First Abu Dhabi Bank · ADX:FAB
First Abu Dhabi Bank — First Gulf Bank — Q1 2015 Earnings Presentation
30 slides from First Abu Dhabi Bank's earnings presentation, Apr 22, 2015
Slide 1: FGB Q1'15 Earnings Presentation
FGB Q1'15 Earnings Presentation 22 April 2015
Slide 2: Disclaimer
UgUl aul Ly Disclaimer FGB 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
Slide 3: Q1'15 Performance Key Highlights
gb utils Ly Q1’715 Performance Key Highlights FGB Good start to the year with Q1’'15 Net Profit up 7% YoY to AED 1,417Mn; EPS up 11% YoY to AED 0.31 Revenues at AED 2,322Mn, up 3% YoY, driven by solid 13% growth in non-interest income in line with the bank’s revenue diversification strategy Commerci
Slide 4: Q1'15 Summary Financials
Q1’15 Summary Financials UgUl aul Ly FGB Income Statement (AED Mn) Q1'15 Q1'14 YoY Q4'14 Q0Q Net Interest and Islamic Financing Income 1,587 1,601 -1% 1,626 -2% Other Operating Income 735 650 13% 746 -1% Operating Income 2,322 2,251 3% 2,372 -2% G&A expenses (524) (475) 10% (602) -13% Provisions/ Im
Slide 5: Asset Mix and Lending Activity
Asset Mix and Lending Activity FGB HIGHLIGHTS LOAN Book TREND (AED BN) . As of March-end 15, loans and advances grew by 16% YoY and 2% from Dec’14 (+AED 3.1Bn) driven by continued strength across both wholesale and consumer segments . At this stage, there is no sign of slower credit demand due to lo
Slide 6: Liquidity
Liquidity FGB HIGHLIGHTS CUSTOMER DEPOSITS TREND (AED BN) . During Q1’15, customer deposits increased by 1% QoQ (+AED 1.6Bn) ——_—— +10% | mainly driven by the increase in time deposits 1296 137.5 144.6 1413 142.9 ° Government & Public Sector deposits’ share in total deposits remained intact compared
Slide 7: Funding Mix
Funding Mix HIGHLIGHTS LIABILITY MIX . In Jan’15, the Bank proceeded with the full pre-payment of USD MAR’14, MAR’15 900Mn syndicated loan due in December 2015 . Borrowings, Borrowings . In line with its funding diversification strategy, FGB completed the EMTN, Other , EMTN, Other following transact
Slide 8: Key Revenue Movements and NIMs
gt auld ey Key Revenue Movements and NIMs FGB HIGHLIGHTS KEY MOVEMENTS IN OPERATING INCOME (AED MN) . Q115 revenues grew by 3% YoY (+AED 71Mn) mainly driven by : — +AED 28Mn addition in core fees and commissions arising from higher syndication and credit card fees — +AED 58Mn FX & Derivatives income
Slide 9: Non-Interest Revenues and Cost Efficiency
Non-Interest Revenues and Cost Efficiency FGB HIGHLIGHTS Q1’15 NON-INTEREST REVENUES . Revenue diversification continues to be a key area of focus with non-interest revenues growing by 13% YoY and increasing their contribution in total operating income to 32% (vs. 29% last year) ° Fee income and cre
Slide 10: Credit Quality
Credit Quality HIGHLIGHTS NPL RATIO AND PROVISION COVERAGE (%) ° Reflecting a favorable operating environment, Q1’15 asset quality metrics remained quasi-intact compared with Dec’14 levels with NPL ratio at 2.5% and provision coverage at 126.1% ° FGB continues to build its general provision buffer i
Slide 11: Capital Strength (Basel II)
Capital Strength (Basel II) UgUl aul Ly FGB HIGHLIGHTS CAPITAL ADEQUACY RATIO (%) ° Basel Il total CAR and tier 1 capital ratios remained robust BASEL II CAR Tier 1 Capital at 18.0% and 16.8% respectively 19.5 + RWAgrew by 11% YoY following the growth in assets 19.0 18.9 18.0 . FGB’s medium term Tie
Slide 12: Business Segment Contributions
Business Segment Contributions HIGHLIGHTS ASSETS BREAKDOWN * Continued focus on enhancing core capabilities and on maximizing synergies between the three core businesses: Wholesale & International Banking Group (WBG), Consumer Banking Group (CBG), and Treasury & Global Markets Group (T&GM) * These t
Slide 13: Wholesale Banking Group - WBG
Wholesale Banking Group - WBG HIGHLIGHTS OPERATING INCOME (AED MN) NET Prorits (AED MN) . WBG revenues show a 8% YoY decline mainly as a result of contracting NIMs . International operations generated 12% of WBG operating income that is 4% of Group revenues in Q1’15 . WBG Q1’'15 net profit at AED 59
Slide 14: Consumer Banking Group - CBG
Consumer Banking Group - CBG gb utils Ly FGB HIGHLIGHTS OPERATING INCOME (AED MN) NET Prorits (AED MN) ° Continued focus on product innovation and enhanced customer experience . CBG revenues grew 7% YoY to AED 862Mn while Net Profit shows a 5% YoY increase ° Wealth Management , SME loans and credit
Slide 15: Treasury & Global Markets - T&GM
