DEBT INVESTOR PRESENTATION - First Abu Dhabi Bank - UAE · 2018-10-14 · Abu Dhabi - All Properties (YoY Change) Dubai - All Properties (YoY Change) Construction and Real Estate

DEBT INVESTOR PRESENTATION September 2018

2

Disclaimer

Please note that FAB pro forma consolidated financials as at 30 June 2018 serve as the main basis of reference for our Management

Discussion & Analysis Report (MDA) and Investor Relations presentation.

Comparative figures have been reclassified where appropriate to conform to the presentation and accounting policies adopted in the

pro forma condensed consolidated interim financial statements.

FAB’s interim reviewed consolidated financial statements as at 30 June 2018 are prepared on the basis that FGB/NBAD merger was

declared effective on 1st April 2017 with FGB being the accounting acquirer as per IFRS 3. Therefore, these financials reflect

consolidation of NBAD since 1st April 2017.

For further information, please refer to the Business Combination note of the reviewed consolidated interim financial statements.

The information contained herein has been prepared by First Abu Dhabi Bank P.J.S.C (“FAB”). FAB relies on information obtained from sources believed to be

reliable but does not guarantee its accuracy or completeness.

This presentation has been prepared for information purposes only and is not and does not form part of any offer for sale or solicitation of any offer to subscribe

for or purchase or sell any securities nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever.

Some of the information in this presentation may contain projections or other forward-looking statements regarding future events or the future financial

performance of FAB. These forward-looking statements include all matters that are not historical facts. The inclusion of such forward-looking information shall

not be regarded as a representation by FAB or any other person that the objectives or plans of FAB will be achieved. FAB undertakes no obligation to publicly

update or publicly revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Note: Rounding differences may appear throughout the presentation

Economic and banking sector review

A cosmopolitan country ~10.1Mn people (2017e)1

Expatriates ~85%

2nd largest economy in GCC (30th largest in the world)

USD 377Bn 2017e Nominal GDP1

USD 37,226 GDP per capita

6th largest proven oil reserves

~98Bn boe (~8% of global oil reserves)2

~3.0Mn barrels/day (2017 crude oil production)

One of the highest rated sovereigns

Aa2 (Moody’s)

On path to strong recovery

Diversified & competitive economy

Latest news/developments • VAT implementation w.e.f. Jan 2018 • De-subsidised gasoline prices, reduction in energy subsidies • UAE cabinet announced 100% foreign ownership of companies in specified sectors

and long-term visas for specified categories of expatriates

4

UAE Economic Overview

Economic structure and performance1 2017e 2018f 2019f

Real GDP Growth (% change) 0.5 2.0 3.0

Nominal GDP (USD Bn) 377 412 428

Inflation (CPI, % change) 2.0 4.2 2.5

Fiscal balance (% GDP) (1.8) (1.4) (0.8)

1 - IMF World Economic Outlook, April 2018 and Wikipedia for expatriate population estimates 2 - OPEC (December 2017); boe (barrel of oil equivalent) 3 - WAM (Emirates News Agency) 4 - Federal Competitiveness and Statistics Authority, 2017 Nominal GDP

UAE

78% non-oil sector contribution

to nominal GDP4

17th

most competitive economy

(WEF 2017/2018)

Real GDP Growth1

0.5% 2.0%

2017e 2018f Increase in 2018 Federal Budget3

+5.6%

UAE federation established in 1971 comprising 7 Emirates One of the 6 GCC (Gulf Cooperation Council) states

Construction and Real

Estate 15%

Mining and quarrying

22%

Manufacturing 9%

Trade, Restaurants &

Hotels 14%

Finance 10%

Others3

30%

(7.3)

(1.4)

2.8

7.1

(5.7)

(11.6)

20.0

19.0

55.4

26.7

46.8

94.9

748

412

184

135

83

38

SaudiArabia

UAE

Qatar

Kuwait

Oman

Bahrain

4 4

8 5 4 5 7

18

10 10 11

20 18 19

22 22

15

Q2

'14

Q3

'14

Q4

'14

Q1

'15

Q2

'15

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

Q4

'16

Q1

'17

Q2

'17

Q3

'17

Q4

'17

Q1

'18

Q2

'18

Abu Dhabi Dubai Other Emirates

5

UAE - Other Indicators

Project awards have increased since Q1’174 UAE PMI in expansionary territory5

2018f Nominal GDP (USD Bn)

2018f Fiscal Balance (% GDP)

2018f Gross Debt (% GDP)

A strong diversified economy1

UAE 67%

Saudi Arabia

9% Qatar

7%

Kuwait 2%

Bahrain 3%

Oman 12%

UAE remains top FDI destination in the GCC6

FDI Inflows USD 15.4Bn

2017

55.8

45.0

50.0

55.0

60.0

Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18

Expansion

Contraction

(USD Bn)

2017 Nominal GDP breakdown2

1 - 2018 forecast, IMF World Economic Outlook, April 2018 4 - Meed Projects

2 - Federal Competitiveness and Statistics Authority 5 - Markit Economics; PMI (Purchasing Manager Index)

3 - Others include Agriculture, Utilities, Transportation, Communication, Government and Other activities 6 - World Investment Report 2018 – UNCTAD

Economic structure and performance4 2017e 2018f 2019f

Real GDP Growth (% change) (0.5) 1.3 2.0

Nominal GDP (USD Bn) 227 266 266

Inflation (CPI, % change) 1.6 3.5 2.0

6

Abu Dhabi - The Capital

Ajman

Umm al Quwain

Ras al Khaimah

Fujairah

Ajman

Dubai Sharjah

87% of UAE land area5

Estimated population5 : 2.9 Mn

1 - Abu Dhabi, National Accounts 2013-2017 (SCAD) April 2018, preliminary estimates 2 - After Luxembourg and Switzerland - IMF World Economic Outlook, April 2018; GDP per capita based on 2017e Nominal GDP, 2016 Population (SCAD) 3 - Fitch Ratings article (18 June 2018) 4 - SCAD : 2017e, S&P : 2018f and 2019f 5 - Abu Dhabi 2017 Bond Prospectus

