Abu Dhabi Islamic Bank · ADX:ADIB
Abu Dhabi Islamic Bank — Q2 2013 Earnings Presentation
45 slides from Abu Dhabi Islamic Bank's earnings presentation, August 2013
Slide 1: Investor Presentation 30 June 2013 results
Investor Presentation 30 June 2013 results Abu Dhabi: August 2013 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 Abu
Slide 4: Ratings Excerpts
Ratings Excerpts “BFSR is supported by ADIB's solid financial fundamentals and its rapidly expanding Islamic franchise in the retail segment within the United Arab Emirates […] Moody’s assessment of a very high probability of systemic support in the event of need, reflecting ADIB’s strong relationsh
Slide 5: 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: The Bank’s main shareholder is National Holding via EIIC, which is 10.1% EIIC: 40.7% a private holding company, wholly-owned by
Slide 6: 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 liquid
Slide 7: UAE Banking Sector
UAE Banking Sector Highlights UAE Banking Sector (AED Bn) 2011 2012 2013 (YTD) Total Assets (net of provisions) 1,662.1 1,791.6 1,873.5 UAE Banking sector is the largest by assets in the GCC; the UAE banking sector accounts for ~30% of the GCC total. Certificates of deposit held by Banks 80.4 95.1 9
Slide 8: Agenda
Agenda Introduction Financial Review Business Review Appendix 8
Slide 9: Financial Snapshot (1/2)
Financial Snapshot (1/2) Total Assets (AED Bn) Customer Financing (AED Bn) +14% +11% 85.7 48.0 48.8 51.2 75.3 74.3 64.1 40.5 Strong, yet Impressive 34.2 51.2 prudent asset financing growth growth 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Customers’ Deposits (AED Bn) Capital Resources (AED Bn
Slide 10: Financial Snapshot (2/2)
Financial Snapshot (2/2) Revenues (AED Mn) Return on Shareholders’ Equity (%) +13% 18.2% 18.2% 3,425.8 3,565.6 17.7% 3,074.0 15.4% 2,520.3 Impressive 2,198.6 Positive return on growth year shareholder on year s’ equity 1.5% 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Net Profit (AED Mn) Custom
Slide 11: June 2013 in review – key financial highlights
June 2013 in review – key financial highlights Balance sheet highlights Income statement highlights Key performance indicators Change Change AED Bn June 12 June 13 AED Mn H1 12 H1 13 +11% % % +13% Total assets 78.9 90.7 15% Revenue 1,757.5 1,869.6 6% Net Profit 711 Net customer 620 630 50.3 56.2 12%
Slide 12: Q2 2013 – Key ratios
Q2 2013 – Key ratios Ratios Q2 2012 Q2 2013 Return on Shareholders’ Equity (annualised, net of Tier 1 sukuk) 20.2% 22.0% Efficiency Net Profit Margin 4.5% 4.3% Cost to income ratio 42.6% 42.0% Financing to deposits ratio 83.0% 84.0% Liquidity Stable funds ratio 80.8% 79.1% CAR – Basel II 16.6% 17.3%
Slide 13: Competitive landscape
Competitive landscape Peer Group Analysis for H1 2013 (AED Bn) NBAD ADCB FGB UNB Mashreq DIB ADIB Return on Average 20.0% 18.0% 18.5% 16.4% 12.8% 14.7% 22.0% Shareholders’ Equity* Revenues 4.87 3.74 3.89 1.65 2.26 2.12 1.87 Operating Profit 3.35 2.65 3.09 1.24 1.25 1.29 1.08 Net Profit 2.62 1.82 2.2
Slide 14: Key income parameters - Group
Key income parameters - Group Net Revenue from Funds (AED Mn) Fees, commission and others (AED Mn) Profit paid on funds FX +25% 1,481 Revenue from funds 1,447 6 Investment income & others 388 Net revenue from funds Fees & Commission 5 756 724 311 88 723 648 25 +20% 515 1,876 75 1,801 186 195 13 162
Slide 15: Key income parameters - Group
Key income parameters - Group Net Profit (AED Mn) Highlights Operating profit Net Profit +13% Provision for impairment Bottom line (net profit) up by 13% y-o-y. 1,077 1,003 Top line (revenue) grew by 6% y-o-y. +15% 711 630 551 551 Operating profit up by 7% y-o-y. 509 436 365 371 373 365 302 315 323
Slide 16: Operating expenses drivers – Group
Operating expenses drivers – Group Expense base relatively constant over last 18 month period, despite increase in international presence, due to tight expense management Improved cost to income ratio (AED Mn) Bank Operating expenses by type (AED Mn) Subsidiaries UAE Cost to income ratio - Bank Depr
Slide 17: Balance Sheet Strength
