First Abu Dhabi Bank · ADX:FAB
First Abu Dhabi Bank — First Gulf Bank — Q1 2016 Earnings Presentation
30 slides from First Abu Dhabi Bank's earnings presentation, Apr 27, 2016
Slide 1: FGB Q1'16 Earnings Presentation
FGB Q1’16 Earnings Presentation Wednesday 27 April 2016 1/30
Slide 2: Disclaimer
Disclaimer This presentation provides information in summary form only and is not intended to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular inves
Slide 3: Q1'16 Performance Highlights
Q1’16 Performance Highlights • Q1’16 Net Profit at AED 1.33Bn (-6% YoY) represents 62% of revenue; Q1’16 EPS at AED 0.29 • Positive momentum across business segments translating to 2% QoQ increase in loans and advances • Comfortable liquidity position providing a strong foundation for the remainder
Slide 4: Q1'16 results vs. FY16 Financial Guidance
Q1’16 results vs. FY16 Financial Guidance Q1’16A FY16 FINANCIAL GUIDANCE ON TRACK LOAN BOOK GROWTH +7% Low single-digit Impacted by slower business activity and REVENUE GROWTH -5% Flat to low single-digit lower one-off gains compared to Q1’15 NIMS 3.1% 3.0% - 3.2% EXPENSES 20.3% C/I Ratio<23% 2.6% N
Slide 5: Q1'16 Summary Financials
Q1’16 Summary Financials Income Statement (AED Mn) Q1'16 Q1'15 YoY Q4'15 QoQ Net Interest and Islamic Financing Income 1,586 1,587 0% 1,658 -4% Fees & Commission Income, Net 365 406 -10% 394 -7% Other Operating Income 195 266 -27% 681 -71% Operating Income 2,146 2,259 -5% 2,733 -21% G&A expenses (43
Slide 6: Asset Mix and Lending Activity
Asset Mix and Lending Activity HIGHLIGHTS LOAN BOOK T REND (AED BN) • During Q1’16, total loans added 2% year-to-date (+AED 2.7Bn) driven by +2% positive momentum across both WBG (+AED 2.8Bn) and CBG (+AED 142.8 148.9 154.1 149.8 152.5 200Mn) 3.5 3.6 3.0 2.7 • At this stage, we are cautiously mainta
Slide 7: Liquidity
Liquidity HIGHLIGHTS CUSTOMER DEPOSITS T REND (AED BN) • Customer deposits decreased by 1% year-to-date to AED 140.8Bn -1% • Deposits sourced from our international locations increased by 41% QoQ 142.9 140.3 141.5 142.5 140.8 bringing their contribution to 6% of total deposits vs. 4% as of Dec’15 •
Slide 8: Funding Mix
Funding Mix HIGHLIGHTS MEDIUM T ERM MATURITIES (AED MN) • During the period, FGB repaid a bi-lateral bank loan of USD 4,373 50Mn and 2 Medium term bonds of CHF 200Mn and CHF 4,163 100Mn. 3,492 3,083 • In Q1’16, FGB successfully raised a total of USD 200Mn 2,633 equivalent through private placements.