Highest ratings in MENA Aa2 / AA / AA Moody’s / S&P / Fitch

Major contributor to UAE GDP USD 227Bn 2017e Nominal GDP1

60% of UAE’s 2017 Nominal GDP

3rd highest GDP per capita in the world

USD 78,2752

Strong fiscal position Sovereign foreign assets – 281% of GDP3

Government debt – only 8% of GDP3

Strong recovery underway post several years of fiscal consolidation

On clear path to economic diversification

64% non-oil sector contribution to

nominal GDP1 , up from 45% in 2013

Latest developments • AED 50Bn economic stimulus over a 3-year period announced by Abu Dhabi government in

June 2018 to promote private sector development and job creation and to increase tourism

• ADNOC to invest AED 165Bn over 5 years in downstream projects including Ruwais complex refinery expansion. Target to increase crude oil production to ~3.5Mn bpd by end-2018

Abu Dhabi

(0.5%) 1.3%

Real GDP Growth4

2017e 2018f

-11.0%

-8.8%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

Jan'14 Jul'14 Jan'15 Jul'15 Jan'16 Jul'16 Jan'17 Jul'17 Jan'18

Abu Dhabi - All Properties (YoY Change)

Dubai - All Properties (YoY Change)

-6.9%

-6.5%

-20%

-10%

0%

10%

20%

30%

40%

50%

Jan'14 Jul'14 Jan'15 Jul'15 Jan'16 Jul'16 Jan'17 Jul'17 Jan'18

Abu Dhabi - All Properties (YoY Change)

Dubai - All Properties (YoY Change)

Construction and Real

Estate 15%

Mining and quarrying

36%

Manufacturing 7%

Trade, Restaurants &

Hotels 7%

Finance 9%

Others2

26%

7

Abu Dhabi - Other indicators

1 - Abu Dhabi, National Accounts 2013-2017 (SCAD) April 2018, preliminary estimates 2 - Others include Agriculture, Utilities, Transportation, Communication, Government and Other activities 3 - Abu Dhabi Economic Vision 2030, SCAD 4 - Abu Dhabi, Department of Culture and Tourism ; Dubai, Department of Tourism and Commerce Marketing 5- Knight Frank

On track to meet Plan Abu Dhabi 2030 targets

41% 51%

64%

2005 2016 2030 Target

Oil GDP Non-Oil GDP

Target real GDP 3

Sale prices - mainstream residential market property5 Rental prices - mainstream residential market property5

Hotel guests + occupancy - Abu Dhabi & Dubai4

Jun’18

(AED) (%)

Jun’18

17.5% 8.1% 9.8%

5.1%

7.6% 4.7% 6.2% 0.5%

Abu Dhabi Tourist Growth(YoY) Dubai Tourist Growth(YoY)

330 290 264 244 439 397 383 388

75 73 72 71

77 78 78 77

65

70

75

80

0

200

400

600

2015 2016 2017 YTD Jun'18RevPAR - Abu Dhabi (LHS) RevPAR - Dubai (LHS)Occupancy rate - Abu Dhabi (RHS) Occupancy rate - Dubai (RHS)

2017 Nominal GDP breakdown1

89% 93% 93% 90% 89%

8

Sound and highly capitalised banking sector

Figures in AED Bn Jul’18 YTD YoY

Total Assets, net2 2,652 2.6% 6.1%

Loans and Advances, net2 1,500 2.0% 2.8%

Customer Deposits 1,695 4.2% 6.5%

LDR2 89% -188bps -317bps

Lending to Stable Resources Ratio3 83.4% -110bps -200bps

CAR (Basel III)4 18.1% <-> -40bps4

CET1 (Basel III)4 14.6% <-> na

• UAE banking sector: 22 Local and 27 Foreign banks 41 Conventional and 8 Islamic banks

• Market share in Total Assets: UAE banks: 87%, Conventional banks: 79%

Latest regulatory developments:

• UAE CB introduced in May 2015 a glide path on Liquidity Coverage Ratio (LCR)

in the context of gradual migration to Basel III regulatory framework. The

minimum for the current year is 90%

• UAE CB Basel III capital guidelines effective from 1st Feb 2017 with min. CET 1

set at 7.0%; full implementation by 2019

• IFRS9 implemented across UAE banking sector effective 1 Jan 2018

• FAB is one the four Domestic Systematically Important Banks (DSIBs) in UAE

1 - Source: UAE Central Bank, UAE Banking Indicators 2- Net of provisions 3 - Total advances (net lending + net financial guarantees & stand-by LC+ Interbank placements more than 3 months)/ sum of (net free capital funds + total other stable resources) 4 - Jul’17 as per Basel II framework

Key Highlights UAE Banking Sector Key Indicators1

Average Yield/Cost on loans and deposits1 vs EIBOR Loans and deposits growth trend1

LDR2

8.7% 8.0%

5.8%

1.7%

2.8%

11.1%

3.5%

6.2% 4.1%

6.5%

2014 2015 2016 2017 Jul'18

Credit growth, net (YoY) Deposits growth (YoY)

Net deposit surplus for Jul’18 is AED 195Bn

5.2% 5.0% 5.0% 5.2% 5.4%

1.0% 1.0% 1.2%

1.3% 1.5%

0.7% 0.8% 1.2%

1.5% 2.2%

2014 2015 2016 2017 Jun'18

Yield on loans Cost of deposits EIBOR 3M

9

FAB in Brief

10

The largest bank in the UAE by total assets and market capitalization, with the strongest combined credit ratings of any other bank in MENA

A diversified franchise with market-leading corporate and personal banking businesses, and a presence across 5 continents

A strong balance sheet and superior fundamentals in terms of liquidity, capital strength, asset quality and operating efficiency

On a clear path to generate substantial cost and revenue synergies from the merger…

… and to deliver superior and sustainable returns

11

FAB at a glance

All figures as on 30 June 2018 1 - On 12 July 2018, FAB announced the sale of NBAD Jordan, to be completed over the coming months.

