Champions of the Falcon Economy, with ADX

Good afternoon everybody. Um, welcome to Abu Dhabi. Hopefully I'm going to show you something that you've seen on Abu Dhabi before. Sorry, these slides. Sorry.

Um, yeah. So, Alpha Dab is 4 and a half years old. is a diversified holding company. We're an investor across eight different sectors. Um we believe we're one of the drivers of the new economy here in Abu Dhabi.

As you can see from the screen, we're in eight sectors. We have over 250 companies in our portfolio. There's over 175,000 people contribute to us getting our our results. And while we're headquartered in Abu Dhabi, we've grown to have a presence in over 45 countries. We also have over six companies that are listed on ADX.

And what has this translated into? A company in the first nine months of this year delivered 54.9 billion of revenue, 10.4 billion of net profit. Our asset base is now grown to over 200 billion and our equity is now over 100 billion.

We have a history of exceptional growth. If you look at 2020 and where the company was in terms of its profitability, we then IPOed in 2021 and we've grown over well over 100 K% Kager growth. We've done the same on our net profits as well. So we believe we've shown you the scale. We've proven our capability and we've delivered.

What's driving this? If you look at the Abu Dhabi GDP growth and the non oil economy, you have all these different sectors outside the oil sector. They're growing. some of them at double digit. And as Alpha Dabi, we have a presence in all of these sectors.

Agriculture with MARD and construction with Trojan on uh financial services with who uh with Aldar on the real estate who had a fantastic announcement yesterday about their development here. So we are one of these drivers. What we're giving you access is to a multi-engine growth diversification. Um we started giving guidance to the market this year. Uh we believe it's important as being a listed company.

So what have we delivered in the first nine months of the year? 12.8 billion versus a target of 17 to 17.5 billion. Kager growth target of double digit despite those exceptional numbers uh that we've delivered.

You can see that the margins are increasing as well. So this shows you the capability of driving out synergy across our business. Capital deployment is up. This slide is at the first nine months of the year and actually we just completed another transaction where we increased our stake in NMDC. So the 3.

8 billion is now increased to 5.4 billion and what more importantly we've got line of sight on the capital allocation that we want to deliver 25 to 30 billion over the next 5 years. We've actually refreshing a business plan. We think this number is going to increase and we can also frontload this as well. What's very important for everybody to be aware of this growth has been delivered with uh no leverage.

If you look at our leverage position today versus a target of three times EBA, this is 0.6. So basically we we haven't used leverage at all. So we're giving you line of sight that we can continue to grow. What does the growth look like for Afadabi?

Priority capital allocation, financial services, hospitality, energy sector. We believe that these are new sectors that are going to be a lot of growth in this region. We want to diversify our funding sources as well. As I said, we've got really low leverage. Local banks have been very supportive of us and we want to diversify that in the future.

We'll come to the debt capital markets as well and as I demonstrated earlier, we've got a lot of headroom to go. So, we want to expand geographically. We want to continue the contribution of noneae companies. Today, it's 13%. We want to see that grow and we want to take these national champions that are here in Abu Dhabi and grow them internationally.

Investment commitments we've already got line of sight about five billion that we've already got. And capital recycling we sold a large asset in Modon 5.3 billion. We raised we've done two companies to IPO uh Pure Health and NDC Energy. And we believe that with the next focus is driving out the synergy across our portfolio.

Thank you very much everybody. Good afternoon, ladies and gentlemen. It's great to be at the Abu Dhabi Finance Week, and I'm going to give you a bit of an insight into what is actually Abu Dhabi's global bank, uh, FAB. FAB is basically a bank that connects capital with opportunity and we really are in the middle of Abu Dhabi's dynamic e economy looking at um at what we actually offer as the UAE's global bank. We're situated in one of the strongest sovereign um geographies in the world and actually in the midst of one of the fastest growing economic corridors.

We have over $376 billion dollars of balance sheet. And if you look at that on a global basis, we're basically within the top 100 banks in terms of assets. And we are within the world's top 60 banks when it comes to market cap. We're a financial powerhouse that actually covers a network of 20 countries and we have a diversified franchise with multiple growth engines. We're also in terms of our risk return profile in the unique position where in a way we offer emerging market returns for developed markets risk and we've consistently given a roti over a number of years of greater than 16%.

