Dubai Islamic Bank Pjsc · DFM:DIB
Dubai Islamic Bank Pjsc — Noor Bank PJSC — Investor Presentation (June 2019)
28 slides from Dubai Islamic Bank Pjsc's investor presentation, Jun 30, 2019
Slide 1: Investor Presentation
INVESTOR PRESENTATION As of 30 June 2019 © 2017 CONFIDENTIAL © 2018 CONFIDENTIAL 1
Slide 2: Table of Contents
Table of Contents Section 1 Overview of Noor Bank 3 Section 2 Business Overview 9 Section 3 Financial Performance 14 Appendix 1 Operating Environment 23 Appendix 2 Financials 25 2
Slide 3: Overview of Noor Bank
Overview of Noor Bank Snapshot Financial Highlights USD Mn 2015 2016 2017 2018 H1-18 H1-19 Established by the Government of Dubai in 2007 and commenced operations in January 2008 Balance Sheet Privately owned bank with a strategic shareholder base Investments in Islamic Financing 6,318 7,056 7,4
Slide 4: Strategic Sovereign & Ruling Family Ownership
Strategic Sovereign & Ruling Family Ownership Noor Bank is the only UAE Bank to have joint ownership by Dubai & Abu Dhabi Ruling Families and the Dubai & UAE Federal Governments “ We want Noor to be like Dubai, a ” progressive, tolerant Islamic Bank. and members – His Highness Sheikh Other of the Ru
Slide 5: Strong and Influential Board
Strong and Influential Board The Bank’s board has been appointed by the Government of Dubai Overview of the Current Board of Directors H.H. Sheikh Ahmed Bin Mohd Bin Rashid Al Maktoum, Chairman Member of the Dubai Ruling Family Select Roles: Chairman of Mohammed bin Rashid Al Maktoum Knowledge F
Slide 6: Leading Internal Shari'ah Supervision Committee
Leading Internal Shari’ah Supervision Committee The Bank’s Internal Shari’ah Supervision Committee (ISSC), a separate and independent body that is appointed by the shareholders, comprises of leading Islamic scholars who have extensive experience and expertise in Shari’ah, legal, financial and bankin
Slide 7: Overview of Noor Bank's History
Overview of Noor Bank’s History 2018 2019 2014 Noor Bank celebrates its 10th Launched Digital wallet Bank rebranded as Noor Bank anniversary proposition through a Noor 2008 Mission, Vision and Values redefined Bank- Etisalat JV Official launch 2011 The AED 770Mn Support Tier Issued 2nd
Slide 8: Table of Contents
Table of Contents Section 1 Overview of Noor Bank 3 Section 2 Business Overview 9 Section 3 Financial Performance 14 Appendix 1 Operating Environment 23 Appendix 2 Financials 25 8
Slide 9: We have redefined our vision, mission and values
We have redefined our vision, mission and values… To be recognised as the Empowering people to deliver world’s best contemporary outstanding customer Shari’ah compliant bank experiences Vision Mission To make a difference for the Empowering, enabling and better engaging with our employees Valu
Slide 10: Strategic Priorities
Strategy Noor Bank’s new strategy is focused on customer service and employees, while improving efficiency and processes to provide a sustainable growth platform Becoming simpler and Delivering outstanding more efficient through customer experiences technology and analytics Strategic Priorities Enab
Slide 11: Value Proposition
Value Proposition Diversified Earning Base Prominent Shareholders Strong Board, Experienced Consistent Profitability & Management and Progressive Stringent Cost Management Internal Shari’ah Supervision Committee Innovative Product Portfolio Prudent Risk Management with Strong Customer Relationships
Slide 12: Overview of Business Segments
Overview of Business Segments The Bank offers a comprehensive range of Shari’ah-compliant products and services in corporate banking, retail banking, investment banking & financial institutions and treasury Overview of Business Segments Corporate Banking Retail Banking Operates a full service corp
Slide 13: Table of Contents
Table of Contents Section 1 Overview of Noor Bank 3 Section 2 Business Overview 9 Section 3 Financial Performance 14 Appendix 1 Operating Environment 23 Appendix 2 Financials 25 13
Slide 14: Snapshot of Financial Performance
Snapshot of Financial Performance Strong Balance Sheet growth faster than market, driving income growth CAGR Y-o-Y USD Mn 2014 2015 2016 2017 2018 H1-18 H1-19 v. 2014 Growth Balance Sheet Items Strong performance in 2019 on the Cash and Balances with CBUAE 923 2,027 919 1,246 1,872 19.3% 1,286 1,3