Slide 9: Key Revenue Movements and NIMs
Key Revenue Movements and NIMs HIGHLIGHTS KEY MOVEMENTS IN OPERATING INCOME (AED MN) • Net interest income was stable YoY primarily thanks to higher business volumes which had a positive AED 109Mn impact, mitigating the AED 110Mn impact of margin compression 2,259 -1 -24 -41 -24 -23 • NIMs contracte
Slide 10: Non-Interest Revenues and Cost Efficiency
Non-Interest Revenues and Cost Efficiency HIGHLIGHTS Q1’16 N ON-INTEREST REVENUES • Fee and commission income declined by 19% and 11% In AED Mn Q1’16 Q1’15 YoY % respectively due to slower business activity translating to fewer deals on a year-on-year basis. Commission income 111 124 -11% • Fees and
Slide 11: Credit Quality
Credit Quality HIGHLIGHTS NPL RATIO AND PROVISION COVERAGE (%) • During Q1, NPLs declined by 6% to AED 4.1Bn driven by CBG NPL ratio Provision Coverage write-offs • As of March-end 16, NPL ratio landed at 2.6%, improving from 126.1 2.8% as of Dec’15 116.6 • Provision coverage remained healthy at 109
Slide 12: Capital Strength (Basel II)
Capital Strength (Basel II) HIGHLIGHTS CAPITAL ADEQUACY RATIO (%) • As of March-end 16, FGB enjoys a robust capital position with 18.7 18.6 Basel II CAR and Tier 1 capital ratio at 18.2% and 16.9% 18.2 18.0 respectively 17.5 17.5 17.3 16.8 16.9 • Tier 1 capital ratio strengthened to16.9% from 16.3%
Slide 13: Business Segment Contributions
Business Segment Contributions HIGHLIGHTS ASSETS BREAKDOWN • Continued focus on enhancing core capabilities and on T&GM maximizing synergies between the three core Real Estate 22% activities businesses: Wholesale & International Banking Group CBG 3% (WBG), Consumer Banking Group (CBG), and Treasury
Slide 14: Wholesale Banking Group - WBG
Wholesale Banking Group - WBG HIGHLIGHTS OPERATING INCOME (AED MN) N ET PROFITS (AED MN) • Healthy commercial momentum supported by 5% growth in assets 816 -4% 786 590 +11% 652 • Operating income declined by 4% on the 12% 14% 11% 13% back of rising funding costs and lower non-funded revenue compared
Slide 15: Consumer Banking Group - CBG
Consumer Banking Group - CBG HIGHLIGHTS OPERATING INCOME (AED MN) N ET PROFITS (AED MN) • Continued focus on product innovation and 444 enhanced customer experience through digitisation. 806 810 336 • CBG revenues grew 1% YoY to AED 810Mn. Net Profit decreased by 24% YoY due to higher impairments, a
Slide 16: Treasury & Global Markets – T&GM
Treasury & Global Markets – T&GM HIGHLIGHTS OPERATING INCOME (AED MN) N ET PROFITS (AED MN) • T&GM net profits were down by 42% YoY due to lower revenues and impairments taken against 349 319 CRWA as per CB UAE guidance • 92% of FGB’s investment portfolio is invested in investment grade fixed income
Slide 17: Consumer Finance Subsidiaries
Consumer Finance Subsidiaries Dubai First and Aseel Islamic Finance HIGHLIGHTS OPERATING INCOME (AED MN) N ET PROFITS (AED MN) • Dubai First and Aseel are FGB’s consumer finance subsidiaries specialised in credit cards 151 72 145 +4% and SME islamic financing respectively 18 -56% 32 38 • Both compan
Slide 18: Real Estate Subsidiaries
Real Estate Subsidiaries HIGHLIGHTS OPERATING INCOME (AED MN) N ET PROFITS (AED MN) • Real estate revenues grew by 3% YoY to AED 71Mn. 69 71 60 58 • During Q1’16, the Bank continued to reduce its real estate exposure through selective sale of properties in Dubai and Abu Dhabi +3% +3% • As of Mar’16,
Slide 19: Dividend History
