Abu Dhabi Islamic Bank · ADX:ADIB
Abu Dhabi Islamic Bank — 9M 2022 Earnings Presentation
32 slides from Abu Dhabi Islamic Bank's earnings presentation, Oct 26, 2022
Slide 1: 9M 2022 Earnings Presentation
ADIB IR Website 9M 2022 Earnings Presentation Analyst & Investor Conference Call IR App Download link: Abu Dhabi, 26 October 2022
Slide 2: Contents
Contents 9M 2022 Earnings Presentation Key Highlights ADIB Strategy 2025 Financial Performance Outlook & Guidance Questions & Answers Contacts Disclaimer 2
Slide 3: Key Highlights
1 2 Key Highlights 3 4 5 9M 2022 Earnings Presentation 6 7 3
Slide 4: Key Highlights
Key Highlights ADIB recorded its best quarter ever crossing AED 1 billion mark in net income driven by improved revenues and strong asset growth 53% YoY increase in net income to AED 2.45 billion for the first 9 months of 2022 Revenue up 10% to AED 4.5 billion driven by 22% growth in fees and commis
Slide 5: Executing ADIB Strategy
1 2 Executing ADIB Strategy 3 4 5 9M 2022 Earnings Presentation 6 7 5
Slide 6: ADIB Strategy 2025
ADIB Strategy 2025 ADIB has launched strategy 2025 with a renewed purpose and vision Purpose Lifelong partner for customers, colleagues and community Vision The world’s most innovative Islamic bank 4-Pillar Strategy Continuous Segment Digital Sustainable Innovation Focused Excellence Future 6
Slide 7: Update on Strategy Progress
Update on Strategy Progress ADIB continues to deliver on its strategy in 9M 2022 Continuous Key product launches Amwali Youth Account Asset Management Payment Service Innovation • Yosr salary advance • Small business finance to support SME 8,000 $154 mn AED 3.9 mn • Government payment services Globa
Slide 8: ADIB Strategy 2025 Strategic Targets
ADIB Strategy 2025 Strategic Targets A commitment to driving value ROE Net Profit* C/I Ratio NPS STP 20% 2x <36% #1 >85% *Strategy formulated in 2020 8
Slide 9: Financial Performance
1 2 3 Financial Performance 4 5 9M 2022 Earnings Presentation 6 7 9
Slide 10: Financial Performance Highlights
Financial Performance Highlights ADIB delivers AED 2.5 billion in net income higher than 2021 full year net income Strong YoY Growth in Profitability Solid Balance Sheet Growth YTD Robust Capital Position and Strong Return 2.5bn 147bn 17.9% Net Income Total Assets CAR +53% +8% -157bps 4.5bn 103bn 19
Slide 11: Income Statement
Income Statement 53% growth in profitability underscored by positive increases in our assets, gross financing and revenue Net Income (AEDmn) Net Income Movement YoY (AEDmn) 1,200 1,010 1,000 +53% 728 715 726 800 608 600 501 493 399 2,452 257 167 30 400 1,602 -2 200 0 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q
Slide 12: Non-Funded Income
Non-Funded Income Robust fee generation drives 11% YoY growth in non-funded income Non-Funded Income (AEDmn) Non-Funded Income Movement YoY (AEDmn) +11% +11% 667 620 150 84 1,715 551 549 546 1,548 506 491 -3 -64 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 Non-funded Investment Fees and Foreign exchang
Slide 13: Funded Income
Funded Income Net profit margin saw a 23bps increase from 1H 2022 reflecting higher rates and stronger volumes Net Profit Margin (%) Net Profit Margin Movement YoY (%) 4% 3.73% 3.50% 3.47% 3.44% 3.41% 3.44% 3.23% 4% +23bps 3% 3.35% 3% 3.15% 3.13% 3.12% 3.09% 3.13% 0.18% 0.06% 0.06% 0.02% 3.35% 2.92%
Slide 14: Operating Expenses
Operating Expenses Cost to income ratio improved to 37.6% helped by revenue growth and effective cost control strategy Cost To Income Ratio (%) Expenses Movement YoY (AEDmn) -463bps 44.3% 43.9% 42.2% -2% 40.7% 40.9% 40.9% 37.6% 1,729 48 14 1,699 -92 1Q 21 1H 21 9M 21 FY 21 1Q 22 1H 22 9M 22 Expenses
Slide 15: Digital Banking
Digital Banking Progress made on ADIB's digital strategy is reflected in UAE's highest customer ratings and other key digital metrics. Digitally Active Customers (%) Digital Sales (% of Total) 22 ITM machines Fully digital application 75% 70% 70% 71% 70% 60% 51% deployed across the process for cards
Slide 16: Impairments
Impairments A 53% decline in impairments and 72bps decline in cost of risk YoY due to an improved economic outlook Impairments Movement YoY (AEDmn) Impairments (AEDmn) -53% -67% 384 751 31 233 203 20 352 134 113 114 125 -347 -30 -73 Impairments Retail Wholesale Private Treasury Others Impairments 1Q
