Abu Dhabi Islamic Bank · ADX:ADIB
Abu Dhabi Islamic Bank — Investor Presentation (March 2012)
38 slides from Abu Dhabi Islamic Bank's investor presentation, March 2012
Slide 1: Investor Presentation
Investor Presentation 31 December 2011 Abu Dhabi: March 2012 ADIB © 2010 adib.ae
Slide 2: Table of contents
Table of contents § ADIB at a glance 3 § Competitive landscape 4 § Key strengths 5 § Financial targets over the medium term 6 § Salient features of FYR 2011 results 7 § 31 December 2011 – Balance sheet highlights 8 § FYR 2011 – Income statement highlights 9 § Key income parameters – Group 10
Slide 3: ADIB at a glance
ADIB at a glance Overview ADIB – recent timeline and milestones § Incorporated in 1997 to serve as first Islamic Bank in 1997 • Established by the Govt. of Abu Dhabi. the Emirate of Abu Dhabi. § Owned (40 %) by Emirates International Investment • Licensed as an Islamic bank by the Central Co. LLC.
Slide 4: Competitive landscape
Competitive landscape Peer Group Analysis for the FYR 2011 (AED Bn) NBAD ADCB FGB UNB Mashreq DIB ADIB Return on 17.5% 18.1% 17.3% 14.6% 6.8% 10.9% 18.2% Shareholders’ Equity Revenues 7.88 6.23 6.48 2.84 3.87 3.65 3.43 Operating Profit 5.32 4.17 5.26 2.11 2.08 2.15 1.98 Net Profit 3.71 3.05 3.71 1.5
Slide 5: Key Strengths
Key Strengths § Majority owned by members of the Abu Dhabi Royal family & Government Strong and Influential § Fastest growing major Islamic Bank 4th Largest Shareholder § Sustained growth in profits; one of the Robust Islamic Bank Financial most liquid bank in UAE Globally by Health and Assets Li
Slide 6: Financial targets over the medium term
Financial targets over the medium term 1 ROASE of 20% 2 Cost to Income Ratio of less than 35% 3 Earnings increase of 15% p.a. CAR - to maintain ratio above current UAE Central Bank minimum 4 requirement of 12% (8% on Tier-1). Advances to stable funds ratio to maintain below current UAE Central Bank
Slide 7: Salient features of FYR 2011 results
Salient features of FYR 2011 results 1 Record Group net profit exceeds AED 1 Bn. 2 4th quarter net profits of AED 216.2Mn, 90% higher than the corresponding quarter of 2010. 3 Top line revenues maintain a momentum with a growth of 11% year-on-year. 4 Return on Shareholders’ equity at 18.2% Total Cap
Slide 8: 31 December 2011 – Balance sheet highlights
31 December 2011 – Balance sheet highlights 31 Dec ‘10 31 Dec ‘11 % chg AED Bn AED Bn Total Assets 75.3 74.3 1% § Total Assets decreased by 1% over 2010 to reach AED 74.3 bn. Net Customer Financing 48.0 48.8 2% § Customer financing increased by 2% from 2010 to reach AED 48.8 bn. Customers’ Deposit
Slide 9: FYR 2011 – Income statement highlights
FYR 2011 – Income statement highlights FYR 2010 FYR 2011 % chg AED Mn AED Mn Revenues 3,074.0 3,425.8 11% § Revenues up by 11% on the back of higher net revenue from funds (up 9%) and fees & commission (up 25%). Expenses 1,301.2 1,449.6 11% § Expenses up by 11% mainly due to continuous investment
Slide 10: Key income parameters - Group
Key income parameters - Group Net Revenue from Funds (AED Mn) Fees, commission and other income (AED Mn) Profit paid on funds Revenue from funds FX +22% 2,596 2,841 Investment & other income Net revenue from funds Fees & Comm 708 692 761 +9% 585 30 +8% 478 125 2% -7% 29 106 1,019 3,641 3,728 891 962
Slide 11: Key income parameters - Group
Key income parameters - Group Revenues contribution split % (AED Mn) Operating expenses (AED Mn) Fees, commission & others Net revenue from funds Depreciation General and admin expenses Employee costs Cost to income ratio 42.3% 42.3% 1,438 2,199 2,520 3,074 3,426 1,450 21% 16% 16% 17% 91 34% 1,301 7
Slide 12: Balance Sheet Strength
Balance Sheet Strength Remains one of the most liquid bank’s in the UAE on the back of above market balance sheet growth Net Customer Financing & Customers’ Deposits (AED Bn) Composition of Assets – AED 74.3 Bn Customer Financing -2% Customer Deposits +2% Investments; Fixed assets & Cash & bal with
