Abu Dhabi Islamic Bank · ADX:ADIB

Abu Dhabi Islamic Bank — FY2017 Earnings Presentation

30 slides from Abu Dhabi Islamic Bank's earnings presentation, February 2018

  1. Slide 1: Investor Presentation: 31 December 2017 results

    Investor Presentation 31 December 2017 results Abu Dhabi: February 2018 ADIB © 2010 adib.ae

  2. Slide 2: Table of Content

    Table of Content 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: Table of Content

    Table of Content Introduction Financial Review Business Review Appendix 4

  5. Slide 5: FYR 2017 Key financial highlights – Income statement

    FYR 2017– Key financial highlights – Income statement AED Mn FYR 2016 FYR 2017 Change %  Revenues are up by 5% driven by fee income mainly from Cards, Wealth Net Revenue from funds 3,921.0 3,768.8 -3.9% management, Takaful products, FX and Investment income. Fees, commission and others 1,464.5 1,86

  6. Slide 6: 31 Dec 2017 Key financial highlights – Balance sheet

    31 Dec 2017 – Key financial highlights – Balance sheet  Total assets increased by 1% over Q4 2016 AED Bn Dec 16 Dec 17 Change % to reach AED 123.3 Bn.  Customer financing dropped 2% from Q4 2016 to reach AED 76.5 Bn primarily due to Total assets 122.3 123.3 0.8% repayments in Wholesale banking. 

  7. Slide 7: Key ratios

    Key ratios Ratios Dec 2016 Dec 2017 Diluted Earnings per share (EPS in AED) 0.520 0.627 Return on Average Shareholders’ Equity (excluding - Tier 1 capital) 17.2% 19.5% Efficiency Net profit margin (%) 4.2% 4.2% Cost / income ratio 45.5% 44.5% Percentage lent (Financing / Total Assets) 64.0% 62.1% Fi

  8. Slide 8: Operating Performance – Net profit income

    Operating Performance – Net profit income Highlights (FYR 2017 vs. FYR 2016) Revenues (AED Mn) Key movements in Revenues (AED Mn) +5%  Revenues, up by 4.6% to AED Fees, commission and others 77 Net revenue from funds 5,632.3 Mn. 5,386 5,632 131 27% 33%  Net revenue from Funds (NRFF) -151 190 3.9%

  9. Slide 9: Operating Performance – Non-profit income

    Operating Performance – Non-profit income Highlights (FYR 2017 vs. FYR 2016) Non-profit income (AED Mn) Composition of Fees & commission (AED Mn) Other income Investment income +27% Brokerage Risk Participation +23%  Non-profit income up by 27.2% at Property income Fees & Commission Property mangem

  10. Slide 10: Balance Sheet Strength and Customer Financing

    Balance Sheet Strength and Customer Financing Customer Portfolio lower by 2.0% mainly due to early repayments in WBG (-7.2%), however Personal Banking assets grew 4.6% Composition of Total Assets – AED Bn Liquidity ratio* (%) Investmen Investmen ts: ts: % of total assets Liquid assets (AED Bn) 8.6%

  11. Slide 11: Funding Profile

    Funding Profile Healthy Financing to Deposit ratio of 76.5%. While Deposit grew only 1.2% vs Q4 16, Retail segment deposits have increased by 3% due to growth in CASA Net Customer Financing & Customers’ Deposits (AED Bn) Composition of Liabilities (AED Bn) Customer Financing Fin to Dep ratio Other L

  12. Slide 12: 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 Individual / Specific NPA ratio - Not Impaired Total Provision coverage ratio - Impaired only * NPAs - Total Collective / General NPA ratio - Impaired 5,37

  13. Slide 13: Capital Adequacy Ratio (CAR)

    Capital Adequacy Ratio (CAR) Basel II - Total CAR at 16.7% remains above the minimum requirement of 12% Basel III - CET1 remains low at 10.32%, when compared to CB UAE requirement of 8.25% Capital Adequacy Ratio (%) Capital base – CET, Tier 1 and Tier 2 - AED Bn Total CAR Tier 1 Tier 2 Tier 1 CET 15

  14. Slide 14: Table of Content

    Table of Content Introduction Financial Review Business Review Appendix 14

  15. Slide 15: 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

  16. Slide 16: Business unit contribution

    Business unit contribution Composition of Total Assets – AED Bn Composition of Total Liabilities – AED Bn Private; Real Real Real Others; Treasur Real Private; 2% Estate; Estate; Estate; 3% y; 11% Estate; 2% Private 2% 2% 0% 0% Treasur Treasur ; 3% Treasury; Private Others; 16% y; 17% y; Others; Oth

  17. Slide 17: Global Retail Banking overview

    Global Retail Banking overview Personal banking assets grew 4.6% vs Dec 16 Global Retail Banking contributes 60% of Net Assets (AED Bn) Liabilities (AED Bn) Revenues: +4% +3%  Personal Banking Division provides services for 54.9 56.9 60.1 61.8 individuals clients, while the Business Banking Divisio

