First Abu Dhabi Bank · ADX:FAB
First Abu Dhabi Bank — First Gulf Bank — Q4 2016 Earnings Presentation
32 slides from First Abu Dhabi Bank's earnings presentation, Jan 31, 2017
Slide 1: FGB Q4/FY16 Earnings Presentation
FGB Q4/FY 16 Earnings Presentation Tuesday 315t January 2017
Slide 2: Disclaimer
gb utils Ly Disclaimer FGB 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
Slide 3: FY'16 Performance Highlights
FY'16 Performance Highlights FGB Resilient FY’16 performance with a Group Net Profit of AED 6.03Bn vs. AED 6.01Bn in 2015 Proposed dividend distribution: AED 1 per share implying 75% pay-out ratio, similar to 2015 Solid revenues in Q4 supported by healthy NIM, fee income growth and higher investment
Slide 4: We delivered on FY16 guidance
We delivered on FY16 guidance ACTUAL RESULTS LOAN Book GROWTH +5% REVENUE GROWTH +2% NIMs 3.1% Cost/INCOME RATIO 20.8% NPL ratio: 2.3% ASSET QUALITY CoR: 90bps ___NerPrormtGrowra | 903% FY16 FINANCIAL GUIDANCE NPL ratio <3.0% CoR <100bps
Slide 5: Proposed 2016 Dividend Distribution
Proposed 2016 Dividend Distribution 2016 PROPOSED 2015 2014 2013 2012 NET Prorit (AED MN) 6,026 6,006 5,656 4,774 4,154 CASH DIVIDEND (AED MN) 4,500 4,500 3,900 3,000 2,500 CASH DIVIDEND (% OF CAPITAL) 100% 100% 100% 100% 83% BONUS SHARES (% OF CAPITAL) - - 15.38% 30% - DIVIDEND PAYouT RATIO ° ° ° °
Slide 6: Q4/FY'16 Summary Financials
Q4/FY'16 Summary Financials UgUl aul Ly FGB Income Statement (AED Mn) Q4'16 Q3'16 QoQ Q4'15 YoY FY'16 FY'15 YoY Net Interest and Islamic Financing Income 1,641 1,594 3% 1,658 -1% 6,386 6,429 -1% Fees & Commission Income, Net 509 512 -1% 394 29% 1,849 1,700 9% Other Operating Income 250 708 -65% 681
Slide 7: Asset Mix and Lending Activity
Asset Mix and Lending Activity gb utils Ly FGB HIGHLIGHTS LOAN BOOK TREND, NET (AED BN) +5% . Loans and advances grew 5% YoY (or +AED 6.9Bn), in line with our mid 149.8 152.5 153.8 156.2 156.7 single-digit growth guidance for FY16. . Loan book growth was muted during the fourth quarter as repayments
Slide 8: Liquidity
Liquidity HIGHLIGHTS CUSTOMER DEPOSITS TREND (AED BN) . Customer deposits added +AED 8.3Bn during the fourth quarter. As a result FY'16 deposit growth matched loan growth at 5%. . International deposits rose from AED 5.5Bn in 2015 to AED 13.4Bn, growing their share in total deposits from 4% to 9%. .
