Abu Dhabi Islamic Bank · ADX:ADIB

Abu Dhabi Islamic Bank — Q1 2012 Earnings Presentation

38 slides from Abu Dhabi Islamic Bank's earnings presentation, May 2012

  1. Slide 1: Investor Presentation

    I Investor t P Presentation t ti 31 March 2012 Abu Dhabi: May 2012 ADIB © 2010 adib.ae

  2. Slide 2: Table of contents

    Table of contents  ADIB at a glance 3  Competitive landscape 4  Key strengths 5  Financial targets over the medium term 6  Salient features of Q1 2012 results 7  31 March 2012– Balance sheet highlights 8  Q1 2012 – Income statement highlights 9  Key income parameters – Group 10 - 11  Balanc

  3. Slide 3: ADIB at a glance

    ADIB at a glance Overview ADIB – recent timeline and milestones  Incorporated p in 1997 to serve as first Islamic Bank in 1997 • Established by the Govt. Govt of Abu Dhabi Dhabi. the Emirate of Abu Dhabi.  Owned (40.66%) by Emirates International • Licensed as an Islamic bank by the Central Invest

  4. Slide 4: Competitive landscape

    Competitive landscape Peer Group Analysis for the Q1 2012 (AED Bn) NBAD ADCB FGB UNB Mashreq h DIB ADIB Return on 19.2% 18.3% 17.8% 18.0% 9.0% 11.0% 19.3% Shareholders’ Equity Revenues 2.03 1.60 1.67 0.78 0.94 0.92 0.87 Operating p g Profit 1.38 1.09 1.35 0.60 0.48 0.56 0.49 Net Profit 1.04 0.80 0.9

  5. Slide 5: Key Strengths

    Key Strengths  Majority owned by members of the Abu Dhabi Royal family & Government Strong and Influential  Fastest growing major Islamic Bank 4th Largest Shareholder Robust  Sustained growth in profits; one of the Islamic Bank Financial most liquid bank in UAE Globally by Health and Assets Liqui

  6. Slide 6: Financial targets over the medium term

    Financial targets over the medium term 1 Cost to Income Ratio of less than 35% 2 Earnings increase of 15% p.a. CAR - to maintain ratio above current UAE Central Bank minimum 3 requirement of 12% (8% on Tier-1). Advances to stable funds ratio to maintain below current UAE Central Bank 4 maximum requi

  7. Slide 7: Salient features of Q1 2012 results

    Salient features of Q1 2012 results 1 1st quarter net profits of AED 307.3Mn, 1% higher than the corresponding quarter of 2011. 2 Top line revenues maintain a momentum with a growth of 8% year-on-year. 3 Return on Shareholders’ equity at 19.3% Total Capital Adequacy Ratio under Basel II remains stro

  8. Slide 8: 31 March 2012 – Balance sheet highlights

    31 March 2012– Balance sheet highlights 31 Mar ‘11 31 Mar ‘12 % chg AED Bn AED Bn Total Assets 71.5 76.5 7%  Total Assets increased by 7% over Q1 11 to reach AED 76.5 bn. Net Customer Financing 48.1 49.6 3%  Customer financing increased by 3% from Q1 11 to reach AED 49.6 bn. Customers’ Deposits 51

  9. Slide 9: Q1 2012 – Income statement highlights

    Q1 2012 – Income statement highlights Q1 2011 Q1 2012 % chg AED Mn AED Mn Revenues 808.8 870.8 8%  Revenues up by 8% on the back of higher net revenue from funds ((up p 9%). ) Expenses 344.6 377.4 10%  Expenses up by 10% mainly due to continuous investment in our franchise, franchise network, syst

  10. Slide 10: Key income parameters - Group

    Key income parameters - Group Net Revenue from Funds (AED Mn) Fees, commission and other income (AED Mn) Profit paid on funds Revenue from funds FX +3% 665 I Investment t t & other th iincome Net revenue from funds 723 Fees & Comm +9% 144 148 0 12 382 501 572 33 27 109 94 11 6 78 926 938 42 750 809

  11. Slide 11: Key income parameters - Group

    Key income parameters - Group Revenues contribution split % (AED Mn) Operating expenses (AED Mn) Fees, commission & others Net revenue from funds Depreciation General and admin expenses Employee costs C t to Cost t iincome ratio ti 42.6% 43.3% 476 579 681 809 871 13% 377 20% 16% 18% 17% 40.7% 37.6%

  12. Slide 12: Balance Sheet Strength

    Balance Sheet Strength Remains one of the most liquid bank’s bank s in the UAE on the back of above market balance sheet growth Net Customer Financing & Customers’ Deposits (AED Bn) Composition of Assets – AED 76.5 Bn Customer Financing g +11% Customer Deposits Investments; Fixed assets & +3% 2.3% O

  13. Slide 13: Customer Financing

    Customer Financing Gross Customer Financing by Segment Gross Customer Financing by Customer Type Retail Private Govt. & Wholesale PSE; 5.3% +18% 52.8 50.6 Others; Corporate; 4.3% 43.8 31.7% 36.4 48.1% 48.1% 47.2% 27.6 44.6% 44.0% Individual;; 35.9% 38.2% 39.4% 58.7% 39.0% 40.0% 16.0% 16.4% 16.9% 13.