  18. Slide 18: Global Wholesale Banking overview

    Global Wholesale Banking overview Customer Portfolio lower by 7% vs Dec 16 mainly due to repayments Assets (AED Bn) Liabilities (AED Bn) Global Wholesale Banking contributes 22% of Net Revenues: -9% -6%  Global Wholesale Banking encompasses the large 35.5 28.0 32.3 26.2 corporates, emerging corpora

  19. Slide 19: Private Banking overview

    Private Banking overview Assets (AED Bn) Liabilities (AED Bn) Private Banking contributes 2% of Net Revenues +20% +24%  Private Banking focuses on high and ultra high net worth individuals. 3.0 3.4 2.5 2.7  Wealth Management concentrates on developing, marketing and servicing a wide range of wealt

  20. Slide 20: Treasury overview

    Treasury overview Assets (AED Bn) Liabilities (AED Bn) Treasury contributes 9% of Net Revenues +9% -3%  Treasury principally handles money market brokerage, trading and treasury services, as well as the 21.1 12.1 11.8 management of the Bank's funding operations by use of 19.4 investment deposits. I

  21. Slide 21: Table of Content

    Table of Content Introduction Financial Review Business Review Appendix 21

  22. Slide 22: Consolidated Statement of Income

    Consolidated Statement of Income % chg Q4 % chg Q4 17 % chg FYR17 AED Mn Q4 16 Q3 17 Q4 17 17 vs Q4 16 vs Q3 17 FYR 16 FYR17 vs FYR 16 Revenues 1,344.2 1,422.3 1,427.9 6.2% 0.4% 5,385.5 5,632.3 4.6% Net Revenue from Funds 981.3 961.9 935.0 -4.7% -2.8% 3,921.0 3,769.6 -3.9% Fees & commission 185.9 24

  23. Slide 23: Consolidated Balance Sheet

    Consolidated Balance Sheet % chg 31 Dec % chg 31 Dec AED Mn 31 Dec 2016 30 Sep 2017 31 Dec 2017 2017 vs 31 Dec 2017 vs 30 Sep 2016 2017 Cash and balances with Central Banks 19,778 19,720 21,467 8.5% 8.9% Due from financial institutions 6,009 3,363 4,891 -18.6% 45.4% Net Customer financing 78,211 76,

  24. Slide 24: Financial Snapshot (1/2)

    Financial Snapshot (1/2) Total Assets (AED Bn) Net Customer Financing (AED Bn) Customer Deposits (AED Bn) +5% +6% +7% 118.4 122.3 123.3 78.4 78.2 76.5 94.9 98.8 100.0 111.9 73.0 103.2 61.7 84.8 75.5 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Equity (AED Bn) Revenues (

  25. Slide 25: Financial Snapshot (2/2)

    Financial Snapshot (2/2) Return on Avg Shareholders’ Equity (%) Financing to Deposits Ratio (%) Advances to Stable Funds Ratio (%) 18.7% 19.5% 81.8% 86.1% 82.6% 86.5% 85.1% 18.4% 79.1% 76.5% 80.0% 17.2% 15.5% 84.6% 77.9% 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 CAR

  26. Slide 26: An award winning Bank – 2017 (1/2)

    An award winning Bank – 2017 (1/2) Global To be IslamicinBusiness confirmed FebruaryAward Best Online Banking Services 2015by Department of Economic By Banker Middle East Development Mena HR Excellence awards Best Performance Campaign’ by MENA Digital Best Emiratization Initiative Awards Best Islami

  27. Slide 27: An award winning Bank (2/2)

    An award winning Bank (2/2) To be“SKEA – Goldincategory” confirmed February Mohammed Bin Rashid Business Sheikh Khalifa Excellence award -2016 2015 award for 2 consecutive years “Best Overall Bank in Customer “Best Overall Bank in Customer Service” for 4 consecutive years Service” in the GCC in the

  28. Slide 28: Dividend Distribution History

    Dividend Distribution History 2010 2011 2012 2013 2014 2015 2016 2017* Net Profit (Mn) 1,023.6 1,155.1 1,201.2 1,450.2 1,750.7 1,934.0 1,953.6 2,300.1 Cash Dividend Payout Ratio 50.0% 50.0% 50.0% 50.0% 40.0% 39.8% 39.8% 39.8% (% of Net Profit) Cash Dividend 21.6% 24.4% 25.4% 30.7% 23.3% 24.3% 24.5%

  29. Slide 29: Shareholders' Return

    Shareholders’ Return  31 December 2017 share price was AED 3.78 per share (31 Dec 2016: AED 3.80 per share).  Cash dividend of 39.8% of net profit, 28.87% of share capital (2016: 24.52% of share capital).  Total dividend yield of ADIB share of 7.6%. (2016: 6.5%). ADIB vs ADX ADIB ADX 7.50 5,500 7

  30. Slide 30: 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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