Slide 9: Funding Mix
Funding Mix FGB HIGHLIGHTS MEDIUM TERM MATURITIES (AED MN) 4,373 4,451 . FGB did not raise medium term funding during Q4 in light of 4,107 funding synergies ahead of the impending FGB-NBAD merger. 3.425 . Short term funds raised under the Euro Commercial Paper (ECP) programme totaled USD 2.1Bn in th
Slide 10: Revenue and Net Interest Margin
gt auld ey HIGHLIGHTS FY'16 revenues grew 2% YoY thanks to AED 185Mn_ increase in Investment Income and AED 148Mn in Fees & Commissions, hence offsetting AED 121Mn reduction in ‘Other income’. Excluding property- related gains, Q4’16 revenues are up 9% YoY reflecting a strong core banking performanc
Slide 11: Non-Interest Revenues and Cost Efficiency
Non-Interest Revenues and Cost Efficiency gb utils Ly FGB HIGHLIGHTS FY’16 NON-INTEREST REVENUES FY’16 non-interest revenues improved by 6% YoY or 13% excluding gains on sale/revaluation of investment properties. Strong business momentum and a healthy deal pipeline supported net fee and commission i
Slide 12: Credit Quality
Credit Quality gb utils Ly FGB HIGHLIGHTS NPL RATIO AND PROVISION COVERAGE (%) Dec’16 NPL ratio improved to a 7-year low of 2.3%, on the back of a reduction in corporate NPLs, write-offs and NPL ratio trend (2009-2016: 37 34 33 33 recoveries. 25 28 23 16 . Renegotiated loans amounted to AED 1.7Bn ag
Slide 13: Capital Strength (Basel II)
Capital Strength (Basel II) FGB HIGHLIGHTS CAPITAL ADEQUACY RATIO (%) . Tier 1 Capital reduced from 18.4% as of Sep’16 to 17.1% as of TotalCAR +—®—Tier 1 Capital Ratio Dec’16 due to FY16 proposed dividends (AED 4.5Bn). 19.7 . Capital position is robust even after proposed dividend 18.8 18.2 18.3 dis
Slide 14: Business Segment Contributions
UgUl aul Ly Business Segment Contributions FGB HIGHLIGHTS ASSETS BREAKDOWN . Continued focus on enhancing core capabilities and on RCM maximizing synergies between the three core businesses: 26% Real Estate Wholesale & International Banking Group (WBG), Consumer oe activities Banking Group (CBG), an
Slide 15: Wholesale Banking Group - WBG
gb utils Ly Wholesale Banking Group - WBG FGB HIGHLIGHTS OPERATING INCOME (AED MN) NET Prorits (AED MN) 14% growth in assets supported by healthy 3,702 commercial momentum YoY . 3,419 | 48% b> * 2,509 | 418% /» 2,957 eats 17% Operating Income from UAE operations and international operations increase
Slide 16: Consumer Banking Group - CBG
Consumer Banking Group - CBG NET Prorits (AED MN) HIGHLIGHTS OPERATING INCOME (AED MN) Continued focus on product innovation and enhanced customer experience through 3,337 3,164 digitalisation. ° CBG revenues declined by 5% YoY to AED 3.2Bn due to challenging operating conditions and intense competi
Slide 17: Treasury & Global Markets - T&GM
Treasury & Global Markets —- T&GM gb utils Ly FGB HIGHLIGHTS OPERATING INCOME (AED MN) NET Prorits (AED MN) T&GM net profits were up by 3% YoY due to lower provisions taken against CRWA as per CB UAE guidance. Approx. 81% of FGB’s investment portfolio is in investment grade fixed income bonds, of wh
Slide 18: Consumer Finance Subsidiaries
Consumer Finance Subsidiaries Dubai First and Aseel Islamic Finance HIGHLIGHTS TOTAL LOANS, NET (AED MN) . Dubai First and Aseel are FGB’s consumer finance 2,656 4 48% [> 2,871 subsidiaries specialised in credit cards and SME islamic financing respectively. 1,337 . Both companies generated combined
Slide 19: Real Estate Subsidiaries
Real Estate Subsidiaries gb utils Ly FGB HIGHLIGHTS OPERATING INCOME (AED MN) NET Prorits (AED MN) Real estate revenues were down by 8% YoY to AED 769Mn primarily due to the non- recurrence of mark-to-market gains realized in 2015. In line with the Group’s strategy to reduce exposure to real estate