Slide 13: Customer Financing
Customer Financing Gross Customer Financing by Segment Gross Customer Financing by Customer Type Private Wholesale Retail Govt. & PSE; Others; 5.4% 51.8 4.2% +20% 50.2 12.7% 42.2 15.1% 34.8 17.2% 38.4% Corporate; 16.0% 38.6% 30.6% 24.7 37.0% 40.0% Individual; 59.8% 46.3% 48.9% 45.8% 44.0% 2007* 2008
Slide 14: Asset quality
Asset quality Provisions and NPAs (AED Mn) NPA ratio and provision coverage ratio NPAs - impaired 7,129 NPA ratio Provision coverage ratio NPAs - Total 5,985 Collective / General 5,472 Individual / Specific 4,578 4,509 208.2% 4,169 69.3% 66.8% 3,581 63.6% 3,010 1,338 2,527 2,729 59.6% 378 2,277 763
Slide 15: Funding Profile
Funding Profile Composition of liabilities (AED 65.8 bn) Customers’ Deposits by Segment 56.5 Private Retail Wholesale 2010 2011 55.2 5.4 +17% 56.5 55.2 4.6 48.2 13.4% 11.7% 14.4% 37.5 36.2% 15.4% 45.7% 29.6 36.7% 2.1 1.9 2.2 2.2 35.1% 1.9 0.9 50.3% 48.9% 42.7% 49.4% Due to FI Other Tier 2 Sukuk Depo
Slide 16: Capital
Capital ADIB’s CAR of 17.39% remains above the Central Bank threshold of 12% for CAR Capital Adequacy (%) Total equity and reserves (AED Bn) Total CAR UAE Central Bank CAR requirement Tier 1 Minimum Tier-1 requirement 17.0% 17.4% +15% 8.6 16.0% 8.1 7.1 14.2% 13.5% 13.5% 13.0% 5.6 11.6% 12.0% 12.0% 1
Slide 17: Shareholders’ Return
Shareholders’ Return § 31 December 2011 share price was AED 3.16 per share. § Proposed cash dividend of 24.42% for 2011 (Cash dividend of 21.64% for 2010). § 2011 Total Yield of ADIB share – 7.7%. (2010: 7.3%) ADIB vs ADX ADIB ADX 4.00 3,400 3.50 3,200 3.00 ADIB Price (AED) 3,000 2.50 ADX Points
Slide 18: Dividend Distribution & Tier 1 profit
Dividend Distribution & Tier 1 profit 2007 2008 2009 2010 2011* Net Profit (Mn) 769.0 851.1 78.0 1,023.6 1,155.1 Cash Dividend 20.0% 21.6% - 21.6% 24.4% (% of Share Capital) Bonus Shares - - 20.0% - - (% of Share Capital) Cash Dividend Payout Ratio 51.2% 50.0% - 50.0% 50.0% (% of Net Profit) Yield 3
Slide 19: Outlook - 2012
Outlook - 2012 We believe that 2012 will be another challenging year as the global financial crises enters its fourth year, 1 and will therefore continue to implement our cautious growth strategy by entering new markets and servicing new segments in a prudent manner. 2 We will continue to increase o
Slide 20: Business Overview
Business Overview Ø Ownership & Corporate Structure Ø ADIB Strategy Ø Business Segments Ø Retail banking overview Ø Wholesale banking overview Ø Private banking overview 20
Slide 21: Ownership & Corporate Structure
Ownership & Corporate Structure ADIB Ownership Members of AD § ADIB is mainly owned by UAE nationals and companies, including a number Royal Family; 9.04% of members of the Abu Dhabi royal family. EIIC; 40.66% § The Bank’s main shareholder is EIIC, which is a private holding company, Others; 40.38
Slide 22: ADIB Strategy
ADIB Strategy To be a top tier Islamic financial services group by Providing Islamic financial services for the global community Build Market Leadership Create an Integrated Pursue International at Home Financial Services Group Growth Opportunities • The key customer service sectors are • ADIB conti
Slide 23: Business Segments
Business Segments § Personal Banking Division provides services for individuals clients, while the Business 64% of Retail net Banking Division services the needs of SMEs. Banking revenues* § These services include a variety of Shari’a compliant financing. § Wholesale Banking encompasses the corpo
Slide 24: Retail banking overview
Retail banking overview Assets (AED Bn) Liabilities(AED Bn) 25.3 +20% 25.8 +23% 23.5 21.0 19.4 18.3 14.9 13.7 2008 2009 2010 2011 2008 2009 2010 2011 Revenues (AED Mn) UAE retail network 460 Branches 69 ATMs +25% 66 323 2,192 2,017 204 52 1,283 1,113 116 44 75 40 2008 2009 2010 2011 2007 2008 2009 2
Slide 25: Wholesale banking overview