gb utils Ly Treasury & Global Markets —- T&GM FGB HIGHLIGHTS * T&GM revenues recorded a 6% YoY increase to AED 349Mn while net profits improved by 4% to AED 319Mn . 90% of FGB’s investment portfolio is in investment grade fixed income of which 61% is allocated to the GCC . The average duration of th
Slide 16: Real Estate Activities
Real Estate Activities gb utils Ly FGB HIGHLIGHTS OPERATING INCOME (AED MN) NET Prorits (AED MN) ° Real estate revenues declined by 16% YoY mainly due to the stronger gains on sale of property recorded in Q1’'14 (of AED 41Mn) . During Q1’15, the bank continued to selectively liquidate some of its pr
Slide 17: 2014 Dividend Distribution
2014 Dividend Distribution 2014 2013 2012 2011 2010' Net Prorit (AED MN) 5,656 4,774 4,154 3,707 3,420 CASH DIVIDEND (AED MN) 3,900 3,000 2,500 1,500 900 CASH DIVIDEND (% OF CAPITAL) 100% 100% 83% 100% 60% BONUS SHARES (% OF CAPITAL) 15.38% 30% . 100% - DIVIDEND PAYouT RATIO ° ° ° ° (% OF NET PROFIT
Slide 18: 2015 Financial Guidance Intact
2015 Financial Guidance Intact FGB FY 2015 LoAN Book GROWTH High Single-Digit REVENUE GROWTH Double-Digit NIMs 25bps — 35bps decrease EXPENSES C/l Ratio: 23%-24% ASSET QUALITY CoR ~ 100bps NET PROFIT GROWTH Low Double-Digit RoAE* 18% TIER 1 CAPITAL* 15%-16% *Including perpetual notes
Slide 19: Appendix
Appendix
Slide 20: FGB Overview
FGB Overview gt auld ey FGB A LEADING UAE FRANCHISE OWNERSHIP STRUCTURE* (AS OF MAR’15) = Incorporated in 1979 and headquartered in Abu Dhabi = Wide range of financial products and services offered through a network of 21 branches in the UAE. In addition, FGB is present through branches in Doha and
Slide 21: History & Key Milestones
UgUl aul Ly History & Key Milestones FGB > - New rep offices in London and Seoul 2014 | -Maintained position of #1 UAE Bank by Net Profit at USD 1.54Bn -Acquisition of Aseel and Dubai First 2013 | -FGB becomes the #1 UAE Bank in terms of net profit with USD 1.3Bn 2012 | New office in Hong Kong 2011
Slide 22: Board of Directors
Board of Directors gb utils Ly FGB Board Members are prominent stakeholders of the Abu Dhabi Business Community H.H. SHEIKH TAHNOON BIN ZAYED AL NAHYAN — CHAIRMAN AHMED ALI AL SAYEGH VICE CHAIRMAN CHAIRMAN OF ABU DHABI GLOBAL MARKET MANAGING DIRECTOR OF DOLPHIN ENERGY Board Member of: Etihad Airways
Slide 23: Corporate Governance
gb utils Ly Corporate Governance FGB 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 Committe
Slide 24: % of Assets and % of Revenue by segment
% of Assets % of Revenue % of Assets % of Revenue % of Assets % of Revenue % of Assets % of Revenue
Slide 25: Three-Pillar Strategy
Three-Pillar Strategy UgUl aul Ly FGB To Be Recognised as a World-Class Organization Maximizing Value For All Stakeholders Our Vision: ORGANIC GROWTH OF CorE BANKING ACTIVITIES = Build deeper client relationships, providing solutions and high quality service = Continue to target large creditworthy U
Slide 26: Key Achievements (1/2)
Key Achievements (1/2) gb utils Ly TOTAL ASSETS (AED BN) LOANS & ADVANCES (AED BN) CusToMeER Deposits (AED BN) cAcR: +A0% 1932 2122 214.0 176.9 159.2 2011. 2012) 2013) 2014 = Q1'15 SHAREHOLDERS’ Equity (AED BN) fo cAGR: 07 142.8 125.6 104.1 112.0 2011 2012). 2013) 2014 = Q1'15 OPERATING INCOME (AED
Slide 27: Key Achievements (2/2)
Key Achievements (2/2) NET INTEREST MARGIN (%) NPL Ratio (%) PROVISION COVERAGE (%) 126.7 4964 3.8 37 3.7 3.6 3.4 34 33 33 908.4 96.1 25 25 91.4 2011 2012, 2013, 2014 Q1'15 2011 2012, 2013) 2014 Q1'15 2011-2012, 2013, 2014 = Q'15 CosT TO INCOME RATIO (%) ROAE (%) RoAA (%) 173° 17.2 28 23.1 22.6 15.8
Slide 28: FGB vs. large domestic peers — FY'14
FGB vs. large domestic peers — FY’14 gb utils Ly ADCP Ranking Profitability & Efficiency Return on Average Equity eau (ae wy—4 pba cla dy rca’ ON (ES 11.6 17.3 15.4 2.8 1.6 23.1 35.5 3.6 2.0 1.4 1.1 2.5 3.1 126.7 108.0 65.8 51.7 98.9 79.9 17.2 21.9 16.2 15.0 17.5 16.4
Slide 29: FGB 2015 Awards
FGB 2015 Awards FGB Seven Banker Middle East UAE Product Awards: ‘Best Call Centre’, ‘Best Credit Card’, ‘Best Personal Loan’, ‘Best Wealth Management Service/Proposition; ‘Best Offshore Wealth Proposition’, ‘Best Deposit Account Product’ and ‘Best Bancassurance Product’ MENAIR INSURANCE “Most Innov
Slide 30: Thank you!
Thank you! For more Information, contact FGB Investor Relations Department: ir@fgb.ae Or visit our corporate website www.fgb.ae EXTEL 2015 VOTENOW N — Extel Survey for the 2015 Middle East IR Awards is open until 30 April 2015! Please vote for the best IR teams and individuals in the Middle East by