Slide 20: FGB-NBAD Merger Update
FGB-NBAD Merger Update
Slide 21: FGB-NBAD Merger Timeline
FGB-NBAD Merger Timeline FGB ¢ 3° July 2016 Effective Date of Merger ¢ | FGB-NBAD merger announcement ry Dec. 7th: General Assembly Meetings Integration Officer Q316 Q4'16 — L Zulrigat j coo etre Appointment of Senior Creditor objection period appointed as Chief Leadership team e le--------4 Oct. 23
Slide 22: Appendix
Appendix
Slide 23: FGB Overview
FGB Overview gt auld ey FGB A LEADING UAE FRANCHISE OwNneRSHIP STRUCTURE* (AS OF DEC’16) = Incorporated in 1979 and headquartered in Abu Dhabi. = Wide range of financial products and services offered through a network of 22 branches in the UAE. In addition, FGB is present through branches in Doha an
Slide 24: A remarkable 17-year track record of value creation
A remarkable 17-year track record cit gaiy of value creation FGB Shareholders’ Equity growth Total Assets growth 1 02x T4X From BB+ to 20.8% A+ rated company Cost-to-Income ratio Revenue growth Diversified c. 4000% 100x Banking Group Total Shareholder Return* Industry-leading Net Profit growth Retur
Slide 25: History & Key Milestones
History & Key Milestones FGB FGB-NBAD merger announcement 2016 “A” rating by S&P 2015 | Net profit crosses AED 6Bn (USD 1.6Bn) 2014 New rep offices in London and Seoul Maintained position of #1 UAE Bank by Net Profit at USD 1.54Bn 2013 Acquisition of Aseel and Dubai First FGB becomes the #1 UAE Bank
Slide 26: Board of Directors
Board of Directors gb utils Ly FGB Board Members are prominent stakeholders of the Abu Dhabi Business Community H.H. SHEIKH TAHNOON BIN ZAYED AL NAHYAN — CHAIRMAN CHAIRMAN OF PRESIDENTIAL FLIGHT AUTHORITY CHAIRMAN OF ROYAL GROUP 4 AHMED ALI ABDULHAMID KHALDOON KHALIFA || SULTAN KHALFAN MOHAMMED SAIF
Slide 27: Corporate Governance
gb utils Ly Corporate Governance FGB Strong & Independent Governance framework covering all material risks across the Group Board of Directors Executive Committee Risk & Compliance Management Committee Board Committees Remuneration & Nomination Committee Audit Committee Executive Management Committe
Slide 28: Business Segments
Business Segments gb utils Ly FGB Core Banking Revenue Drivers Incremental Revenue Streams WHOLESALE BANKING CONSUMER BANKING TREASURY & GLOBAL MARKETS SUBSIDIARIES & OTHER % of Assets % of Revenue > y” Original core business of the Bank Customer base includes large corporate & multi-national client
Slide 29: Key Achievements (1/2)
Key Achievements (1/2) gb utils Ly TOTAL ASSETS (AED BN) LOANS & ADVANCES (AED BN) CusToMeER Deposits (AED BN) caor. 8” 245.1 227.5 198.2 212.2 176.9 2012 2013 2014 2015 2016 SHAREHOLDERS’ Equity (AED BN) car. 49% i397 1498 138-7 125.6 112.0 2012 2013 2014 2015 2016 OPERATING INCOME (AED MN) aor: 26
Slide 30: Key Achievements (2/2)
Key Achievements (2/2) NET INTEREST MARGIN (%) NPL RATIO (%) PROVISION COVERAGE (%) COST TO INCOME RATIO (%) ayo 33 33 1267 7 36 33 34 28 Ru o 25 23 20.7 206 208 ; 102,9 48,9 «0191 o 96.1 oA 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012. 2013 2014 2015 2016 NET PROF
Slide 31: FGB Awards
FGB Awards EGR 2016: ‘Best Co-branded Credit Card’, ‘Best Onshore Wealth Proposition’ ‘Best SME Trade Finance Offering’ and ‘Best Bancassurance Product’ ” Seven Banker Middle East UAE Product Awards: ‘Best Call Centre’, ‘Best Credit Card’, ‘Best Personal Loan’, ‘Best Wealth Management Service/Propos
Slide 32: Thank you!
Thank you! 201 f, y member of ations For more Information: Contact FGB Investor Relations Department: [email protected] Visit our corporate website: www.fgbgroup.com Follow FGB on social media: rf) in) FGB ry) © @FGBConnect The FGB Channel Or download FGB’s Investor Relations app: https://www.muyirapp.com/f