  14. Slide 14: Asset quality

    Asset quality Provisions and NPAs (AED Mn) NPA ratio and provision coverage ratio NPAs - impaired Collective / General NPA ratio - Not Impaired Total Provision coverage ratio - Impaired only * NPA - Total NPAs T t l I di id l / S Individual Specific ifi NPA ratio - Impaired 7,129 6,192 6,460 70.2% 5

  15. Slide 15: Funding Profile

    Funding Profile Composition of liabilities (AED 67.6 bn) Customers’ Deposits by Segment 57.6 Wholesale Q1 11 Q 51 9 51.9 Retail Q1 12 Private +18% 57.6 5.6 51.9 49.9 4.6 41 1 41.1 40.5% 42.8% 46.7% 2.7 30.0 47.3% 2.2 2.2 1.8 49.4% 1.4 47.4% 1.1 37 7% 37.7% 43.2% 36.6% 35.2% 15.5% 16.2% 15.6% 14.0% 1

  16. Slide 16: Capital

    Capital ADIB’ss CAR of 17.40% ADIB 17 40% remains above the Central Bank threshold of 12% for CAR Capital Adequacy (%) Total equity and reserves (AED Bn) Total CAR UAE Central Bank CAR requirement Tier 1 Minimum Tier-1 requirement 17.4% +14% 16.8% 8.9 15.3% 7.5 7.9 13.7% 14.3% 13.5% 13.4% 12 4% 12.4

  17. Slide 17: Shareholders' Return

       ADIB Price (AED) A - 0.50 1.00 1.50 2.00 2.50 3.00 3 50 3.50 4.00 Dec--08 Jan--09 Mar-09 Apr--09 May--09 Jun--09 Jul--09 Aug--09 Sep--09 Oct--09 Nov--09 Dec--09 Shareholders’ Return Jan--10 Feb--10 Mar-10 Apr--10 May--10 Jun--10 Jul--10 2011 Total Yield of ADIB share – 7.7%. (2010: 7.3%) 31 Ma

  18. Slide 18: Outlook - 2012

    Outlook - 2012 We believe that 2012 will be another challenging year as the global financial crises enters its fourth year, 1 and will therefore continue to implement our cautious growth strategy by entering new markets and servicing new segments in a prudent manner. manner 2 We will continue to inc

  19. Slide 19: Business Overview

    Business Overview  Ownership & Corporate Structure  ADIB Strategy  Business Segments  Retail banking overview  Wholesale banking overview  Private banking overview 19

  20. Slide 20: Ownership & Corporate Structure

    Ownership & Corporate Structure ADIB Ownership Members of AD  ADIB is mainly owned by UAE nationals and companies, companies including a number Royal Family; 9.04% of members of the Abu Dhabi royal family. EIIC; 40.66%  The Bank’s main shareholder is EIIC, which is a private holding company, Other

  21. Slide 21: 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 at Home Financial Fi i lS Services i G Group Growth G th O Opportunities t iti • The key customer service

  22. Slide 22: Business Segments

    Business Segments  Personal Banking Division provides services for individuals clients, while the Business 63% of Retail nett Banking Division services the needs of SMEs. Banking revenues*  These services include a variety of Shari’a compliant financing.  Wholesale Banking encompasses the corpora

  23. Slide 23: Retail banking overview

    Retail banking overview Assets (AED Bn) Liabilities(AED Bn) +16% 27.2 24.6 25.6 +20% 22.8 20.7 19.6 16.3 15 6 15.6 Q1 09 Q1 10 Q1 11 Q1 12 Q1 09 Q1 10 Q1 11 Q1 12 Revenues (AED Mn) UAE retail network 488 Branches 71 ATMs +25% 324 66 559 549 234 28 428 55 279 138 45 76 42 Q1 08 Q1 09 Q1 10 Q1 11 Q1 1

  24. Slide 24: Wholesale banking overview

    Wholesale banking overview Assets (AED Bn) Liabilities (AED Bn) +9% +11% 19.8 18.3 16.9 15.5 16.0 14.6 15.1 12.3 Q1 09 Q1 10 Q1 11 Q1 12 Q1 09 Q1 10 Q1 11 Q1 12 Revenues (AED Mn) Highlights +21% 237  Segment assets growth in last 3 year – 36%. 195  Segment g liabilities growth g in last 3 yyears –

