First Abu Dhabi Bank · ADX:FAB
First Abu Dhabi Bank — National Bank of Abu Dhabi — FY2011 Earnings Presentation
36 slides from First Abu Dhabi Bank's earnings presentation, 2012
Slide 1: Investor presentation: Performance Review 4Q / FY 2011
Investor presentation Performance Review 4Q / FY 2011
Slide 2: Contents
Contents UAE economic overview ......................................................................................................... Page 3 Abu Dhabi – The Capital ......................................................................................................... Page 4 The UAE banking sec
Slide 3: UAE economic overview
UAE economic overview UAE Overview UAE Overview A Federation of seven Emirates (Abu Dhabi being the capital) Headed by the President (Ruler of Abu Dhabi; Ruler of Dubai is the Vice President) Key Facts Rating: Moody‟s (Aa2 stable), S&P (AA stable) +, Fitch (AA stable)+ 2nd largest economy in GCC
Slide 4: Abu Dhabi – The Capital
Abu Dhabi – The Capital Abu Dhabi Key Economic Indicators Credit Rating Aa2 (Moody‟s) / AA (S&P) / AA (Fitch) Size Abu Dhabi accounts for 87% of UAE‟s land area Population 1.97mn Nominal GDP US$ 168.9bn (+15.9% in 2010) [2011F(NBAD) US$ 208bn] GDP Per Capita US$ 85,843 (3rd highest in the world – IM
Slide 5: The UAE banking sector
The UAE banking sector UAE banking sector Nov As at Growth Banking Sector 2009 2010 Country (in USD bn) 2011est (2011) (YoY) Assets (USD bn) Total Assets1 413.6 437.1 455.5 UAE Nov 4.2% 455.5 Certificates of Deposit 19.6 25.6 21.3 held by Banks S. Arabia Dec 9.1% 411.8 Investments by Banks 32.4 33.8
Slide 6: NBAD at a glance
NBAD at a glance Banker to the Abu Dhabi Government 70% owned by the Government of Abu Dhabi through ADIC (Abu Dhabi Investment Council) Well diversified Financial Group – across businesses and geography Consistent profitability and value creation to shareholders Well positioned for growth
Slide 7: NBAD at a glance (cont'd)
NBAD at a glance (cont‟d) Overview Incorporated in 1968 to serve as Banker to the Emirate of Ras al-Khaimah (2) Abu Dhabi Umm al-Quwain (1) Owned (70.48%) by Government of Abu Dhabi, via the Ajman (1) Fujairah (4) Abu Dhabi Investment Council (ADIC) Sharjah (10) Listed on Abu Dhabi Securities
Slide 8: A diversified business model
A diversified business model National Bank of Abu Dhabi Domestic International Corporate & Investment Financial Markets Global Wealth Islamic Banking Banking Banking Banking Consumer Banking Corporate coverage & Arab World Banking Corporate Banking Group Private Banking Abu Dhabi Nationa
Slide 9: Core strategy
Core strategy Our Vision To be recognised as the World‟s Best Arab bank Global Rules • Put the client at the heart of the business • Build rather than buy • Ensure adequate liquidity • Prudent approach to lending • Develop and grow our fee income generating businesses • Maintain a strong capital bas
Slide 10: Competitive landscape
Competitive landscape Peer Group Analysis for the FY 2011 E-NBD ADCB FGB NBAD Comments* Return on Shareholders‟ 1st in providing RoSF to its Funds# % 2.3 8.9 16.2 16.3 shareholders Attributable Profit AEDm 2,531 3,026 3,707 3,708 1st amongst UAE banks Cost Base 2nd lowest cost to income ratio# AEDm
Slide 11: Financial objectives
Financial objectives Return on Shareholders‟ Funds – 20% over the medium-term Cost to Income ratio – 35% cap in the medium-term Cap of 35% 40% 35% 30% Target 20% over the economic cycle 25% 20% 10% 15% Dec-00 Dec-05 Dec-10 Dec-15 Dec-20 Dec-00 Dec-05 Dec-10 Dec-15 Dec-20 Return on avg SF for 2011 –
Slide 12: Financial snapshot
Financial snapshot Assets (AED billion) Capital Resources (AED billion) 256 Subdebt Tier-I Capital notes Shareholders Funds 34 8 139 4 14 44 22 31 3 4 11 1999 2003 2007 2011 1999 2003 2007 2011 • Impressive asset growth • Consistent growth supported by a well-capitalised balance sheet Customer Loans
Slide 13: Financial snapshot (contd)
Financial snapshot (…contd) Net profits (AED million) 3,708 2,505 805 311 1999 2003 2007 2011 • Consistent bottom-line growth Top-line operating income (AED million) 7,881 3,666 1,263 735 1999 2003 2007 2011 • Positive growth year on year; key driver of bottom-line going forward 13
Slide 14: FY 2011 – Balance sheet highlights
