Abu Dhabi Islamic Bank · ADX:ADIB
Abu Dhabi Islamic Bank — Q2 2012 Earnings Presentation
43 slides from Abu Dhabi Islamic Bank's earnings presentation, August 2012
Slide 1: Investor Presentation Q2 2012
I Investor t P Presentation t ti Q2 2012 Abu Dhabi: August 2012 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 p in 1997 to serve as first Islamic Bank in the Emirate of Abu Dhabi. •Established by the Govt. of Abu Dhabi in 1997 Majority owned by members of the ruling family of •Licensed in 1998 as an Islamic bank by the Central bank an
Slide 4: Ownership & Corporate Structure
Ownership & Corporate Structure ADIB Ownership Other members and ADIB is mainly owned by over 46,000 UAE nationals and associates of the Abu companies. Dhabi Royal family: 10.1% The Bank’s main shareholder is National Holding via EIIC, which is EIIC: 40.7% a private holding company, wholly-owned
Slide 5: 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 6: UAE Banking Sector
UAE Banking Sector Highlights UAE Banking Sector (USD Bn) 2010 2011 Q1 2012 Total Assets (net of provisions) 437.1 452.5 474.1 UAE Banking sector is the largest by assets in the GCC; the banking sector accounts for 31% of the GCC total. Certificates of deposit held by Banks 25.6 21.9 24.0 Bankin
Slide 7: Competitive landscape
Competitive landscape Peer Group Analysis for H1 2012 (AED Bn) NBAD ADCB FGB UNB Mashreq h DIB ADIB Return on Average 18.3% 17.0% 17.6% 16.9% 9.7% 11.3% 19.7% Shareholders’ Equity* Revenues 4.10 3.36 3.45 1.56 1.90 1.84 1.76 Operating p g Profit 2.75 2.32 2.78 1.18 0.99 1.12 1.00 Net Profit 2.09 1.5
Slide 8: Agenda
Agenda Introduction Financial Review Business Review Appendix 8
Slide 9: Financial Snapshot
Financial Snapshot Total Assets (AED Bn) Customer Financing (AED Bn) +10% +13% 75.3 76.5 78.9 48.0 48.8 49.6 50.3 74.3 64.1 40.5 51.2 34.2 44.0 24.3 2007 2008 2009 2010 2011 Q1 12 Q2 12 2007 2008 2009 2010 2011 Q1 12 Q2 12 Customers’ Deposits (AED Bn) Capital Resources (AED Bn) +11% +13% 57.6 60.5 1
Slide 10: Financial Snapshot
Financial Snapshot Revenues (AED Mn) Return on Shareholders’ Equity +24% 3,425.8 18.8% 18.2% 18.2% 3,074.0 15.4% 2,520.3 2,198.6 1,437.6 1.5% 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Net Profit (AED Mn) Customer Financing to Customers’ Deposits +11% 1,155.1 91.2% 88.5% 82.1% 83.9% 84.8% 1,0
Slide 11: Salient features of Q2 / H1 2012 results
Salient features of Q2 / H1 2012 results 1 2nd quarter net profits of AED 322.6 Mn, 2% higher than the corresponding quarter of 2011. 2 Top line revenues momentum maintained with a growth of 2% vs. H1 2011. 3 Return on Shareholders’ Equity at 19.7% 4 Strong but responsible balance sheet growth – con
Slide 12: 30 June 2012 – Balance sheet highlights
30 June 2012 – Balance sheet highlights 30 Jun ‘11 30 Jun’12 % chg AED Bn AED Bn Total Assets 72.3 78.9 9% Total assets increased by 9% over Q2 11 to reach AED 78.9 Bn. Net Customer Financing 48.1 50.3 4% Customer financing increased by 4% from Q2 11 to reach AED 50.3 Bn. Customers’ Deposits 53.
