Abu Dhabi Commercial Bank · ADX:ADCB
Abu Dhabi Commercial Bank — Abu Dhabi Commercial Bank PJSC — Q1 2012 Earnings Presentation
29 slides from Abu Dhabi Commercial Bank's earnings presentation, 2012
Slide 1: Abu Dhabi Commercial Bank PJSC Investor presentation Q1'12
Abu Dhabi Commercial Bank PJSC Investor presentation Q1’12 1
Slide 2: Disclaimer
Disclaimer This document has been prepared by Abu Dhabi Commercial Bank PJSC (“ADCB”) for information purposes only. The information, statements and opinions contained in this presentation do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an off
Slide 3: Our strategy
Our strategy… • Growth through a UAE centric approach and controlled ‘internationalisation’ • Sustainability through liability growth • Maintaining a culture of service excellence and efficiency • Managing ADCB’s risk in line with a predefined risk strategy • Attracting, developing and retaining the
Slide 4: Index
Index • Financial highlights g g • Business B i overview i • Appendix 4
Slide 5: Financial highlights
SS acu gal Chi ADCB4 LONG LIVE AMBITION: Financial highlights
Slide 6: Analysis of ADCB's first quarter results
Analysis of ADCB’s first quarter results… AED million Q1’12 Q4'11 Q1'11 Q4'11 Q1'11 QoQ % YoY% Income statement highlights Change Change Total net interest and Islamic financing income 1,195 1,391 926 (14) 29 9 Sustainable revenue generation Non‐interest income 389 231 400 68 (3) Operating income 1,
Slide 7: Sustainable revenue generation, diversified streams of income
Sustainable revenue generation, diversified streams of income… Net interest income* Evolution of yields +29% 5.15% 5.20% Sustainable 1,391 4.99% 5.12% 4.83% revenue 1,335 generation 1,036 1,195 926 Strongg balance 3.47% 3.60% sheet 1,969 2,009 1,894 1,846 1,913 AED 3.02% Position of 2.80% mn 2.69% c
Slide 8: Strong core banking franchise delivering solid results
Strong core banking franchise delivering solid results… O Operating i expenses C t tto income Cost i ratio* ti * Sustainable +18% revenue ‐8% generation 37% Strong balance 560 548 34% 528 506 30% 32% sheet 44 47 31% 427 47 41 43 201 181 221 Position of 173 capital strength 184 Conservative AED 315 3
Slide 9: Effective management of balance sheet with a UAE centric approach
Effective management of balance sheet with a UAE centric approach… C iti off assets Composition t (AED 183 b bn)) SSplit lit off th the lloan portfolio, tf li gross (AED 130 b bn)) Cash and Real estate Sustainable Investments* Fixed and other balances with Development revenue 9% assets investment En
Slide 10: Sustainability through liability growth, diversified sources of funding
Sustainability through liability growth, diversified sources of funding… C Composition iti off liabilities li biliti (AED 160 b bn)) C t Customer deposits d it by: b Sustainable +4% Counterparty Type revenue generation 114.5 AED 114.5 bn AED 109.9 bn 109.9 2% 1% Strong balance 17% 16% sheet 54% 57%
Slide 11: Strong capital position and liquidity levels
Strong capital position and liquidity levels… C it l position Capital iti and d risk i k weighted i ht d assets t C it l adequacy Capital d ratio ti and d Tier Ti I ratio ti Sustainable 23.19% revenue 138.5 135.4 137.6 137.6 22.51% generation Strong balance 31.0 31.9 sheet 9.0 17 38% 17.38% 16.65% 2
Slide 12: Asset quality
Asset quality… NPL ratio ti and d provision i i coverage ratio ti NPL and NPLs d iimpairment i t allowances ll ■ NPL ratio — Provision coverage ratio 14,278 Sustainable ■ NPLs revenue 80.0% ■ Collective impairment generation 67.8% 70.4% ■ Individual impairment Strong balance 44.1% 7,194 sheet 6,242
Slide 13: Investment portfolio
Investment portfolio… A il bl ffor sale Available l iinvestments t t (AED 17 b bn)) R i i ffunded Remaining d d FRN & CDO exposure Mutual funds Sustainable 0.69% revenue Government generation Equity 200 (179) securities 1.07% ‐ 21.31% Strong balance sheet FRN & CDO 1.75% Position of capital strength
Slide 14: Business overview
SSL ecg gl Chi ADCB€ LONG LIVE AMBITION: Business overview 14
Slide 15: ADCB Services - active across all business lines
ADCB Services ‐ active across all business lines… Contribution to Business segment Overview operating income in Q1’12 • Covers retail, wealth management and Islamic operations • Growth in consumer banking underpinned by an increased product offering, expansion of sales and 48% distribution infrastru
Slide 16: Consumer banking
