ABU DHABI ISLAMIC BANK ADIB IR Website
Investor Presentation
9M 2023
November 2023
IR App Download link:
Contents
9M 2023 Investor Presentation
1 | ADIB Profile |
2 | Operating Environment |
3 | Strategy |
4 | ESG |
5 | Financial Performance |
6 | Segmental Performance |
7 | Performance Track Record |
8 | Appendix |
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1
ADIB Profile
9M 2023 Investor Presentation
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Abu Dhabi Islamic Bank Today
ADIB is a digitally advanced Islamic Bank serving as a lifelong partner for its customers, colleagues and community
#1 Bank for UAE NationalsA Leading Islamic BankAdvanced Digital BankLeader in Customer Satisfaction
15% | AED 184bn | 76% | #1 in UAE |
UAE retail market share | Total Assets | Digitally Active Customers | NPS |
55% | 146 | 48% | #1 in UAE |
Market share of UAE | Branches | Digital sales | Bank |
Nationals in Abu Dhabi | Banker FT | ||
530K | 544 | 98% | #1 in UAE |
UAE Nationals | ATMs | Straight Through Processing | Safest Islamic Bank |
by Global Finance |
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ADIB Key Highlights
ADIB is a leading UAE Bank and one of the largest Islamic banks world-wide
Presence in 7 markets
Value Drivers (9M 2023)
United Kingdom | Iraq |
Qatar | |
Egypt United Arab Emirates
Sudan | Saudi Arabia |
Employees | Customers | Market Cap* |
5,000 1.2mnAED39bn
Solid Ratings
A2 A+ A
Stable Outlook | Stable Outlook |
ROE
26.4%
P/B Ratio
2.16x
EPS
AED0.91
Market leader
ROA | CASA Ratio | Net Profit Margin | Cost of Risk |
3.02% 65.6% 4.48% 0.50%
Total Assets | Financing | Net Income | C/I Ratio |
AED184bn | AED118bn | AED3.75bn | 32.6% |
Investments | Deposits | Revenues | CAR |
AED23bn | AED152bn | AED6.7bn | 18.0% |
* At 01/11/2023 | 5 |
Business Segments
ADIB's business is comprised of 4 main segments
% of Group Revenue
54%
Business Segment
Retail Banking
Description
Targets individuals and SME entities with main focus on UAE Nationals and mass affluent segment
Product ranges offered include everyday banking products such as current accounts, deposits, cards, finance, wealth products, etc.
15%
4%
27%
Wholesale Banking
Treasury
Other, incl. Associates and
Subsidiaries
Focuses on large corporates, Governments, GREs and FIs
Product offerings include investment and corporate finance, corporate banking, contracting and commercial banking, transaction banking, liquidity, trade finance, payments and cash management services. ADIB offers wholesale banking internationally in Iraq, Qatar and Sudan.
Offers risk management; an active investor in the global sukuk market, offering investment opportunities to customers and using debt assets to manage the bank's balance sheet.
Expertise in FX, rates, hedging, money markets, equity and debt execution. Treasury also manages ADIB's balance sheet and asset/liability mix.
ADIB is present in the following countries for the following services:
- ADIB UAE offers private banking and real estate asset class
- ADIB Egypt caters to the needs of corporate and retail customers.
