in the event of need, reflecting ADIB’s strong relationsh
Slide 5: Ownership & Corporate Structure
Ownership & Corporate Structure ADIB Ownership ADIB is mainly owned by over 46,000 UAE nationals and Other members and companies. associates of the Abu Dhabi Royal family: The Bank’s main shareholder is National Holding via EIIC, which is 10.1% EIIC: 40.7% a private holding company, wholly-owned
Slide 6: 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 Rob st Robust Fastest growing major Islamic Bank Islamic Bank Financial Sustained growth in profits; consistently Globally by Health and one of th
Slide 7: UAE Banking Sector
UAE Banking Sector Highlights UAE Banking Sector (AED Bn) 2010 2011 2012 Total Assets (net of provisions) 1,605.6 1,662.1 1,791.6 UAE Banking sector is the largest by assets in the GCC; the UAE banking sector accounts for 31% of the GCC total. Certificates of deposit held by Banks 94.0 80.4 95.1
Slide 8: Agenda
Agenda Introduction Financial Review Business Review Appendix 8
Slide 9: Financial Snapshot (1/2)
Financial Snapshot (1/2) Total Assets (AED Bn) Customer Financing (AED Bn) +14% +11% 85.7 48.0 48.8 51.2 75.3 74.3 64.1 40.5 Strong, yet Impressive 34.2 51.2 prudent asset financing growth growth 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Customers’ Deposits (AED Bn) Capital Resources (AED Bn
Slide 10: Financial Snapshot (2/2)
Financial Snapshot (2/2) Revenues (AED Mn) Return on Shareholders’ Equity (%) +13% 18.2% 18.2% 3,425.8 3,565.6 17.7% 3,074.0 15.4% 2,520.3 Impressive 2,198.6 Positive return on growth year shareholder on year s’ equity 1.5% 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Net Profit (AED Mn) Custom
Slide 11: Q1 2013 in review – key financial highlights
Q1 2013 in review – key financial highlights Balance sheet highlights Income statement highlights Key performance indicators AED Bn Q1 12 Q1 13 Change % AED Mn Q1 12 Q1 13 Change % +6% +11% Total assets 76.5 88.7 16% Revenue 870.8 919.0 6% Net Profit 340 Net customer 305 307 49.6 54.0 9% Expenses 37
Slide 12: Q1 2013 – Key ratios
Q1 2013 – Key ratios Ratios Q1 2012 Q1 2013 Return on Shareholders’ Equity (annualised, net of Tier sukuk) 19.1% 19.9% Efficiency Net Profit Margin 4.6% 4.1% Cost to income ratio 43.3% 42.8% Financing to deposits ratio 86.2% 85.2% Liquidity Stable funds ratio 81.7% 77.7% CAR – Basel II 17.4% 19.8% T
Slide 13: Competitive landscape
Competitive landscape Peer Group Analysis for Q1 2013 (AED Bn) NBAD ADCB FGB UNB Mashreq h DIB ADIB Return on Average 22.4% 16.6% 18.3% 17.1% 13.5% 12.3% 19.9% Shareholders’ Equity* Revenues 2.51 1.74 1.88 0.82 1.12 1.07 0.92 Operating p g Profit 1.78 1.23 1.49 0.63 0.63 0.66 0.53 Net Profit 1.41 0.
