Abu Dhabi Islamic Bank · ADX:ADIB
Abu Dhabi Islamic Bank — Q2 2015 Earnings Presentation
36 slides from Abu Dhabi Islamic Bank's earnings presentation, July 2015
Slide 1: Investor Presentation 30 June 2015 results
Investor Presentation 30 June 2015 results Abu Dhabi: July 2015 ADIB © 2010 adib.ae
Slide 2: Agenda
Agenda Introduction Financial Review Business Review Appendix 2
Slide 3: ADIB at a glance
ADIB at a glance Overview ADIB – Timeline and milestones Incorporated in 1997 to serve as first Islamic Bank in the Emirate of Abu Dhabi. •Established by the Govt. of Abu Dhabi in 1997 •Licensed in 1998 as an Islamic bank by the Central bank and Majority owned by members of the ruling family of
Slide 4: Ownership & Corporate Structure
Ownership & Corporate Structure ADIB Ownership ADIB is mainly owned by over 46,000 UAE nationals and Other members and companies. associates of the Abu Dhabi Royal family: 9.6% The Bank’s main shareholder is National Holding via EIIC, which is EIIC: 40.0% a private holding company, wholly-owned
Slide 5: Key Strengths
Key Strengths Majority owned by members of the ruling family of Abu Dhabi and Strong and sovereign wealth fund. Influential 4th Largest Shareholder Robust Fastest growing major Islamic Bank Islamic Bank Financial Sustained growth in profits; consistently Globally by Health and one of the most
Slide 6: UAE Banking Sector
UAE Banking Sector Highlights UAE Banking Sector (AED Bn) Dec 13 Dec 14 May 15 Total Assets - Gross 2,100.3 2,304.9 2,391.2 UAE Banking sector is the largest by assets in the GCC; the UAE banking sector accounts for ~38% of the GCC total. Certificates of deposit held by Banks 107.9 99.5 94.7 Ban
Slide 7: Financial Snapshot (1/2)
Financial Snapshot (1/2) Total Assets (AED Bn) Net Customer Financing (AED Bn) Customer Deposits (AED Bn) +10% +11% +11% 111.9 73.0 84.8 103.2 75.5 61.7 86.1 61.3 75.3 74.3 48.0 48.8 51.2 56.5 55.2 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Equity (AED Bn) Revenues (A
Slide 8: Financial Snapshot (2/2)
Financial Snapshot (2/2) Return on Avg Shareholders’ Equity (%) Financing to Deposits Ratio (%) Advances to Stable Funds Ratio (%) 18.4% 86.1% 86.5% 84.8% 83.5% 81.8% 83.4% 16.1% 16.3% 77.9% 15.6% 15.5% 88.5% 83.1% 75.7% 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 CAR
Slide 9: Agenda
Agenda Introduction Financial Review Business Review Appendix 9
Slide 10: Q2 / H1 2015 – Key financial highlights – Income statement
Q2 / H1 2015 – Key financial highlights – Income statement AED Mn Q2 14 Q2 15 Change H1 14 H1 15 Change Net revenue from funds up by 9% on the back % % of higher customer revenues and low funding cost. Net Revenue from funds 840.9 918.8 9.3% 1,638.6 1,860.1 13.5% Fees, commission and Expenses up
Slide 11: 30 June 2015 – Key financial highlights – Balance sheet
30 June 2015 – Key financial highlights – Balance sheet Total assets increased by 9% over Q2 AED Bn Jun 14 Jun 15 Change % Dec 14 Change % 2014 to reach AED 115.1 Bn. Customer financing increased by 15% Total assets 105.7 115.1 8.9% 111.9 2.8% from Q2 2014 to reach AED 74.5 Bn. Net customer fina
Slide 12: Key ratios
Key ratios Ratios Jun 2014 Jun 2015 Diluted Earnings per share (EPS in AED) 0.228 0.268 Return on Average Shareholders’ Equity (excluding GoAD - Tier 1 capital) 19.3% 20.8% Efficiency Net profit margin (%) 4.1% 4.2% Cost / income ratio 41.7% 46.3% Percentage lent (Financing / Total Assets) 61.4% 64.