- ADIB UK offers commercial and industrial real estate asset class
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Consistent dividend distribution
ADIB consistently distribute dividends with average yield of 4.5%
Shareholder Return Metrics
10 | ||||||||||||||||
12% | ||||||||||||||||
9 | ||||||||||||||||
8 | 9.9% | |||||||||||||||
10% | ||||||||||||||||
7 | 8.0% | 7.6% | ||||||||||||||
6.2% | ||||||||||||||||
8% | 7.0% | |||||||||||||||
Share Price | 6 | 6.5% | ||||||||||||||
5 | 5.1% | 5.4% | ||||||||||||||
6% | 4.4% | |||||||||||||||
4 | 4.1% | 4.5% | ||||||||||||||
Dividend Yield | ||||||||||||||||
3 | ||||||||||||||||
4% | ||||||||||||||||
2 | ||||||||||||||||
2% | ||||||||||||||||
1 | ||||||||||||||||
0%0 | ||||||||||||||||
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | ||||||
Net Profit in AED mn | 1,201 | 1,450 | 1,751 | 1,934 | 1,954 | 2,300 | 2,501 | 2,601 | 1,604 | 2,330 | 3,619 | |||||
Cash Dividend Payout ratio | 50.0% | 50.0% | 40.0% | 39.8% | 39.8% | 39.8% | 39.8% | 38.2% | 46.6% | 48.5% | 49.2% | |||||
(% of Net Profit) | ||||||||||||||||
Cash Dividend | 25.4% | 30.7% | 23.3% | 24.3% | 24.5% | 28.9% | 27.4% | 27.4% | 20.6% | 31.1% | 49.0% | |||||
(% of Share Capital) | ||||||||||||||||
Cash dividend in AEDmn | 601 | 725 | 700 | 770 | 778 | 915 | 995 | 994 | 747 | 1,130 | 1,779 | |||||
Bonus shares | - | 635.3 | - | - | - | - | - | - | - | - | - | |||||
Bonus shares | - | 26.9% | - | - | - | - | - | - | - | - | - | |||||
(% of Share Capital) | ||||||||||||||||
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Market Metrics & Ownership Structure
ADIB is a liquid stock with 18% foreign ownership
Key Metrics* | Share Price (AED) | |||
12.00 | 11.26 | |||
Market Cap | Free Float | 52 w High | ||
AED41bn | 40% | AED11.54 | 10.00 | |
8.00 | ||||
Velocity | FOL Limit | 52 w Low | 6.00 | 5.79 |
15% | 40% | AED8.91 | 4.00 | |
2.00 | ||||
Sep 2021 Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023 | ||||
ADIB Stock Liquidity | Ownership Structure* |
30%
25%
4,490
5,275 | 6,000 | |||
4,621 | 5,000 | Other UAE Nationals | Emirates International IC | |
46.7% | ||||
35.7% | ||||
20% | 3,316 | 26% | 3,520 |
15% | 17% |
10% | 14% |
4,000 |
3,000 | |
15% | 15% |
2,000 |
5% | 1,000 | ||||||||||||
Foreign Ownership | |||||||||||||
0% | 0 | 17.6% | |||||||||||
2019 | 2020 | 2021 | 2022 | FY2023 (Annualized) | |||||||||
Value Traded (AEDmn) | Velocity (%) | ||||||||||||
* At 30/09/2023; | 8 |
Recent Achievements and Accolades
ADIB's recognition for excellence in Islamic banking
Awards received in 2022
Forbes | IFN | IFN |
#1 UAE bank on Forbes' List of the World's Best Banks 2021
Global Finance
Best bank in the UAE
Global Finance
Best Islamic Bank in the UAE, | Most Innovative Islamic Bank |
Iraq and Egypt |
Global Finance | Digital Banker |
Best Digital Banking | |
Best Islamic Bank in ESG | Innovation |
Banker FT | Digital Banker |
Most Innovative Bank in the | Best Bank in UAE |
Middle East | Best Islamic Retail bank |
Global Finance | Banker | The Asian Banker |
Safest Islamic Bank | Best Islamic Bank in the | |
Best Private Islamic Bank | Middle East |
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Outlook and Guidance
Solid financial & strategic foundations drive a promising outlook for 2023
Market Outlook
Solid GDP growth
Real GDP growth (%) | ||
3.9% | 7.4% | 3.4% |
2021 | 2022 | 2023 |
Oil prices to remain supportive | ||
Brent Price / Barrel (avg) (USD) | ||
70 | 102 | 92 |
2021 | 2022 | 2023 |
Inflation to moderate | ||
UAE Inflation (avg) (%) | 4.8% | 3.1% |
-0.1% | ||
2021 | 2022 | 2023 |
Management Guidance | 9M 2023 Actual | FY2023 Guidance | ||
Gross Financing Growth | ||||
Executing ADIB's growth strategy | 4% YTD | 5% to 8% | ||
against the backdrop of an economic | ||||
expansion | ||||
Net Profit Margin | ||||
Benefit of rate hikes offset by | 4.48% | ~4.5% | ||
continued competitive yield pressure | ||||
Cost of Risk | ||||
Stable credit quality outlook and | 0.50% | 0.55% to 0.65% | ||
continued build-up of prudent | ||||
provisioning | ||||
Cost to Income Ratio | ||||
Stable cost base from disciplined | 32.6% | Below 35% | ||
management and digital efficiencies | ||||
with expected growth in revenue
Expenditure expected to remain at 2022 level
Government expenditure % of GDP (%)
26%26%27%
2021 | 2022 | 2023 |
Return on Equity
Solid expected profit growth and focus | 26.4% | Above 22% |
on capital-efficient income growth | ||
expected to drive further ROE increase
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Disclaimer
Abu Dhabi Islamic Bank PJSC published this content on 24 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 November 2023 09:17:14 UTC.