We're also a company that is firmly entrenched in the UAE and Abu Dhabi's uh growth story and we are very supportive in all areas of capital markets in terms of technology also sustainability as well as international growth. In terms of international growth, as I've said, we are in 20 countries. We do cover out of those 20 countries about 32% of our group's assets and about 17% of the group's revenue. What's also interesting is we're the only bank in the UAE that actually has an presence in the Americas and an access to the Fed window. When it comes to our strategy, what we have done at the beginning of this year is actually reorganize ourselves around three different business divisions.

So very much focused in terms of sectors in our investment, banking and global markets. We also put all of our corporate activity into what we call our wholesale division. And then all of our individual and entrepreneur business and enterprise we've put into a division which is centered around consumer. It has been centered around wealthme as well as our privileged client group which focuses on our ultra high netw worth individuals. We've also when it comes to international growth seen doubledigit growth u both on the asset and the liability side but you'll also see that we are opening up our footprint and we are expanding more into Europe.

We'll also be expanding into Turkey uh as well as Nigeria and we're opening up another presence in India in gift city. We're very focused on technology and we'll be rolling out our AI platform really and this is to give client experience to increase productivity actually to have cost efficiency as well as being very focused on sustainability where we've made a commitment to reach a deployment of transitional finance by 2030 of 136 billion and in fact we've achieved 80 89 billion of that already. Now as I said in terms of our diversity of business we have our three divisions. What you can see is all those divisions are actually contributing doubledigit growth. We're also very focused on diversifying internationally.

Uh internationally we've moved the contribution up from about 12% to 17% and another area of diversification is really in the non-funds income and this is driving our returns. Here we've gone up from about 33% contribution of topline to 46%. We are well ahead of targets uh this year especially on the return target we're exceeding 20% but all the other targets are also well on track and here as well we give you a little bit of an insight into what we think will happen next year in terms of stronger GDP growth which will continue to support our momentum. This chart gives you some insight into our resilient returns over time. And I think that here as well it's important to see that both in good times and bad times we're able to offer those returns to our investors.

I mentioned earlier that we give a developed markets uh risk for emerging market returns and that you can see on this chart where we've got a double A minus rating but we far outperform uh pretty much the global peer group in terms of returns. So just to sum up what I would say in terms of SA in terms of our bank FAB, what you're getting is a global bank. It's got a fortress balance sheet. It's got superior credit ratings, very robust returns and it's got a structural growth backdrop and it's in one of the world's most dynamic economies. So with that, thank you very much.

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Hi everyone and good afternoon from Abu Dhabi Islamic Bank and I'm here to present you story. So Adib is was the first Islamic bank which was established in the Emirate of Abu Dhabi uh back in 1997. Um we are now listed number we are now number five in terms of uh uh to total assets of 270 odd billion with a market capitalization of about 70 billion. Um we are the sorry uh we are one of the fastest growing retail bank. So today we have a market share of 15% in the UE um diversified franchise uh and retail now contributes almost 50% of our total revenues.

Um so in terms of our u overall assets you can see um see we have a unique market position so we have about 2 million customers in the UE out of which 750,000 customers are UE nationals. So these are brand very loyal customers in the UE and as a result of this we have one of the lowest uh cost of funds um funding cost advantage in the UE with about 1.7%. Um our unique advantage is in terms of our returns uh which are at 30% return equity much higher than the global average um as well as the regional averages as well. Um in terms of u u so we have a track record of uh uh consistently delivering um financial result that are superior to the market with a return on equity of 30%.

This if you if you pencil this down then this translates into a net profit margin of 4.2%. And we have a high proportion of non-funded income which is almost 40%. um our CASA ratio is our key differentiating factor whereas in our retail business this is almost 90% of our total deposits. So all this translates into value creation for our shareholders where our overall dividend yield has been 6% um and our TSR ratio of 44%.

Um we are rated very highly by all the rating agencies. So MSCI index is double A, FC and Modi's A+ and um A2. If you look at our stock performance um we have registered an year-to- date growth of 58% um and it's a diversified uh uh shareholding base. So our foreign ownership is now 22% against an ownership limit of 40. Um there is meaningful upside.

