First Abu Dhabi Bank · ADX:FAB
First Abu Dhabi Bank — First Gulf Bank — Q3 2010 Earnings Presentation
31 slides from First Abu Dhabi Bank's earnings presentation, December 2010
Slide 1: First Gulf Bank Profile
First Gulf Bank Profile December 2010 (based on September 2010 financials) 1/31
Slide 2: First Gulf Bank Overview
First Gulf Bank Overview Incorporated in 1979 and headquartered in Abu Dhabi. Majority (AED billion Unless Stated Otherwise) 2008YE 2009YE Q3'102 owned by ruling family of Abu Dhabi representing an ownership Total Assets 107.5 125.5 137.5 of 67% Operating Income 4.7 6.2 4.7 A strong network of 1
Slide 3: FGB in the UAE Context
FGB in the UAE Context Loans & Advances and Customer Deposits (1) Net Profit (2) 250 3.50 3.00 201.1198.8 3.00 2.60 200 2.50 AED billions AED Billions 139.0 1.90 150 120.4 120.3 2.00 100.6 95.6 92.3 1.50 1.20 100 0.90 54.4 52.9 1.00 47.2 54.0 50 0.50 0.01 0.00 0 NBAD FGB ENBD UNB ADIB ADCB ENBD NBAD
Slide 4: Financial Performance Trends
Financial Performance Trends Total Assets1 Total Equity1 150,000 137,454 30,000 125,473 24,053 25,000 22,903 120,000 107,522 20,000 AED Millions 16,620 AED Millions 90,000 73,198 15,000 60,000 10,120 10,000 30,000 5,000 0 0 2007 2008 2009 Q3' 10 2007 2008 2009 Q3' 10 Customer Deposits1 Operating Inc
Slide 5: Financial Performance Trends (Cont'd)
Financial Performance Trends (Cont’d) Net Interest Margin2 Non-interest Income / Total Income2 4.0 3.7 3.6 60 50.3 3.1 50 3.0 2.7 41.7 40 37.3 32.4 % 30 % 2.0 20 1.0 10 0.0 0 2007 2008 2009 Q3'10 2007 2008 2009 Q3'10 Cost / Income Ratio2 Loans / Deposits Ratio1 30.0 120 107.0 105.0 104.0 24.2 25.0 2
Slide 6: Strong Financial Performance
Strong Financial Performance Key Performance Indicators Net Profit — Quarterly Trends 1,000 850 930 920 Total Assets: 2006 – 2009 CAGR of +38.0% 775 787 800 621 808 855 849 AED Million 750 600 406 675 Shareholders’ equity: 2006 – 2009 CAGR of +36.6% 377 394 671 400 474 507 370 395 200 Net Prof
Slide 7: Sep' 2010 – Performance Analysis
Sep’ 2010 – Performance Analysis Sep 2009 (AED) Sep 2010 (AED) Assets (Bn) 124.3 + 11% Assets (Bn) 137.5 Loans & Advances (Bn) 90.0 + 6% Loans & Advances (Bn) 95.6 Deposits (Bn) 89.4 + 3% Deposits (Bn) 92.3 Shareholders’ Equity (Bn) 21.7 + 9% Shareholders’ Equity (Bn) 23.7 Revenue (Mn) 4,320 + 8% Re
Slide 8: Key Ratios 2006 - 2010
Key Ratios 2006 - 2010 Dec-06 Dec-07 Dec-08 Dec-09 Sep-10 Ratio % % % % % Return On Average Assets 4.2 3.3 3.3 2.8 2.6 Return On Average Equity 18.3 21 22.5 16.8 14.8 Non-Interest Income / Total Income 42 50.3 41.7 37.3 32.4 Net Interest Margin 2.9 2.7 3.1 3.7 3.6 Cost to Income Ratio 19.4 21.6 24.2
Slide 9: Overall Strategy
Overall Strategy A leading financial institution in the UAE by focusing on sustainable growth Organic Growth of Core Establishment of Associated International and Targeted Banking Activities Companies and Subsidiaries Regional Growth Build on opportunities with strategic Focus on the growing rea
Slide 10: FGB Key Business Lines
FGB Key Business Lines Corporate Banking Retail Banking Treasury and Real Estate Activities Other Operations Investments 2009 Q3’10 2009 Q3’10 2009 Q3’10 2009 Q3’10 2009 Q3’10 Assets 50% 46% 22% 24% 18% 21% 6% 5% 4% 4% Operating 35% 39% 39% 46% 12% 6% 13% 6% 1% 3% Income * * Operating income excludi
Slide 11: Business Lines — Corporate Banking