Slide 13: Operating Performance – Net profit income
Operating Performance – Net profit income Highlights (Q2 2015 vs. Q2 2014) Revenues (AED Mn) Key movements in Revenues (AED Mn) Fees, commission and others 28 Net revenue from funds +15% 33 Revenues, up by 15.8% at AED 33 1,254 Mn. 2,478 2,156 78 +16% 25% 24% 1,254 Net revenue from Funds (NRFF)
Slide 14: Operating Performance – Non-profit income
Operating Performance – Non-profit income Highlights (Q2 2015 vs. Q2 2014) Non-profit income (AED Mn) Composition of Fees & commission (AED Mn) FX Fees & Commission Risk Participation Retail and others, net Brokerage Non profit income up by 38.5% at Investment income & others Cards income, net Tra
Slide 15: Balance Sheet Strength and Customer Financing
Balance Sheet Strength and Customer Financing Portfolio growth of 14% since Q2 14 driven by strong performance from Retail (19%) and Wholesale bank (12%) Composition of Total Assets – AED Bn Liquid Assets* (%) Investmen Investmen ts: ts: % of total assets Liquid assets (AED Bn) 5.7% Fixed 7.4% Fixed
Slide 16: Funding Profile
Funding Profile Net Customer Financing & Customers’ Deposits (AED Bn) Composition of Liabilities (AED Bn) Customer Financing Fin to Dep ratio Other Liabilities Due to FI Customers Deposits Adavnces to Stable funds ratio 86.4% 86.5% 87.0% Sukuk Depositors’ accounts 101.4 100.0 82.1% 82.6% 98.2 3.7 86
Slide 17: Asset quality – Customer financing only
Asset quality – Customer financing only Provisions and NPAs – Customer financing (AED Mn) NPA ratio and provision coverage ratio NPAs - impaired Write-off Collective / General NPA ratio - Not Impaired Total Provision coverage ratio - Impaired only * NPAs - Total Individual / Specific NPA ratio - Imp
Slide 18: Capital
Capital Capital Adequacy (%) Capital base – CET, Tier 1 and Tier 2 - AED Bn Total CAR Tier 1 Tier 2 Tier 1 CET 15.8% 13.2 13.7 13.4 12.9 13.0 0.5 0.5 0.5 0.4 0.4 5.4 5.4 5.4 15.3% 14.7% 5.4 5.4 14.3% 14.4% 14.0% 14.3% 7.8 13.5% 7.2 7.1 7.4 7.4 13.9% 13.9% Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q2 14 Q3 14 Q4
Slide 19: Agenda
Agenda Introduction Financial Review Business Review Appendix 19
Slide 20: ADIB Strategy
ADIB Strategy To become a top tier regional bank by Providing Islamic financial solutions for everyone Build Market Leadership Create an Integrated Pursue International within the UAE Financial Services Group Growth Opportunities • The key customer service sectors are • ADIB continues to build a div
Slide 21: Business unit contribution
Business unit contribution Composition of Total Assets – AED Bn Composition of Total Liabilities – AED Bn Private; Real Real Private; 3% Estate; Private; Estate; 4% Real Real 0% 3% 0% Private; Estate; 2% Capital Capital Capital Estate; 3% Capital Others; 5% Markets; Markets; Markets; Markets; 6% Oth
Slide 22: Retail Banking overview
Retail Banking overview Assets (AED Bn) Liabilities (AED Bn) Retail Banking contributes 67% of Net Revenues Personal Banking Division provides services for +21% +22% individuals clients, while the Business Banking Division 40.8 42.5 services the needs of SMEs. 51.8 35.1 42.5 45.3 These services
Slide 23: Wholesale Banking overview
Wholesale Banking overview Assets (AED Bn) Liabilities (AED Bn) Wholesale Banking contributes 27% of Net +11% +8% Revenues Wholesale Banking encompasses the large corporates, 30.7 30.5 28.0 27.3 23.9 emerging corporates and financial institutions divisions 22.1 of the Bank. The array of services i
Slide 24: Private Banking overview