Europe & Americas (E&A)

France

UK

Switzerland

USA

Brazil

Asia Pacific (APAC)

China/Hong Kong

India

Malaysia

Singapore

South Korea

Middle East & Africa (MEA)1

UAE

Bahrain

Egypt

Jordan

Kuwait

Libya

Oman

Qatar

Saudi Arabia

Sudan

FAB is the result of the historic merger between two iconic Abu Dhabi-based franchises (FGB and NBAD)

Largest UAE bank by total assets (AED 692Bn) and market capitalisation (AED 132Bn), and one of the largest in MENA

Offers an extensive range of products and services via market-leading Corporate and Investment Banking (CIB) and Personal Banking (PB) franchises, as well as subsidiaries

7 Domestic

network across

87 Branches/

Cash offices in UAE

579 ATMs/CDMs emirates

5 Presence

across

continents

LT Aa3 AA- AA-

ST P-1 A-1+ F1+

Outlook Stable Stable Stable

12

The safest and strongest bank in the Middle East

Strongest combined credit ratings of any

other bank in MENA

Recognised as one of the safest and strongest banks worldwide

in UAE & Middle East

in Emerging Markets

Safest Commercial Bank Worldwide

#1

#4

#17

1 - Global Finance Magazine safest bank rankings 2 - The Banker’s 2018 Top 1000 World Banks Rankings, July 2018

#1 in UAE & Middle East

by Tier 1 capital strength

#116 Worldwide by Total Assets

#81 Worldwide

by Tier 1 capital strength

Safest banks’ rankings by Global Finance1 Top 1000 banks’ rankings by The Banker2

13

Share profile

• Listed on Abu Dhabi Securities Exchange (ADX)

• Symbol: FAB

• Market cap: AED 132Bn (USD 36.0Bn)

• Foreign Ownership Limit: 25%

• Valuation multiples2

P/TE 11.3x

P/TB 2.0x

D/Y 5.8%

1 - As of 30 June 2018 2 - TE: Tangible EPS = Attributable profit to shareholders' net of interest on Tier-1 capital notes and amortisation of goodwill/intangibles TB: Tangible Book value = shareholders' equity net of Tier-1 capital notes, goodwill and intangibles D/Y: Dividend Yield = Dividend payout for YE 2017/Share price of AED 12.15 as of 30 June 2018 3 - Ownership structure as of 30 June 2018, based on shares outstanding (net of 38Mn treasury shares). Note: A law was issued by the President of UAE and Ruler of Abu Dhabi on 21 Mar 2018, merging ADIC under the umbrella of Mubadala Investment Company

Abu Dhabi Securities Market Index ADSMI 40.3%

Bloomberg EMEA Banks Index BEUBANK 2.3%

MSCI EM MXEF ~9bps

Index Weightings1

Strong shareholding structure3

Overview1

ADIC 33.5%

Mubadala Development

Company 3.7%

Other UAE companies

and individuals

51.7%

GCC (ex-UAE)

1.3%

Foreign (ex-GCC)

9.8%

10,898 Mn shares

14

Leading UAE and regional bank

1 - Company and Central Bank information as of latest reported for 30 June 2018 2 - Defined as the largest bank in the country by total assets 3 - Based on 30 June 2018; Source Bloomberg

748

617

382

215

188

87

UAE

Qatar

KSA

Kuwait

Oman

Bahrain

Banking sector assets1 (USD Bn)

National champion2

1.6

1.5

1.9

0.6

0.4

0.2

H1’18 Net Profit1

(USD Bn)

188

121

232

90

30

26.3

17.1

20.6

10.7

4.9

Total Assets1

(USD Bn)

Equity1 (USD Bn)

Market Cap3 (USD Bn)

36.0

38.9

38.6

15.2

4.8

2.9

Credit Ratings3 (Moody’s/S&P/Fitch)

Aa3 / AA- / AA-

A1 / BBB+ / A-

Aa3 / A / A+

Aa3 / A+ / AA-

NA / BBB / BBB-

Baa3 / BB / BBB-

34 4.2

NCB

QNB

NBK

AUB

Bank Muscat

FAB

15

Prominent Board and robust governance

H.H. Sheikh Tahnoon Bin Zayed Al Nahyan – Chairman National Security Advisor Chairman of Royal Group

H.E. Khaldoon Khalifa Al Mubarak

Board Member

CEO and MD of Mubadala

Investment Company

Chairman of the Executive Affairs Authority of the Government of

Abu Dhabi

H.E. Sheikh Mohammed Bin

Saif Bin Mohammed Al

Nahyan

Board Member

Chairman of Abu Dhabi National

Insurance Company (ADNIC)

Chairman of Risk

Management Committee of

ADNIC

H.E. Sheikh Ahmed

Mohammed Sultan Al Dhaheri

Board Member

Chairman of Bin

Suroor Engineering

Vice Chairman of Abu Dhabi

National Hotels Company

H.E. Mohammed Thani Al-Romaithi

Board Member

Chairman of the Federation of UAE

Chambers of Commerce and

Industry

Board Member of Al Etihad Credit

Bureau

H.E. Mohamed Saif Al Suwaidi

Board Member

Director General of Abu Dhabi Fund for Development

Board Member of

DP world and Agthia

H.E. Nasser Ahmed Alsowaidi

Vice Chairman of the Board

Chairman of

ETECH

H.E. Jassim Mohammed Al

Siddiqi

Board Member

CEO and MD of Abu Dhabi

Financial Group (ADFG)

Chairman of Shuaa

and Eshraq Properties

H.E. Khalifa Sultan Al Suwaidi

Board Member

Executive Director at the Abu Dhabi

Investment Council (ADIC)

Board Member of

UNB, ADIC and Barakah One

Remuneration & Nomination Committee

Board Risk & Compliance Committee

Audit Committee Board Management Committee

Board of Directors

4 Board Committees

16

Strategy built on core strengths

Our vision

UAE 87%

Middle East & Africa 4%

Europe & Americas 6%

Asia - Pacific 3%

Corporate & InvestmentBanking 50%

Personal Banking 38%

Subsidiaries 2%

Head Office 10%

Diversified Business Profile

AED 9.8Bn H1’18

Revenue

AED 9.8Bn H1’18

Revenue

Creating value for our customers, employees, shareholders and communities to grow stronger through differentiation, agility and innovation