Business Lines — Corporate Banking Corporate Banking has been FGB’s core activity Assets2 since inception offering a range of financial services to corporates. Focus industries include oil & gas, 80,000 63,406 62,584 59,221 AED millions manufacturing, energy and real estate. 60,000 36,453 Offers
Slide 12: Business Lines — Corporate Banking
Business Lines — Corporate Banking Corporate banking Q1, 08 Q2, 08 Q3, 08 Q4, 08 Q1, 09 Q2, 09 Q3, 09 Q4, 09 Q1, 10 Q2, 10 Q3, 10 (AED Mn) Assets 43,240 51,202 58,442 59,221 61,139 61,547 64,386 63,406 64,000 62,713 62,584 % Growth 19% 18% 14% 1% 3% 1% 5% -2% 1% -2% 0% Operating income 266 381 440 3
Slide 13: Business Lines — Retail Banking
Business Lines — Retail Banking Since 2002 Retail Banking business offers customers a Assets2 range of products and services with a special focus on 40,000 UAE Nationals 32,788 AED millions 30,000 27,052 The Retail Banking products are offered through 19,481 diversified delivery channels includi
Slide 14: Business Lines — Retail Banking
Business Lines — Retail Banking Retail banking Q1, 08 Q2, 08 Q3, 08 Q4, 08 Q1, 09 Q2, 09 Q3, 09 Q4, 09 Q1, 10 Q2, 10 Q3, 10 (AED Mn) Assets* 10,359 13,946 17,158 19,481 21,914 24,216 25,775 27,052 29,017 30,964 32,788 % Growth 40% 35% 23% 14% 12% 11% 6% 5% 7% 7% 6% Operating income 356 502 511 498 5
Slide 15: Business Lines — Treasury and Investments
Business Lines — Treasury and Investments Established in 2001, the Treasury & Investments Division Assets2 offers key corporates a set of products across a range of 40,000 asset classes and geographic markets 29,061 AED millions 30,000 23,810 Mainly manages the group’s liquidity 22,013 18,483
Slide 16: Business Lines – Treasury & Investments
Business Lines – Treasury & Investments Treasury & Investments (AED Mn) Q1, 08 Q2, 08 Q3, 08 Q4, 08 Q1, 09 Q2, 09 Q3, 09 Q4, 09 Q1, 10 Q2, 10 Q3, 10 Assets 22,052 19,842 18,943 18,483 15,562 21,469 22,193 22,013 26,978 25,049 29,061 Liquid Assets 12,558 9,524 7,569 7,842 3,362 9,794 9,927 8,553 12,3
Slide 17: Business Lines — Real Estate Activities
Business Lines — Real Estate Activities The Real Estate Activities business line was spun off Assets2 in 2007 8,000 7,066 7,300 Primary activities include 5,831 AED m illions 6,000 investment, development, leasing, brokerage, 3,887 management and resale of properties 4,000 Investment propert
Slide 18: Net Profit Analysis: Business Segment Contribution
Net Profit Analysis: Business Segment Contribution Sources of % of % of % of Income 2008 2009 SEP’ 2010 Total Total Total (AED Mn) Core Banking Activities 2,102 70% 2,496 75% 2,276 89% Subsidiaries and Associate Companies 903 30% 814 25% 279 11% TOTAL 3,005 100% 3,310 100% 2,555 100% 2008 2009 Sep’1
Slide 19: Group Revenue Analysis
Group Revenue Analysis 2008 2009 Q3'10 (1) Revenue Analysis by Business Segments Others Treasury & Other Others Treasury & Investments Treasury & 1% 3% 1% Investments 6% Investments 12% 9% Subsidiaries & Retail Subsidiaries Associates Subsidiaries 39% & 19% Retail & Associates Retail 40% Associates
Slide 20: Funding Mix
Funding Mix 2008 2009 Q3'10 Medium Term Federal GVT Federal GVT Borrowing Medium Term Medium Term Tier 2 Capital Others Tier 2 Capital 5% Borrowing + Borrowing + 3% 4% 4% Others Others EMTN EMTN Borrowing 4% 3% 4% 5% form Banks 7% Borrowing Borrowing from Banks from Banks 1% 4% Shareholders Equity 1
