Abu Dhabi Islamic Bank · ADX:ADIB
Abu Dhabi Islamic Bank — FY2014 Earnings Presentation
43 slides from Abu Dhabi Islamic Bank's earnings presentation, March 2015
Slide 1: Investor Presentation 31 December 2014 results
Investor Presentation 31 December 2014 results Abu Dhabi: March 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: Ratings Excerpts
Ratings Excerpts “ADIB's BCA (standalone credit assessment) reflects the bank's strong and expanding Islamic franchise in the UAE particularly in the retail segment and strong core profitability and improved capitalization […] Moody’s assessment of a very high probability of systemic support, in the
Slide 5: Ownership & Corporate Structure
Ownership & Corporate Structure ADIB Ownership ADIB is mainly owned by over 46,000 UAE nationals and Other members and associates of the Abu companies. Dhabi Royal family: 9.1% The Bank’s main shareholder is National Holding via EIIC, which is EIIC: 40.0% a private holding company, wholly-owned
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
Slide 7: UAE Banking Sector
UAE Banking Sector Highlights UAE Banking Sector (AED Bn) Dec 12 Dec 13 Dec 14 Total Assets - Gross 1,877.0 2,100.3 2,323 UAE Banking sector is the largest by assets in the GCC; the UAE banking sector accounts for ~36% of the GCC total. Certificates of deposit held by Banks 95.1 107.9 99.5 Banki
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) 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 Capital Resources (AED Bn)
Slide 10: 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 11: 2014 in review – key financial highlights
2014 in review – key financial highlights Balance sheet highlights Income statement highlights Key performance indicators Change Change Net Profit AED Bn 2013 2014 AED Mn 2013 2014 % % +14% +21% Total assets 103.2 111.9 8.5% Revenue 3,931.3 4,583.0 16.6% Net customer Expenses 1,700.7 2,074.5 22.0% 1
Slide 12: Operating Performance
Operating Performance Highlights (2014 vs. 2013) Net Revenue from Funds (AED Mn) Fees, commission and others (AED Mn) Profit paid on funds FX +25% Revenues, up by 16.6% at AED 4,583 +14% Investment income & others Mn. 3,505 Fees & Commission 1,078 60 Net revenue from Funds (NRFF) 3,066 865 14.3%
Slide 13: Key ratios
Key ratios Ratios Dec 2013 Dec 2014 Diluted Earnings per share (EPS in AED) 0.372 0.473 Return on Average Shareholders’ Equity (excluding GoAD - Tier 1 capital) 15.5% 18.4% Efficiency Net profit margin (%) 4.1% 4.1% Cost / income ratio 43.3% 45.3% Percentage lent (Financing / Total Assets) 60.5% 65.
Slide 14: Competitive landscape – ADIB vs. UAE Banks
Competitive landscape – ADIB vs. UAE Banks Peer Group Analysis for December 2014 ADIB ADCB FGB NBAD UNB MASHREQ DIB CBD ENBD RAK Revenue – FYR 14 AED Mn 4,583 7,529 9,240 10,415 3,501 5,845 5,569 2,240 14,442 3,555 Operating Profit – AED Mn 2,508 4,966 7,100 6,719 2,546 3,635 3,525 1,486 10,053 2,05
Slide 15: Balance Sheet Strength
Balance Sheet Strength Consistently remains one of the most liquid bank 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: ts: Customer Deposits Adavnces to Stable funds ratio 6.0% Fixed 5.