Customers Employees

We empower our customers to grow stronger through choice, convenience, and customised products and services

We create an environment where our people can leverage their strengths and excel in their performance

Shareholders Communities

We deliver superior and sustainable returns to our shareholders

We build a legacy of positive change in our communities

Dominant personal bank in UAE

Trusted partner to CIB customers

• Bank of choice across key segments in Abu Dhabi, and enhanced market share in Dubai and Northern Emirates

• Multichannel and ‘smart’ distribution model leveraging on digital solutions

• Leader in everyday banking anchored in payment solutions and cards

Regional wealth advisor of choice

International business built around UAE knowledge and relationships

Personal Banking strategic focus

• Leverage scale and cross-sell to deepen client relationships and increase share of wallet in UAE and abroad

• Preferred banking partner for government and government-related entities

• One-stop shop banking partner for large corporates and medium-sized businesses

Corporate and Investment Banking strategic focus

• Access new high growth HNWI segments

• Use global network to expand product and service range

• Deepen existing relationships with increased cross-sell

• Wholesale-driven international strategy - Reference bank for UAE multinational businesses

• Selective international presence and sharper focus on high potential growth markets

Complementary offering through subsidiaries

70.7 73.3 71.1

63.11 66.0

Jun'17 Sep'17 Dec'17 Mar'18 Jun'18

4,628 4,611 5,049 4,871 4,920

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

2,513 2,605 2,822

2,998 3,059

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

17

Key financials at a glance Balance sheet & Income Statement - Based on Pro forma Financial Information

TOTAL ASSETS (AED Bn) LOANS & ADVANCES (AED Bn) CUSTOMER DEPOSITS (AED Bn)

TANGIBLE EQUITY (AED Bn) OPERATING INCOME (AED Mn) NET PROFIT (AED Mn)

624.6 644.1 669.0 677.8 691.7


321.3 328.3 330.5 338.2 344.7


377.3 378.9 395.8 404.0 431.3


1 - Post AED 7.6Bn dividend payout

18

Key financials at a glance Ratios - Based on Pro forma Financial Information

NIM – YTD (%) NPL RATIO1 (%) PROVISION COVERAGE1 (%) COST TO INCOME RATIO (%) (EX-INTEGRATION COSTS)

ROTE (%) RORWA (%) NON-INT INC / REVENUES (%) CET1 & CAR2 (%)

1 - As 2018 ratios are based on IFRS9 accounting and ratios for prior periods are based on IAS39 accounting, they may not be fully comparable 2 - CET1 ratio as per UAE CB’s Basel III framework (without considering the transitional arrangements for Dec’17); ratios prior to Dec’17 are based on Basel II framework Ratios annualised, based on actual/365 day count, where relevant

3.2 3.0 3.1 3.1 3.1


112 109 120 127 123


14.9 14.3 14.6 17.4 17.1

H1'17 9M'17 FY'17 Q1'18 H1'18

2.3 2.2 2.3 2.5 2.5

H1'17 9M'17 FY'17 Q1'18 H1'18

2.47 2.50 2.48 2.49 2.45

H1'17 9M'17 FY'17 Q1'18 H1'18

27.5 27.6 27.7 25.8 25.7

H1'17 9M'17 FY'17 Q1'18 H1'18

14.7 14.9 14.5 12.4 13.1

18.2 18.4 17.8 15.6 16.4


CET1 CAR

34.2 32.7 32.9 32.9 33.7

H1'17 9M'17 FY'17 Q1'18 H1'18

Our integration journey

20

Integration progress has exceeded expectations All planned milestones successfully delivered in 2017

2017 2018 Q1 2019

Finalisation of organisational structure and operating model

Harmonisation of Group policies and risk framework

CIB product and pricing harmonisation completed

Subsidiaries: Integration of real estate and property management

businesses completed; brokerage business rebranded (FAB

Securities)

Network optimisation

UAE network and channel external re-brand completed; in

progress across international locations

“Purchase Price Allocation” exercise substantially completed

o IT systems unification on track; to be completed by the end of 2018

(adequate planning, resourcing and tight risk management)

o PBG product and pricing harmonisation

o Strategic review/ implementation of international value proposition

o Ongoing network optimisation (UAE + international)

o Further process refinements/simplification and automation

Culture and change management

NBAD 3,002

NBAD 3,459

NBAD 3,696

NBAD 4,083

NBAD 3,897

FGB 1,446

FGB 1,766

FGB 1,856

FGB 1,947 FGB

1,848

FAB

4,448

5,225

5,552

6,030 5,745

5,274

27.9% 29.3%

28.6% 30.2%

28.3% CI ratio 27.0%

2012 2013 2014 2015 2016 2017

-5%

21

Integration progress has exceeded expectations Merger benefits evident since 2016

G&A expenses BAU1

Cost reduction = AED 756Mn

In AED Mn

1 - Excluding integration/ merger transaction-related costs and amortisation of intangibles (merger-related)

-8%

1

2017 2018 2019

2017 2018 2019 2020

22

Integration progress has exceeded expectations Synergy financials

Cost synergies

Integration costs on track

• On track to achieve run-rate cost synergies of ~AED 1.5Bn by 2020

• IT systems unification by the end of 2018 to unlock substantial merger benefits in addition to other initiatives (incl. process simplification, automation, and network optimisation - UAE and international)

Phasing

• On track with one-time integration cost target of AED 1.1Bn, to be fully absorbed by 2019 42% 30% 28%

Phasing ~AED 1.5Bn 33% 65% 85% 100%

Actual as of June-end 2018

AED 1.1Bn

Actual as of June-end 2018

~AED 770Mn

AED 615Mn

23

Laying the right foundation for long term sustainable growth

1 Growth-oriented culture Increased market share and share of wallet

2 Successful execution of integration plan

Full realisation of run rate synergies

3 One Bank, One brand, One team

Infrastructure integration People integration

4 Sustainable cost leadership ~25% Cost-to-Income ratio

5 Strong internal capital generation capacity

16-17% RoTE

>13.5% min. CET1

How we will measure our success by 2020

under review

under review

Q2/H1’18 Financial Performance Review

25

Q2/H1’18 Key Performance Highlights

• Record earnings in the first half • H1’18 net profit of AED 6.1Bn up 10% yoy ; Q2’18 net profit up 19% yoy

