First Abu Dhabi Bank · ADX:FAB
First Abu Dhabi Bank — Q1 2024 Earnings Presentation
24 slides from First Abu Dhabi Bank's earnings presentation, May 1, 2024
Slide 1: Q1'24 Earnings Presentation
Q1’24 Earnings Presentation 1st MAY 2024
Slide 2: Disclaimer
Disclaimer The information contained herein has been prepared by First Abu Dhabi Bank P.J.S.C ("FAB"). The information contained in this presentation may not have been reviewed or reported on by the group's auditors. FAB relies on information obtained from sources believed to be reliable but does no
Slide 3: Strong start to FY24
Strong start to FY24 • Q1’24 NPAT at AED 4.2Bn (+6% yoy, +4% qoq), driven by accelerated revenue momentum across our businesses. • Solid RoTE delivery at 17.4% despite UAE corporate tax impact, well within 2024e and medium-term guidance. • New thresholds crossed during the quarter reflect healthy bu
Slide 4: Q1'24 profitability reflects diversified revenue momentum, operational discipline
Q1’24 profitability reflects diversified revenue momentum, operational discipline Income Statement - Summary (AED Mn) Q1’24 Q4’23 qoq % Q1’23 yoy % • PBT at AED 5.0Bn +19% yoy, +16% qoq, driven by Net interest Income 4,854 4,693 3 4,391 11 strong revenue performance, well-managed expenses Non-inte
Slide 5: On track with 2024 financial guidance
On track with 2024 financial guidance 2024 guidance Q1’24 actuals Scale Loan growth Mid-single digit +5% ytd Cost of Risk 65-75bps 77bps Asset Quality Provision > 90% 99% coverage ratio RoTE > 16% 17.4% Q1’24 Earnings presentation Profitability & Capital CET1 > 13.5% 13.7% (pre-dividend) 5
Slide 6: Delivering broad-based and diversified growth across businesses
Delivering broad-based and diversified growth across businesses… Corporate & Global Private Investment Banking Consumer Banking Global Markets1 Commercial Banking Banking Q1’24 Revenue (AED) 2.8 Bn 1.8 Bn 1.1 Bn 0.3 Bn 1.9 Bn +26% +12% +6% +4% +37% +15% +12% +3% +29% +11% yoy qoq yoy qoq yo
Slide 7: …geographies…
…geographies… Q1’24 operating income BS trends (AED Bn) (yoy) Strategic global footprint across 20 markets Mar'24 Mar'23 facilitating trade, liquidity and investment flows Europe and Americas Middle East and Africa Asia Pacific (APAC) France I UK I Switzerland UAE | Egypt | KSA I Oman China – Shangh
Slide 8: … and sources of income
… and sources of income Total operating income1 trends (AED Mn) yoy ↑18%, qoq ↑15% 7,971 6,730 6,833 6,976 6,933 5,911 39% 5,494 35% 34% 32% 4,977 35% 4,458 29% 34% 33% 31% 65% 65% 66% 68% 61% 71% 67% 66% 69% Q1'24 Earnings presentation Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Net Inter
Slide 9: NIM trends strong and well-positioned for all rate environments
NIM trends strong and well-positioned for all rate environments yoy ↑18bps, qoq ↑3bps • Q1’24 Group NIM +18bps yoy, +3bps qoq reflecting discipline on both asset and 1.89 1.92 liability pricing, and higher rates. Net Interest 1.81 1.74 1.73 Margin (%) • P&L impact from -25bps parallel movement in in
Slide 10: NFI momentum reflects franchise strength
NFI momentum reflects franchise strength Non-interest income NFI +33% yoy driven by: Q1’24 qoq% yoy% (In AED Mn) • +25% growth in fees and commissions driven by higher fee income from credit Fees & commissions, net 981 +32 +25 cards, an increase in trade-related fees and deal pipeline execut
Slide 11: Outstanding operating efficiency
Outstanding operating efficiency Opex drivers yoy (AED Mn) Cost-to-Income +14% yoy Ratio 24.0% +37 (Q1’23: 25.1%) +78 +112 1,916 • Delivered positive jaws with operating expenses +1% qoq, 1,688 +14% yoy (vs revenue growth of 18% yoy) reflecting cost discipline, amid ongoing investments to drive futu
Slide 12: Balance sheet fundamentals underpinned by strong liquidity profile
