YTD Q3 September 2018 - Financial Performance Presentation to Investors and Analysts 1 November 2018
Disclaimer THE INFORMATION SET OUT IN THIS PRESENTATION AND PROVIDED IN THE DISCUSSION SUBSEQUENT THERETO DOES NOT CONSTITUTE AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLEY FOR USE AT AN INVESTOR PRESENTATION AND IS PROVIDED AS INFORMATION ONLY. THIS PRESENTATION DOES NOT CONTAIN ALL OF THE INFORMATION THAT IS MATERIAL TO AN INVESTOR. This presentation has been prepared by Ahli United Bank B.S.C (the Bank or Group ). The information herein may be amended and supplemented and may not as such be relied upon for the purpose of entering into any transaction. This presentation may not be reproduced (in whole or in part), distributed or transmitted to any other person without the Bank s prior written consent. The information in this presentation and the views reflected therein are those of the Bank and are subject to change without notice. All information are provided to assist the recipients in the evaluation of the matters described herein. They may be based on subjective assessments and assumptions and may use one among alternative methodologies that produce different results and, to the extent that they are based on historical information, they should not be relied upon as an accurate predictions of future performance. These materials are not intended to provide the basis for any recommendation that any investor should subscribe for or purchase any securities. This presentation does not disclose all the risks and other significant issues related to an investment in any securities/transaction. Past performance is not indicative of future results. The Bank is under no obligation to update or keep current information contained herein. No person shall have any right of action against the Bank or any other person in relation to the accuracy or completeness of the information contained in this presentation. No person is authorized to give any information or to make any presentation not contained in and not consistent with this presentation, and, if given or made, such information or representation must not be relied upon as having been authorized by or on behalf of the Bank. Certain statements in this presentation may constitute forward-looking statements. These statements reflect the Bank s expectations and are subject to risk and uncertainties that may cause actual results to differ materially and may adversely affect the outcome and financial effects of the plans described herein. You are cautioned not to rely on such forward-looking statements. The Bank does not assume any obligation to update its view of such risk and uncertainties or to publicly announce the results of any revision to the forward-looking statements made herein. 2
Agenda 1. Financial Performance Update YTD September 2018 2. Q&A Session 3
Financial Highlights NPAT 9 Months (US$ MM) NPAT 3 Months Q3 (US$ MM) 550 175 500 +12.7% 528.3 170 165 +8.5% 170.8 450 468.7 160 155 157.4 400 9M 2017 9M 2018 150 Q3 2017 Q3 2018 Operating Income 9 Months (US$ MM) Operating Income 3 Months Q3 (US$ MM) 950 300 900 850 +9.9% 907.0 290 280 +6.2% 294.6 800 825.1 270 277.4 750 9M 2017 9M 2018 260 Q3 2017 Q3 2018 Diversified Business Model Underpinning Earnings Growth 4
Operating Performance 750 Net Interest Income 9 Months (US$ MM) 3.0% Net Interest Margin 9 Months (%) 700 +11.5% 708.4 +5.1% 2.86% 650 600 635.1 2.72% 550 9M 2017 9M 2018 2.5% 9M 2017 9M 2018 Core Earnings Growth Sustained - Effective Balance Sheet Management 5
Balance Sheet Growth Loans & Advances (US$ MM) Customers Deposits (US$ MM) 19,900 19,800 19,700 19,600 19,500 19,400 19,300 19,200 19,100 +2.4% 19,844 19,499 19,371 Sep 2017 Dec 2017 Sep 2018 25,000 24,000 23,000 22,000 21,000 20,000 +6.9% 24,722 23,130 22,010 Sep 2017 Dec 2017 Sep 2018 36,000 35,000 34,000 33,000 32,000 Total Assets (US$ MM) +5.0% 35,471 33,788 33,242 Sep 2017 Dec 2017 Sep 2018 7,000 6,800 6,600 6,400 6,200 6,000 5,800 5,600 5,400 Non-Trading Investments (US$ MM) 5,975 +14.6% 6,002 6,845 Sep 2017 Dec 2017 Sep 2018 Customer Focused Prudent & Diversified Growth 6