Consumer banking… B l Balance sheet h t trends t d O Operating i iincome Loans Deposits +8% 30,455 764 65,957 62,917 62,827 707 25,348 26,889 22,453 57,827 AED AED AED mn mn mn 2009 2010 2011 M h'12 March'12 2009 2010 2011 M h'12 March'12 M h'11 March'11 M h'12 March'12 Mass affluent and wealth mana
Slide 17: Wholesale banking
Wholesale banking… B l Balance sheet h t trends t d O Operating i iincome* Loans Deposits +12% 46,949 58,784 61,828 60,846 388 56,806 43,536 43,369 345 24,868 AED AED AED mn mn mn 2009 2010 2011 March'12 2009 2010 2011 March'12 March'11 March'12 * Excludes share of profit of associate Wholesale bank
Slide 18: Corporate governance and risk management
Corporate governance and risk management… Corporate governance ‐ In line with best international practices Risk management pillars ‐ Achieving sustainable growth Principles and awards • Single borrower, group, industry and country concentration limits • Regular audits of business units • Focused aro
Slide 19: Awards in Q1'12
Awards in Q1’12… “Best Woman Award in the Banking & “Human Resources Award in the Financial Sector 2011 " Banking & Financial Sector 2011” by by Human Resources Development Committee in Human Resources Development Committee in Banking & Financial Sector Banking & Financial Sector At At the 14th edit
Slide 20: Appendix
Appendix • Operating environment • Key group subsidiaries • Board d off Directors i and d Management profiles fil • Financial statements 20
Slide 21: United Arab Emirates (UAE) - stable operating environment
United Arab Emirates (UAE) – stable operating environment… U it d Arab United A b EEmirates i t S b t ti l h Substantial hydrocarbon d b wealth lth (billion billi barrels b i l t) l off oilil equivalent The UAE has 6th and 7th highest reserves of oil and gas, respectively, in the world Country ratin
Slide 22: Abu Dhabi - strong economic outlook
Abu Dhabi – strong economic outlook… Ab Dh Abu Dhabi bi H lth public Healthy bli finances fi 10.0 29.9% 31.6% 8.6% 40 Emirate rating • Moody’s: Aa2, S&P: AA, Fitch: AA 7.2% 30 8.0 20 6.0 Nominal GDP • 2011 nominal GDP estimated at US$ 205bn (as per 3.7% 14.2% 10 Standard & Poor Poor’s) s) 40 4.0 3.3
Slide 23: UAE Banking Sector - ADCB's home market
UAE Banking Sector – ADCB’s home market… UAE b banking ki sector t • Regulated by the UAE Central Bank – 23 local banks with 794 branches UAE Banking Sector (AED bn) 2009 2010 2011 March’12 – 28 licensed foreign banks with 88 branches Total Assets 1,519 1,606 1,662 1,741 • The UAE banking sector has
Slide 24: Key group subsidiaries
Key group subsidiaries… 100% 100% 100% 100% Abu Dhabi Abu Dhabi Abu Dhabi Al Dhabi Commercial Commercial Commercial Brokerage Engineering Properties Islamic Finance Services Services • Established in 2005 • Established in 2007 • Established in 2009 • Established in 2005 • Real estate property • Excl
Slide 25: Board of Directors
Board of Directors H.E. Eissa Al Suwaidi, Chairman • Appointed by the Government of Abu Dhabi to join the ADCB Board of Directors and was elected the chairman of ADCB in September 2008. • Over 20 years of experience in banking & finance • External appointments: – Executive Director – Abu Dhabi Inves
Slide 26: Management team
Management team Ala’a Eraiqat, CEO & Member - Board of Directors • Joined ADCB in 2004, appointed Deputy CEO in 2007; CEO since February 2009 • Over 20 years of banking experience with previous employers including Citibank and Standard Chartered • Broad-based experience in consumer, wholesale and ge
Slide 27: ADCB - a leading bank in the UAE
ADCB – a leading bank in the UAE… O Overview i Investment grade d rating i • Third largest bank in the UAE and second largest in the Emirate Long term Short term of Abu Dhabi in terms of total assets, 11.65% market share by Outlook rating rating loans and 10.27% market share by deposits as at 31 Dec
Slide 28: Group performance - balance sheet
Group performance – balance sheet AED mn 31 Mar’12 31 Dec’11 Variance (%) Cash and balances with Central Banks 7,556 6,630 14 Deposits and balances due from banks 17,664 20,840 (15) Loans and advances advances, net 123 866 123,866 124 755 124,755 (1) Derivative financial instruments 4,533 4,845 (6)
Slide 29: Group performance - income statement
Group performance ‐ income statement 31 Mar’12 31 Mar’11 Variance (%) AED mn Interest and income from Islamic financing 1,913 1,894 1 Interest expense p and profit p distribution ((717)) ((968)) ((26)) Net interest and Islamic financing income 1,195 926 29 Net fees and commission income 249 263 (5)
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