Invest Bank · ADX:INB
Invest Bank — FY2016 Earnings Presentation
14 slides from Invest Bank's earnings presentation, Mar 26, 2017
Slide 1: Investor Presentation
Investor Presentation For the year ended 31 December 2016 26 March 2017
Slide 2: Consolidated statement of financial position
Invest bank - Consolidated statement of financial position As at 31 December 2016 All fig. in AED million Variance • Total assets posted an increase of 8% Dec 16 Dec-15 against 2015 as loans and advances (%) increased significantly by 10%. Cash and dep. with banks 2,426 2,169 12% Investment securiti
Slide 3: Financial performance – Balance Sheet
Invest bank Financial performance – Balance Sheet All fig. in AED Million Total assets Equity 3,000 16,000 2,500 2,961 2,784 2,824 12,000 2,596 2,347 2,000 16,125 13,830 14,907 12,299 11,410 8,000 1,500 1,000 4,000 500 - - 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Loans and advances Customer
Slide 4: Financial performance – Key Ratios
Invest bank Financial performance – Key Ratios Invest Bank vs. Industry ratios 19.0% 20% 17.3% 18% 16.2% 16% 14% 12% 10% 8% 17.8% 18.0% 17.2% 17.4% 16.2% 15.3% 6% 4% 2% 0% Overall capital adequacy ratio Tier 1 Capital adequacy ratio Liquid asset ratio 100% 93.8% 95% 90% 86.6% 85% 98.2% 96.2% 94.6% 9
Slide 5: Investments – Composition of investment securities
Invest bank Investments – 31 December 2016 Carrying value (AED Million) Return/(loss) Dec 2016 Dec 2015 Variance 2016 2015 Comments Increase in carrying value on Investments in equity securities 259 254 2% 4.5% -22% account of increase in fair value. Decrease in carrying value is Investments in debt
Slide 6: Statement of profit or loss
Invest bank – Statement of profit or loss For the year ended 31 December 2016 All fig. in AED Million Dec-16 Dec-15 Variance • Interest income increased in line with Interest income 769 726 6% increase in average interest bearing assets Interest expense (258) (226) 14% from AED 12.7B in 2015 to AED
Slide 7: Financial performance – Income statement
Invest bank Financial performance – Income statement All fig. in AED Million Operating income Operating profit 800 600 500 600 400 442 503 473 741 552 711 526 400 300 566 608 665 200 200 100 - - 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Net profit Loan loss charge 400 300 250 300 200 252 272
Slide 8: Financial performance – Profitability ratios
Invest bank Financial performance – Profitability ratios Return on average assets Return on average equity 3.50% 16% 3.00% 14% 12.32% 12% 2.50% 10% 1.59% 14.54% 2.00% 13.38% 13.27% 8% 1.50% 2.76% 9.37% 6% 8.99% 2.98% 2.77% 1.75% 1.75% 1.00% 4% 0.50% 2% 0.00% 0% 2012 2013 2014 2015 2016 2012 2013 201
Slide 9: Non Performing Loan ratio vs. Provision coverage
Invest bank Financial performance Non Performing Loan ratio vs. Provision coverage 9% 120% 89% 109% 100% 102% 96% 8% 100% 7% 80% 6% 60% 7.7% 7.37% 7.87% 6.58% 8.09% 5% 40% 4% 20% 3% 0% 2012 2013 2014 2015 2016 NPL Ratio Provision coverage Page 8
Slide 10: Share performance – Market capitalisation
Invest bank Share performance – Market capitalisation Share price vs. Index 10,000 3.00 Dec’16: 2.26 2.50 8,000 Share price 2.00 6,000 1.50 AED 3.6 B 4,000 1.00 2,000 0.50 - 0.00 2012 2013 2014 2015 2016 Market capitalisation (Invest Bank) ADX banking sector index Share price (Invest Bank) Price / e
Slide 11: Dividend performance
Invest bank Dividend performance The Bank has proposed dividend at 8.08% for 2016 (2015: 7.5%) Average dividend percentage for 60 companies listed on Dividend Payout Ratio DFM/ADX 5.2%. [Al Iqtisadi 13 March 2017] 90% 80% 70% 60% 47% Invest Bank 50% 40% Industry average 30% 20% 30% 10% 0% 2012 2013
Slide 12: Shareholders value creation – 2005–2016
Invest bank Share holders value creation – 2005 – 2016 All fig. in AED Million 4,500 4,030 4,000 AED 2.26* AED 1,351 less par value 2.26/share 3,500 2,001 3,589 3,000 2,500 2,000 at AED 1 par 1.5 X 2,001 1,500 - 678 1,351 1,000 - 910 910 500 75% 678 - Share capital Share Share price Market Cash divi
Slide 13: Investor base – 31 December 2016
Invest bank Investor base – 31 December 2016 Ownership statistics by nationalities of shareholder 2016 Arab 2015 Foreigners 96.26% 98.30% GCC National 1.02% 1.03% 0.003% 0.003% 0.68% 2.71% Ownership statistics by nature of shareholder 2016 2015 58% Institution 48% 42% 52% Individual Page 12
Slide 14: Share distribution – Number of shareholders
Invest bank Share distribution – 31 December 2016 120 0.009% 110 100 90 80 Number of shareholders 70 0.10% 60 50 33 shareholders own 0.72% 90% of shares. 40 5.67% 37.99% 30 0.08% 0.01% 20 0.72% 10 51.89% 2.81% 0 More than 10M-50M 5M-10M 1M-5M 500K-1M 100K-500K 50K-100K 10K-50K 5K-10K 1-5K <5K 50M Sh