United Arab Bank · ADX:UAB
United Arab Bank — FY2023 Earnings Presentation
19 slides from United Arab Bank's earnings presentation, Feb 8, 2024
Slide 1: Delivering Growth responsibly & sustainably
Delivering Growth responsibly & sustainably FY’23 Earnings presentation 8 February 2024
Slide 2: Stellar operating performance coupled with significant improvements across key financial metrics
Stellar operating performance coupled with significant improvements across key financial metrics +65% YoY Strong double-digit Asset quality Robust capital, Generating superior Stellar growth in net growth in significantly and sustainable liquidity & funding profits balance sheet improved returns Led
Slide 3: Strategic progress achieved in 2023 laying the foundation for accelerated growth ahead
Strategic progress achieved in 2023 laying the foundation for accelerated growth ahead Execution of turnaround strategy progressing well Onboarded new clients coupled Launched multiple green with new product launches across sustainable finance products business segments, including green coinciding w
Slide 4: Growth in profitability driven by strong top-line growth and prudent risk management
Growth in profitability driven by strong top-line growth and prudent risk management Net profit growth driven by higher operating … while maintaining cost discipline and focus on Income statement highlights (AED Million) income across core business, … quality of assets FY'23 FY'22 %chg • Operating i
Slide 5: Operating income growth primarily led by NII benefitting from higher interest rates and funding costs efficiency
Operating income growth primarily led by NII benefitting from higher interest rates and funding costs efficiency, as well as increased fees and FX income on higher volumes Operating income: NII grew in double-digits year-on-year Higher interest rates and efficient management of funding costs led to
Slide 6: Higher expenses reflect business growth and continued investments, whilst maintaining discipline
Higher expenses reflect business growth and continued investments, whilst maintaining discipline and enhancing efficiency Efficiently managing expenses and investing across people, products and systems, in line with Delivering positive operating leverage (JAWS1) medium-term growth strategy +2% yoy (
Slide 7: Significant reduction in cost of risk aided by strong recoveries, and complemented by adequate buffers
Significant reduction in cost of risk aided by strong recoveries, and complemented by adequate buffers Firmly focused on ensuring asset quality and implementation of prudent risk management practices, amid strong business growth Impairment charges, net AED Mn CoR (bps) -3% qoq, -80% yoy -61% yoy -7b
Slide 8: Double-digit growth in assets driven by higher lending and additions to investments portfolio
Double-digit growth in assets driven by higher lending and additions to investments portfolio; supported by solid growth in deposits Robust foundation with a solid capital position and adequate liquidity; healthy business pipelines across %chg %chg vs various segments are now beginning to convert, t
Slide 9: Lending momentum picks up with double-digit growth as pipeline gets converted
Lending momentum picks up with double-digit growth as pipeline gets converted; demand expected to remain robust in 2024 Pipeline conversion picked up strongly in Q4’23 Primarily corporate led, with high-double digit growth in Islamic financing AED Bn AED Bn FY’22 FY’23 +21% qoq, +23% yoy 10.0 Trade
Slide 10: Asset quality metrics at a multi-year best - lowest NPL ratio since 2015
Asset quality metrics at a multi-year best - lowest NPL ratio since 2015 with more than adequate coverage across portfolio Continue to prudently manage risk and maintain focus on improving and preserving good asset quality … with decline in non-performing loans and enhanced coverage 90% of loans are
Slide 11: Quality investment portfolio mandated to meet liquidity requirements and enhance yield
Quality investment portfolio mandated to meet liquidity requirements and enhance yield Investments book primarily consist of debt instruments, majority marked-to-market 0.01% AED Bn FY’22 FY’23 24% Debt - Amortised cost 0.8 1.2 0.02% 21% Debt - FVOCI 3.1 3.9 79% 76% Equity - FVOCI 0.001 0.001 TOTAL
Slide 12: Strong growth in customer deposits and robust liquidity metrics
Strong growth in customer deposits and robust liquidity metrics Strong growth in customer deposits Healthy CASA deposits growth on the back of various initiatives AED Bn CASA AED Bn +12% qoq, +19% yoy +12% qoq, +22% yoy CASA% 36% 35% 39% 36% 37% 10.2 8.6 9.2 8.3 8.4 3.7 3.1 3.3 3.3 2.9 FY'22 Q1'23 H
Slide 13: Strengthened capital position through AT1 issuance and profit generation
Strengthened capital position through AT1 issuance and profit generation Strong organic capital generation & issuance of AT1 in Q1’23 strengthens capital Delivering enhanced returns to shareholders position RoSE% (Ytd) +229bps -170bps 17.8 14.7 15.7 15.8 -37bps 10.3 13.3% 13.5% CET: +21bps RoA% (Ytd
Slide 14: Well-positioned for the growth ahead
We remain agile and steadfast in executing on our new strategy We remain cautiously optimistic on the macroeconomic outlook: technology economic sentiment • positive GDP growth, further picking up pace in 20241, with strong contribution from non-oil sectors interest rates trade wars • potential impa
Slide 15: Appendix
Appendix
Slide 16: Summary financials – Income statement and Balance sheet
Summary financials – Income statement and Balance sheet %chg %chg %chg Income statement highlights (AED Million) FY'23 FY'22 4Q'23 Q3'23 4Q'22 vs FY'22 vs Q3‘23 vs Q4'22 Net Interest Income 395 322 23 100 102 97 (2) 3 Non-Interest Income 182 179 1 29 72 52 (59) (44) Total Income 576 501 15 130 174 1
Slide 17: Summary financials – Key ratios
Summary financials – Key ratios % chg % chg % chg Key Ratios (%) FY’23 FY'22 4Q'23 Q3'23 Q4'22 vs FY’22 vs Q3’23 vs Q4’22 Net Interest Margin (NIM) 3.06 2.59 0.5 2.80 3.17 3.19 (0.4) (0.4) Cost-Income ratio 49.4 50.3 (0.9) 57.3 43.8 45.3 13.5 12.0 Cost of Risk (CoR) 0.39 1.14 0.8 0.42 0.49 2.28 (0.1
Slide 18: Disclaimer
Disclaimer • This presentation has been prepared for information purposes only and is not and does not form part of any offer for sale or solicitation of any offer to subscribe for or purchase or sell any securities nor shall it or any part of it form the basis of or be relied on in connection with
Slide 19: UNITED ARAB BANK
UNITED ARAB BANK 1975 OOO0OG auabuae | @uabae | @ 800474