Slide 13: H1 2012 – Income statement highlights
H1 2012 – Income statement highlights H1 2011 H1 2012 % chg AED Mn AED Mn Revenues 1,717.1 1,757.5 2% Revenues up by 2% on the back of higher net revenue from funds (up 4%). Expenses up by 8% mainly due to Expenses 702.0 754.9 8% continuous investment in our franchise,, network, systems and peop
Slide 14: Key income parameters - Group
Key income parameters - Group Net Revenue from Funds (AED Mn) Fees, commission and others (AED Mn) -6% Profit paid on funds FX 1 447 1,447 Investment I iincome & others h Revenue from funds 1,387 Net revenue from funds Fees & Commission 330 724 13 311 +4% 100 25 723 198 75 648 515 186 13 162 426 181
Slide 15: Key income parameters - Group
Key income parameters - Group Revenues contribution split % (AED Mn) Operating expenses (AED Mn) Depreciation General and admin expenses Employee costs Fees, commission and others 43.0% C t to Cost t iincome ratio ti 40 9% 40.9% Net revenue from funds 755 1,717 1,758 702 29.9% 39.3% 41.4% 39.3% 42.6
Slide 16: Balance Sheet Strength
Balance Sheet Strength Consistently remains one of the most liquid bank’s in the UAE on the back of above market balance sheet growth h Net Customer Financing & Customers’ Deposits (AED Bn) Composition of Total Assets – AED 78.9 Bn Net Customer Financing g +14% Investments: Customers’ Deposits Fixed
Slide 17: Customer Financing
Customer Financing Gross Customer Financing by Segment Gross Customer Financing by Customer Segment Retail Private Govt. & Wholesale PSE: 5.3% +15% 53.5 50.7 FI: 2.4% 47.1 Corporate: 32.0% SME: 38.4 2 2% 2.2% 48.5% 48.6% 46.5% 30.7 44.5% 44.0% Individual: 37.8% 38.0% 39.8% 58.1% 37.5% 40.0% 16.0% 17
Slide 18: 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 5,985 7
Slide 19: Funding Profile
Funding Profile Composition of Liabilities (AED 70.3 Bn) Customers’ Deposits by Segment 60.5 Wholesale Q2 11 Q 53 2 53.2 Retail Q2 12 5.7 Private +16% 60.5 4.6 51.9 53.2 43.6 38.8% 46.1% 40.3% 33.7 2.0 1.7 2.2 2.2 48.5% 49.4% 1.1 1.2 46.3% 48.4% 39.3% 36.6% 35.2% 15.5% 14.9% 14.6% 13.4% 12.9% Due to
Slide 20: Capital
Capital Capital Adequacy (%) Total Equity and reserves (AED Bn) Total CAR UAE Central Bank CAR requirement Tier 1 Minimum Tier-1 requirement +12% 16.6% 16.1% 16.6% 8.6 8.2 7.7 7.7 14.2% 13.5% 13.4% 13.1% 13.5% 5 5 5.5 13.5% 12.0% 12.2% 12.0% 10.0% 12.0% 10.0% 8.0% 8.0% 6.0% 6.0% 8 0% 8.0% Q2 08 Q2 0
Slide 21: ADIB Price (AED) / 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 Cash dividend of 50% of net p Dec--09 Jan--10 Shareholders’ Return Feb--10 Mar--10 Apr--10 May--10 Jun--10 Jul--10 Aug--10 30 June 2012 shar
Slide 22: Dividend Distribution
Dividend Distribution 2007 2008 2009 2010 2011 Net Profit (Mn) 769.0 851.1 78.0 1,023.6 1,155.1 Cash Dividend 20 0% 20.0% 21 6% 21.6% - 21 6% 21.6% 24 4% 24.4% (% of Share Capital) Bonus Shares - - 20.0% - - (% of Share Capital) Cash Dividend Payout Ratio 51.2% 50.0% - 50.0% 50.0% (% of Net Profit)
Slide 23: Agenda
Agenda Introduction Financial Review Business Review Appendix 23
Slide 24: 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 att Home H Financial Fi i lS Services i G Group Growth G th O Opportunities t iti • The key customer serv
Slide 25: Retail Banking overview
Retail Banking overview Retail Banking contributes 63.3% of Net Assets (AED Bn) Revenues +15% Personal Banking Division provides services for 25 1 25.1 26 3 26.3 21.9 individuals clients, while the Business Banking Division 17.2 services the needs of SMEs. These services include a variety of Sha