Dividend History 2015 2014 2013 2012 2011 NET PROFIT (AED MN) 6,006 5,656 4,774 4,154 3,707 CASH DIVIDEND (AED MN) 4,500 3,900 3,000 2,500 1,500 CASH DIVIDEND (% OF CAPITAL) 100% 100% 100% 83% 100% BONUS SHARES (% OF CAPITAL) - 15.38% 30% - 100% DIVIDEND PAYOUT RATIO 75% 69% 63% 60% 40% (% OF NET PR
Slide 20: Appendix
Appendix 20/30
Slide 21: FGB Overview
FGB Overview A LEADING UAE F RANCHISE OWNERSHIP STRUCTURE* (AS OF MAR’16) Incorporated in 1979 and headquartered in Abu Dhabi Wide range of financial products and services offered UAE through a network of 23 branches in the UAE. In addition, companies Foreign FGB is present through branches in D
Slide 22: History & Key Milestones
History & Key Milestones 2016 Rated “A” by S&P 2015 Net profit crosses AED 6Bn (USD 1.6Bn) New rep offices in London and Seoul 2014 Maintained position of #1 UAE Bank by Net Profit at USD 1.54Bn 2013 Acquisition of Aseel and Dubai First FGB becomes the #1 UAE Bank in terms of net profit with USD 1.3
Slide 23: Board of Directors
Board of Directors FGB Board Members are prominent stakeholders of the Abu Dhabi Business Community H.H. SHEIKH TAHNOON BIN ZAYED AL NAHYAN – CHAIRMAN CHAIRMAN OF AMIRI FLIGHT CHAIRMAN OF ROYAL GROUP AHMED ALI ABDULHAMID MOHAMMED SAIF AL SAYEGH MOHAMMED SAEED AL SUWAIDI VICE CHAIRMAN BOARD MEMBER BO
Slide 24: Corporate Governance
Corporate Governance Strong & Independent Governance framework covering all material risks across the Group Board of Directors Executive Committee Risk & Compliance Management Committee Board Committees Remuneration & Nomination Committee Audit Committee Executive Management Committee Management Who
Slide 25: Business Segments
Business Segments Incremental Revenue Core Banking Revenue Drivers Streams TREASURY & WHOLESALE BANKING CONSUMER BANKING GLOBAL MARKETS SUBSIDIARIES & OTHER % of Assets % of Revenue % of Assets % of Revenue % of Assets % of Revenue % of Assets % of Revenue 43% 37% 24% 38% 22% 11% 11% 14% Original
Slide 26: Three-Pillar Strategy
Three-Pillar Strategy Our Vision: To Be Recognised as a World-Class Organization Maximizing Value For All Stakeholders 1 2 3 ORGANIC GROWTH OF SELECTIVE REGIONAL AND SYNERGIES WITH CORE BANKING ACTIVITIES INTERNATIONAL EXPANSION SUBSIDIARIES AND ASSOCIATES Build deeper client relationships, Geog
Slide 27: Key Achievements (1/2)
Key Achievements (1/2) TOTAL ASSETS (AED B N) LOANS & ADVANCES (AED B N) CUSTOMER DEPOSITS (AED B N) 227.5 227.4 149.8 152.5 212.2 139.7 138.0 141.3 142.5 140.8 198.2 176.9 125.6 112.0 119.3 2012 2013 2014 2015 Mar'16 2012 2013 2014 2015 Mar'16 2012 2013 2014 2015 Mar'16 SHAREHOLDERS’ EQUITY (AED B
Slide 28: Key Achievements (2/2)
Key Achievements (2/2) NET INTEREST MARGIN (%) NPL R ATIO (%) PROVISION COVERAGE (%) COST TO INCOME R ATIO (%) 126.7 3.7 3.7 3.3 3.3 109.8 3.6 102.9 3.3 2.8 20.7 20.6 2.6 96.1 20.3 3.1 2.5 91.1 19.1 18.0 2012 2013 2014 2015 Mar'16 2012 2013 2014 2015 Mar'16 2012 2013 2014 2015 Mar'16 2012 2013 2014
Slide 29: FGB Awards
FGB Awards 2016 : ‘Best Co-branded Credit Card’, ‘Best Onshore Wealth Proposition’ ‘Best SME Trade Finance Offering’ and ‘Best Bancassurance Product’ 2015 : “Best Bank in the UAE” and “Best Bank in the Middle East” Seven Banker Middle East UAE Product Awards: ‘Best Call Centre’, ‘Best Credit Card’,
Slide 30: Thank you!
Extel Survey for the 2016 Middle East IR Awards will close in 2 days! Please vote for the best IR teams and individuals in the Middle East by visiting: www.extelsurveys.com Thank you! For more Information: Contact FGB Investor Relations Department: ir@fgb.ae Visit our corporate website www.fgb.ae Fo