• Sustained business growth in second quarter • Loans and advances up 2% sequentially, 7% yoy

• Synergy momentum continues as we enter final stretch of integration journey

• On track to deliver ~AED 1.5Bn cost synergies by 2020

• Healthy asset quality metrics, solid liquidity profile, strong capital position • NPL ratio at 3.1%; 123% provision coverage

• L/D ratio at 80%

• CET1 at 13.1%

• Revising FY’18 financial guidance on robust half year performance, positive

outlook in H2

In AED Mn Q2’18 Q1’18 QoQ % Q2’17 YoY %

Revenues 4,920 4,871 1 4,677 5

Operating expenses (1,338) (1,326) 1 (1,399) (4)

BAU1 costs (1,214) (1,213) - (1,307) (7)

Integration costs (78) (69) 14 (92) (15)

Amortisation of intangibles (merger-related)

(46) (44) 4 - NA

Impairment charges, net (423) (439) (4) (611) (31)

Net profit 3,059 2,998 2 2,562 19

EPS (AED)3 1.08 1.07 1 0.90 20

26

Record earnings Q2’18 financial highlights

Q2’18 P&L summary

Key ratios

• Operating income improved qoq and yoy on higher

non-interest income

• BAU1 operating expenses continued to reduce yoy on the

back of cost discipline and synergy momentum

• Impairment charges significantly lower yoy on IFRS9, risk-

asset optimisation and healthy asset quality

• Improved profitability sequentially and yoy

• Industry-leading operating efficiency with C/I ratio further

improving qoq and yoy

• Healthy asset quality metrics; materially lower CoR

• Strong liquidity profile remains competitive strength

• Solid and improved returns

• Higher CET1 on retained earnings, RWA discipline

1 - BAU – Business as usual 2 - CET1 ratio as per UAE CB’s Basel III framework; Q2’17 as per Basel II framework 3 - Annualised 4 - On loans and advances

% Q2’18 Q1’18 QoQ (bps) Q2’17 YoY (bps)

C/I ratio (ex-integ costs) 25.6 25.8 (21) 28.0 (235)

CoR (bps)3,4 53 50 3 71 (19)

NPL ratio 3.1 3.1 (7) 3.2 (9)

Provision coverage 123 127 (436) 112 1130

L/D ratio 80 84 (380) 85 (524)

RoTE3 18.2 17.4 82 14.1 407

CET1 ratio2 13.1 12.4 73 14.7 (164)

2018 GUIDANCE H1’18 ACTUAL

GROWTH

Loan Mid single-digit +4% ytd / +7% yoy

Revenue Low single-digit -1% yoy

EFFICIENCY C/I Ratio (ex-integration costs)

~26%-27% 25.7%

ASSET QUALITY Cost of Risk1 65-75bps 51bps

PROFITABILITY

Net profit growth Mid single-digit +10% yoy

RoTE2 ~15% 17.1%

CAPITAL Basel III CET1 (pre-dividend)

>13% 13.1%

• Continued synergy realisation and cost discipline • One-off integration costs well under control

• Lower CoR reflects healthy asset quality, risk-asset optimisation and IFRS9 implementation

• Solid profitability and returns, comfortably above guidance

• CET1 on track

• Against strong H1’17 which included opportunistic investment gains

• Healthy pipeline execution in CIB

27

H1’18 results vs. FY’18 financial guidance

1 - Year-to-date annualised; on loans and advances 2 - Return on Average Tangible Equity, annualised; based on attributable profit to equity shareholders' excl Tier 1 notes coupon

Record earnings

28

Integration and Strategy execution Key highlights

IT systems unification to be completed by year-end

Strong cost synergy momentum to-date

Continued to deliver growth across UAE and strategically targeted markets

Launch of KSA operations within next few months

Strategic review of international operations • Exited Lebanon, announced sale of NBAD Jordan

UAE network rationalisation • Branch & cash offices network reduced to 87 as of Jun’18 (down from 103 as of Dec’17)

• 21 branches already serving full suite of FAB products and services

Integration of Dubai First into Personal Banking underway

Roll-out of FAB Values to embed a unique and compelling culture

New investments in digital capabilities, marketing and key strategic hires

29

Strong business momentum, sustained in Q2

• Loans and advances are up 2% sequentially, 4% ytd and 7% yoy

• CIB is a major contributor to loan growth on the back of sustained momentum in FI trade, and pipeline execution across UAE and strategically targeted markets, particularly in APAC

• Customer deposits up 7% sequentially on significant corporate and government inflows, reflecting solid franchise

• CASA at AED 145Bn (34% of total deposits) reduced sequentially from AED 166Bn, on the back of the partial outflow from one large account

• Liquidity position remains highly comfortable with loans-to-deposits ratio of 80%

• Jun’18 Group LCR at 125%, above the Basel III glide path for 2018 (min required 90%)

Loans and advances (AED Bn)

321.3 328.3 330.5

338.2 344.7


QoQ↑2%, Ytd↑4%, YoY↑7%

Key highlights

85.2 86.6

83.5 83.7 79.9


Loans-to-deposits ratio (%)

Customer deposits (AED Bn)

377.3 378.9 395.8 404.0

431.3


QoQ↑7%, Ytd↑9%, YoY↑14%

30

NII trend reflects competitive pricing, asset optimisation, excess liquidity

2.49

2.55

2.42

2.49

2.41 2.47

2.50

2.48 2.45

Quarterly YTD

4.40

4.53

4.38

4.55

4.73

4.36 4.42

4.41 4.64

0.74 0.78 0.81 0.92

1.15

0.76 0.77

1.04

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

• Group NIM at 2.45%, reflects margin compression and the dilutive impact of deployment of short-term excess liquidity at Central Banks

• Net Interest Income (NII) broadly stable as higher volumes and rate hike benefits are offset by competitive pricing in CIB, and risk-asset optimisation/ tighter risk appetite in PBG

