Abu Dhabi Islamic Bank · ADX:ADIB

Abu Dhabi Islamic Bank — Q2 2014 Earnings Presentation

41 slides from Abu Dhabi Islamic Bank's earnings presentation, August 2014

  1. Slide 1: Investor Presentation Q2 2014

    Investor Presentation Q2 2014 Abu Dhabi: August 2014 ADIB © 2010 adib.ae

  2. Slide 2: Agenda

    Agenda Introduction Financial Review Business Review Appendix 2

  3. Slide 3: ADIB at a glance

    ADIB at a glance Overview ADIB – Timeline and milestones  Incorporated in 1997 to serve as first Islamic Bank in the Emirate of Abu Dhabi. •Established by the Govt. of Abu Dhabi in 1997 •Licensed in 1998 as an Islamic bank by the Central bank and  Majority owned by members of the ruling family of

  4. Slide 4: Ratings Excerpts

    Ratings Excerpts “ADIB's BCA (standalone credit assessment) reflects the bank's strong and expanding Islamic franchise in the UAE particularly in the retail segment and strong core profitability and improved capitalization […] Moody’s assessment of a very high probability of systemic support, in the

  5. Slide 5: Ownership & Corporate Structure

    Ownership & Corporate Structure ADIB Ownership  ADIB is mainly owned by over 46,000 UAE nationals and Other members and associates of the Abu companies. Dhabi Royal family: 9.1%  The Bank’s main shareholder is National Holding via EIIC, which is EIIC: 40.0% a private holding company, wholly-owned

  6. Slide 6: Key Strengths

    Key Strengths  Majority owned by members of the ruling family of Abu Dhabi and Strong and sovereign wealth fund. Influential 4th Largest Shareholder Robust  Fastest growing major Islamic Bank Islamic Bank Financial  Sustained growth in profits; consistently Globally by Health and one of the most

  7. Slide 7: UAE Banking Sector

    UAE Banking Sector Highlights UAE Banking Sector (AED Bn) Dec 12 Dec 13 May 14 Total Assets - Gross 1,877.0 2,100.3 2,233.1  UAE Banking sector is the largest by assets in the GCC; the UAE banking sector accounts for ~30% of the GCC total. Certificates of deposit held by Banks 95.1 107.9 112.7  Ba

  8. Slide 8: Agenda

    Agenda Introduction Financial Review Business Review Appendix 8

  9. Slide 9: Financial Snapshot (1/2)

    Financial Snapshot (1/2) Total Assets (AED Bn) Net Customer Financing (AED Bn) Customer Deposits (AED Bn) +9% +8% +9% 103.2 105.7 61.7 64.9 75.5 79.0 86.1 48.8 51.2 61.3 75.3 74.3 48.0 56.5 55.2 2010 2011 2012 2013 Q2 14 2010 2011 2012 2013 Q2 14 2010 2011 2012 2013 Q2 14 Capital Resources (AED Bn)

  10. Slide 10: Financial Snapshot (2/2)

    Financial Snapshot (2/2) Return on Avg Shareholders’ Equity (%) Financing to Deposits Ratio (%) Advances to Stable Funds Ratio (%) 19.3% 84.8% 83.4% 83.5% 81.8% 77.9% 79.0% 16.1% 16.3% 15.6% 15.5% 88.5% 83.1% 82.1% 75.7% 2010 2011 2012 2013 Q2 14 2010 2011 2012 2013 Q2 14 2010 2011 2012 2013 Q2 14 C

  11. Slide 11: June 2014 in review – key financial highlights

    June 2014 in review – key financial highlights Balance sheet highlights Income statement highlights Key performance indicators Change Change Net Profit AED Bn June 13 June 14 AED Mn H1 13 H1 14 +10% % % +21% Total assets 91.6 105.7 15% Revenue 1,869.6 2,156.0 15% 864 Net customer Expenses 792.8 899.

  12. Slide 12: Operating Performance

    Operating Performance Highlights (H1 14 vs. H1 13) Net Revenue from Funds (AED Mn) Fees, commission and others (AED Mn) Profit paid on funds FX +33%  Revenues, up by 15% at AED 2,156 +11% Revenue from funds Investment income & others Mn. 1,639 Fees & Commission 517 1,481 24  Net revenue from Funds

  13. Slide 13: Key ratios

    Key ratios Ratios June 2013 June 2014 Diluted Earnings per share (EPS in AED) 0.185 0.228 Return on Average Shareholders’ Equity (excluding GoAD - Tier 1 capital) 16.5% 19.3% Efficiency Net profit margin (%) 4.3% 4.1% Cost / income ratio 42.4% 41.7% Percentage lent (Financing / Total Assets) 61.9% 6

