Abu Dhabi Islamic BankADX: ADIB

Earnings Presentation Q2 2024

· Issued by Abu Dhabi Islamic Bank

ADIB IR Website

1H 2024 Earnings Presentation

Analyst & Investor Conference Call

Abu Dhabi, 25 July 2024

IR App Download link:

Contents

1H 2024 Earnings Presentation

Key Highlights

Financial Performance

Outlook & Guidance

Questions & Answers

Appendix

Contacts

Disclaimer

2

1

Key Highlights

1H 2024 Earnings Presentation

2

3

4

5

6

7

8

1H 2024 Key Highlights

Very solid set of financial results showing consistent growth trend on strong customer financing growth and healthy funding strategy

Record 1H 2024 performance with net income after tax of AED 3.03bn up 30% YoY and up 40% before tax to AED 3.42bn, translating to ROE of 28.8%

Quarterly profit (before tax) of AED 1.78bn up 8% sequentially and 38% YoY

Revenue up 25% to AED 5.35bn driven by 13% growth in funded income and 52% growth in non- funded income reflecting strong business volumes and continued strength in fee-basedbusinesses

Cost / Income ratio dropped to 28.6% an improvement of 183bps sequentially helped by strong revenue growth and continued cost discipline

ADIB welcomed 97,465 new customers since the beginning of the year

Assets surpassed AED 200bn milestone driven by 21% growth in customer financing that were efficiently funded by 15% YoY deposits growth with CASA increasing 9%

Maintained robust fundamentals through solid asset quality with NPA reaching 4.7%, strong liquidity profile and robust capital position with a CAR of 17.2%

1H'24 Net Income growth YoY

+40% +30%

Before tax After tax

1H'24 Revenue growth YoY

+25%

1H'24 ROE

28.8%

1H'24 net financing growth YoY

+21%

4

1

2

Financial Performance

3

4

5

1H 2024 Earnings Presentation

6

7

8

Financial Performance Highlights

Delivered solid net income of AED 3.03bn in 1H 2024, growing 30% YoY on solid balance sheet growth and non-funded income growth

Strong YoY Growth in Profitability

Solid Balance Sheet Growth YoY

Strong Capital Position and Return YoY

3.03bn213bn17.2%

Net IncomeTotal AssetsCAR

+30%

+17%

-48bps

(At constant FX 22% growth)

5.35bn137bn28.8%

RevenuesGross Customer FinancingReturn on Equity

+25%

+19%

+388bps

(At constant FX 22% growth)

1.53bn 172bn28.6%

ExpensesDepositsCost to Income Ratio

+6

+15%

-533bps

%

(At constant FX 19% growth)

All figures in AED

6

Key financial metrics - 1H 2024 vs 1H 2023

Another set of record results with ROE reaching 28.8% driven by solid growth in balance sheet and diversified revenues streams

1H 2023

1H 2024

Change

%

Profitability (AED mn)

Revenue

4,264

5,349

25%

Expenses

-1,446

-1,528

6%

Margin

2,819

3,821

36%

Cost of Credit

-369

-402

9%

Net Income before Zakat & Tax

2,450

3,419

40%

Zakat & Tax

-124

-390

215%

Net Income after Zakat & Tax

2,326

3,029

30%

Balance Sheet (AED bn)

Total Assets

182.2

213.4

17%

Gross Financing Assets

115.1

136.6

19%

Risk Weighted Assets

128.3

152.0

18%

Customer Deposits

150.4

172.2

15%

Investments

22.6

27.2

20%

Key Ratios

Cost to Income

33.90%

28.57%

-5.33%

Return on Equity

24.92%

28.80%

3.88%

NPA Coverage

72.5%

76.9%

4.4%

7

Income Statement

1H 2024 net income up 30% YoY on accelerated core revenue momentum and operational discipline

Net Income (AEDmn)

Net Income Movement YoY (AEDmn)

2,000

1,501

1,578

1,424

1,451

1,500 1,224

392

2,326

1,000

+30%

693

3,029

-83-33-266

500

0

Profit after zakat Funded income

Non-funded

Expenses

Impairments

Zakat & tax Profit after zakat

2Q 23

3Q 23

4Q 23

1Q 24

2Q 24

& tax

income

& tax

1H 23

1H 24

+13% +52% +6% +9% +215%

Income Statement Highlights

AED (mn)

1H 2024

1H 2023

Δ%

2Q 2024

2Q 2023

Δ%

Funded income

3,322

2,930

+13%

1,631

1,504

+8%

Non-funded income

2,028

1,335

+52%

1,201

724

+66%

Revenues

5,349

4,264

+25%

2,832

2,228

+27%

Operating expenses

(1,528)

(1,446)

+6%

(763)

(719)

+6%

Provision for impairment

(402)

(369)

+9%

(293)

(223)

+31%

Net Income after zakat and tax

3,029

2,326

+30%

1,578

1,224

+29%

Net Income Movement by Segment YoY (AEDmn)

+30%

404

320

11

146

3,029

2,326

-2

-82

-93

Profit after Retail

Wholesale

Private

Treasury

Real estate

Associates

Other Profit after

zakat & tax

and subs

zakat & tax

1H 23

1H 24

+31%

+97%

-3%

-80%

+255%

+61%

-34%

8

Funded Income

Strong growth in funded income with NPM trending strong reflecting discipline on both asset and liability pricing

Net Profit Margin (%)

Net Profit Margin Movement YoY (%)

6.78%

7.37%

7.41%

6.61%

+19bps

6.36%

0.24%

0.15%

4.48%

4.50%

4.67%

4.60%

4.41%

0.25%

0.21%

4.60%

4.41%

2.09%

2.43%

2.49%

-0.66%

1.97%

1.82%

1H 23

9M 23

FY 23

1Q 24

1H 24

Net profit

Retail financing Wholesale

Interbank Cost of funding Other

Net profit

Gross margin

Cost of funding

Net profit margin

margin

financing

placements

margin

1H 23

1H 24

Net Revenue from Funding Activities Movement YoY (AEDmn)

+13%

309

2,930

23527

-13

151 162

3,322

-479

Funded

Retail

Wholesale

Private

FI

Treasury &

Associates

Cost of

Funded

income

Others

& subs

funding

income

1H 23

+18%

+25%

-17%

+18%

+41%

+35%

+61%

1H 24

9

Operating Expenses

Outstanding operating efficiency with C/I ratio improving by more than 500 bps YoY helped by higher income and cost discipline

Cost To Income Ratio (%) Expenses Movement YoY (AEDmn)

-533bps

+6%

33.9%

46

3

1,528

32.6%

32.9%

30.4%

1,446

34

28.6%

1H 23

9M 23

FY 23

1Q 24

1H 24

Expenses

Employee costs

General &

Depr'n & Amort'n

Expenses

1H 23

admin costs

1H 24

QoQ

-125bps

+29bps

-253bps

-183bps

+4%

+12%

+2%

Expenses (AEDmn)

+6%

876

719740

765763

2Q 23

3Q 23

4Q 23

1Q 24

2Q 24

QoQ

+3%

+18%

-13%

-0%

10