FY 2011 – Balance sheet highlights Assets top AED 250bn for the first time, growing Consolidated 31 Dec„11 % chg % chg by 20.9% from Dec 2010 Balance Sheet (AED bn) (vs Dec„10) (vs Sep„11) Loans and advances continued to grow in the 4th Assets 255.7 21% 6% quarter by another 2.4% taking total gr
Slide 15: FY 2011 – Income statement highlights
FY 2011 – Income statement highlights Operating income continues the momentum Consolidated Income FY 2011 FY 2010 growing by 9.8% on higher net interest income % chg Statement (AED mn) (AED mn) (up 10.6%) and higher net fees and commissions (up 8.3%) Operating Income 7,881 7,179 10% Operating ex
Slide 16: 2011 - Another year of sustainable growth
2011- Another year of sustainable growth Steady net earnings of AED 3.7 billion despite substantial provisions Top-line revenues increase by 10% to AED 7.9 billion maintaining growth momentum Strong, yet prudent, balance sheet growth – double digit growth in assets, loans & deposits Strong c
Slide 17: Assets & liquidity
Assets & liquidity Assets (AED bn) and Net Interest Margins* (%) Composition of Assets – AED 256bn (2011) Assets NIM % Fixed & 247 242 256 Cash & 233 Other balances 211 assets, 5% with central banks - 10% Due from Loans banks & 2.61% 62% 2.48% 2.46% 2.39% 2.40% Reverse repos - 12% Investments 4Q'10
Slide 18: Loans and advances
Loans and advances Loans (gross) by customer type Loans (gross) by industry Banks & FI Trading Transport +17% 14% Services 2% 4% Banks, 10% 9% Mfg 3% Retail - 6% Retail, 16% others 19% Others (incl Corp/Pvt, 5% Agriculture) 39% 36% 0.3% Public Sector Real Estate 38% 17% 39% 27% 28% Retail – 12% Govt
Slide 19: Provisions & NPLs
Provisions & NPLs Provisions* & NPLs (AED mn) NPLs (NBAD vs Major UAE Banks*) Total Provisions 4,801 Collective Provisions NBAD Average 3,664 4,839 7.4% NPLs 7.2% 2,658 3,249 1,550 1,687 2.9% 910 2,321 2.7% 2.3% 1,072 1,604 1,892 1.1% 1.2% 1.3% 859 245 848 1.1% 0.9% 2007 2008 2009 2010 2011 Dec-07 D
Slide 20: Investments
Investments Investments – AED 28.2bn Non-trading investments (AFS+HTM) by issuer HFT - Debt 4% Banks & FI's Banks & FI's, (sovereign HFT - Equity 48.2% guaranteed), AFS - Debt & Funds 4.1% 75% 2% Govt & Held to PSEs, 44.3% Corporate/ Maturity (Debt) Private 19% Sector, 3.4% AFS - Equity Supranationa
Slide 21: Funding profile
Funding profile Deposits by customer type Deposits & medium-term funds by type +23.3% Retail, 22% Notice & Time 63% 22% Corp/Pvt, Current 30% 34% 19% Public Sector 17% 44% 18% 48% Govt, 31% 26% Medium- term funds Savings 2010 2011 9% CD's 5% (AED 123.1bn) (AED 151.8bn) 4% • Substantial funding from
Slide 22: Capital
Capital Capital resources (AED Bn) Capital adequacy (Basle-II) 32.4 34.4 Equity Total CAR Tier I% 22.6% Total Capital Resources 26.4 23.3 17.4% 20.7% 16.5% 24.1 15.4% 16.2% 17.4 20.4 15.6% 13.7 14.9% 13.3% 12% 11.4 12.6% UAE CB CAR requirement 14.4 10% 11.2 9.0 8% 6% Minimum Tier-I requirement 2006
Slide 23: Income statement
Income statement Operating income (AED mn) Operating profits by business segment – FY‟11 (AED mn) Fees,Commissions & other non-interest income GW Net interest income & net income from Islamic financing Corporate & Investment 1% 2,523 banking DB IB 7,881 7,179 20% 14% 6,399 Domestic banking 1,071 26%
Slide 24: Looking forward - 2012
Looking forward - 2012 Growth to continue - balance sheet growth driven by lending (~ 10%) and top-line growth driven by interest & fees (~ 5 - 10%) with managed cost growth (~ 10 - 15%) Net provisions of around AED 350mn per quarter well within our capacity to absorb; NPLs expected to peak betw
Slide 25: The way ahead …
The way ahead … Align our strategies with the Abu Dhabi Vision 2030 - Support the projects and entities working towards the achievement of the plans Target a level of AED 16bn in earnings by 2021 - growing at an average of 16% per annum for the next 10 years Continue to invest in the business
Slide 26: Appendix
Appendix 1 Consolidated balance sheet ………………………………………………………………………… Page 27 2 Consolidated income statement …………………………………………………………………… Page 28 3 Credit rating profile …………………………………………………………………………………… Page 29 4 Journey to being recognised as the World‟s Best Arab Bank .................................