  14. Slide 14: Competitive landscape – ADIB vs. UAE Banks

    Competitive landscape – ADIB vs. UAE Banks Peer Group Analysis for June 2014 ADIB ADCB FGB NBAD UNB MASHREQ DIB CBD ENBD RAK Revenue – H1 14 AED Mn 2,156 3,775 4,539 5,089 1,596 2,853 2,659 1,052 7,042 1,699 Operating Profit – AED Mn 1,257 2,569 3,532 3,425 1,136 1,791 1,705 718 4,905 959 Margin – H

  15. Slide 15: Balance Sheet Strength

    Balance Sheet Strength Consistently remains one of the most liquid banks in the UAE Net Customer Financing & Customers’ Deposits (AED Bn) Composition of Total Assets – AED Bn Customer Financing Fin to Dep ratio Investmen Investmen ts: ts: Customer Deposits Adavnces to Stable funds ratio 6.0% Fixed 6

  16. Slide 16: Customer Financing Assets

    Customer Financing Assets Portfolio growth of 14% since Q2 13 driven by strong performance from Wholesale bank (13%) and Retail (19%) Gross Customer Financing by Segment Gross Customer Financing by Customer Segment Private Retail Govt. & FI: 1.2% SME & Govt. & FI: 1.1% SME & PSE: Others: PSE: Others

  17. Slide 17: Asset quality – Customer financing only

    Asset quality – Customer financing only Provisions and NPAs – Customer financing (AED Mn) NPA ratio and provision coverage ratio NPAs - impaired Write-off Collective / General NPA ratio - Not Impaired Total Provision coverage ratio - Impaired only * NPAs - Total Individual / Specific NPA ratio - Imp

  18. Slide 18: Funding Profile

    Funding Profile Composition of Liabilities (AED Bn) Customers’ Deposits by Segment (AED Bn) 79.0 Private Wholesale Retail Q2 13 Q2 14 66.9 +11% +18.2% 5.4 79.0 4.6 4.6 4.6 66.9 9.7% 60.5 10.1% 3.7 51.9 53.2 12.9% 36.7% 14.6% 13.4% 36.7% 2.1 38.8% 46.1% 40.3% 53.2% 53.6% 46.3% 48.4% 39.3% Due to FI O

  19. Slide 19: Capital

    Capital Well capitalised and strong capital base Capital Adequacy (%) Capital base - Tier 1 and Tier 2 - AED Bn Total CAR UAE Central Bank CAR requirement Tier 2 Tier 1 Minimum Tier-1 requirement 12.5 12.9 Tier1 0.4 0.3 16.6% 16.6% 16.9% 10.6 16.1% 15.3% 10.0 9.5 17.3% 2.4 2.3 2.3 15.8% 12.7% 12.4%

  20. Slide 20: ADX Points

       ADIB Price (AED) - 4.50 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 5.00 5.50 6.00 6.50 7.00 7.50 Dec-08 Jan-09 Feb-09 capital. Mar-09 Apr-09 May-… Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-… Jun-10 Jul-10 Aug-10 Shareholders’ Return Sep-10 Oct-10 Nov-10 Dec-

  21. Slide 21: Agenda

    Agenda Introduction Financial Review Business Review Appendix 21

  22. Slide 22: ADIB Strategy

    ADIB Strategy To become a top tier regional bank by Providing Islamic financial solutions for everyone Build Market Leadership Create an Integrated Pursue International within the UAE Financial Services Group Growth Opportunities • The key customer service sectors are • ADIB continues to build a div

  23. Slide 23: Business unit contribution

    Business unit contribution Composition of Total Assets – AED Bn Composition of Total Liabilities – AED Bn Real Private Real Real Private Estate; ; 3% Estate; Real 0% Private; Private; Estate; ; 3% Capital 0% Capital Estate; Capital Capital 6% 5% 3% Markets Markets; 3% Markets; Markets ; 24% 30% 30%

  24. Slide 24: Retail Banking overview

    Retail Banking overview Retail Banking contributes 66% of Net Revenues Assets (AED Bn) +13%  Personal Banking Division provides services for +20% individuals clients, while the Business Banking Division services the needs of SMEs. 35.1 25.1 26.3 29.2  These services include a variety of Shari’a co

  25. Slide 25: Wholesale Banking overview

    Wholesale Banking overview Assets (AED Bn) Wholesale Banking contributes 27% of Net +12% Revenues +11%  Wholesale Banking encompasses the large corporates, 27.3 24.7 emerging corporates and financial institutions divisions 17.2 18.3 20.4 of the Bank. The array of services includes Transaction Banki

  26. Slide 26: Private Banking overview

    Private Banking overview Assets (AED Bn) Private Banking contributes 3% of Net Revenues -7%  Private Banking focuses on high and ultra high net 7.2 6.4 5.7 worth individuals. 5.4 5.5  Wealth Management concentrates on developing, marketing and servicing a wide range of wealth management products (

  27. Slide 27: Treasury overview

    Treasury overview Treasury contributes 10% of Net Revenues Assets (AED Bn)  Treasury principally handles money market brokerage, trading and treasury services, as well as the +21% +35% management of the Bank's funding operations by use of investment deposits 19.1 15.7 14.1 Investments 10.6 Fair val

