The Investment Case of Abu Dhabi Islamic Bank

[Music] Salam alaykum everyone and good afternoon uh welcome to Abu Dhabi my name is lamia haris and I had the IR ESG coms and marketing for Abu Dhabi Islamic Bank and I'm happy and pleased to present to you adb's investment case today so uh uh uh today is one of the leading Banks here in the UAE uh we have a market share in retail banking of 15% overall our market share is 5% we have a very unique marketing Market position given that we do Bank around 1.4 million customers out of which 670,000 uee Nationals that's mean more than 50% of the uee national population where we 70 % of them consider Adib as their primary bank that mean a big market share within a very loyal and sticky customer base that have helped us throughout the year in a very low cost of fund and a very low cost of uh risk as well uh a very Diversified business model so in addition to a a very strong retail franchise we do have a wellestablished wholesale banking uh financing uh Abu Dhabi corporates and UAE corporates which contributes around 15% of our total revenue while retail contribute around 55% but we do have also other than banking services like uh takaful Insurance Brokerage payment uh Asset Management Services which contributing to an increase in our fee income today our non-funded income or noninterest income contributes around 30 9% to our total revenue if I compare it to last year it used to be a 32% uh from a Islamic positioning perspective we are one of the leading Islamic banks in the region we have an asset base of 61 billion we have a market cap today of 46 billion Dirham and we do have a very large Branch Network here in the UAE 60 plus branches across all the and the Seven Emirates we also have a full-fledged Bank in Egypt with 70 branches it's a it's a bank that caters to all kind of segments whether retail or wholesale Banking and we also have presence in countries like UK KSA Iraq and Qatar uh we do benefit from a very Diversified shareholder base so we are uh traded in adx and and today our main shareholder which owns 46% of the bank is a holding company private holding company called ewic and also the rest is floating in the market with 19% foreign ownership mainly institutional investors if I want to compare this number today to uh to few years ago it used to be around 9% also very strong vend mentals we do enjoy a roe of 29% this is is the highest in the market in the industry locally regionally and even globally we also enjoy a very strong Capital position our C1 today stands at 13.4% which is above regulatory environment regulation wants us to deliver a 99.5% also very strong uh credit rating from the rating agencies whether moodies or fit and we do enjoy a doublea rating from msci from a a a a performance perspective as I mentioned our Roe today sits at 29% historically uh if I go back five years we were always a high Roe driven bank so our Roe used to always be between 18 to 20% and going forward a roe of above 20% this is something we are aiming to keep the drivers of the this Roe are few things I want to mention our npm or in a conventional word the NIMS our net interest margin today our net interest margin sits at 4.46% highest in the Market within our peers and the reason behind a high NS it's because of our casa ratio our current and saving accounts today at a group level are 60% this includes Egypt which has contributed to a very low cost of fund our cost of fund today at the group level is 2.

6 while if I take only a de UAE without Egypt is around 1.8% our casa retail today sits at 90% if I see it in 2019 it used to be 92% what does it mean it means that we didn't see a migration of our retail customers from Casa or current account to wakala or or in conventional word time deposits even when the rates were going up from a uh shareholders perspective we have been able to deliver a dividend seal on average above a 5% our dividend payout ratio have been around the 50% consistent throughout the years and uh we have able we were able to deliver a TCR of 21% with an EPS of 1.1 32 Dirham also we our uh uh PE ratio is 8.5 56 and our Price to Book we are traded at two times uh multiple share price growth we have seen a growth in the share price by 26% the history of Adib we're not a very old Bank uh we were established in 1997 by the Amir degree by uh His Highness the late Z and then we were listed in Abu Dhabi stock exchange Market in 2000 in 2005 we have in 2007 we have acquired a bank in Egypt where we own today 53% of it so we have a capital increase in Egypt last year and in uh 2012 we have started our International expansion in 2022 it was the first time where the bank delivered an profit of $1 billion uh I have shared some of the numbers with you but I wanted to highlight that ad in addition to our financial number we also have non-financial M Matrix that we look at including our imitiation ratio our women uh in Workforce ratio our NPS as well and we do look at this very carefully from an asset perspective we are one of the largest uh Islamic Bank in the GCC fourth largest and here in the UAE we are the sixth largest uh Bank Roe I've mentioned it it's highest than the rest of the industry whether locally globally or regionally so we have a roe of 29% uh from a shareholders perspective so our share price have increased today uh we've reached 13.2 so uh the this is FS of September it was 12.

86 a few years ago we used to trade at forham uh also there is a lot of uh uh the the current valuation from the analyst uh presents a u attractive opportunities so the consus is around 15 Dirham we are covered by 16 analysts with mostly by recommendations uh a dividend payout story has been consistent and uh as you can see here the roe has been uh growing uh and also we have a Roa of 3.3% thank you for your time I guess the time is done and I hope also we'll see you in more meetings and uh with us in our shareholders book thank you [Music]