Balance Sheet Strength Consistently remains one of the most liquid banks in the UAE Net Customer Financing & Customers’ Deposits (AED Bn) Composition of Total Assets – AED Bn Customer Financing Fin to Dep ratio Investmen Investmen ts: Fixed Customer Deposits Adavnces to Stable funds ratio ts: 5.0% a
Slide 18: Customer Financing Assets
Customer Financing Assets Portfolio growth of 9.8% since Q4 12 (highest among peer banks) driven by strong performance from Wholesale bank Gross Customer Financing by Segment Gross Customer Financing by Customer Segment Private Retail FI: 1.6% Govt. & FI: 1.4% Govt. & PSE: SME: Wholesale PSE: SME: 7
Slide 19: 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 20: Funding Profile
Funding Profile Customer deposits up 10% yoy, focus on CASA deposits Composition of Liabilities (AED Bn) Customers’ Deposits by Segment (AED Bn) 66.9 Private Q4 12 Q2 13 61.3 Wholesale +11% 66.9 4.6 Retail 4.5 4.6 60.5 10.1% 51.9 53.2 12.9% 3.1 43.6 14.6% 13.4% 36.7% 14.9% 38.8% 2.2 1.9 2.1 46.1% 40
Slide 21: Capital
Capital Well capitalised and strong capital base after Tier 1 Hybrid issue Capital Adequacy (%) Capital base - Tier 1 and Tier 2 - AED Bn Total CAR UAE Central Bank CAR requirement Tier 2 12.5 Tier 1 Minimum Tier-1 requirement Tier1 0.3 17.3% 10.6 16.6% 16.1% 16.6% 10.0 9.5 14.9% 2.4 16.9% 2.3 2.3 1
Slide 22: Shareholders’ Return
ADIB Price (AED) - 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 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 Shareholders’ Return Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 ADIB Mar-11 Total div
Slide 23: Dividend Distribution History
Dividend Distribution History 2007 2008 2009 2010 2011 2012 Net Profit (Mn) 769.0 851.1 78.0 1,023.6 1,155.1 1,201.2 Cash Dividend Payout Ratio 51.2% 50.0% - 50.0% 50.0% 50.0% (% of Net Profit) Total Dividend Yield 3.2% 8.3% 6.9% 7.3% 7.7% 8.0% Cash Dividend 20.0% 21.6% - 21.6% 24.4% 25.4% (% of Sha
Slide 24: Agenda
Agenda Introduction Financial Review Business Review Appendix 24
Slide 25: ADIB Strategy
ADIB Strategy To be a top tier Islamic financial services group by Providing Islamic financial services for the global community Build Market Leadership Create an Integrated Pursue International within the UAE Financial Services Group Growth Opportunities • The key customer service sectors are • ADI
Slide 26: Business unit contribution
Business unit contribution Retail Wholesale Private Capital Real Other banking banking banking markets estate operations H1 12 H1 13 H1 12 H1 13 H1 12 H1 13 H1 12 H1 13 H1 12 H1 13 H1 12 H1 13 Assets Amount (Bn) 26.3 29.2 20.4 23.9 5.8 5.6 22.4 27.3 2.6 2.6 1.3 2.1 Contribtuion % 33.3% 32.2% 25.8% 2
Slide 27: Retail Banking overview
Retail Banking overview Retail Banking contributes 66% of Net Revenues Assets (AED Bn) Personal Banking Division provides services for +14% individuals clients, while the Business Banking Division 29.2 25.1 26.3 services the needs of SMEs. 21.9 17.2 These services include a variety of Shari’a compli
Slide 28: Wholesale Banking overview
Wholesale Banking overview Assets (AED Bn) Wholesale Banking contributes 28% of Net Revenues +13% 23.9 Wholesale Banking encompasses the large corporates, 18.3 20.4 17.2 14.8 emerging corporates and financial institutions divisions of the Bank. The array of services includes Transaction Banking and
Slide 29: Private Banking overview
Private Banking overview Assets (AED Bn) Private Banking contributes 6% of Net Revenues -5% Private Banking focuses on high and ultra high net 6.8 7.2 6.4 5.8 5.6 worth individuals. Wealth Management concentrates on developing, marketing and servicing a wide range of wealth management products (incl
Slide 30: Treasury overview
Treasury overview Assets (AED Bn) Treasury contributes 6% of Net Revenues +2% Treasury principally handles money market brokerage, 15.7 14.1 trading and treasury services, as well as the 13.3 management of the Bank's funding operations by use of 10.6 investment deposits Investments Fair value throug
Slide 31: Agenda
Agenda Introduction Financial Review Business Review Appendix 31
Slide 32: Consolidated Statement of Income