• NII outlook remains positive on the back of expected volume growth, moderating headwinds from risk-asset optimisation, and future rate hikes

Note: All percentage figures are annualised

Key highlights

Net

inte

rest

m

argi

n (%

) Pe

rfor

min

g lo

an y

ield

s (%

) Co

st o

f cu

stom

er d

epos

its

(%)

3,235 3,244 3,363 3,268 3,223

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

-0.4%

Net interest income (AED Mn)

-1%

-0.1%

6,499 6,492

H1'17 H1'18

1,442 1,367 1,686 1,603 1,697

60% 58% 55% 58%

50%

37% 36% 28% 41% 40%

3% 6% 17% 1% 10%

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

Net fees and commission income Net FX & Investment income

Other income• Non-interest income improved in Q2’18 (qoq and yoy) on

higher FX and investment income, and a one-off gain on the sale of an office premise in one of our international locations

• H1’18 non-interest income is marginally lower yoy against a strong first half in 2017 which included opportunistic investment gains

31

Non-interest income shows healthy momentum

Non-interest income (AED Mn)

Fees & commissions, net (AED Mn)

860 788

932 934 861

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

+0.1% +9%

• Fees and commissions (net) grew 9% yoy (H1’18) driven by loan and trade-related income on the back of higher business volumes, healthy pick-up in trade activity

• Fees and commissions (net) grew 14% yoy in Corporate & Investment banking and 6% yoy in Personal Banking

-8%

1,642 1,794

H1'17 H1'18

3,374

3,299

49% 55%

48% 40%

3% 5%

H1'17 H1'18

H1’18 YoY %

Loan-related 941 14

Trade-related 553 8

Others 300 -2

C/I ratio materially improves on the back of cost discipline, synergy realisation

32

• BAU operating expenses are 11% lower yoy, reflecting continued cost discipline and realisation of substantial synergies

• C/I ratio (ex-integration costs) materially improved yoy, and stands below the 26-27% guidance range for FY’18; provides sufficient headroom to accelerate investments in key strategic areas like digital, marketing and talent acquisition

• Cost synergies realised since Dec-end’16 reached ~AED 770Mn against a 2020 target of ~AED 1.5Bn

• 2018 phasing revised from 55% to 65% to reflect faster synergy delivery; phasing for 2019 remains intact

• One-off Integration costs at AED 147Mn ytd are in line with 2018 guidance (of AED 330Mn)

Key highlights Cost-income ratio (ex-integration) (%)

1,307 1,273 1,278 1,213 1,214

92 72 200 69 78

138

44 46

1,399 1,344

1,616

1,326 1,338

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

Amortisation of intangibles(merger-related)

Integration costs Operating expenses (BAU)

Operating expenses trend (AED Mn)

27.9 27.6

28.0

25.8

25.6

27.5 27.7 25.7

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

Qtr (%) YTD (%)

2,719 2,427

196 147

89

2,915 2,664

H1'17 H1'18

Change in BAU Opex:

Q2’18 vs. Q1’18 – flat

Q2’18 vs. Q2’17 – ↓7%

H1’18 vs. H1’17 – ↓11%

Agriculture 0.1%

Energy 7%

Manufacturing 6% Construction

3%

Real Estate 25%

Trading 7%

Transport and communication

7% Banks

9%

Other financial institutions 7%

Services 7%

Government 2%

Personal - Loans & Credit Cards

16%

Personal - Retail Mortgage

4%

Cash & CB Balances

20%

DFB and Reverse Repos

5%

Loans and Advances

50%

Investments 16%

Others 9%

1% 2%

16% 16%

56% 54%

21% 19%

6% 9%

Dec'17 Jun'18

Banking Sector

Personal/Retail Sector

Corporate/PrivateSector

Public Sector

Government Sector

UAE 78%

GCC 2%

Asia 7%

Europe 9%

MENA 2%

America 2%

Overdrafts 5%

Term Loans 76%

Trade related loans 9%

Personal Loans 8%

Credit Cards 2%

Vehicle financing loans 0.3%

33

Asset & Loan Mix

AED 359.6Bn Jun’18




359.6 345.1

1 - Based on booking centre

Asset Mix Gross loans by counterparty (AED Bn)

Gross loans by economic sector Net loans by geography¹ Gross loans by product

34

Asset quality remains healthy

• Impairment charges (net) in H1’18 are down 32% yoy reflecting healthy asset quality and sufficient provisions post IFRS9 implementation

• NPL ratio at 3.1% is stable sequentially and year-to-date

• Portfolio is adequately provisioned with coverage at 123%

• Cost of risk on loans and advances at 51bps for H1’18, reduced by 24bps yoy and stands below guidance range of 65-75bps for FY’18

Key highlights1 Impairment charges, net (AED Mn) & CoR1,4

Provision coverage3 & NPL ratio (%)1

112 109 120 127 123

3.2 3.0 3.1 3.1 3.1


Provision coverage (L&A) NPL Ratio (%)

611 562 562 427 464

12

-41

439

423

71 66 65

50 53

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

Net Impairment chrgs (L&A) Net impairment chrgs (Others)

CoR (L&A) (bps)

1 - As 2018 ratios are based on IFRS9 accounting and ratios for prior periods are based on IAS39 accounting, they may not be fully comparable 2 - NPLs = Stage 3 exposure + POCI (Purchase or originally impaired credit) of AED 5,219Mn considered as par to NPLs 3 - Provision coverage (under IFRS9 w.e.f. 2018) includes unfunded exposure ECL 4 - Annualised Note: Gross loans and advances and NPLs are net of interest in suspense

NPLs and ECL / Provisions for L&A1

AED Bn Jun’18 Dec’17 Jun’17

NPLs 11.02 10.6 10.5

Provisions 12.9 12.7 11.7

Stage 1 & 2 6.1 8.1 7.1

Stage 3 6.7 4.6 4.6

1,259 891

1

-28

1,260

863

75

51

H1'17 H1'18

35

Robust capital position Even after PPA, FY’17 dividends, and IFRS9

CET11 ratio progression

14.5%

12.4% 13.1% 13.0%

13.5%

0.62% 0.03% 0.17% 0.63% 1.57%

0.63% 0.55%

0.07%

CET1Dec'17

FY'17Dividends

IFRS9impact

RWAimpact

Capitalgeneration

Othermovts

CET1Mar'18

RWAimpact

Capitalgeneration

Othermovts

CETJun'18

CET1 floor(2018)

