Abu Dhabi Islamic Bank · ADX:ADIB
Abu Dhabi Islamic Bank — Q1 2022 Earnings Presentation
32 slides from Abu Dhabi Islamic Bank's earnings presentation, Apr 28, 2022
Slide 1: 1Q 2022 Earnings Presentation
ADIB IR Website 1Q 2022 Earnings Presentation Analyst & Investor Conference Call IR App Download link: Abu Dhabi, 28 April 2022
Slide 2: Contents
Contents 1Q 2022 Earnings Presentation Key Highlights ADIB Strategy 2025 Financial Performance Outlook & Guidance Questions & Answers Contacts Disclaimer 2
Slide 3: Key Highlights
1 2 Key Highlights 3 4 5 1Q 2022 Earnings Presentation 6 7 3
Slide 4: Key Highlights
Key Highlights ADIB delivers a strong start to 2022 with all businesses showing positive momentum 18% growth in net profit with ROE improving to 17.0% Revenue up 6% driven by 19% growth in fees and commissions Effective cost control strategy delivers positive jaws with C/I ratio improving 336 basis
Slide 5: Executing ADIB Strategy
1 2 Executing ADIB Strategy 3 4 5 1Q 2022 Earnings Presentation 6 7 5
Slide 6: ADIB Strategy 2025
ADIB Strategy 2025 ADIB has launched strategy 2025 with a renewed purpose and vision Purpose Lifelong partner for customers, colleagues and community Vision The world’s most innovative Islamic bank 4-Pillar Strategy Continuous Segment Digital Sustainable Innovation Focused Excellence Future 6
Slide 7: Update on Strategy Progress
Update on Strategy Progress ADIB continues to deliver on its strategy in 1Q 2022 Continuous Key product launches Amwali Youth Account Asset Management Payment Service Innovation Wealth Management Digital Platform +4,627 $160 mn AED 1.9 mn Product to Finance Sukuk Accounts Global Sukuk Fund Revenue S
Slide 8: ADIB Strategy 2025 Strategic Targets
ADIB Strategy 2025 Strategic Targets A commitment to driving value ROE Net Profit C/I Ratio NPS STP 20% 2x <36% #1 >85% 8
Slide 9: Financial Performance
1 2 3 Financial Performance 4 5 1Q 2022 Earnings Presentation 6 7 9
Slide 10: Financial Performance Highlights
Financial Performance Highlights Strong revenue growth and positive jaws drives a good start to 2022 Strong YoY Growth in Profitability Solid Balance Sheet Growth YTD Robust Capital Position and Strong Return 715mn 139bn 18.1% Net Income Total Assets CAR +18% +1% -113bps 1.4bn 95bn 17.0% Revenues Gr
Slide 11: Income Statement
Income Statement 18% growth in profitability driven by the retail banking group Net Income (AEDmn) Net Income Movement YoY (AEDmn) 800 728 715 +18% 700 608 600 501 493 500 400 15 20 715 608 5 69 300 200 -1 100 0 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 Profit after Funded income Non-funded Expenses Impairments
Slide 12: Non-Funded Income
Non-Funded Income Robust fee generation drives 12% YoY growth in non-funded income Non-Funded Income (AEDmn) Non-Funded Income Movement YoY (AEDmn) +12% +12% 667 47 20 620 620 6 551 506 491 551 -3 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 Non-funded Investment Fees and Foreign exchange Other income Non-funded i
Slide 13: Funded Income
Funded Income Net profit margin trends reflect a low rate environment offset by asset growth and low cost of funds Net Profit Margin (%) Net Profit Margin Movement YoY (%) 4% 3.50% 3.47% 3.64% 3.57% 3.23% 4% -23bps 3% 3.15% 3.13% 3.32% 3.25% 3% 2.92% 3.15% 0.04% 0.05% 2.92% 2% 2% 1% -0.21% -0.11% 0.