Slide 17: Non-Performing Financing
Non-Performing Financing NPA (AEDmn) NMC Group +7% 85% NPA Coverage 7,746 7,786 8,025 8,286 8,355 8,175 8,597 1,273 1,273 1,273 1,273 1,273 1,273 1,273 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 QoQ +1% +3% +3% +1% -2% +5% NPA Composition by Sector (%) NPA Movement YTD (AEDmn) PSE Other 2.7% 2.4% 234
Slide 18: Non-Performing Financing
Non-Performing Financing NPA ratio and coverage ratio stabilizing with improved economic environment NPA Ratio (%) NPA Coverage Ratio (%) 10.0% 140% 118.2% 120.0% 121.1% 123.7% 122.4% 111.9% 115.2% 9.5% 120% 8.9% 9.0% 8.9% 8.8% 8.8% 100% 9.0% 8.4% 8.3% 80% 8.5% 60% 65.7% 66.8% 68.7% 71.4% 67.8% 8.0%
Slide 19: Balance Sheet
Balance Sheet ADIB reported 8% YTD growth in total assets Total Assets (AEDbn) Total Assets Movement YTD (AEDbn) 147.2 150 +8% 145 141.9 138.6 140 136.9 10.0 5.4 0.8 147.2 133.4 136.9 135 130.7 130.6 130 -3.5 -2.4 125 120 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 Total assets Cash & Due from Custome
Slide 20: Customer Financing
Customer Financing …with 11% YTD customer financing growth driven mainly by strong volumes from Capital and Retail… Customer Financing, Net (AEDbn) Customer Financing, Customer Financing, Gross Movement YTD (AEDbn) 100 98.2 Gross by Segment (%) +11% 95 92.2 90.2 Private Other 90 88.3 3.9% 2.6% 3.9 2
Slide 21: Customer Deposits
Customer Deposits …8% YTD deposit growth with CASA comprising 74% of total customer deposits Total Deposits (AEDbn) Total Deposits Movement by Segment YTD (AEDbn) 125 118.8 120 110.8 115.2 +8% 115 109.6 110 105.2 107.0 103.1 105 5.9 1.2 0.5 1.5 0.1 118.8 109.6 100 95 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q
Slide 22: Capital and Liquidity
Capital and Liquidity Robust capitalization and liquidity positions, well within regulatory requirements Capitalization Ratios (%) Liquidity Ratios (%) 25% 100% 86.6% 86.2% 84.4% 83.1% 82.4% 84.1% 85.1% 19.2% 19.1% 19.5% 18.6% 20% 18.1% 18.0% 17.9% 80% 80.6% 79.6% 78.9% 80.5% 81.4% 80.0% 82.7% 15% 1
Slide 23: Outlook and Guidance
1 2 3 Outlook and Guidance 4 5 9M 2022 Earnings Presentation 6 7 23
Slide 24: Outlook and Guidance
Outlook and Guidance Improving economic fundamentals and solid YTD financial performance drive a promising outlook for 2022 Market Outlook Management Guidance 9M 2022 Reported FY 2022 Guidance as at 9M 2022 GDP growth from rising oil prices Gross Financing Growth Real GDP growth (%) Executing ADIB’s
Slide 25: Questions & Answers
1 2 3 Questions & Answers 4 5 9M 2022 Earnings Presentation 6 7 25
Slide 26: Consistent dividend distribution
Consistent dividend distribution ADIB consistently distribute dividends with average yield of 4% Shareholder Return Metrics 8.00 7.00 6.00 5.00 4.00 3.00 Share Price 9.9% 2.00 8.0% 7.6% 7.0% 6.2% 6.5% 4.1% 5.1% 4.4% 4.5% 1.00 Dividend Yield 0.00 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Net
Slide 27: Ratings and Accolades
Ratings and Accolades ADIB's recognition for excellence in Islamic banking Credit Ratings ADIB's MSCI ESG Rating Recent Accolades A2 Stable Outlook #1 #1 Digital Bank in the UAE Transformation (April 2021) Program MSCI Rating Distribution 25% 24% 25% A+ 16% Stable Outlook 6% 2% #1 #1 1% Islamic Bank
Slide 28: ADIB Share Price Performance
ADIB Share Price Performance From 1Q 2020 to 3Q 2022 ADIB’s share price is up 126.07% ADIB Share Price Chart 11.00 10.00 9.00 9.02 8.00 7.00 6.00 5.00 3.99 4.00 3.00 2.00 28
Slide 29: Contacts
1 2 3 Contacts 4 5 9M 2022 Earnings Presentation 6 7 29
Slide 30: Additional Information
Additional Information Please contact the Investor Relations team for additional information or download ADIB's IR App ADIB Investor Relations Contact ADIB Investor Relations App Mrs. Lamia Khaled Hariz Head of Public Affairs and Investor Relations E: Lamia.Hariz@adib.com T: +917 2 634 3000 M: +971
Slide 31: Disclaimer
1 2 3 Disclaimer 4 5 6 9M 2022 Earnings Presentation 7 31
Slide 32: 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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