FY 2024 Earnings Presentation
Analyst & Investor Conference Call
ADIB IR Website
Abu Dhabi, 29 January 2025
IR App Download link:
1
Key Highlights
FY 2024 Earnings Presentation
2
3
4
5
6
3
Financial highlights
Record earnings driven by strong business momentum & growth across diverse income streams
Record FY 2024 performance with net income before tax of AED 6.9bn up 26% YoY and up 16% | FY'24 Net Income growth YoY |
+26% +16% | |
after tax to AED 6.1bn, translating to ROE of 27.9% | |
Revenue up 14% YoY to AED 10.6bn reflecting strong business volumes and improved revenue mix with higher non-funded income contribution
Before tax | After tax |
Cost / Income ratio dropped to 29.6% an improvement of 336bps YoY helped by strong revenue growth and continued cost discipline
ADIB welcomed more than 216,000 new customers since the beginning of the year
Total assets crossed AED 226bn milestone driven by 24% growth in customer financing that were efficiently funded by 16% YoY deposits growth with CASA increasing 9%
Continuous improvement in asset quality with NPA ratio at 4.0% lowest since Q1 2017 and increased coverage ratio to 81.5%
Proposing a cash dividend of 83 fils per share compared to 71 fils per share last year equivalent to 50% of net profit
FY'24 Cost / Income ratio
29.6%
FY'24 ROE
27.9%
FY'24 Net financing growth YoY
+24%
4
Outlook and Guidance
Solid financial & strategic foundations drive a promising outlook for 2025
Market Outlook
Solid GDP growth
Real GDP growth (%)
3.4%3.9%6.2%
202320242025
Oil prices to remain supportive
Brent Price / Barrel (avg) (USD) | ||
82 | 83 | 75 |
2023 | 2024 | 2025 |
Inflation expectations are modest | ||
UAE Inflation (avg) (%) | ||
1.6% | 2.3% | 2.3% |
2023 | 2024 | 2025 |
Management Guidance | FY 2024 Actual | FY 2025 Guidance | |
Gross Financing Growth | |||
Executing ADIB's growth strategy against a | 22% | > 10% | |
positive economic backdrop resulting in | |||
balanced growth across Retail & Wholesale | |||
Net Profit Margin | 4.35% | > 4% | |
Expectation for another 50bps rate cut in | |||
2025. NPM moderating towards 4% average | |||
for FY 2025 | |||
Cost of Risk | |||
Modest rise in CoR from ongoing expansion of | 0.53% | 0.40% to 0.60% | |
portfolio and continued build-up of prudent | |||
provisioning | |||
Cost to Income Ratio | |||
Opex growth to support business expansion | 29.6% | < 30% | |
moderated by disciplined management and |
digital efficiencies with overall positive "jaws"
Expenditure expected to remain stable
Government expenditure % of GDP (%)
26%27%27%
2023 | 2024 | 2025 |
Return on Equity
Solid expected profit growth and focus on | 27.9% | > 25% |
capital-efficient income growth expected to | ||
drive continued superior returns
5
1 | |
Financial Performance | 2 |
4 | |
3 | |
FY 2024 Earnings Presentation | 5 |
6 |
6
Financial Performance Highlights
Record profitability in FY 2024 with 26% growth in net profit before tax driven by strong customer financing and non-funded income growth
Strong YoY Growth in Profitability Robust Balance Sheet Growth YoY Strong Capital Position and Return YoY
6.9bn | 226bn | 16.2% | ||
Net Income before tax | Total Assets | CAR | ||
+26% | +17% | -59bps | ||
(At constant FX 24% growth) | ||||
10.6bn | 147bn | 27.9% | ||
Revenues | Gross Customer Financing | Return on Equity | ||
+14% | +22% | +82bps | ||
(At constant FX 26% growth) |
3.1bn 183bn29.6%
Expenses | Deposits | Cost to Income Ratio | |
+3 | +16% | -336bps | |
% | |||
(At constant FX 22% growth) | |||
All figures in AED | 7 |
Key financial metrics - FY 2024 vs FY 2023
Record set of results with ROE reaching 27.9% driven strong commercial momentum, diversified revenue streams and cost discipline
FY 2023 | FY 2024 | FY 2024 vs FY 2023 | ||||