Slide 16: Customer Financing Assets
Customer Financing Assets Portfolio growth of 16% since Q4 13 driven by strong performance from Wholesale bank (20.5%) and Retail (16.3%) Gross Customer Financing by Segment Gross Customer Financing by Customer Segment Private Retail Govt. & FI: 1.2% SME & Govt. & FI: 0.7% SME & PSE: Others: PSE: Ot
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: Funding Profile
Funding Profile Composition of Liabilities (AED Bn) Customers’ Deposits by Segment (AED Bn) 84.8 Private Wholesale Retail Q4 13 Q4 14 75.5 +11% +12.3% 6.2 84.8 7.5 5.5 75.5 8.8% 4.6 4.6 61.3 9.5% 7.2 3.7 3.4 56.5 55.2 37.6% 31.9 10.9% 13.4% 11.7% 40.5% 30.6 37.6% 50.3% 42.7% 45.4 50.1% 37.7 53.5% 45
Slide 19: Capital
Capital Capital Adequacy (%) Capital base – CET, Tier 1 and Tier 2 - AED Bn Total CAR UAE Central Bank CAR requirement Tier 2 Tier 1 Minimum Tier-1 requirement 21.4% Tier 1 14.3 CET 13.1 13.2 18.4% 2.0 0.3 0.5 17.4% 16.9% 10.5 16.0% 9.9 5.4 5.4 5.4 14.4% 2.3 2.4 13.5% 16.4% 12.4% 12.0% 13.9% 1.8 1.8
Slide 20: Shareholders' Return
ADIB Price (AED) - 3.50 0.50 1.00 1.50 2.00 2.50 3.00 4.00 4.50 5.00 5.50 6.00 6.50 7.00 7.50 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-… Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-… Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Shareholders’ Return Nov-10 Dec-10 Jan-11
Slide 21: Agenda
Agenda Introduction Financial Review Business Review Appendix 21
Slide 22: 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 23: Business unit contribution
Business unit contribution Composition of Total Assets – AED Bn Composition of Total Liabilities – AED Bn Private; Real Real Real Private Estate; Private Real 5% Estate; Estate; ; 3% 0.3% ; 3% Estate; Capital 0.4% Private; Capital Others; Capital 3% Capital 2% Markets Others; 5% Markets; 5% Markets
Slide 24: Retail Banking overview
Retail Banking overview Retail Banking contributes 64% of Net Revenues Assets (AED Bn) Personal Banking Division provides services for +15% +25% individuals clients, while the Business Banking Division services the needs of SMEs. 40.8 27.6 32.7 These services include a variety of Shari’a complia
Slide 25: Wholesale Banking overview
Wholesale Banking overview Assets (AED Bn) Wholesale Banking contributes 28% of Net +13% Revenues +12% Wholesale Banking encompasses the large corporates, 30.7 27.3 emerging corporates and financial institutions divisions 18.6 18.9 20.1 of the Bank. The array of services includes Transaction Banki
Slide 26: Private Banking overview
Private Banking overview Assets (AED Bn) Private Banking contributes 4% of Net Revenues -6% Private Banking focuses on high and ultra high net 7.2 worth individuals. 6.0 6.0 5.5 5.1 Wealth Management concentrates on developing, marketing and servicing a wide range of wealth management products (
Slide 27: Treasury overview
Treasury overview Treasury contributes 10% of Net Revenues Assets (AED Bn) Treasury principally handles money market brokerage, trading and treasury services, as well as the +13% -12% management of the Bank's funding operations by use of investment deposits. 30.3 27.2 26.8 18.8 Investments Fair va
Slide 28: Agenda
Agenda Introduction Financial Review Business Review Appendix 28
Slide 29: Consolidated Statement of Income
Consolidated Statement of Income % chg FYR % chg Q4 % chg Q4 AED Mn Q4 13 Q3 14 Q4 14 FYR 13 FYR 14 14 vs FYR 14 vs Q4 13 14 vs Q3 14 13 Revenues 1,045.8 1,170.8 1,256.2 20.1% 7.3% 3,931.3 4,583.0 16.6% Net Revenue from Funds 815.2 921.8 944.6 15.9% 2.5% 3,066.4 3,505.0 14.3% Fees & commission 135.6
Slide 30: Consolidated Balance Sheet
Consolidated Balance Sheet % chg 31 Dec % chg 31 Dec AED Mn% 31 Dec 2013 30 Sep 2014 31 Dec 2014 2014 vs 31 Dec 2014 vs 30 Sep 2013 2014 Cash and balances with Central Banks 22,221 17,146 18,758 -15.6% 9.4% Due from financial institutions 6,663 5,429 6,270 -5.9% 15.5% Net Customer financing 61,748 7
Slide 31: 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.
