Commercial Bank Of Dubai(psc) · DFM:CBD
Commercial Bank Of Dubai(psc) — Commercial Bank of Dubai — Q1 2025 Earnings Presentation
33 slides from Commercial Bank Of Dubai(psc)'s earnings presentation, Apr 23, 2025
Slide 1: Investor Presentation for the 3 months ended 31st March 2025
WL SU) so Ahi Commercial Bank of Dubai 2025 Investor Presentation for the 3 months ended 31st March 2025 Dr Bernd van Linder Chief Executive Officer Mr Darren Clarke Chief Financial Officer 23 April 2025 www.chd.ae
Slide 2: Solid net profit result with strong loan and CASA growth
Solid net profit result with strong loan and CASA growth Strong return on equity generating internal capital for growth Strong balance sheet with all liquidity, funding and capital ratios well above regulatory limits = Improved cost of risk with a lower Non-Performing Loan ratio and a coverage ratio
Slide 3: Solid net profit result with higher income and lower cost of risk
Solid net profit result with s highe en: and lo’ Q1 25 Q1 25 -Q1 24 Net profit after tax 828.1 127.1 18.1% Return on equity (RoE) after tax 22.69% 161 bp 7.6% Return on assets (RoA) after tax 2.36% 20 bp 9.3% Interest margin 3.06% (10) bp (8.2%) Cost to income ratio 27.01% 405 bp 17.6% Credit impair
Slide 4: Financial Performance
Financial Perfo Figures in AED b Returns on Equity Capital Ratios Net Profit before tax Total Assets NPL Ratio Return on Equity (before tax) Other Assets. [lll Net Loans 140.2 141.4 i182 129.0 6.73% 6.46% 235% 249% 33 ‘7 472 44.2 21.2% 27 a5 : . a 435% 4 294, 16.0% 18 0.9 FY 22 FY 23 FY 24 Qt 25 FY2
Slide 5: Progress against Strategic Execution Q1 2025
Progress against Strategic Execution Q1 2025 3 Strong growth in Loans & o20 Recruiting, developing OQ, Deepening customer ~\, % of wholesale % 77 Advances and CASA partially “ES and retaining UAE Ke relationships through transactions initiated offset by lower margins national talent service excellen
Slide 6: Financial Guidance: sustainable net profit growth
Underlying business confidence continues to support forward-looking sustainable net profit growth 5e Financial Guidance ® Loan Growth Cost of Risk Net Interest Margin Cost to Income Mid to high single-digit ; percentage < 50 bps 2.90% - 3.10% growth Return on Equity (before tax) < 28% > 20% = Loan g
Slide 7: Net Profit Bridge on Prior Year
Solid net profit outcome with higher Nil and lower CoR, more than offsetting lower NFI, higher expenses and corporate tax Net Profit Bridge on Prior Year Figures in AED m Net Credit Impairment NII higher on robust Corporate Tax NFI lower on the Other Operating expenses was lower on sound loan and CA
Slide 8: Strong loan and CASA growth and lower cost of risk
Strong loan and CASA growth and lower cost of risk negating absence of one-off NFI gains booked in 2024 Net profit after NFL Nil taxis 828m <> oes — 5.491 2,960 “908 Mo agie 1,372 4,371 1,825 770 2,676 3,570 3,799 959 985 (70%) (72%) (69%) (70%) (72%) 2022 2023 2024 Qt 24 125 2022 2023 2024 Qt 24 Q1
Slide 9: Excellent return on equity on deepening customer engagement
7 . Excellent return on equity on deepening customer engagement and disciplined Profitabi portfolio management on Equity (ROE) before tax on Assets (ROA) before tax (noe anata) rere ROE after tax ROA after tax (is 22.69% {_ is2.36% ) Gis%) 24.94% 2.59% 23.48% : 21.23% A 2.47% ‘ 2.16% @ 15.99% 2022 2
Slide 10: Higher NII benefitting from loan and CASA growth
Higher NIl benefitting from loan and CASA growth, margins stable notwithstandin: competitive price pressure and market liquidity est Income and Expense Interest Income |" Interest Expense 959 947 943 950 985 (881) (941) (990) (933) (845) at 24 a2 24 a3.24 a4a4 125 omponents impacting NIM Asset yield
Slide 11: Strong non-funded income