  25. Slide 25: Private banking overview

    Private banking overview Assets (AED Bn) Liabilities (AED Bn) +1% +1% 7.9 7.2 7.5 7.4 6.8 7.0 5.9 6.1 Q1 09 Q1 10 Q1 11 Q1 12 Q1 09 Q1 10 Q1 11 Q1 12 Revenues (AED Mn) Highlights  Growth in segment assets of 3% in last 3 years. +14% 69  Growth in segment g liabilities of 3% in last 3 yyears. 46 46

  26. Slide 26: Appendix

    Appendix  Consolidated Income Statement  Consolidated Balance Sheet  Key income parameters – Bank only  An award winning Islamic Bank  Rating Excerpts  Executive Management Biographies 26

  27. Slide 27: Consolidated Income Statement

    Consolidated Income Statement % chg Q1 12 % chg Q1 12 AED Mn Q1 11 Q4 11 Q1 12 vs Q1 11 vs Q4 11 Revenues 808.8 884.1 870.8 7.7% -1.5% Net Revenue from Funds 664.7 761.5 722.6 8.7% -5.1% Fees & commission 111.2 94.0 108.8 -2.1% 15.8% I Investment t t income i 30 4 30.4 14 0 14.0 27 2 27.2 -10.5% 10

  28. Slide 28: Consolidated Balance Sheet

    Consolidated Balance Sheet % chg 31 Mar % chg 31 Mar AED Mn 31 Mar 2011 31 Dec 2011 31 Mar 2012 2012 vs 31 Dec 2012 vs 31 Mar 2011 2011 Cash and balances with Central Banks 5,995 11,207 10,480 -6.5% 74.8% Due from financial institutions 11,203 7,732 9,556 23.6% -14.7% Net Customer financing 48,134 4

  29. Slide 29: Key income parameters – Bank only

    Key income parameters – Bank only Q1 2012 Revenues (AED Mn) Net Profit (AED Mn) Fees, commission & others Operating profit Net Profit 517 875 492 Net revenue from funds Cost of credit 815 127 395 659 126 360 351 341 545 62 290 21 259 265 429 221 35 689 748 157 151 524 598 105 394 86 38 Q1 08 Q1 09 Q

  30. Slide 30: An award winning Islamic Bank

    An award winning Islamic Bank Franchise Awards “Best Islamic Bank “Best Corporate Bank” for Globally” by Islamic Business 2011 by Islamic Business & Finance & Finance for 2010 & 2011 December 2011 December 2010 & 2011 “Best Best Islamic Bank Bank” “B t IIslamic “Best l i B Bank” k” in the UAE for in

  31. Slide 31: An award winning Islamic Bank

    An award winning Islamic Bank Franchise Awards “Fastest Growing Bank in the “Best Ladies Banking Service” By Banker Middle East Product Award UAE in 2011” by Banker Middle East March 2011 June 2011 “Rated amongst the best 10 Rated amongst the best 10 companies p in the UAE” byy companies in the UAE

  32. Slide 32: An award winning Islamic Bank

    An award winning Islamic Bank Product & Marketing Best Deal in the UAE “Best UAE” “Best Best SME Card Card” award by by Islamic Finance News 2010 Banker Middle East Product Award March 2011 (Emirates Steel ) January 2011 Human resources development Emirates Institute of Banking & Financial Studies H

  33. Slide 33: Ratings Excerpts

    Ratings Excerpts “BFSR is supported pp byy ADIB's solid ffinancial ffundamentals and its rapidly p y expanding p g Islamic ffranchise 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 st

  34. Slide 34: Executive Management Biographies

    Executive Management Biographies 34

  35. Slide 35: Executive Management Profile (I)

    Executive Management Profile (I) Joined ADIB in March 2008. He holds a Bachelor degree (major in Corporate Finance) from Loyala of Tirad Marouf Mahmoud Concordia University in Montreal, Canada and has also completed the Executive Management Program at Chief Executive Officer Wharton. He has previous

  36. Slide 36: Executive Management Profile (II)

    Executive Management Profile (II) Joined ADIB on the 1st of May 2011. He holds a Graduate Degree from the Royal Military Academy Stuart Crocker Sandhurst. His previous position was CEO HSBC Private Bank in UAE & Oman (2007-2011) and was a Member Global Head of of the General Management heading clien

  37. Slide 37: Executive Management Profile (III)

    Executive Management Profile (III) Waheeb Al Khazraji Joined ADIB on 10 December 2005 . He holds Chemical Engineering and MBA degrees along with Chartered Head of Human Resource, Human Resource Consultant (CHRC), Canada and Chartered in Personal Development (CIPD), UK. He has UAE 6 years banking exp

  38. Slide 38: 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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