Slide 32: Key Deals in 2014 (1/4)
Key Deals in 2014 (1/4) USD 650,000,000 Sukuk AED 1,200,000,000 USD 400,000,000 USD 150,000,000 USD 410,000,000 Mandated Lead Arranger, Sole Bookrunner, Investment Mandated Lead Arranger & Mandated Lead Arranger & Joint Lead Manager & Co Lead Manager for IPO Agent, Security Agent & Bookrunner for th
Slide 33: Key Deals in 2014 (2/4)
Key Deals in 2014 (2/4) USD 1,300,000,000 USD 750,000,000 USD 500,000,000 Islamic Mandated Lead Arranger & Joint Lead Manager Joint Lead Manager & Book runner Islamic Facility Agent June 2014 June 2014 June 2014 ADIB acted as an Islamic ADIB acted as a Joint Lead ADIB acted as a Joint Lead Man
Slide 34: Key Deals in 2014 (3/4)
Key Deals in 2014 (3/4) ADIB acted as a Joint Lead ADIB acted as a Joint Lead Manager & Bookrunner Manager & Bookrunner Upsize of existing AED 2bn club the first conventional U.S. deal by adding another tranche AED 1,000,000,000 USD 500,000,000 bank to issue Sukuk of AED 1bn. The facility wa
Slide 35: Key Deals in 2014 (4/4)
Key Deals in 2014 (4/4) AKRON Dubai Parks & Resorts AED 1,000,000,000 USD 450,000,000 USD 20,000,000 AED 1,375,000,000 AED 2,528,731,083 Sole Bookrunner, Initial Mandated Lead Arranger, Mandated Lead Arranger, Receiving Bank Receiving Bank Investment Agent, Security Bookrunner & Sole Underwriter Str
Slide 36: An award winning Bank (1/3)
An award winning Bank (1/3) “SKEA – Gold category” “Best Overall Bank in Customer To be confirmed in February Service” in the GCC by Ethos Sheikh Khalifa Excellence award 2014 2015 consultancy “Best Overall Bank in Customer Best Islamic Bank of the year in Service” for 4 consecutive years the Middle
Slide 37: An award winning Bank (2/3)
An award winning Bank (2/3) “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 “ “Most Recommended Bank in International Financial Law Review the UAE” by Souq Al Mal Magazine 2014 “Best Treasury services “Best Is
Slide 38: An award winning Bank (3/3)
An award winning Bank (3/3) “Best Islamic Bank in the Middle “Best private Bank in the UAE” by East and UAE “ by Asia Money Wealth Briefing GCC awards “Best Loyalty Card” by Freddie Award “Best Nationalisation initiative” by MENA HR excellence “Best Corporate Finance for Barclays “Best Treasury serv
Slide 39: Executive Management Biographies
Executive Management Biographies 39
Slide 40: 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 41: Executive Management Profile (2/3)
Executive Management Profile (2/3) Joined ADIB on 8 October 2014. He is Chartered Accountant from the UK and also holds a Corporate Syed Aamir Zahidi Finance qualification. He worked at Citibank for 20 years where held the positions of CFO Samba, CFO Chief of Staff CEEMEA Group and Planning Head Eme
Slide 42: Executive Management Profile (3/3)
Executive Management Profile (3/3) Noble Powar Joined ADIB on 1 January 2012. He hold a Master's degree in Personnel Management & Industrial Relations Global Head of Human and has worked for over 20 years with Global Banks in the Middle East, UK, USA, Europe, Asia and Africa. Resources His previous
Slide 43: 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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