Consolidated Statement of Income % chg Q2 % chg Q2 % chg H1 13 AED Mn Q2 12 Q1 13 Q2 13 H1 12 H1 13 13 vs Q2 12 13 vs Q1 13 vs H1 12 Revenues 886.8 919.0 950.6 7.2% 3.4% 1,757.5 1,869.6 6.4% Net Revenue from Funds 724.4 725.7 755.8 4.3% 4.1% 1,446.9 1,481.5 2.4% Fees & commission 102.0 151.8 143.1 4
Slide 33: Consolidated Balance Sheet
Consolidated Balance Sheet % chg 30 June % chg 30 June AED Mn% 30 June 2012 31 Dec 2012 30 June 2013 2013 vs 31 Dec 2013 vs 30 June 2012 2012 Cash and balances with Central Banks 11,104 11,287 13,959 23.7% 25.7% Due from financial institutions 9,075 13,876 9,794 -29.4% 7.9% Net Customer financing 50
Slide 34: Key income parameters – Bank only
Key income parameters – Bank only Revenues (AED Mn) Net Profit (AED Mn) Fees, commission & others Operating profit Net Profit 1,857 1,109 Net revenue from funds 1,763 Cost of credit 1,053 268 333 813 757 888 940 874 748 128 141 163 540 536 563 588 76 466 424 45 1,495 1,524 385 391 397 332 296 296 77
Slide 35: An award winning Islamic Bank – 2013 and 2012 (1/3)
An award winning Islamic Bank – 2013 and 2012 (1/3) “Islamic Bank of the Year – Middle “CSR label 2013” East Regional Winner 2013” by Dubai chamber of Commerce & by Banker Financial Times Industry “Best Islamic bank in the UAE for “Best Overall Islamic Bank” by Islamic Finance News 2012 ” by Euromon
Slide 36: An award winning Islamic Bank – 2013 and 2012 (2/3)
An award winning Islamic Bank – 2013 and 2012 (2/3) “Best Overall Bank in Customer “Best Call Center Award” Service” in the UAE for two consecutive in the UAE by Ethos Consultancy years by Ethos Consultancy “Best Islamic Bank” “Best Islamic Bank” in the UAE for three consecutive years in the UAE by
Slide 37: An award winning Islamic Bank – 2013 and 2012 (3/3)
An award winning Islamic Bank – 2013 and 2012 (3/3) “Best Mudarabah Deal” “Deal of the Year” of the year for Tier 1 Sukuk by Islamic by Euromoney Finance News “UAE Deal of the Year” “Excellence in Islamic Banking” for Tier 1 Sukuk by Islamic Finance by International Alternative Investment News Revie
Slide 38: Key deals in H1 2013 (1/2)
Key deals in H1 2013 (1/2) Highly structured transaction that The Largest corporate Sukuk reaffirms ADIB's commitment to issue from Dubai since 2007 USD 1Bn Sukuk USD 82,000,000 the growth & development of the The lowest profit rate ever UAE achieved by a Dubai corporate Joint Lead Manager & MLA, Bo
Slide 39: Key deals in H1 2013 (2/2)
Key deals in H1 2013 (2/2) The project is considered the Highly important largest aluminum smelter led transaction for ADIB with and this year’s biggest PF deal continuous support to Dubai USD 4,000,000,000 in the region USD 2,550,000,000 Government Entities MLA, Islamic Structuring ADIB has been st
Slide 40: Key Deals in 2012
Key Deals in 2012 The largest non-sovereign Sukuk issuance The 1st issuance by an investment grade out of Dubai in over four years MAF Sukuk privately-owned company in the GCC; The first secured Sukuk transaction from USD 400,000,000 The 1st Bond/Sukuk by a UAE-based USD 1,850,000,000 the region in
Slide 41: Executive Management Biographies
Executive Management Biographies 41
Slide 42: Executive Management Profile (1/3)
Executive Management Profile (1/3) Joined ADIB in March 2008. He holds a Bachelor degree (major in Corporate Finance) from Loyala of Tirad Mahmoud Concordia University in Montreal, Canada and has also completed the Executive Management Program at Chief Executive Officer Wharton. He has previously wo
Slide 43: Executive Management Profile (2/3)
Executive Management Profile (2/3) Joined ADIB on 3 June 2008. He holds a Masters in Business Administration from Tulane University, Masarrat Husain Louisiana, USA and BS of Science Chemical Engineering from Texas A&M University, Texas, USA. Global Head of Risk He has 33 years experience working wit
Slide 44: Executive Management Profile (3/3)
Executive Management Profile (3/3) Joined ADIB on May 2012. He has 30 years of banking experience in managing in-house legal departments Dr. Adnan Said Abrahim and acting as general legal counsel to various banks and investment companies over the span of his Head of Legal, UAE career. Joined ADIB on
Slide 45: 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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