. Strong non-funded income albeit marginally lower than 2024 due to the absence of large Non-Funded income ><" ost! i i ; one-off transactional gains booked in 2024 Figure AED m Fees and Commission fl Investment i Others [lj FX and derivatives Trade Finance [J Loan Fees [ill Investment Sales lj Othe
Slide 12: Operating expenses and cost to income
Operat in AED m Expen impacted by the reclassification of 27m in fees to expenses (reflected in equity in 2024 and prior), investment in digitisation, risk and control and Emiratisation 1% > fe €.8% if removing impact of fees 27.01% C1987) 24.87% 25.56% ‘ 1,403 1,228 26.14% 997 (Sn 370 315 2022 2023
Slide 13: Balance Sheet Analysis
heet Analysis Backing customer ambitions across all market sectors of the UAE economy Figures in AED b Assets Mix Assets and Loans Net Loans and Advances • Total Assets 11.6% -- - Cash and balances with CB Due from banks -- AED Net loans and advances 141 . 1 biIIion Investment securities Total Asset
Slide 14: Lower cost of risk on improved asset quality
Lower cost of risk on improved underlying asset quality and good recoverie Asset Qual i CPL aaEaaanae coverage above 100 Figures in AED m ‘ment Charges and Recoveries Credit impairment [ll Recoveries — Coverage — Coverage inc collateral stage 3 1.17% 1.02% 138.75% 137.44% 120.83% %, 120.96% 104.23%
Slide 15: Funding
Funding Figures in AED b Customer Deposits Diversified deposit base with increased low cost CASA ther Funding Sources Acceptances and Others [ll Notes and Medium Term Borrowing lll Equity HAT! Capital Time Il CASA ‘(MM Due to Banks > tyear Due to Banks < tyear Il Green Bond 88.3 81.1 47.9 49.9 (48%)
Slide 16: Liquidity and Capital Strength
and Capital Strength Capital ratios remain well above regulatory requirements Capital Adequacy Ratio (CAR) Common Equity Tier 1 (CET1) CAR - - - Regulatory limit (Minimum) CET1 - - - Regulatory limit (Minimum) -----------.JC2%)�---------...► ► 16.04% 15.95% 15.57% 15.31% 12.40% 12.54% 12.41% 12.28%
Slide 17: Broad diversification across key financial attributes
Diversifi Broad diversification across key financial attributes © Asset Diversification Revenue Segmentation t=], Revenue & Funding WM Diversification Diversification 39 Th 12% 23% 2025 2025 2025 2025 Revenue Revenue Asset Funding 72% 28% 56% 44% 61% 39% 71% 29% Nil NFI Wholesale Others Wholesale Ot
Slide 18: Divisional performance
Divisione Improved wholesale banking performance on lower cost of risk, normalised personal Figures in AED m credit charges.and lower corporate gains al operating profit movement sional revenue movement 5% e> 39 M 52 3 M 1,057 4,001 1,372 1,371 2 ® (22) (64 a) (65) Q1 2024 Instit Corp Personal Other
Slide 19: Investing in award-winning digital customer experience
Investing in inning and industry recognised digital customer experience CBD Digital App and Features App rated 4.8 on App Store 96% of customers are registered Expanding digital self-service and 4.2 on Play Store for I (web and mobile) suite available to CBD customers Optimised experience through Ay
Slide 20: Investing in award-winning digital customer experience: iBusiness
Investing in ninning and industry recognised digital customer experience CBD iBusiness Mobile App rated 4.8 on App Store Over 50 functionalities to manage banking needs on and 4.8 on Play Store the go, including financial and non-financial services | First in the GCC market with pre-payment validati
Slide 21: ESG Framework
ESG Framework Four key pillg of the ESG framework and progress to date Four key pillars of the ESG framework uur sem ‘oct ‘our g asi Our Priorities + Climate Risk Management + Sustainable Finance A Continued to grow sustainable finance + Responsible Operations ff Slanatory of POAF (Partnership for C
Slide 22: Exceptional Efforts in the field of Emiratisation