Slide 15: Well Managed Growth
Well Managed Growth Noor Bank has delivered strong growth, considerably higher than industry peers, while maintaining a prudent risk management approach Asset & Deposit Growth Noor Bank has achieved one of the highest growth in assets over the last few years, as a result of a focused growth strategy
Slide 16: Stable Deposit Base and Strong Credit Quality
Stable Deposit Base and Strong Credit Quality Relative to UAE banks, Noor Bank enjoys a stable deposit base and strong credit quality with impaired financing and coverage ratios better than industry averages Deposit Stability (CASA as % of Deposits) Impaired Financing Ratio (%) High percentage of CA
Slide 17: Operating Performance and Profitability
Operating Performance and Profitability The Bank has continued to report strong profits while improving its operating efficiency Profitability (USD Mn) Components of Operating Income (USD Mn) Operating Income Operating Profit * Net Income from Islamic Financing & Sukuk Non-Funded Income 533 549 463
Slide 18: Asset Quality
Asset Quality Robust and improving asset quality on the back of a prudent risk policy Impaired Financings (USD Mn) Strong Coverage Levels (USD Mn) Impaired Financings Impaired Financing Ratios Allowance for Impairment Impairment Coverage Ratio 152.2% 151.1% 151.7% 7.3% 122.8% 5.1% 112.9% 105.5% 4.7%
Slide 19: Funding Overview
Funding Overview Noor Bank maintains a strong and stable liquidity funding position Customer Deposits (USD Mn) Breakdown of Deposits Overview of Funding Mix (Jun’19) Sukuk Customer Deposits Financings to Deposits Term Deposits CASA¹ financing Other 91.5% liabilities instruments 90.5% 90.5% 3% 9% 87.
Slide 20: Capitalisation
Capitalisation Noor Bank maintains healthy capital ratios well above regulatory requirements Regulatory Capital Base (USD Mn) Overview of Capitalisation (%) CET 1 Ratio [Regulatory Min.: 9.50%]* Tier 1 Ratio [Regulatory Min.: 11.00%]* 1,873 1,747 Capital Adequacy Ratio [Regulatory Min.:13.00%]* 1,66
Slide 21: Closing Remarks
Closing Remarks Strategic UAE Shareholding Economy - resilient, diversified and strong regulatory support Well positioned for growth with Islamic banking being one of the fastest growing sectors Refreshed Strategy Delivering Strong Board and Results Experienced Management Team 21
Slide 22: Table of Contents
Table of Contents Section 1 Overview of Noor Bank 3 Section 2 Business Overview 9 Section 3 Financial Performance 14 Appendix 1 Operating Environment 23 Appendix 2 Financials 25 22
Slide 23: Overview of UAE Banking Sector
Overview of UAE Banking Sector Snapshot of the UAE Banking Sector Key Industry Indicators (USD Bn) The UAE banking industry, which is the largest banking industry in the GCC, comprises of 22 2014 2015 2016 2017 2018 May-19 domestic banks and 27 foreign banks* Total Assets 622.8 669.5 705.8 733.4 7
Slide 24: Table of Contents
Table of Contents Section 1 Overview of Noor Bank 3 Section 2 Business Overview 9 Section 3 Financial Performance 14 Appendix 1 Operating Environment 23 Appendix 2 Financials 25 24
Slide 25: Statement of Financial Position
Statement of Financial Position USD Mn 2014 2015 2016 2017 2018 H1-19 Cash and Balances with UAE Central Bank 923 2,027 919 1,246 1,872 1,356 Due from banks 815 1,252 1,504 1,329 805 932 Investments in Islamic financing instruments 4,911 6,318 7,056 7,473 8,712 8,535 Investments in Sukuk & Equity Fu
Slide 26: Income Statement
Income Statement USD Mn 2014 2015 2016 2017 2018 H1-18 H1-19 Income from Islamic financing and Sukuk 244 308 368 420 531 249 298 Depositors' share of profit (65) (66) (95) (106) (193) (78) (125) Net income from Islamic financing 179 242 273 314 338 171 173 Fee and other income, net of charges 81 140
Slide 27: Thank You
Thank You 27
Slide 28: Disclaimer
Disclaimer IMPORTANT: The following applies to this document, any oral presentation of the information in this document by Noor Bank PJSC (“Noor Bank”) or any person on behalf of Noor Bank, and any question- and-answer session that follows the oral presentation (collectively, the “Information”). In