Commercial Bank Of Dubai(psc) · DFM:CBD
Commercial Bank Of Dubai(psc) — Commercial Bank of Dubai — FY2021 Earnings Presentation
28 slides from Commercial Bank Of Dubai(psc)'s earnings presentation, Oct 26, 2022
Slide 1: 2021 Full Year Results Investor Presentation
2021 Full Year Results For the year ended 31st December 2021 Investor Presentation Financial Highlights Dr Bernd van Linder Chief Executive Officer Mr Darren Clarke Chief Financial Officer
Slide 2: Executive Summary: Financial Highlights FY21
Executive Summary Financial Highlights FY21 Record net profit result with continued increased market share AED 1,451m p 29.5% from 2020 Record cash dividend Net Profit Solid return on equity generating Operating AED 2,318m internal capital for growth p 6.8% from 2020 Profit Strong balance sh
Slide 3: CBD dividend history – Record net profit and cash dividend
CBD dividend history – Record net profit of AED 1,451m and record cash dividend of 50% equivalent to 25.88 fils per share AED m Net Profit Cash dividend Cash Payout % 1,451 1,400 50% 41% 1,162 1,120 1,002 49% 50% 50% 725 580 580 561 490 2017 2018 2019 2020 2021 Page 2 of 27
Slide 4: Earnings Snapshot
Earnings Snapshot – robust loan growth, lower cost of funds, more moderate cost of risk offsetting higher expenses and margin compression AED m Change Change (%) 2021 2021 - 2020 2021 - 2020 Net profit 1,450.5 330.4 29.5% Return on equity (RoE) 13.22% 253 bp 23.7% Return on assets (RoA) 1.37% 16 bp
Slide 5: Financial Performance Snapshot – Full Year 2021
Financial Performance Snapshot – Full Year 2021 Revenues Net Profit Return on Equity Shareholder Value Creation AED 3,183m AED 1,451m 13.22% p 6.9% from 2020 p 29.5% from 2020 p 253 bps from 2020 Assets Customer Deposits Gross Loans Focus on Growth AED 114.2bn AED 82.7bn AED 80.5bn p 17.3% from 2020
Slide 6: Strategic Execution in 2021
Strategic Execution in 2021 o Record net profit result, up 29.5% on prior year Achieve o Record cash dividend at 25.88% Financial Results o Industry top tier ROE, internally generating capital for growth o Recruiting, developing and retaining UAE national talent Become Employer o On-boarded largest
Slide 7: Core Performance Trends
Core Performance Trends – strong loan growth and lower cost of funds underpinning record revenue and net profit performance AED m Revenue Net profit OOI NII +5% +8% 3,183 1,400 1,451 3,033 2,978 2,725 +7% 1,105 1,162 1,120 1,068 1,092 813 (35%) (35%) (37%) (30%) +29% 1,911 1,966 1,887 2,078 (70%) (6
Slide 8: Strategic Financial KPIs
Strategic Financial KPI’s – improved product capability and deeper customer relationships lifting returns Return on Equity (ROE) Cost to Income Ratio (1%) (5%) 14.61% 31.50% 13.47% 29.18% 13.22% 27.11% 27.18% 10.69% 0% +24% 2018 2019 2020 2021 2018 2019 2020 2021 Return on Assets (ROA) Other Operati
Slide 9: Profitability and Returns
Profitability and Returns – stable jaws and maintaining cost focus while investing to support growth AED m Expenses Revenue and Expense JAWS Revenue Expenses 0% 3,033 3,183 858 885 865 2,978 807 2,725 +7% +8% +7% 0% +8% 858 885 807 865 2018 2019 2020 2021 2018 2019 2020 2021 RWA and Return on Equity
Slide 10: Net Interest Margin
Net Interest Margin – system credit growth subdued with increased competition resulting in margin compression Interest Income Interest Expense AED m AED m 699 714 663 686 633 657 219 186 157 152 156 146 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Net interest margin compo
Slide 11: Net Profit Bridge on Prior Period
Net Profit Bridge on Prior Period – record profit driven by higher net interest income, OOI and lower specific credit losses AED m Net Credit NII increased by 191m Fee and other income One-off transaction Higher Other Gain on investment Impairment declined on account of higher was higher by 70m gain
Slide 12: Asset Quality and Impairments
Asset Quality and Impairments – asset quality forecast to improve in 2022 AED m Cost of Risk Impairment Charges and Recoveries Cost of Risk Impairment Recoveries Coverage Coverage inc collateral stage 3 122.7% 119.5% 115.8% 110.2% 1.51% 1.26% 83.1% 1.16% 77.8% 1.03% 69.7% 62.6% 1,075 942 752 789 48
Slide 13: Balance Sheet and Capital Strength
strong capital ratios significantly above regulatory Balance Sheet and Capital Strength – requirements Capital Adequacy Ratio (CAR) Common Cost Equity Tier 1 (CET1) of Risk CAR Regulatory limit (Minimum) CET1 Regulatory limit (Minimum) +2.8% 16.65% 15.82% (3.3%) 14.56% 14.17% 13.41% 13.02% 12.71% 12
Slide 14: Funding and Liquidity