Slide 26: Wholesale Banking overview
Wholesale Banking overview Assets (AED Bn) Wholesale Banking contributes 29.0% of Net Revenues +11% 20 4 20.4 17.2 18.3 Wholesale Banking encompasses the 14.8 corporate, financial institutions and public sector divisions of the Bank. The array of services includes Transaction Banking and Corporate
Slide 27: Private Banking overview
Private Banking overview Assets (AED Bn) Private Banking contributes 6.1% of Net -5% Revenues 6 8 6.8 7 2 7.2 6.4 5.8 Private Banking focuses on high and ultra high net worth individuals. Wealth Management concentrates on developing,developing marketing and servicing a wide range of wealth Q2 09
Slide 28: Outlook - 2012
Outlook - 2012 1 We believe that 2012 will be another challenging year as the global financial crises enters its fourth year, and will therefore continue to implement our cautious growth strategy. 2 We will continue to increase our individual provisions as a leading credit policy bank . We will cont
Slide 29: Agenda
Agenda Introduction Financial Review Business Review Appendix 29
Slide 30: Consolidated Statement of Income
Consolidated Statement of Income % chg Q2 % chg Q2 % chg H1 12 AED Mn Q2 11 Q1 12 Q2 12 H1 11 H1 12 12 vs Q2 11 12 vs Q1 12 vs H1 11 Revenues 908.3 870.8 886.8 -2.4% 1.8% 1,717.1 1,757.5 2.4% Net Revenue from Funds 722.7 722.6 724.4 0.2% 0.2% 1,387.4 1,446.9 4.3% Fees & commission 105.3 108.8 102.0
Slide 31: Consolidated Balance Sheet
Consolidated Balance Sheet % chg 30 June % chg 30 June AED Mn% 30 June 2011 31 Dec 2011 30 June 2012 2012 vs 31 Dec 2012 vs 30 June 2011 2011 Cash and balances with Central Banks 7,950 11,207 11,104 -0.9% 39.7% Due from financial institutions 10,123 7,732 9,075 17.4% -10.4% Net Customer financing 48
Slide 32: Key income parameters – Bank only
Key income parameters – Bank only Revenues (AED Mn) Net Profit (AED Mn) Fees, commission & others p g profit Operating p Net Profit 1,763 1 763 1,032 1 053 1,053 1,689 Cost of credit Net revenue from funds 254 268 732 757 874 888 540 536 748 128 141 466 588 76 1,435 1,495 385 391 397 463 306 332 300
Slide 33: 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
Slide 34: 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
Slide 35: 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
Slide 36: 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 37: Key Deals in 2011
Key Deals in 2011 ADIB Sukuk USD 100,000,000 USD 75,000,000 USD 500,000,000 Man d ated Lead Arranger for Join t Lead Manager Man d ated Lead Arranger for a Syn d icate d Facility An d Boo krunner a Syn d icate d Facility De c 2011 De c 2011 No v 2011 First syndicated Fx financing for a Pakistani D
Slide 38: 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
Slide 39: Executive Management Biographies
Executive Management Biographies 39
Slide 40: 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
Slide 41: Executive Management Profile (II)
Executive Management Profile (II) Noble Powar Joined ADIB on 1 January 2012. He hold a Master's degree in Personnel Management & Industrial Relations Global Head of Human and has worked for over 20 years with Global Banks in the Middle East, UK, USA, Europe, Asia and Africa. Resources His p previous
Slide 42: 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
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
Abu Dhabi Islamic Bank — Q2 2012 Earnings Presentation on 6ix