Amount | % | |||||
Profitability (AED mn) | Revenue | 9,294 | 10,632 | 1,338 | 14% | |
Expenses | -3,061 | -3,145 | -83 | 3% | ||
Margin | 6,232 | 7,487 | 1,255 | 20% | ||
Cost of Credit | -760 | -620 | 141 | -18% | ||
Net Income before Zakat & Tax | 5,472 | 6,868 | 1,396 | 26% | ||
Zakat & Tax | -221 | -766 | -545 | 247% | ||
Net Income after Zakat & Tax | 5,251 | 6,101 | 850 | 16% | ||
Balance Sheet (AED bn) | Total Assets | 192.8 | 225.9 | 33.1 | 17% | |
Gross Financing Assets | 120.2 | 147.1 | 27.0 | 22% | ||
Risk Weighted Assets | 138.2 | 160.0 | 21.8 | 16% | ||
Customer Deposits | 157.1 | 182.7 | 25.6 | 16% | ||
Investments | 24.5 | 29.3 | 4.8 | 20% | ||
Key Ratios | Cost to Income | 32.94% | 29.58% | -3.36% | ||
Return on Equity | 27.11% | 27.92% | 0.82% | |||
NPA Coverage | 74.3% | 81.5% | 7.2% | |||
NPA | 6.1% | 4.0% | -2.0% | |||
8
Income Statement
FY 2024 net income before tax growth of 26% YoY driven by strong revenue momentum, operating efficiency and balance sheet growth
Net Income (AEDmn) | Net Income before Tax Movement YoY (AEDmn) | |
3,255 | 3,304 | |||
2,925 | ||||
3,029 | 3,072 | 5,472 | 444 | |
2,177 | 2,326 | |||
+26%
894 | 141 | 6,868 |
-83 |
1,442
Profit before tax Funded income | Non-funded income | Expenses | Impairments | Profit before tax | |||||||||||||||||
1H 22 | 2H 22 | 1H 23 | 2H 23 | 1H 24 | 2H 24 | ||||||||||||||||
FY 23 | FY 24 | ||||||||||||||||||||
Profit before UAE Corporate tax | Profit after tax | +7% | +28% | +3% | -18% | ||||||||||||||||
Income Statement Highlights
AED (mn) | FY 2024 | FY 2023 | Δ% | 4Q 2024 4Q 2023 | Δ% | |
Funded income | 6,566 | 6,122 | +7% | 1,663 | 1,616 | +3% |
Non-funded income | 4,066 | 3,172 | +28% | 974 | 984 | -1% |
Revenues | 10,632 | 9,294 | +14% | 2,637 | 2,599 | +1% |
Operating expenses | (3,145) | (3,061) | +3% | (821) | (876) | -6% |
Provision for impairment | (620) | (760) | -18% | (172) | (189) | -9% |
Net Income before zakat and tax | 6,868 | 5,472 | +26% | 1,645 | 1,534 | +7% |
Net Income after zakat and tax | 6,101 | 5,251 | +16% | 1,467 | 1,501 | -2% |
Net Income before Tax Movement by Segment YoY (AEDmn)
+26% | ||||||
5,472 | 470 | 504 | 38 | 226 | 238 | 6,868 |
-10 | -70 |
Profit | Retail | Wholesale | Private | Treasury | Real estate | Associates | Other | Profit |
before tax | and subs | before tax | ||||||
FY 23 | +18% | +56% | -6% | -37% | +54% | +28% | +36% | FY 24 |
9
Funded Income
Strong growth in funded income with NPM trending strong reflecting discipline on both asset and liability pricing
Net Profit Margin (%) | 7.47% | Net Profit Margin Movement YoY (%) | ||||||||
7.37% | 7.41% | 7.40% | -15bps | |||||||
6.78% | ||||||||||
0.17% | ||||||||||
4.67% | 4.60% | 4.46% | 4.35% | 4.50% | 0.18% | 0.06% | 4.35% | |||
4.50% | ||||||||||
-0.03% | -0.53% | |||||||||
2.60% | 2.63% | |||||||||
2.43% | 2.49% | |||||||||
2.09% | ||||||||||
FY 23 | 1Q 24 | 1H 24 | 9M 24 | FY 24 | Net profit | Retail financing | Wholesale | Interbank Cost of funding Other | Net profit | |
Gross margin | Net profit margin | Cost of funding | margin | financing | placements | margin | ||||
FY 23 | FY 24 | |||||||||
Funded Income Composition (AEDmn)
Net Revenue from Funding Activities Movement YoY (AEDmn)
Associates and subs 19.8%
1,299mn
Treasury | FY 24 | |
-23.1% | 6,566mn | |
-1,516mn |
Other 12.2% 800mn
Retail 70.1% 4,606mn
621
6,122
447
+7%
58 127
-24
181
6,566
-966
Private 3.8% 250mn
Wholesale 17.2% 1,127mn
Funded | Retail | Wholesale | Private | FI | Treasury & | Associates | Cost of | Funded |
income | Others | & subs | funding | income | ||||
FY 23 | +17% | +22% | -18% | +19% | +15% | +17% | -52% | FY 24 |
10
| Attention: This is an excerpt of the original content. To continue reading it, access the original document here. |