Slide 14: Key income parameters - Group
Key income parameters - Group Net Revenue from Funds (AED Mn) Fees, commission and others (AED Mn) Profit paid on funds FX +30% 30% Revenue from funds Investment I iincome & others h Net revenue from funds 726 Fees & Commission 193 723 144 148 53 665 0 12 572 33 501 109 27 11 78 15 42 152 809 926 93
Slide 15: Key income parameters - Group
Key income parameters - Group Net Profit (AED Mn) Highlights Operating profit Net Profit Provision for impairment +11% Bottom line (net profit) up by 11% y-o-y. yoy 526 493 464 Top line (revenue) grew by 6% y-o-y. 399 361 340 268 293 305 307 Operating profit up by 7% y-o-y. yoy 186 186 160 I
Slide 16: Operating expenses drivers – Group
Operating expenses drivers – Group Expense base relatively constant over last 18 month period, despite increase in international presence due to tight expense management presence, Improved cost to income ratio (AED Mn) Operating expenses by type (AED Mn) Subsidiaries UAE Cost to income ratio - Bank
Slide 17: Balance Sheet Strength
Balance Sheet Strength Consistently remains one of the most liquid banks in the UAE Net Customer Financing & Customers’ Deposits (AED Bn) Composition of Total Assets – AED Bn Customer Financing Fin to Dep ratio Investmen Investmen t ts: Fixed ts: t Customer Deposits Adavnces to Stable funds ratio as
Slide 18: Customer Financing Assets
Customer Financing Assets Portfolio growth of 5.5% since Q4 12 (highest among peer banks) driven by strong performance from Wholesale bank Gross Customer Financing by Segment Gross Customer Financing by Customer Segment Private Retail Govt. & FI: 1.6% Govt. & FI: 1.5% PSE: PSE: SME: Wholesale 5.2% S
Slide 19: Asset quality – Customer financing only
Asset quality – Customer financing only Provisions and NPAs – Customer financing (AED Mn) NPA ratio and provision coverage ratio NPAs - impaired Write-off Collective / General NPA ratio - Not Impaired Total Provision coverage ratio - Impaired only * NPA - Total NPAs T t l I di id l / S Individual Sp
Slide 20: Funding Profile
Funding Profile Customer deposits up 10% yoy, focus on CASA deposits Composition of Liabilities (AED Bn) Customers’ Deposits by Segment (AED Bn) 63.4 Private Q4 12 Q Q1 13 Q 61.3 Wholesale +11% 63.4 Retail 4.5 4.6 57.6 11.0% 49.9 51.9 12.2% 3.4 14.0% 3.1 41.1 15.6% 35.9% 2 7 2.7 40 5% 40.5% 2.2 2.2
Slide 21: Capital
Capital Well capitalised p and strong g capital p base after Tier 1 Hybrid y issue Capital Adequacy (%) Capital base - Tier 1 and Tier 2 - AED Bn Total CAR UAE Central Bank CAR requirement Tier 2 Tier 1 Minimum Tier-1 requirement 14 1 14.1 Tier1 19.8% 2.1 17.4% 10.8 10.9 16.8% 16.9% 9.4 2.3 2.4 15.3
Slide 22: Shareholders’ Return
Shareholders’ Return 31 March 2013 share price was AED 3.70 per share (31 Dec 2012: AED 3.18 per share). FYR 2012 Cash dividend of 50% of net p profit ((25.40% of share capital). p ) Total dividend yield of ADIB share – 8.0%. (2011: 7.7%) ADIB vs ADX ADIB ADX 4.00 3,400 3 50 3.50 3,200 3.00 AD
Slide 23: Dividend Distribution History
Dividend Distribution History 2007 2008 2009 2010 2011 2012 Net Profit (Mn) 769.0 851.1 78.0 1,023.6 1,155.1 1,201.2 Cash Di Dividend idend Payout Pa o t Ratio 51.2% 50.0% - 50.0% 50.0% 50.0% (% of Net Profit) Totall Dividend d d Yield ld 3.2% 8.3% 6.9% 7.3% 7.7% 8.0% Cash Dividend 20.0% 21.6% - 21.
Slide 24: Agenda
Agenda Introduction Financial Review Business Review Appendix 24
Slide 25: ADIB Strategy
ADIB Strategy To be a top tier Islamic financial services group by Providing Islamic financial services for the global community Build Market Leadership Create an Integrated Pursue International within the UAE Financial Fi i lS Services i G Group Growth G th O Opportunities t iti • The key customer
Slide 26: Business unit contribution
Business unit contribution Retail Wholesale Private Capital Real Other banking banking banking markets estate operations Q1 12 Q1 13 Q1 12 Q1 13 Q1 12 Q1 13 Q1 12 Q1 13 Q1 12 Q1 13 Q1 12 Q1 13 Assets Amount (Bn) 25.6 28.0 19.8 22.6 6.1 6.1 21.0 27.4 2.7 2.7 1.3 1.9 Contribute % 33.6% 31.5% 25.9% 25.