Slide 27: Consolidated balance sheet
Consolidated balance sheet AED mn CONSOLIDATED BALANCE SHEET Dec ‟11 Dec ‟10 % chg Sep ‟11 % chg Cash and balances with central banks 24,469 18,430 33 18,481 32 Due from banks 15,167 14,765 3 14,541 4 Reverse repos 16,425 10,898 51 11,901 38 Investments 28,180 22,689 24 28,485 (1) Loans and advances
Slide 28: Consolidated income statement
Consolidated income statement AED mn Consolidated Income Statement FY‟11 FY‟10 % chg 4Q‟11 4Q‟10 % chg Interest income 8,015 7,430 8 2,023 1,970 3 (includes income from Islamic financing) Interest expense (2,212) (2,181) 1 (531) (585) (9) (includes Depositors‟ share of profits) Net interest income 5
Slide 29: Credit ratings profile
Credit ratings profile Moody‟s Credit Strengths: Aa3/Stable/P-1 Very strong franchise value derived from strong brand-name recognition and very high sustainability Upgraded from A1 in These ratings are also supported by NBAD‟s strong financial metrics – profitability and capitalisation – Aug 200
Slide 30: Strategy Snapshot
Strategy Snapshot UAE‟S NO.1 WORLD‟S BEST 2001 2011 2021 BANK ARAB BANK Our Journey to be the World‟s Best Arab Bank NBAD to be amongst the top 3 Arab Banks on at least 2 of the following dimensions and Top 5 in all: Return on Capital International Assets Net Profit Shareholders‟ Resources Presence
Slide 31: Strategic Themes
Strategic Themes UAE LEADERSHIP AND COMMITMENT TO 1 ABU DHABI VISION 2030 REGIONAL TO A GLOBAL BANK - 2 INCREASE INTERNATIONAL FOOTPRINT 3 PUTTING THE CUSTOMER FIRST WORLD‟S BEST BEST IN CLASS CREDIT RATINGS, RISK ARAB BANK 4 AND GOVERNANCE STANDARDS 5 BUILD STRONG PLATFORM FOR GROWTH SUSTAINABILITY
Slide 32: Strategic Themes and Long-term Objectives
Strategic Themes and Long-term Objectives Strategic Theme Aspirations (2021) Achievement in 2011 Outlook/Targets for 2012 • Retained No. 1 Bank in the UAE • Continue to be the No. 1 • Supported Abu Dhabi vision on • To retain the No. 1 position in Bank in the UAE 10 key areas encompassing UAE LEADER
Slide 33: Strategic Themes and Long-term Objectives
Strategic Themes and Long-term Objectives Strategic Theme Aspirations (2021) Achievement in 2011 Outlook/Targets for 2012 • No.1 in credit ratings in the • Continue to be No.1 in credit • To be the among the Top 3 Middle East; continued to be ratings in the Middle East; BEST in CLASS - rated Banks i
Slide 34: Corporate access links
Corporate access links Corporate Headquarters: One NBAD Tower, Sheikh Khalifa St PO Box 4, Abu Dhabi, UAE Tel : +971-2-6111111 Fax : +971-2-6273170 Website : http://www.nbad.com Abhishek Kumat Investor Relations [email protected] Khuloud Al Mehairbi Investor Relations [email protected]
Slide 35: Disclaimer
Disclaimer The information contained herein has been prepared by National Bank of Abu Dhabi P.J.S.C (“NBAD”). NBAD 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 onl
Slide 36: The safest name you can bank upon
The safest name you can bank upon NBAD is proud to be ranked as the Safest Bank in the Middle East and one of the 50 Safest Banks in the world since 2009 by Global Finance www.nbad.ae —_—, — eee NATIONAL BANK OFABUDHABL The safest bank is in the news again. For the third consecutive year, the Global
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