CET1 floor(2020)

9%

1 - CET1 ratio as per UAE CB’s Basel III framework (without considering the transitional arrangements for 2017) 2 - AT1 (additional Tier 1) + Tier 2 capital requirement – Min 3.5%; any shortfall in same to be met by CET1; Countercyclical buffer requirement (0 – 2.5%) as advised by UAECB, is nil in 2017

14.5% 13.1%

2.2% 2.2%

1.1% 1.1%

CAR 17.8%

CAR 16.4%

Dec'17 Jun'18

Tier II

AT1

CET1

Strong capital ratios (Basel III)1

• CET11 ratio is in line with current year

guidance (>13.0%) and comfortably in

excess of regulatory requirements

• June-end 18 CET1 is up 73bps sequentially

(from 12.4% in Q1’18), on the back of

strong internal capital generation, and RWA

discipline and optimisation

• Impact of IFRS9 on 1 Jan 2018 was

AED 3.1Bn (3.0% of Dec’17 shareholders’

equity and 63bps of Dec’17 CET1)

• RoTE materially improved to 17.1% vs.

14.9% as of June-end’17

10% 11% w.e.f

2019

Minimum UAE CB Basel III requirement

RWAs & Return on RWAs

Management guidance

472.0 483.1 485.3 504.6 498.6

2.3% 2.2% 2.3% 2.5% 2.5%


RWAs (AED Bn) RoRWA

Return on Tangible Equity (RoTE – ytd)

14.9% 14.3%

14.6%

17.4% 17.1%

H1'17 9M'17 FY'17 Q1'18 H1'18

+73bps

HFT - Debt 14%

HFT - Equity & Funds 3%

Held to Maturity (Debt)

5%

AFS - Equity & Funds 0.4% AFS - Debt

78%

Sovereign 45%

GREs 21%

Covered Bonds (Banks & FIs)

4%

Banks 20%

Corporate/ Pvt Sector

7%

Supranational 3%

Europe 18%

GCC 13%

MENA (ex-GCC&UAE)

4% USA 12%

Others incl A&NZ 1%

Asia 16%

UAE 36%

AAA 14%

AA 32%

A 30%

BBB 11%

BB & below 7%

Unrated - Debt 3%

Equity & Funds 3%

36

Investments1 breakdown





Investments by type Investments by ratings

Investments by geography Investments by counterparty

1 - Gross investments before ECL

20% 25%

19% 17%

34% 34%

18% 17% 9% 7%

395.8 431.3

Dec'17 Jun'18

Government sector Public Sector

Corporate / private sector Personal/retail sector

Certificates of deposits

52% 58%

35% 31% 3% 3%

9% 7% 1% 1%

395.8 431.3

Dec'17 Jun'18

Notice and time deposits Current Accounts

Saving Accounts Certificates of deposits

Margin Accounts

UAE 78%

GCC 1%

Asia 2%

Europe 15%

MENA 2% America

2%

37

Customer deposits


38% 39% 38% 41% 34%

377.3 378.9 395.8 404.0 431.3


Total Customer Deposits CASA

1 - Based on booking centre 2 - Current, savings and call accounts; prior periods reclassified to include call accounts earlier grouped with notice and time deposits

Customer deposits (AED Bn) Customer deposits by account type (AED Bn)

Customer deposits by Counterparty (AED Bn) Customer deposits by geography1

2

139

50

57

52

189

109

Cash &AAA/AA bonds

ST WholesaleFunding

Cash & Bal with CBs AAA & AA bonds

DTB & Repos CDs & CPs

Due to Banks & Repos 10%

Commercial Paper 4%

Customer Deposits 72%

Term Borrowings & Sub Debt 7%

Others 7%

38

Liability mix and Wholesale Funding

Wholesale funding (AED Bn) Jun’18

Syndicated loan 7.3

Medium Term Notes/Bonds 33.7

Sukuk 2.4

Subordinated debt 0.4

Total 43.8


7,335

1,689

7,584

7,373 1,543

3,241

12,281

2,361

2018 2019 2020 2021 2022 2023 &Beyond

Syndicated Loan MTN/MTB Sukuk

Liabilities mix

Cash & AAA/AA bonds vs. ST wholesale

• 30yr non-call 5yr USD 610Mn Formosa @ 4.70% IRR

• 5yr USD 650Mn Sukuk @ 3.625% coupon

• 3yr CNH 2Bn Dim Sum Formosa across 2 transactions @ 4.80% coupons

• 3-10yr USD 179Mn Private Placements

Issuances in H1’18

Maturities in H1’18

• 5yr AUD 300Mn Kangaroo bonds @ 5.0% coupon

• 5yr USD 500Mn Convertible bonds @ 1.0% coupon

• USD 179Mn equivalent Private Placements

Note: Debt at final maturity date rather than next call date

Medium-term wholesale funding

(AED Bn)

* FAB has access to place with ECB & Fed

* (AED Mn)

PREVIOUS GUIDANCE H2’18 OUTLOOK REVISED 2018 GUIDANCE 2020 AMBITIONS

GROWTH

Loan Mid single-digit High single-digit

Revenue Low single-digit Low single-digit

EFFICIENCY C/I Ratio (ex-integration costs)

~26%-27% ~25-26% ~25%

ASSET QUALITY Cost of Risk1 65-75bps 50-60bps

PROFITABILITY

Net profit growth Mid single-digit 8-10%

RoTE2 ~15% 16-17% 16-17%

CAPITAL Basel III CET1 (pre-dividend)

>13% >13% >13.5%

39

Revising FY’18 financial guidance on robust half year performance, positive H2 outlook

1- Year-to-date annualised; on loans and advances 2 - Return on Average Tangible Equity, annualised; based on attributable profit to equity shareholders' excl Tier 1 notes coupon

