Abu Dhabi Commercial Bank · ADX:ADCB
Abu Dhabi Commercial Bank — Abu Dhabi Commercial Bank PJSC — Q1 2014 Earnings Presentation
20 slides from Abu Dhabi Commercial Bank's earnings presentation, 2014
Slide 1: Abu Dhabi Commercial Bank PJSC Q1'14 Earnings presentation
Abu Dhabi Commercial Bank PJSC Q1’14 Earnings presentation | Q1’14 Earnings presentation
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLELY FOR USE AS AN INVESTOR PRESENTATION AND IS PROVIDED AS INFORMATION ONLY. THIS PRESENTATION DOES NOT CONTAIN ALL OF THE INFORMATION THAT IS MATERIAL TO AN INVESTOR. BY READING THE PRESENTA
Slide 3: Q1'14 highlights
Q1’14 highlights Balance sheet highlights: AED mn March’14 Dec’13 Change % Net loans 132,197 131,649 0 Total assets grew 2% over 2013, mainly on Investment securities 21,836 20,855 5 account of higher acceptances Total assets 186,103 183,143 2 Stable net loans and customer deposits Customer deposits
Slide 4: Performance indicators
Performance indicators Sustainable profitability Strong performance indicators Net profit Return on equity (AED mn) (ROE %)* +22% 13.9% 17.0% +26% Q1’13 Q1’14 1,103 Return on average assets (ROAA %)* 903 917 920 879 1.60% 1.83% Q1’13 Q1’14 Basic earnings per share Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 (EPS
Slide 5: Operating performance
Operating performance Highlights Operating income Net interest income* (AED mn) (AED mn) Diversified revenue stream, operating +9% +10% income up 9% over Q1’13, at +8% Interest income Interest expense +3% AED 1,901 mn 1,991 1,461 Total net interest income of 1,821 1,901 1,259 1,366 1,380 1,744 1,764
Slide 6: Operating expenses
Operating expenses Cost to income ratio Operating expenses Highlights (AED mn) +21% Operating expenses grew in line -9% with operating income. 684 Cost to income ratio was 32.9% 29.7% 38.8% 32.9% 591 39 625 565 37 compared to 29.7% in Q1’13 517 41 38 243 40 222 and 38.8% in Q4’13 Q1’13 Q4’13 Q1’14 2
Slide 7: Composition of assets
Composition of assets Highlights Total assets at AED 186,103 mn, compared to AED 183,143 mn, up 2% mainly on account of higher acceptances Net loans and advances increased AED 548 mn over 2013 and comprised 71% of total assets Islamic financing assets at AED 10,417 mn, comprised 7.5% of gross loans
Slide 8: Customer loans
Customer loans Highlights Gross loans were stable over 2013, at AED 139 bn Diversified loan portfolio, personal loans comprised 22% of total gross loans Strong domestic focus, with 93% of gross loans within UAE Gross loans by industry March’14 Dec’13 Gross loans = AED 138,814 mn Gross loans = AED 13
Slide 9: Customer loans
Customer loans Highlights Wholesale banking loans comprised 55% and consumer banking loans comprised 45% of total loans (net) Loan to deposit ratio was stable at 114.25%, compared to 114.05% as at 31 December 2013 Loan to deposit ratio Evolution of net loans March’14 Dec’13 Net loans = AED 132,197 m
Slide 10: Composition of liabilities
Composition of liabilities Highlights Total liabilities at AED 162,458 mn, compared to AED 158,321 mn, up 3% over 2013 Total customer deposits increased by AED 276 mn over 2013 Deposits from customers comprised 71% of total liabilities Diversified sources of deposits by counterparty, currency, tenor
Slide 11: Customer deposits
Customer deposits Highlights Consumer Banking deposits comprised 30% and Wholesale Banking deposits comprised 39% of total customer deposits CASA customer deposits increased AED 8.6 bn over 2013, contributing 46% of total deposits (Dec’13: 39%) Deposits customer deposits by type Evolution of deposit
Slide 12: Wholesale funding and maturity profile
Wholesale funding and maturity profile Maturity profile Wholesale funding split As at 31 March 2014 (AED mn) As at 31 March 2014 16,796 621 Source of funds AED mn ECP GMTN/EMTN 15,809 4,902 ECD Sub Debt 5,255 Loans 10,186 Interbank 5,511 Sub Debt 4,224 MTN/GMTN¹ Euro Commercial Paper 5,382 5,914 1,6
Slide 13: Investment securities
Investment securities Investment securities (AED mn) Maturity profile of investment securities Highlights portfolio (AED mn) +12% Investment portfolio at 6,479 +5% 5,764 AED 21,836 mn, increased 5% 21,836 over 2013, mainly attributable to 20,855 4,090 increase in bonds issued by UAE 19,669 19,463 ba
Slide 14: Asset quality
Asset quality Highlights Non-performing loans ratio improved to 3.8% from 4.1% as at 31 December 2013 Non-performing loans were at AED 5,249 mn compared to AED 5,722 mn as at 31 December 2013 Provision coverage ratio improved to 115.1% from 109.7% as at 31 December 2013 Collective impairment allowan
Slide 15: Capital and liquidity position
Capital and liquidity position Highlights Capital adequacy ratio Tier I and core Tier I ratios Risk weighted assets (AED bn) As at 31 March 2014, capital 17.47% adequacy ratio was 20.15% 138 147 16.62% 15.57% 149 and Tier I ratio was 15.57% 23.05% 2.89% 2.72% 21.21% 2.69% 20.15% Core Tier I was 12.8
Slide 16: Summary
Summary Continue to follow a corporate Significant growth in non-interest strategy based on measured income, driven by higher fee & growth and discipline commission income and higher trading fee income Stable balance sheet, yet Improved asset quality, operating income increased 9% cost of risk at 46
Slide 17: Appendix
Appendix 17 | Q1’14 Earnings presentation
Slide 18: Q1'14 awards
Q1’14 awards The Banker Middle East World Finance Product Awards 2014; Magazine Award 2014; “Best New SME Product”, “Best Corporate “Best SME Customer Governance in UAE” Service” and “Best Trade Finance Offering” 18 | Q1’14 Earnings presentation
Slide 19: Balance sheet
Balance sheet AED mn March’14 Dec’13 Change % Cash and balances with Central Banks 10,146 9,961 2 Deposits and balances due from banks 12,040 11,345 6 Trading securities 60 885 (93) Derivative financial instruments 3,452 3,616 (5) Investment securities 21,836 20,855 5 Loans and advances, net 132,197
Slide 20: Income statement
Income statement AED mn March’14 March’13 Change % Interest income and income from Islamic financing 1,741 1,796 (3) Interest expense and profit distribution (360) (537) (33) Net interest and Islamic financing income 1,380 1,259 10 Net fees and commission income 285 215 33 Net trading income 175 126
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