Wholesale banking overview Assets (AED Bn) Liabilities (AED Bn) -4% +9% 21.0 18.6 18.9 19.1 16.6 17.0 14.7 15.0 2008 2009 2010 2011 2008 2009 2010 2011 Revenues (AED Mn) Highlights +1% § Segment assets growth in last 3 year – 29%. 835 869 § Segment liabilities drop in 3 years – 11%. 709 571 § Seg
Slide 26: Private banking overview
Private banking overview Assets (AED Bn) Liabilities (AED Bn) +4% +3% 7.8 7.1 7.3 7.1 6.5 6.1 5.9 5.6 2008 2009 2010 2011 2008 2009 2010 2011 Revenues (AED Mn) Highlights § Growth in segment assets of 9% in last 3 year. -9% 309 § Growth in segment liabilities of 10% in 3 years. 231 180 § Segment
Slide 27: Appendix
Appendix Ø Consolidated Income Statement Ø Consolidated Balance Sheet Ø Key income parameters – Bank only Ø An award winning Islamic Bank Ø Rating Excerpts Ø Executive Management Biographies 27
Slide 28: Consolidated Income Statement
Consolidated Income Statement % chg FYR % chg Q4 % chg Q4 FYR FYR AED Mn Q4 10 Q3 11 Q4 11 2011 vs 11 vs Q4 10 11 vs Q3 11 2010 2011 FYR 2010 Revenues 839.0 824.6 884.1 5.4% 7.2% 3,074.0 3,425.8 11.4% Net Revenue from Funds 707.7 692.4 761.5 7.6% 10.0% 2,595.7 2,841.2 9.5% Fees & commission 90.2 118
Slide 29: Consolidated Balance Sheet
Consolidated Balance Sheet % chg 31 Dec % chg 31 Dec AED Mn 31 Dec 2010 30 Sept 2011 31 Dec 2011 2011 vs 30 Sept 2011 vs 31 Dec 2011 2010 Cash and balances with Central Banks 5,400 9,856 11,207 13.7% 107.5% Due from financial institutions 15,730 8,920 7,732 -13.3% -50.8% Net Customer financing 47,95
Slide 30: Key income parameters – Bank only
Key income parameters – Bank only Revenues (AED Mn) Net Profit (AED Mn) Fees, commission & others Net revenue from funds Operating profit Net Profit 2,050 3,410 Cost of credit 1,845 3,050 469 355 1,516 1,405 1,425 2,387 169 1,162 1,215 1,905 121 765 791 1,261 2,695 2,941 648 630 625 284 2,218 1,784
Slide 31: An award winning Islamic Bank
An award winning Islamic Bank Franchise Awards “Best Islamic Bank “Best Corporate Bank” for Globally” by Islamic Business 2011 by Islamic Business & Finance & Finance for 2010 & 2011 December 2011 December 2010 & 2011 “Best Islamic Bank” “Best Islamic Bank” in the UAE for in the UAE for 2010 and 201
Slide 32: An award winning Islamic Bank
An award winning Islamic Bank Product & Marketing “Best Deal in the UAE” “Best SME Card” award by by Islamic Finance News 2010 Banker Middle East Product Award March 2011 (Emirates Steel ) January 2011 Human resources development Emirates Institute of Banking & Financial Studies HRD Award for Emirat
Slide 33: Ratings Excerpts
Ratings Excerpts “BFSR is supported by ADIB's solid financial fundamentals and its rapidly expanding Islamic franchise in the retail segment within the United Arab Emirates […] Moody’s assessment of a very high probability of systemic support in the event of need, reflecting ADIB’s strong relationsh
Slide 34: Executive Management Biographies
Executive Management Biographies 34
Slide 35: Executive Management Profile (I)
Executive Management Profile (I) Joined ADIB in March 2008. He holds a Bachelor degree (major in Corporate Finance) from Loyala of Tirad Marouf Mahmoud Concordia University in Montreal, Canada and has also completed the Executive Management Program at Chief Executive Officer Wharton. He has previous
Slide 36: Executive Management Profile (II)
Executive Management Profile (II) Joined ADIB on the 1st of May 2011. He holds a Graduate Degree from the Royal Military Academy Stuart Crocker Sandhurst. His previous position was CEO HSBC Private Bank in UAE & Oman (2007-2011) and was a Member Global Head of of the General Management heading clien
Slide 37: Executive Management Profile (III)
Executive Management Profile (III) Waheeb Al Khazraji Joined ADIB on 10 December 2005 . He holds Chemical Engineering and MBA degrees along with Chartered Head of Human Resource, Human Resource Consultant (CHRC), Canada and Chartered in Personal Development (CIPD), UK. He has UAE 6 years banking exp
Slide 38: 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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