Funding and Liquidity – diversified and stable funding supporting franchise loan growth AED m Customer Deposits Other Funding Sources Time CASA Acceptances and Others Due to Banks > 1year AT1 Capital Due to Banks < 1year Notes and Medium Term Borrowing Equity 82,722 +16% 69,751 Increased medium term
Slide 15: Balance Sheet Analysis
Balance Sheet Analysis – supporting businesses across all market sectors of the UAE economy AED m Assets Mix Assets and Loans Net Loans and Advances Total Assets 2.8% 12.8% +16% 3.2% Cash and balances with CB 6.4% Due from banks 114,213 Net loans and advances AED 114 billion 97,362 7.9% Total Assets
Slide 16: Diversified business mix
Diversified business mix – supporting returns through economic cycles Revenue Revenue Asset Funding diversification segmentation diversification diversification 29% 28% 33% 23% 65% 2021 2021 -1% 2021 2021 43% 23% 40% Revenue Revenue Assets Funding 36% 7% 15% 5% 30% 12% 12% 65% 35% 71% 29% 65% 35% 73
Slide 17: Divisional Contributions
strong underlying net profit performance across all Divisional Contributions – customer segments AED m Divisional net profit movement Divisional RWA movement +29.5% +10.4% 404.6 129.7 1,450.5 3,972 2,053 87,196 79,001 2,845 (112.7) (91.1) 675 1,120.1 2020 Instit Corp Personal Others 2021 2020 Instit
Slide 18: Board of Directors and Management Team
Board of Directors and Management Team Board of Directors Management Team H.E. Humaid Mohammad Dr. Bernd van Linder Al Qutami Chief Executive Officer Chairman H.E. Sultan Saeed Mohamed Mr. Abdullah Salim Alturifi Mr. Darren Clarke Mr. Fahad Al Muhairi Nasser Al Mansoori Director Chief Financial Offi
Slide 19: COVID-19 – UAE response positioned economy well
COVID-19 – excellent UAE COVID-19 response has positioned the local economy well for 2022 and beyond COVID-19 vaccinations UAE COVID-19 daily cases GCC More recent increases in daily Daily Confirmed Cases Rest of the world cases appear to hold lower impact Total Active Cases (000s) 99% on appetite f
Slide 20: United Arab Emirates – economy recovering
United Arab Emirates – the economy is recovering with signs of increased business activity and confidence UAE Stock market indices UAE Fiscal Position DFM ADX Surplus / (Deficit) (AEDb) As % of GDP 9,500 40 10% 8,488 8,500 20 5% 29.5 7,500 9.1 0 1.9% 0% 6,500 -0.2% -0.1% -1.7% 0.6% (74.4) -0.5% -3.4
Slide 21: UAE Economic Update
UAE Economic Update – signs of economic recovery with oil prices, real estate activity and prices, tourism and hospitality all improving UAE GDP and Inflation Growth Purchasing Managers Index Inflation GDP UAE KSA 55.6 53.9 5.1% 4.1% 3.1% 3.1% 2.9% 3.1% 1.6% 2.0% 2.4% 1.7% 1.2% (1.9%) (2.1%) -5.9% 2
Slide 22: Dubai Economic Update
Dubai Economic Update – real estate prices picking up, business conditions and confidence building Dubai GDP growth Dubai hospitality 6.30% Dec-20 Dec-21 AED +57.0% 956 +73.0% 2.70% 2.80% 1.90% 2.20% 747 609 432 +10.1% 71 78 -3.50% 2016 2017 2018 2019 2020 Sep-21 Occupancy % Average daily rate Reven
Slide 23: UAE Banking Sector
UAE Banking Sector – critical industry to extend credit and support the UAE economic recovery Key industry indicators Average Loan Yield & Cost of Deposits vs 3M EIBOR AEDb 2018 2019 2020 Nov-21 YTD 3M EIBOR Yield on Loans Cost of Deposits Total assets 2,869 3,083 3,188 3,296 p 3.4% 5.5% 5.2% 5.1% 5
Slide 24: UAE Banking Industry – credit system subdued
UAE Banking Industry – credit system remains subdued, CBD consolidating market share gains System-wide Gross loans and deposits Credit Growth in the UAE Banking Sector Gross loans Deposits Domestic Credit Foreign Credit AED Billion 15.9% 15.0% 1,967 1,870 1,885 1,756 1,759 1,779 1,788 12.6% 1,656 1,
Slide 25: Corporate Social Responsibility
Corporate Social Responsibility – engaging with our community, fulfilling our social commitments The elements of CBD’s CSR framework: Education Health Commercial Bank of Dubai targets the support Commercial Bank of Dubai serves to foster the and development of educational programs aimed health and w
Slide 26: Corporate Social Responsibility
Corporate Social Responsibility – engaging with our community, fulfilling our social commitments A visit to Al Noor Training Centre Commercial Bank of Dubai acknowledges the importance of accepting and embracing people of determination. CBD encourages its employees to spend quality time with the stu
Slide 27: Awards and Achievements
Awards and Achievements Recognized with “Best Commercial Bank”, “Best Recognized with “Innovation in Retail Banking” Dr. Bernd van Linder wins Banker of the Year Digital Transformation” and “Best Robo Advisory” and “Best Mobile Banking Services” – MEA Finance Awards 2021 – MEA Finance Awards 2021 –
Slide 28: Disclaimer
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