Slide 14: Operating Expenses
Operating Expenses 2% YoY reduction in 1Q 2022 expenses with cost to income ratio improving on positive jaws Cost To Income Ratio (%) Expenses Movement YoY (AEDmn) -336bps -2% 44.3% 43.9% 42.2% 40.7% 40.9% 592 3 577 -10 -8 1Q 21 1H 21 9M 21 FY 21 1Q 22 Expenses Digital Infrastructure Other Expenses
Slide 15: Digital Banking
Digital Banking Progress made on ADIB's digital strategy is reflected in UAE's highest customer ratings and other key digital metrics. Digitally Active Customers (%) Digital Sales (% of Total) Auto Digital 80% 60% 54% Ecosystem 70% 70% 71% 51% 51% 65% 70% 62% 63% 64% 46% 57% 60% 50% 44% 44% 60% 40%
Slide 16: Impairments
Impairments A 15% YoY decline in impairments due to an improved economic outlook... Impairments Movement YoY (AEDmn) Impairments (AEDmn) -15% -15% 384 134 59 7 7 113 233 203 -34 134 113 -59 Impairments Retail Wholesale Private Treasury Others Impairments 1Q 21 1Q 22 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 -91
Slide 17: Non-Performing Financing
Non-Performing Financing …resulting in modest NPA growth… NPA (AEDmn) NMC Group +8% 85% NPA 8,286 8,355 Coverage 7,746 7,786 8,025 1,273 1,273 1,273 1,273 1,273 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 QoQ +1% +3% +3% +1% NPA Composition by Sector (%) NPA Movement YTD (AEDmn) PSE Other 2.8% 2.5% +1% 8,286 23 5
Slide 18: Non-Performing Financing
Non-Performing Financing … and a stable NPA ratio, with NPA coverage at 121.1% including the benefit of significant and high-quality collaterals. NPA Ratio (%) NPA Coverage Ratio (%) 10.0% 140% 120.0% 121.1% 111.9% 115.2% 118.2% 9.5% 120% 8.9% 9.0% 8.9% 8.8% 8.8% 100% 9.0% 80% 8.5% 60% 8.0% 64.2% 65
Slide 19: Balance Sheet
Balance Sheet ADIB reported modest balance sheet growth during 1Q 2022… Total Assets (AEDbn) Total Assets Movement YTD (AEDbn) 140 138.6 +1% 138 136.9 136 133.4 136.9 2.0 3.4 0.6 138.6 134 132 130.7 130.6 -4.3 -0.1 130 128 126 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 Total assets Cash & Due from Customer Inves
Slide 20: Customer Financing
Customer Financing …with 2% YTD customer financing growth driven mainly by growth in Government and PSE financing… Customer Financing, net (AEDbn) Customer Financing, Customer Financing, Gross Movement YTD (AEDbn) Gross by Segment (%) 95 +2% 90.2 90 88.3 Private Other 4.8% 3.0% 83.7 84.4 85 83.1 93.
Slide 21: Customer Deposits
Customer Deposits …and modest 1% deposit growth from CASA generation, mainly in the Retail segment… Total Deposits (AEDbn) Total Deposits Movement by Segment YTD (AEDbn) 115 110.8 110 107.0 109.6 +1% 105.2 105 103.1 109.6 2.1 0.6 110.8 100 95 -1.3 -0.2 -0.0 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 Total Deposi
Slide 22: Capital and Liquidity
Capital and Liquidity …while maintaining robust capitalization and liquidity positions, well within regulatory requirements. Capitalization Ratios (%) Liquidity Ratios (%) 25% 100% 86.6% 84.4% 83.1% 82.4% 84.1% 19.2% 19.1% 19.5% 18.6% 20% 18.1% 80% 80.6% 79.6% 78.9% 80.5% 81.4% 15% 18.1% 18.0% 18.4%
Slide 23: Outlook and Guidance
1 2 3 Outlook and Guidance 4 5 1Q 2022 Earnings Presentation 6 7 23
Slide 24: Outlook and Guidance
Outlook and Guidance Improving economic fundamentals and solid YTD financial performance drive a promising outlook for 2022 Market Outlook Management Guidance 1Q 2022 Reported FY 2022 Guidance FY 2022 Guidance Revised GDP growth from rising oil prices Gross Financing Growth Real GDP growth (%) Execu
Slide 25: Questions & Answers
1 2 3 Questions & Answers 4 5 1Q 2022 Earnings Presentation 6 7 25
Slide 26: Consistent dividend distribution
Consistent dividend distribution ADIB consistently distribute dividends with average yield of 4% Shareholder Return Metrics 8.00 7.00 6.00 5.00 4.00 3.00 Share Price 9.9% 2.00 8.0% 7.6% 7.0% 6.2% 6.5% 4.1% 5.1% 4.4% 4.5% 1.00 Dividend Yield 0.00 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Net
Slide 27: Ratings and Accolades
Ratings and Accolades ADIB's recognition for excellence in Islamic banking Credit Ratings ADIB's MSCI ESG Rating Recent Accolades A2 Stable Outlook #1 #1 Digital Bank in the UAE Transformation (April 2021) Program MSCI Rating Distribution 25% 24% 25% A+ 16% Stable Outlook 6% 2% #1 #1 1% Islamic Bank
Slide 28: ADIB Share Price Performance
ADIB Share Price Performance From 1Q 2020 to 1Q 2022 ADIB’s share price is up 119% ADIB Share Price Chart 11.00 10.00 9.00 8.75 8.00 7.00 6.00 5.00 3.85 4.00 3.00 2.00 28
Slide 29: Contacts
1 2 3 Contacts 4 5 1Q 2022 Earnings Presentation 6 7 29
Slide 30: Additional Information
Additional Information Please contact the Investor Relations team for additional information or download ADIB's IR App ADIB Investor Relations Contact ADIB Investor Relations App Mrs. Lamia Khaled Hariz Head of Public Affairs and Investor Relations E: Lamia.Hariz@adib.com T: +917 2 634 3000 M: +971
Slide 31: Disclaimer
1 2 3 Disclaimer 4 5 6 1Q 2022 Earnings Presentation 7 31
Slide 32: 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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