Abu Dhabi Commercial Bank · ADX:ADCB

Abu Dhabi Commercial Bank — Union National Bank — Investor Presentation (June 2018)

16 slides from Abu Dhabi Commercial Bank's investor presentation, June 2018

  1. Slide 1: Investor Presentation June 2018

    Investor Presentation June 2018

  2. Slide 2: UNB – Key Highlights

    UNB – Key Highlights Majority ownership (50%) and strong support from the Government of Abu Dhabi Stable and conservative management Demonstrated consistent performance of a time tested strategy, even in a challenging environment Reaffirmed strong ratings Diversified loan book and prudent provisioni

  3. Slide 3: Overview of UNB

    Overview of UNB Strong Ratings – Constantly Maintained Overview  Established in 1982 and headquartered in Abu Dhabi.  Joint Abu Dhabi and Dubai Government ownership. A1  Listed on the Abu Dhabi Securities Exchange (ADX).  Provides a full array of wholesale and retail banking services through a n

  4. Slide 4: Highlights - Income Statement

    Highlights - Income Statement  Net interest income up by 7% led by a growth in Y-o-Y Q2 Q2 Q-o-Q the net interest margin on account of higher yield AED in Million H1 2018 H1 2017 on earning assets partly offset by an increase in % 2018 2017 % cost of funds; the net interest margin for H1-2018 was 2

  5. Slide 5: Highlights – Balance Sheet

    Highlights – Balance Sheet  Net loans and advances dropped by 7% compared to prior year end, due to scheduled loan repayments and impact of IFRS 9 AED in Billion 30-June-2018 30-June-2017 YOY 31-Dec 2017 QoQ transition adjustment. % %  The Group’s liquidity position has continued Net loans and adv

  6. Slide 6: Key Performance indicators

    Key Performance indicators Return On Average Equity * (Annualized) Return On Average Assets (Annualized) 11.6% 9.8% 9.9% 1.9% 1.6% 1.6% H1 2017 FY 2017 H1 2018 H1 2017 FY 2017 H1 2018 * Excluding Tier I Capital Notes Cost to Income Ratio Capital Adequacy Ratio 33.5% 32.0% 31.3% 19.9% 19.8% 19.4% 18.

  7. Slide 7: Balance Sheet – Customer Loans

    Balance Sheet – Customer Loans Net Loans and advances (AED Billion)  Net Loans and advances decreased by 7% due to scheduled -7% loan run offs and impact of IFRS 9 transition adjustment. 72.0 71.1 67.3  Sovereign, Financial institutions, Energy and Construction segments witnessed a drop while Cons

  8. Slide 8: Funding Structure

    Funding Structure Product-wise Deposit break-down (AED Billion)  Diversified funding mix, with Customers’ deposits constituting 78.7 86% of total liabilities. 72.9 70.3 16.1 14.8  Customers’ deposits decreased by 4% compared to the 15.4 corresponding period in the previous year. CASA deposits incr

  9. Slide 9: Comfortable Liquidity Position

    Comfortable Liquidity Position Liquidity Position Investments – Geographical Break up 99% 90% 96% 26% 30% 28% H1 2017 FY 2017 H1 2018 Loans to Deposit Ratio Liquid Assets to Total Assets * *Liquid assets includes cash , Due from Banks and Investments Investments - Ratings Investments – By Type As at

  10. Slide 10: Credit Quality

    Credit Quality Loan Loss Coverage and NPL Ratio (%)  NPL ratio dropped by 50bps to 3.8% as compared to prior year 4.3% 132.6% end. 3.9% 97.1% 3.8% 95.8%  Overall coverage improved to 132.6% as at 30 June 2018, ratio after transition adjustment related to IFRS 9 implementation. H1 2017 FY 2017 H1 2

  11. Slide 11: Business Lines

    Business Lines AED million, as at 30 June Treasury and Corporate Consumer Islamic International 2018, unless otherwise investment Total Banking Banking Banking and unallocated stated banking Operating Income 564 619 142 225 218 1,768 Operating Expenses (112) (329) (53) (43) (57) (593) Operating Prof

  12. Slide 12: Business Lines – Corporate Banking

    Business Lines – Corporate Banking Operating Income (AED Million) -0.4%  Net interest income increased by 2%, driven by improvement in margin. 566 564 132 121  Customer Assets dropped by 6% as compared to same period prior year due to few repayments of loans and softer 434 443 credit demand in cor

  13. Slide 13: Business Lines – Consumer Banking

    Business Lines – Consumer Banking Operating Income (AED million) -12%  Consumer Banking operating income decreased by 12% Y-o-Y, 703 due to drop in fees and commission income driven by lower 619 business volumes in H1 2018. 202 119  Customer Assets increased by 3% as compared to same period prior

  14. Slide 14: Business Lines – Treasury and Investment Banking

    Business Lines – Treasury and Investment Banking Operating Income (AED million) +11%  Net interest income increased by 49%, largely on account of 225 increase in investments portfolio and yield. 203 64 96  Non interest income dropped by 33%, mainly due to decrease in gain on dealing in foreign cur

  15. Slide 15: Business Lines – Islamic Banking

    Business Lines – Islamic Banking Operating Income (AED million) -12%  Net Islamic loans dropped, mainly due to few repayments 162 in corporate sector, partly offset by increase in retail 142 portfolio. 69 54 93 88 H1 2017 H1 2018 Income from Islamic Financing Non Financing Income Operating Income N

  16. Slide 16: Awards and Certifications

    Awards and Certifications  The World Confederation of Businesses (WORLDCOB) has recognized UNB CEO with the honors of ‘Excellence in Business Management’ for being a successful leader who works in an innovative, knowledgeable and systematic manner”. UNB has also been bestowed with the ‘Glory’ award

Union National Bank — Investor Presentation (June 2018) on 6ix