Balance sheet fundamentals underpinned by strong liquidity profile and diversified funding sources Balance Sheet Summary (AED Bn) Mar’24 Dec’23 ytd % Mar’23 yoy% • Total assets grew 4% yoy and 6% ytd, crossing AED 1.2tn (USD 336Bn) for the first time. Cash and balances with central banks 273 233 17
Slide 13: Improved asset quality metrics underpinned by prudent provisioning
Improved asset quality metrics underpinned by prudent provisioning Impairment charges, net (AED Mn) & CoR1 (bps) NPLs2 and ECLs3 (%) Net impairment charges CoR (L&A) (bps) Provision Coverage (%) NPL Ratio (%) 101 103 97 95 99 79 77 62 3.8 3.7 3.9 3.9 3.7 55 52 yoy ↑28%, qoq ↑3% NPLs (AED Bn) Provisi
Slide 14: Strong capital position comfortably above regulatory requirements
Strong capital position comfortably above regulatory requirements CET1, Tier 1 and CAR trends (%) CET11 ratio progression 17.2% 17.4% 17.1% 16.6% 16.2% 16.1% 15.5% 15.7% 15.4% 15.1% 14.2% 15.2% 13.6% 13.8% 13.7% +71bps 13.2% Cash DPS: 1.3% 71 fils AED 7.8Bn -54bps 13.8% -33bps 13.7% Mar'23 Jun'23 Se
Slide 15: Wrap-up
Wrap-up • Stellar start to the year with consistent growth in revenue and profits. • New thresholds crossed during the quarter reflect healthy momentum across businesses, products and geographies. • Outstanding returns delivered at scale with RoTE of 17.4%. • On track for FY24 targets and medium-ter
Slide 16: Appendix
Appendix
Slide 17: Q1'24 highlights – Group financials
Q1’24 highlights – Group financials Income Statement - Summary (AED Mn) Q1’24 Q4’23 qoq % Q1’23 yoy % Net interest Income 4,854 4,693 3 4,391 11 Non- interest Income 3,117 2,240 39 2,339 33 Operating Income 7,971 6,933 15 6,730 18 Gain on sale of stake in subsidiary - 284 na - na Total Income 7,
Slide 18: A well-diversified, high quality loan book
A well-diversified, high quality loan book Gross loans trend Figures in AED Bn Gross loans by counterparty yoy ↑7%, ytd ↑5% 530 505 Trade-related 15% 530 16% 494 504 500 505 Personal/ Retail Corporate/ Private 53% 53% Banks 2% 4% 43 50 48 45 Public Sector 32 16% 16% Government 12% 12% Mar'23 Jun'23
Slide 19: Healthy asset quality and strong provisioning
Healthy asset quality and strong provisioning Loans by stage ECL2 by stage (AED Bn) (AED Bn) AED 522.1Bn AED 18.9Bn (Gross loans net of IIS) as of Mar’24 as of Mar’24 Ratio % of gross loans Coverage by stage Mar'24 Dec'23 (net of IIS)1 Mar'24 Dec'23 (%) 490.6 94.0% 2.4 0.5% Stage 1 Stage 1 2.0 464
Slide 20: Strong and diversified liquidity profile
Strong and diversified liquidity profile Customer deposits trend Customer deposits by counterparty AED Bn AED Bn yoy ↑3%, ytd ↑6% 760 803 Total Customer Deposits CASA 4% 4% Certificates of deposits 785 803 15% 15% 781 745 760 Personal/retail sector 44% 43% Corporate / private sector Public Sector 10
Slide 21: High quality and diversified investment portfolio
High quality and diversified investment portfolio Investments by type Investments by ratings Mar’24 Dec’23 Mar’24 Mar’24 Dec’23 AED 235Bn AAA 13% 12% Mar’24 FVTPL - Debt 19% 18% AED 235Bn AA 36% 41% Dec’23 FVTPL - Equity & Funds 2% 2% AED 226Bn A 27% 21% Amortised Cost (Debt Inv) 2% 2% BBB 6% 6% Dec
Slide 22: Segmental overview
Segmental overview Investment Banking (IB) Corporate and Commercial Banking (CCB) Key highlights Key highlights Quarterly operating income trend (AED Bn) Quarterly operating income trend (AED Bn) • Strong deal pipeline execution resulted in 27% growth in yoy ↑26%, qoq ↑12 • Broad-based revenue gr
Slide 23: Segmental overview: Global Markets
Segmental overview Global Markets1 Quarterly operating income trend (AED Bn) Key highlights yoy ↑29%, qoq ↑ 11% • Global Markets Trading revenue was up 31% yoy, driven by strong performance across FX & Rates and Securities Financing. GM Trading GM Sales 1.8 1.9 • Global Markets Sales revenue was up
Slide 24: For more information, please visit www.bankfab.com
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