Slide 27: Retail Banking overview
Retail Banking overview Retail Banking contributes 67% of Net Revenues Assets (AED Bn) Personal Banking Division provides services for +14% i di id l clients, individuals li t while hil the th Business B i B ki Division Banking Di i i 28.0 24.6 25.6 services the needs of SMEs. 20.7 16.3 These se
Slide 28: Wholesale Banking overview
Wholesale Banking overview Assets (AED Bn) Wholesale Banking contributes 29% of Net +12% Revenues 22 6 22.6 18.3 19.8 Wholesale Banking encompasses the large corporates, 15.1 14.6 emerging corporates and financial institutions divisions of the Bank. The array of services includes Transaction Banki
Slide 29: Private Banking overview
Private Banking overview Assets (AED Bn) Private Banking contributes 7% of Net Revenues +1% Private Banking focuses on high and ultra high net 7.2 7.5 worth individuals. 5.9 6.1 6.1 Wealth Management concentrates on developing, marketing and servicing a wide range of wealth management products (
Slide 30: Treasury overview
Treasury overview Assets (AED Bn) Treasury contributes 7% of Net Revenues +8% 16 9 16.9 Treasury principally handles money market 14.5 brokerage, trading and treasury services, as well as the 13.4 management of the Bank's funding operations by use of 11.8 investment deposits Investments – AED 5.6
Slide 31: Agenda
Agenda Introduction Financial Review Business Review Appendix 31
Slide 32: Consolidated Statement of Income
Consolidated Statement of Income % chg Q1 13 % chg Q1 13 AED Mn Q1 12 Q4 12 Q1 13 vs Q1 12 vs Q4 12 Revenues 870.8 884.0 919.0 5.5% 4.0% Net Revenue from Funds 722.6 736.9 725.7 0.4% -1.5% Fees & commission 108.8 94.3 151.8 39.5% 61.0% I t Investmentt income i 27 2 27.2 44 7 44.7 53 1 53.1 95 2% 95.
Slide 33: Consolidated Balance Sheet
Consolidated Balance Sheet % chg 31 Mar % chg 31 Mar AED Mn% 31 Mar 2012 31 Dec 2012 31 Mar 2013 2013 vs 31 Dec 2013 vs 31 Mar 2012 2012 Cash and balances with Central Banks 10,480 11,287 11,974 6.1% 14.3% Due from financial institutions 9,556 13,876 11,889 -14.3% 24.4% Net Customer financing 49,615
Slide 34: Key income parameters – Bank only
Key income parameters – Bank only Revenues (AED Mn) Net Profit (AED Mn) Fees, commission & others Operating p g profit p Net Profit 917 546 Net revenue from funds 875 Cost of credit 517 492 815 170 127 19% 395 390 15% 351 341 360 126 16% 290 659 265 81% 62 9% 85% 157 157 748 747 151 545 689 84% 105
Slide 35: An award winning Islamic Bank – 2012 (1/2)
An award winning Islamic Bank – 2012 (1/2) “Best Islamic Bank in the World” “Best Islamic Bank” in the UAE for three consecutive years by Islamic Finance News by Islamic Finance News “Best Islamic Bank” “Best Global Islamic Retail Bank” in the UAE for three consecutive years by Islamic Finance News
Slide 36: An award winning Islamic Bank – 2012 (2/2)
An award winning Islamic Bank – 2012 (2/2) “Sheikh Khalifa Excellence Award “Best Best Corporate Finance Deal Deal” – GOLD Category” g y of the year by Islamic Finance News by Abu Dhabi Chamber of Commerce & Industry “Best Syndicated Deal” “Best Islamic Investment Strategist” of the year by Islamic
Slide 37: Key deals in Q1 2013
Key deals in Q1 2013 The Largest corporate Highly structured The transaction was fully Sukuk issue from Dubai transaction that reaffirms underwritten by ADIB and since 2007 ADIB's commitment to the witnessed a strong demand USD 1Bn Sukuk USD 82,000,000 USD 340,000,000 The Th lowest l t profi
Slide 38: Key Deals in 2012
Key Deals in 2012 The largest non-sovereign Sukuk issuance The 1st issuance by an investment grade out of Dubai in over four years MAF Sukuk privately-owned company in the GCC; The first secured Sukuk transaction from USD 400,000,000 The 1st Bond/Sukuk by a UAE UAE-based based USD 1,850,000,
Slide 39: Executive Management Biographies
Executive Management Biographies 39
Slide 40: Executive Management Profile (1/3)
Executive Management Profile (1/3) Joined ADIB in March 2008. He holds a Bachelor degree (major in Corporate Finance) from Loyala of Tirad Mahmoud Concordia University in Montreal, Canada and has also completed the Executive Management Program at Chief Executive Officer Wharton. He has previously wo
Slide 41: Executive Management Profile (2/3)
Executive Management Profile (2/3) Joined ADIB on 3 June 2008. He holds a Masters in Business Administration from Tulane University, Masarrat Husain Louisiana, USA and BS of Science Chemical Engineering from Texas A&M University, Texas, USA. Global Head of Risk He has 33 years experience working wit
Slide 42: Executive Management Profile (3/3)
Executive Management Profile (3/3) Joined ADIB on May 2012. He has 30 years of banking experience in managing in-house legal departments Dr. Adnan Said Abrahim and acting as general legal counsel to various banks and investment companies over the span of his Head of Legal, UAE career. Joined ADIB on
Slide 43: 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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