If you look at our overall uh consensus from the market uh com share price today is well below the consensus. So there is upside in terms of our valuation and this presents an opportunity for the shareholders. Um we've had a history of consistent dividend distribution. And so we have paid 50% of net income historically and last year was particularly high where we paid approximately 83 fills as a percentage of share capital. Our overall balance sheet has grown by almost 45% fueled by growth in our financing and our deposits.

Um all the four measures that you see on the slide have registered a doubledigit uh kagger growth rate over the last five years. In terms of profitability um our uh net income has grown almost quadrupled in the last 5 years from 1.6 billion in 2020 to uh 6 billion last year. uh primarily result of the double digit 20% increase in revenues over the last 5 years. Um in terms of our uh portfolio quality, NPLs are at a record uh low of 3% while at the same time cost of risk has been relatively stable at around 40 to 60 basis points and our net profit margins have been resilient uh with cost to income ratio declining to reach 28% um as revenue growth has outpaced expense growth.

So in a nutshell if you look at the Adib story uh we can sum it into four parts. We are a diversified uh franchise. Uh we have a track record of delivering um high return equities. Um and we have a sustainable finance future. Thank you.

[music] Good afternoon everyone. As as you probably heard, most great things in life have a really good story behind them. The story of Invescorp Capital actually starts, believe it or not, more than four decades back in 1982 when our founding fathers of Invest Corp got together and they said, "Wouldn't it be nice if we could create an institution here in the Gulf serving Gulf based investors, private families, and high netw worth individuals and provide them access to otherwise ize inaccessible private investment opportunities all over the world. Initially we thought we'll focus on the developed markets. This is 1982 so understandably so uh United States and Western Europe.

But from there over the last four decades, Inve grew and expanded and delivered on its mission to become the preeminent manager and provider of alternative investment opportunities to private clients here in the Gulf spread out all over the globe across multiple asset classes including private equity, real estate, credit, infrastructure, strategic capital, etc. So that's the story. the backdrop, if you will. About three years ago, we said, "We've delivered on the original mission of our founding fathers. Isn't it appropriate now for us to go the next step, the next natural, logical step, and deliver that same opportunity, access to private market investments all over the world to retail investors through a public market setting.

And that's exactly what we did two years ago when we IPOed Invesco Capital which was founded by Invest with that very simple mission in of course understandably Abu Dhabi listed on the ADX the capital of capital as it is fondly referenced the natural location for it. We are celebrating our 2-year anniversary about a couple of weeks back along with the 25th anniversary of ADX. So very very timely in in that sense and we have delivered on the mission. We've distributed over $220 million in dividends and we've grown our NAV uh over this period of time. And the whole idea is to give a unique very focused targeted investment product to public market investors that is diversified, targets ongoing yield and long-term capital appreciation through investments in those private market asset classes.

So we have the benefit of being led by a stellar team of course led by our chairman Mr. Muhammad Alardi our chief executive officer Sana and others that you see on the screen with over 150 mill 150 years of combined experience behind them backed by a stellar board comprising some rail stalwarts of the industry including Dr. Naval from Abu Dhabi, the permanent representative representative to Ireina, Peter McKeler, who's also uh on several other boards of financial institutions, Mohammed Trugi and Pam Jackson, and supported by the entire cast of about 480 people at Invest Corp that help us originate, manage, and monetize these investment opportunities. So, not surprisingly, you can see the spread of our investment base. It's about $1.

6 $6 billion of long-term investments all over the globe. Diversified by region, but more importantly, diversified by asset class as well as source of income, a combination of yield as well as long-term uh capital appreciation. And that is backed up by a 100 odd professionals doing private equity uh investments, finding the right opportunities, investing in them, monetizing them. They've done over $25 billion in deals over the last four decades. Same thing on the credit side.

We manage about $22 billion in total credit credit assets today. Same thing on the rail asset side where we have $25 billion 28 actually if you include infrastructure of assets in the ground that we have invested across and delivered strong returns on. So it's a it's an easy story. Hopefully you can relate to it and it's my privilege to be able to present to you here today. Thank you.