Slide 21: Assets Mix
Assets Mix 2008 2009 Q3'10 Optimizing efficiency of asset allocation while managing appropriate liquidity level Investment Liquid Investment Liquid Other Other Other Liquid in Assets in Assets Investment Assets Assets Assets Assets Associates 7% Associates 8% in 5% 4% 3% 11% 1% 1% Associates Investm
Slide 22: Loan Portfolio Analysis
Loan Portfolio Analysis AED Millions 2006 2007 2008 2009 Q1’10 Q2’10 Q3’10 Performing Loans 25,268 44,610 80,014 91,465 94,361 94,852 96,231 NPL's (+180 days) 360 453 490 1,450 1,889 2,467 2,500 Total Gross Loans 25,628 45,063 80,504 92,915 96,250 97,319 98,731 Provisions 467 654 1,141 2,529 2,993 3
Slide 23: Capital Adequacy
Capital Adequacy Particulars (AED Millions) 2006 2007 2008 2009 Q3'10 Capital Base: Tier 1 Capital 8,017 9,725 16,122 22,268 24,003 Tier 2 Capital 54 106 -19 4,420 4,513 Deductions -255 -326 -553 -561 -561 Capital Base 7,816 9,505 15,550 26,126 27,955 Risk Weighted Assets: Balance Sheet items 28,640
Slide 24: Dividend Distribution
Dividend Distribution DESCRIPTION 2003 2004 2005 2006 2007 2008 2009 NET PROFIT (Mn) 120.9 244.9 1,055.7 1,535.9 2,008.2 3,005.3 3,310.3 CASH DIVIDEND 10% 20% 25% 70% 20% 35% 50% (% of Capital) BONUS SHARES - 5% 25% - 10% - - (% of Capital) DIVIDEND PAYOUT RATIO 32% 40% 47% 57% 19% 16% 20% (% of Net
Slide 25: Short Term Priorities and Future Plans
Short Term Priorities and Future Plans Continue on strengthening the Balance Sheet through appropriate Liquidity and Capitalization levels, continuous protection and improvement of Asset Quality, balanced asset allocation with focus on the most profitable businesses. Continue the diversification
Slide 26: FGB - A Bright Future Outlook
FGB - A Bright Future Outlook FGB is very well positioned to continue generating value to its shareholders in 2010 and beyond. Why? FGB model is founded on two important criteria: - Solid Balance Sheet - Sound Profitability. Strong and Stable Shareholders’ Base. Visionary, experienced and prof
Slide 27: Appendix
Appendix First Gulf Bank > Ugh arlas} als
Slide 28: Board of Directors (2006 – 2011)
Board of Directors (2006 – 2011) Board of Directors 2006 – 2008 Board of Directors 2009 – 2011 H.H. Sheikh Hazza Bin Chairman (1) H.H. Sheikh Hazza Bin Chairman (1) Zayed Al Nahyan Zayed Al Nahyan H.H. Sheikh Tahnoon Bin Vice Chairman (1) H.H. Sheikh Tahnoon Vice Chairman (1) Zayed Al Nahyan Bin Zay
Slide 29: Board of Directors (2009 – 2011)
Board of Directors (2009 – 2011) H.H. Sheikh Hazza Bin Zayed Al Nahyan, Chairman (1) H.H. Sheikh Tahnoon Bin Zayed Al Nahyan, Vice Chairman (1) Abdulhamid Mohammed Saeed, Managing Director, Board Member Abdulhamid Mohammed Saeed has over 26 years of experience in banking, 18 years of which were with
Slide 30: Enterprise Risk Management Structure
Enterprise Risk Management Structure Group Risk Committee (Board Level) Group CRO Group Risk Management Team Credit Risk Committee Asset Liability Committee Operational Risk Committee Group Operations Group Market Risk Group Credit Risk Team Group Compliance Team Risk Team / ALM Team Group Basel II
Slide 31: Disclaimer
Disclaimer This presentation provides information in summary form only and is not intended to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular inves