Private Banking overview Assets (AED Bn) Liabilities (AED Bn) Private Banking contributes 4% of Net Revenues -7% 0% Private Banking focuses on high and ultra high net worth individuals. 5.5 5.5 2.6 2.7 2.7 5.1 Wealth Management concentrates on developing, marketing and servicing a wide range of
Slide 25: Treasury overview
Treasury overview Assets (AED Bn) Treasury contributes 10% of Net Revenues Treasury principally handles money market brokerage, -8% trading and treasury services, as well as the 19.1 18.5 management of the Bank's funding operations by use of 17.6 15.7 14.9 investment deposits. Investments Fair val
Slide 26: Agenda
Agenda Introduction Financial Review Business Review Appendix 26
Slide 27: Consolidated Statement of Income
Consolidated Statement of Income % chg Q2 % chg Q2 % chg H1 15 AED Mn Q2 14 Q1 15 Q2 15 H1 14 H1 15 15 vs Q2 14 15 vs Q1 15 vs H1 14 Revenues 1,082.9 1,224.3 1,254.0 15.8% 2.4% 2,156.0 2,478.3 15.0% Net Revenue from Funds 840.9 941.3 918.8 9.3% -2.4% 1,638.6 1,860.1 13.5% Fees & commission 167.3 222
Slide 28: Consolidated Balance Sheet
Consolidated Balance Sheet % chg 30 Jun % chg 30 Jun AED Mn% 30 Jun 2014 31 Dec 2014 30 Jun 2015 2015 vs 30 Jun 2015 vs 31 Dec 2014 2014 Cash and balances with Central Banks 20,567 18,758 18,609 -9.5% -0.8% Due from financial institutions 6,831 6,270 5,716 -16.3% -8.8% Net Customer financing 64,873
Slide 29: Dividend Distribution History
Dividend Distribution History 2007 2008 2009 2010 2011 2012 2013 2014 Net Profit (Mn) 769.0 851.1 78.0 1,023.6 1,155.1 1,201.2 1,450.2 1,750.7 Cash Dividend Payout Ratio 51.2% 50.0% - 50.0% 50.0% 50.0% 50.0% 40.0% (% of Net Profit) Cash Dividend (% of Share 20.0% 21.6% - 21.6% 24.4% 25.4% 30.7% 23.3
Slide 30: Shareholders' Return
ADIB Price (AED) - 2.50 3.00 6.50 0.50 1.00 1.50 2.00 3.50 4.00 4.50 5.00 5.50 6.00 7.00 7.50 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Shareholders’ Return Jan-
Slide 31: Key Deals in Q1 2015 (1/2)
Key Deals in Q1 2015 (1/2) US$ 913,000,000 US$ 70,775,027 US$ 600,000,000 AED 400,000,000 US$ 16,000,000 US$ 500,000,000 Sukuk ECGD Backed Sukuk ICIEC-backed facility Mandated Lead Arranger & Structuring Advisor - Bridge Joint Lead Manager & Joint Lead Manager & Structural Bilateral Deal Mandated Le
Slide 32: Key Deals in Q2 2015 (2/2)
Key Deals in Q2 2015 (2/2) US$ 1,500,000,000 AED 500,000,000 US$ 500,000,000 US$ 55,200,000 Mandated Lead Arranger & Sole Underwriter/ Bookrunner, Bookrunner MLA & Account Bank Structural Bilateral Deal Mandated Lead Arranger June 2015 June 2015 June 2015 June 2015 Landmark transaction for ADIB
Slide 33: An award winning Bank (1/3)
An award winning Bank (1/3) “SKEA To – Gold category” be confirmed in February Mohammed Bin Rashid Business Sheikh Khalifa Excellence award 2014 award for 2 consecutive years 2015 “Best Overall Bank in Customer “Best Overall Bank in Customer Service” for 4 consecutive years Service” in the GCC by Et
Slide 34: An award winning Bank (2/3)
An award winning Bank (2/3) “Best Branch Award in the UAE” for 2014 by Ethos Consultancy “Best Islamic Bank in the UAE” “Best Islamic Bank” in the UAE by Global Finance in the UAE Islamic Finance News “Best Overall Islamic Bank “ “Best Islamic Bank” International Financial Law Review by EMEAFinance
Slide 35: An award winning Bank (3/3)
An award winning Bank (3/3) “Best Islamic Bank in the Middle “Most Recommended Bank in East and UAE “ by Asia Money the UAE” by Souq Al Mal “Best Treasury services “Best Loyalty Card” by Freddie Award by Islamic Finance News 2013 “Best Corporate Finance for Barclays “Best Nationalisation initiative”
Slide 36: 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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