  28. Slide 28: Agenda

    Agenda Introduction Financial Review Business Review Appendix 28

  29. Slide 29: Consolidated Statement of Income

    Consolidated Statement of Income % chg Q2 % chg Q2 % chg H1 14 AED Mn Q2 13 Q1 14 Q2 14 H1 13 H1 14 14 vs Q2 13 14 vs Q1 14 vs H1 13 Revenues 950.6 1,073.0 1,082.9 13.9% 0.9% 1,869.6 2,156.0 15.3% Net Revenue from Funds 755.8 797.7 840.9 11.3% 5.4% 1,481.5 1,638.6 10.6% Fees & commission 143.1 177.0

  30. Slide 30: Consolidated Balance Sheet

    Consolidated Balance Sheet % chg 30 Jun % chg 30 Jun AED Mn% 30 Jun 2013 31 Dec 2013 30 Jun 2014 2014 vs 31 Dec 2014 vs 30 Jun 2013 2013 Cash and balances with Central Banks 13.959 22,221 20,567 -7.4% 47.3% Due from financial institutions 9,794 6,663 6,831 2.5% -30.2% Net Customer financing 546,192

  31. Slide 31: Dividend Distribution History

    Dividend Distribution History 2007 2008 2009 2010 2011 2012 2013 Net Profit (Mn) 769.0 851.1 78.0 1,023.6 1,155.1 1,201.2 1,450.2 Cash Dividend Payout Ratio 51.2% 50.0% - 50.0% 50.0% 50.0% 50.0% (% of Net Profit) Cash Dividend 20.0% 21.6% - 21.6% 24.4% 25.4% 30.7% (% of Share Capital) Cash Dividends

  32. Slide 32: Key Deals in H1 2014 (1/2)

    Key Deals in H1 2014 (1/2) USD 650,000,000 Sukuk AED 1,200,000,000 USD 400,000,000 USD 150,000,000 USD 410,000,000 Mandated Lead Arranger, Sole Bookrunner, Investment Mandated Lead Arranger & Mandated Lead Arranger & Joint Lead Manager & Co Lead Manager for IPO Agent, Security Agent & Bookrunner for

  33. Slide 33: Key Deals in H1 2014 (2/2)

    Key Deals in H1 2014 (2/2) USD 1,300,000,000 USD 750,000,000 USD 500,000,000 Islamic Mandated Lead Arranger & Joint Lead Manager Joint Lead Manager & Book runner Islamic Facility Agent June 2014 June 2014 June 2014  ADIB acted as an Islamic  ADIB acted as a Joint Lead  ADIB acted as a Joint Lead

  34. Slide 34: An award winning Bank (1/3)

    An award winning Bank (1/3) Mohammed Bin Rashid award for Best Supporting Bank for SME by business excellence the Mohammed Bin Rashid Al - Finance Category Maktoum Award for young leaders - 2013 “Islamic Bank of the Year - Middle “Best Islamic Bank in the Middle East Regional Winner” East and the UA

  35. Slide 35: An award winning Bank (2/3)

    An award winning Bank (2/3) “Best Islamic Bank in the UAE” by “Best Islamic Bank in the Middle Asia Money Awards East” by Asia Money Awards “Best Overall Bank in Customer “Best Nationalization Service” in the UAE for three Initiative” by MENA HR consecutive years by Ethos Consultancy Excellence Awar

  36. Slide 36: An award winning Bank (3/3)

    An award winning Bank (3/3) “Best overall Islamic retail Sukuk deal of the year Bank” by Islamic Finance News 2013 by Global Finance Best commercial bank for 2013 by “Best Sukuk Deal” Islamic Banking and Finance Magazine by EuroMoney “Best Broker in the UAE” “Best website award of the year by Global

  37. Slide 37: Executive Management Biographies

    Executive Management Biographies 37

  38. Slide 38: Executive Management Profile (1/3)

    Executive Management Profile (1/3) Joined ADIB in March 2008. He holds a Bachelor degree (major in Corporate Finance) from Loyala of Tirad Mahmoud Concordia University in Montreal, Canada and has also completed the Executive Management Program at Chief Executive Officer Wharton. He has previously wo

  39. Slide 39: Executive Management Profile (2/3)

    Executive Management Profile (2/3) Abdulla Al Shahi Joined ADIB in November 1998. He holds an MBA from the UAE University. He has 19 years banking Head of New Country experience. His previous position was as a branch manager for Oman Housing Bank. Expansion Joined ADIB on 3 June 2008. He holds a Mas

  40. Slide 40: Executive Management Profile (3/3)

    Executive Management Profile (3/3) Joined ADIB on 18 April 2010. He holds a Certified Public Accountant (CPA) from State Board of Abdul Hakim Kanan Accountancy, New Hampshire, US. He also holds professional qualification CIA,CISA,CITP,CFSA,CFE and Global Head of Audit CGEIT. He has over 24 years of

  41. Slide 41: 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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