Exceptional Efforts in the field of Emiratisation Bronze Category Nafis Awards 2024 Among UAE's Top 10 Banks Forbes 30 Most Valuable Banks in Middle East 2024 Best Financial Green Bond in EMEA The Achievement Awards 2024 Best Anti-Money Laundering Technology Implementation The Asian Banker, Middle E
Slide 23: Solid net profit result, strong growth and good asset quality
Solid net profit result Strong loan and CASA growth increasing market share and good asset quality | @ Delivering high return on CBD is well placed to equity with momentum to successfully execute our continue through 2025 ongoing strategy Investment in end-to-end digital solutions CBD Investor Prese
Slide 24: Board of Directors
Board of Director H.E. Ahmad Abdulkarim Julfar Chairman H.E. Ahmad Abdulla Binbyat Mr. Buti Saeed Al Ghandi Dr. Abdulla Mohamed Al Karam. Mr. Abdul Wahed Al Fahim Mr. Saod Mohamed Obaidalla Vice Chairman Director Director Director Director Ms. Moza Omar Abdulla Mr. Ali Fardan Al Fardan Mr. Khalid Ab
Slide 25: Executive Committee
Executive Committ Dr. Bernd van Linder Chief Executive Officer Mr. Darren Clarke Mr. Fahad Al Muhairi Mr. Othman Bin Hendi Mr. Abdul Rahim Al Nimer Mr. Khaled Ahmed AlHammadi Chief Financial Officer General Manager Chief Customer Officer General Manager General Manager Institutional Banking Corporat
Slide 26: Increased market volatility and decreasing global interest rates
Increased market volatility and decreasing global market interest rat US Dollar Index ral Bank Overnight Rates SOFR (USD) ——SONIA (GBP) —STR (EURO) 120.0 115.0 6.00 110.0 5.00 45 4.00 106.0 Ta 400.0 103.9 3.00 2.00 95.0 24 90.0 100 0.00 85.0 J Jan-20 Sep-20. © May-21— Jan-22.Sep-22 May-28—Jan-24-—Se
Slide 27: Public sector strategic intent and broad-based business performance
Public sector strategic intent, investment and broad based business performance: and population growth driving economic activity and confidence GDP and Inflation Growth hasing Managers Index Inflation GDP UAE KSA 58.1 31% 4.8% 54.0 1.6% 1.7% 2.0%) 50.0 9%) ~~ @aghl -o1% 2018 2019 2020 2021 2022 2023
Slide 28: Sound fiscal measures boosting economic growth
Sound fiscal measures boosting economic growth E Stock Market Indices UAE Fiscal Position — FM ADX Surplus / (Deficit) (AEDb) —As % of GDP 11,500 250 10.49% 10,500 10% . 200 5.54% 9 9600 5.06% 494% 504 8,500 9,369 150 toss 708 1057 1092 4g, 7,500 6,500 sani 50 (443) 2.47% (6%) 5.500 (0.4) o eA (10%)
Slide 29: Business confidence and broad-based economic growth
s confidence and broad-based economic growth expected to continue throughout 2025 and beyond Business Confidence Index SME Index Trend — Dubai — USA — UK — Germany 180 180 +70 | { Dubai's BGI ranks highest at 125.5 170 +160 160 150 450 140 140 tae 130 427.0 120 120 +10 110 100 100 20 90 Jul20 Jan-21
Slide 30: Strong economic activity and business confidence
Strong economic activity and business confidence Dubai GDP Growth Dubai Hospitality _ Oct-23 ll Oct-24 <>) AED 6.20% #20 3.60% 2.70% 2.80% 2.90% 4.90% 2.20% at 82 -3.50% 2016 2017-~=S«01B8-=S—«OT~S«iOD.-~S«éOYSC«éODSCt«éSC BOD Occupancy % Average dally rate Revenue per available room Source: Dubai S
Slide 31: Key part of the UAE economy
Key part of the UAE economy, supporting ss ambition ‘ey Industry Indicators ield & Cost of Deposits vs 3M EIBOR —SMEIBOR — Yield on Loans Cost of Deposits AEDb 2022 2023 2024 yr 6.80% 6.20% 6.20% 6.00%. Total assets 3,699 4,075 4,560 4,562 40.1% 9 5.10% 550% soneg 5.33% 4 soy Customer deposits 2,222
Slide 32: Market interest rates and credit growth in the UAE
Market Interest R in the years ahead ide Gross Loans and Deposits Gross loans Im Deposits 2,847 2,841 2,522 2,222 1 1,885 1897 4,881 1,992} ae “ 1,779 1,794 E 8 8 g 2020 2021 2022 2028 2024 Jan-25 Source: Central Bank of the UAE latest as at Jan 25 CBD Market Share 4.67% Gross Loans — Deposits 3.51%
Slide 33: Terms and conditions
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