Key Performance Indicators Financial Indicators KPIs YTD Sep 2017 (9 months) FY 2017 (12 months) YTD Sep 2018 (9 months) ROAE % 16.7% 16.5% 18.4% Direction ROAA % 2.1% 2.1% 2.2% C/I Ratio % 27.5% 28.8% 26.2% EPS (US Cents) 5.7 7.4* 6.4 Financial Indicators KPIs 30 Sep 2017 31 Dec 2017 30 Sep 2018 Direction NPL/ Gross Loans % 2.4% 1.9% 2.0% SP Coverage Ratio % 85.3% 85.1% 86.3% Total Provision Coverage Ratio % 156.1% 154.3% 222.3% Total Capital Adequacy Ratio % 16.7% 17.0% 16.4% Solid CET 1 Ratio % 12.7% 13.2% 12.7% Solid Tier 1 Ratio % 14.7% 15.2% 14.7% Solid * 12 Months EPS adjusted for bonus share issue of 5% Solid / Enhanced KPIs 7
Appendix I - Income Statement US$ Millions 3 Months ended 9 Months ended Sep 2017 Sep 2018 Var % Sep 2017 Sep 2018 Var % Net Interest Income 219.1 241.2 10.1% 635.1 708.4 11.5% Fees and Commissions 33.2 29.1 (12.3%) 100.7 98.6 (2.1%) Trading Income 8.6 11.1 29.1% 25.8 32.7 26.7% Investment Income and Others 16.4 13.2 (19.5%) 63.5 67.3 6.0% Operating Income 277.3 294.6 6.2% 825.1 907.0 9.9% Provision for Credit Losses (18.3) (19.5) (6.6%) (56.3) (61.8) (9.8%) Net Operating Income 259.0 275.1 6.2% 768.8 845.2 9.9% Operating Expenses (77.9) (77.9) 0.0% (227.2) (238.0) (4.8%) NPAT to Non-controlling Interest NPAT to the Owners of the Bank (13.9) (14.8) (6.5%) (41.8) (43.8) (4.8%) 157.4 170.8 8.5% 468.7 528.3 12.7% Core Earnings Growth 8
Appendix II - Balance Sheet US$ Millions 30 Sep 2017 31 Dec 2017 30 Sep 2018 Var % (Sep 18 Vs Sep 17) Var % (Sep 18 Vs Dec 17) Loans and Advances 19,371 19,499 19,844 2.4% 1.8% Non-Trading Investments 5,975 6,002 6,845 14.6% 14.0% Total Assets 33,788 33,242 35,471 5.0% 6.7% Deposits from Banks 4,004 3,943 3,072 (23.3%) (22.1%) Borrowings Under Repos 760 1,273 1,487 95.7% 16.8% Customers' Deposits 23,130 22,010 24,722 6.9% 12.3% Total Deposits 27,894 27,226 29,281 5.0% 7.5% Shareholders' Equity 3,686 3,816 3,797 3.0% (0.5%) Prudent Growth 9
Appendix III Profitability Trends 700 600 15.2% 15.6% 15.6% 16.5% 18.4% 20.0% 18.0% 16.0% 500 13.4% 537.2 570.6 618.7 528.3 14.0% 400 482.5 12.0% 300 366.5 * 10.0% 8.0% 200 6.0% 100 1.3% 1.6% 1.7% 1.8% 2.1% 2.2% 4.0% 2.0% 0 2013 2014 2015 2016 2017 YTD Q3/2018 (9 Months) NPAT ($ million) ROAA % ROAE % 0.0% * Net profit excludes exceptional non-recurring gain of US$ 212.9 MM related to sale of stake in Ahli Bank Qatar. Sustained Growth Trend 10
Appendix IV Operating Trends 1,400 30.0% 29.2% 28.3% 27.6% 28.8% 32.0% 1,200 1,000 958 1,041 1,092 1,145 987 1,119 1,030 26.2% 907 27.0% 22.0% 800 886 919 845 742 17.0% 600 400 200 6.4% 8.6% 7.0% 6.9% 5.8% 5.8% 12.0% 7.0% 0 2013 2014 2015 2016 2017 YTD Q3/2018 (9 Months) Gross Operating Income ($ million) Net Operating Income ($ million) C/I Ratio % Effective Tax Rate % 2.0% Solid Operating Parameters 11
Appendix V Capital Adequacy 6,000 5,000 4,000 3,000 16.2% 15.5% 12.0% 12.0% 927 1,182 16.7% 17.1% 17.0% 16.4% 12.5% 12.5% 12.5% 12.5% 514 508 612 543 564 564 407 574 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 2,000 1,000 2,479 2,923 3,369 3,349 3,652 3,699 6.0% 4.0% 2.0% - 2013 2014 2015 2016 2017 Sep 2018 CET1 ($ million) AT1 ($ million) Tier2 ($ million) CAR % Min CAR % 0.0% Optimal & Diversified 12
Appendix VI Asset Quality 2.5% 250.0% 2.3% 2.3% 2.3% 222.3% 230.0% 2.0% 1.8% 2.0% 1.8% 1.9% 2.0% 210.0% 190.0% 1.5% 181.9% 170.0% 1.3% 155.5% 159.4% 155.6% 154.3% 150.0% 1.0% 130.0% 0.8% 110.0% 0.5% 90.0% 0.3% 0.0% 86.1% 83.8% 84.6% 84.9% 85.1% 86.3% 2013 2014 2015 2016 2017 Sep 2018 NPL / Gross Loans SP Coverage Total Coverage 70.0% 50.0% Sustained Asset Quality & Robust Coverage 13
Q&A Session 14