First Abu Dhabi Bank · ADX:FAB
First Abu Dhabi Bank — Barclays ESG Corporate Days 2022
21 slides from First Abu Dhabi Bank's conference presentation, Jun 23, 2022
Slide 1: Setting the path towards a sustainable future
Setting the path towards a sustainable future Barclays ESG Corporate Days, 23 June 2022
Slide 2: UAE's leading bank, one of the world's largest and safest financial institutions
We are the UAE’s leading bank, and one of the world’s largest and safest financial institutions Strongest Combined Credit Among safest and strongest Largest UAE Bank 981 267 Rating in MENA banks globally AED Bn USD Bn 2nd Largest in MENA Total Assets Safest banks rankings3 AA- Moody’s / S&P / Fitch
Slide 3: Regional ESG Leader – FAB's external ratings
Regional ESG Leader – FAB’s external ratings AGENCIES BEST SCORE WORST PEER COMPARISON 0 Negligible 10 Low 20 Medium 30 High 40 Severe 80+ ` Top 30% banks worldwide 22.3 AAA AA A BBB BB B CCC Top 30% banks worldwide AA A A- B B- C C- D D- Highest rated bank in the Middle East B 100 75 50 25 0 Top 25
Slide 4: FAB committed to support the UAE's agenda for sustainable growth
As the UAE’s largest bank, FAB is committed to support the UAE’s ambitious agenda to promote sustainable growth and development Sustainable development is at the heart of the UAE’s economic strategy Pillars of UAE Centennial Plan 2071 UAE Energy Strategy 2050 Education: encourage entrepreneurship, i
Slide 5: Leading the ESG agenda within the MENA region
Leading the ESG agenda within the MENA region Aligned with national and global frameworks • UAE Vision 2021 • UN Global Impact • The Abu Dhabi Economic Vision 2030 • TCFD (Task Force on Climate-Related Financial Disclosures) • Equator Principles • CDP (Carbon Disclosure Project) • The Green Bond Pri
Slide 6: Our ESG strategy focuses on 3 pillars
Our ESG strategy focuses on 3 pillars We have set KPIs in each of the three pillars to work towards our ESG ambitions Transforming our Governance Transitioning to a Low Carbon Capitalising on our Social Model1 Future1 Responsibility1 We will commit to the highest standards for To become the model su
Slide 7: We are committed to become a net zero bank by 2050
We are committed to become a net zero bank by 2050 Our timeline to Net Zero 2021 2050 Group ESG strategy finalized 2023 Net Zero and approved carbon Implementation of TCFD emissions FAB became a signatory of recommendations and 2015 2017 Net Zero Banking Alliance publication of first TCFD report FAB
Slide 8: Upgraded risk mitigation framework in line with ESG risk appetite
To manage high risk portfolios, we have upgraded the Bank’s risk mitigation framework in-line with the Group’s 2021 ESG risk appetite framework ESG Risk Framework Components1 ESG risk sectors as a % of 2021 funded loans and advances Note: 1) Some sub-sectors within the risk sectors, not all, are con
Slide 9: ESG Organizational Structure
Robust governance structure to generate long-term value ESG responsibilities are shared across the Group all the way to the Board level. Committees have ESG responsibilities to oversee the relevant ESG strategy, policies, escalations and ESG risk mitigation measures Board of Directors The Board ha
Slide 10: What's next?
What’s next? 2022 : BUILD 2023 : DEVELOP 2024 : RUN • Develop ESG-linked targets & KPI’s • Implementation of Social strategies • Lead the transformation of regional organisations on ESG best practices • Build a common understanding and awareness • Transformation – Review Policies, Processes, of ESG
Slide 11: Capital, Funding and Liquidity
Capital, Funding and Liquidity Barclays ESG Corporate Days, 23 June 2022 11
Slide 12: Strong capital position comfortably above regulatory requirements
Strong capital position comfortably above regulatory requirements CET11 ratio progression Q1’22 • Capital ratios remain well above minimum regulatory requirements; Tier 1 and CAR ratios at 14.8% and 15.9%, respectively • Risk discipline maintained despite balance sheet growth, helped by continued
Slide 13: Loan growth led by other FI's, government lending, short term trade lending
Loan growth led by other FI’s, government lending, short term trade lending and IPO related financing; Strong CASA growth with CASA mix at an all-time high of 52% Loans and advances, gross (USD Bn) Ytd Loan growth driven by: QoQ ↑6%, YoY ↑15% Dec'21 117 Trade-related Govt +1 International loans (net
Slide 14: Customer deposits
Customer deposits Customer Deposits Customer deposits by account type Total Customer Deposits CASA 2 (USD Bn) (USD Bn) 167.3 163.3 165.0 167.3 163.3 0.5% 0.5% 154.7 156.7 Margin Accounts 8% 6% 1.5% 2.2% Certificates of deposits 45% 49% Saving Accounts Current Accounts 44% 44% 45% 47% 52% 45% 42% Not
Slide 15: High-quality investment book
High-quality investment book Investments by type Investments by ratings BBB • 67% rated A and above FVTPL - Debt, 14% A 22% 8% • 75% investment grade and above FVOCI - Debt, 77% FVTPL - Equity & Funds, 5% BB & below • 92% of BB & below are USD 52.1Bn 17% Sovereign & GREs Mar’22 USD 52.1Bn AA Mar’22
Slide 16: Liability mix and funding profile
Liability mix and funding profile Leading issuer in the MENA region – conventional, Sukuks and Green bonds Liability mix Medium-term wholesale funding Customer Deposits, Term Borrowings & Issuances1 Maturities1 (USD Mn) 69% Sub Debt, 7% 5,815 Others, 8% USD USD 237.0Bn 4,704 4,925 Mar’22 4,398 Due t
Slide 17: Diversified Term Funding portfolio
Diversified Term Funding portfolio Frequent Issuer across multiple products, currencies and geographies Term Funding Portfolio by Type1 Term Funding Portfolio by Currency1 Asian Currency Other PP ex-Formosa 6% 12% 9% Formosa US$ Bullet EUR Bullet Private Callable 9% 18% Placement 35% CHF Formosa FRN
Slide 18: Leader in MENA Green Bond Issuance
Leader in MENA Green Bond Issuance Highlights: FAB Green Bonds Outstanding • In 2020 FAB’s Green Bond framework was expanded to a Sustainable Finance Framework. • The framework was developed to align with market best practice requirements reflected EUR Public 36% in the International Capital Markets
Slide 19: Appendix
Appendix Barclays ESG Corporate Days, 23 June 2022 19
Slide 20: 2021 sustainability highlights
2021 sustainability highlights In 2021 1 in GCC st 32% 50% FAB launched its Group ESG We became the first bank in of FAB’s senior and mid- of the Khalifa Fund Portfolio1 is strategy along with a the UAE and Gulf Cooperation management positions held by managed by FAB and we plan to transformed ESG G
Slide 21: Thank you
THANK YOU! For more information, please visit www.bankfab.com or contact FAB Investor Relations team at ir@bankfab.com You can also download FAB’s Investor Relations App from App Store /Google Play to access latest corporate updates Click on the images below to access our latest corporate reports
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