• Business momentum expected to continue

• Higher synergy delivery • Continued cost discipline

• Prudent risk management • Asset quality expected to

remain healthy

APPENDIX

41

Q2/H1’18 Summary Financials

Income Statement - Summary (AED Mn) Note Q2'18 Q1'18 QoQ % Q2'17 YoY % H1'18 H1'17 YoY %

Net interest Income 3,223 3,268 (1) 3,235 (0) 6,492 6,499 (0)

Fees & commissions, net 861 934 (8) 860 0 1,794 1,642 9

FX and investment income, net 671 656 2 533 26 1,327 1,631 (19)

Other non-interest income 165 13 NA 49 239 178 102 75

Total Operating Income 4,920 4,871 1 4,677 5 9,791 9,874 (1)

Operating expenses (1,338) (1,326) 1 (1,399) (4) (2,664) (2,915) (9)

Incl: Integration costs (78) (69) 14 (92) (15) (147) (196) (25)

Amortisation of intangibles (merger-related) (46) (44) 4 - - (89) - -

Impairment charges, net (423) (439) (4) (611) (31) (863) (1,260) (32)

Non Controlling Interests and Taxes (99) (108) (8) (105) (5) (207) (211) (2)

Net Profit 3,059 2,998 2 2,562 19 6,057 5,488 10

Basic Earning per Share (AED) a,h 1.08 1.07 1 0.90 20 0.53 0.48 10

a) Basic EPS based on attributable profits to equity shareholders' excluding Tier 1 notes coupon (H1'18: AED 249 Mn) and outstanding shares

42

Q2/H1’18 Summary Financials

Balance Sheet - Summary (AED Bn) Note Jun'18 Mar'18 QoQ % Jun'17 YoY % Dec'17 Ytd %

Loans and advances, net 345 338 2 321 7 330 4

Customer deposits 431 404 7 377 14 396 9

CASA (deposits) b 145 166 (13) 145 (0) 150 (4)

Total Assets 692 678 2 625 11 669 3

Equity (incl Tier 1 capital notes) 97 94 3 97 (0) 102 (5)

Tangible Equity c 66 63 5 71 (7) 71 (7)

b) CASA deposits include current, savings and call accounts; periods prior to Mar-2018 have been reclassified to include call accounts

c) Tangible equity is shareholders' equity net of Tier 1 capital notes, goodwill & intangibles

Key Ratios (%) Note Q2'18 Q1'18 QoQ (bps)

Q2'17 YoY

(bps) H1'18 H1'17

YoY (bps)

Net Interest Margin h 2.41 2.49 (8) 2.49 (8) 2.45 2.47 (2)

Cost-Income ratio (ex-integration costs) 25.6 25.8 (21) 28.0 (235) 25.7 27.5 (184)

Cost of Risk (bps) d,e,h 53 50 3 71 (19) 51 75 (24)

Non-performing loans ratio d 3.1 3.1 (7) 3.2 (9) 3.1 3.2 (9)

Provision coverage d 123 127 (436) 112 1130 123 112 1130

Loans-to-deposits ratio 80 84 (380) 85 (524) 80 85 (524)

Return on Tangible Equity (RoTE) f 18.2 17.4 82 14.1 407 17.1 14.9 223

Return on Risk-weighted Assets (RoRWA) h 2.4 2.5 (10) 2.1 30 2.5 2.3 20

CET1 ratio g 13.1 12.4 73 14.7 (164) 13.1 14.7 (164)

Capital Adequacy ratio g 16.4 15.6 77 18.3 (183) 16.4 18.3 (183)

d) As 2018 ratios are based on IFRS9 accounting and ratios for prior periods are based on IAS39 accounting, they may not be fully comparable

e) On Loans and Advances

f) Return on Average Tangible Equity, annualised; based on attributable profit to equity shareholders' excl coupon on Tier 1 capital notes

g) As per UAE Central Bank's Basel III framework; ratios prior to end-2017 are based on UAE CB's Basel II framework

h) Annualised

Rounding differences may appear in above table

Intangible assets = AED 2.6Bn

43

PPA completed as of 31 March 2018

43

NBAD Net Asset Value as of March 31 2017

AED Bn Pre PPA PPA impact Post PPA

Loans and advances 210.7 (2.9) 207.8

Other Assets 225.3 (1.9) 223.4

Total assets 436.0 (4.8) 431.2

Total liabilities 397.2 0.3 397.5

NBAD net asset value (pre-intangibles) 38.8 (5.1) 33.7

Intangibles identified - 2.6 2.6

NBAD net asset value 36.3

• As per IFRS 3 and Business Combination guidelines, the Bank is required to complete a “Purchase Price Allocation” exercise in order to determine the goodwill arising from the merger

• All acquired assets and assumed liabilities of NBAD should be recorded at fair value

Impact

Concept of PPA

• Fair value adjustments impact net asset value and goodwill calculation

• Intangible assets identified as a result of PPA to be amortised through P&L

Accounting treatment Post-PPA

• To be amortised over 12 yrs

• Year 1 impact of AED 138Mn recorded in Q4’17 (nine-month impact)

• Estimated impact on P&L for 2018 ~AED 185Mn

• No amortisation • To be annually tested for

impairment

Goodwill

= AED 17.3Bn

Purchase Price Consideration (a) 53.6

NBAD Net Asset Value (b) 36.3

Goodwill (a)-(b) 17.3

Intangibles 2.6

Goodwill & Intangibles 19.9

Goodwill calculation (AED Bn)

44

Segmental Performance (by business)

50% Corporate & Investment Banking (CIB)

38% Personal Banking Group (PBG)

of Group Revenue

of Group Revenue

• Revenues were up 2% against a strong comparative period last year, which included extraordinary trading gains. Global Transaction Banking achieved a solid performance on the back of higher cash management revenues supported by rate hikes, new client mandates, the conversion of escrow business opportunities, and an expanded product offering

• Synergy momentum and cost discipline led to a 16% yoy decrease in operating expenses

• On the asset quality side, the portfolio remained healthy marked by a slowdown in NPL formation

• Loan and deposit growth year-on-year were strong at 12% and 20% respectively, as CIB continued to build momentum across UAE and International locations. Strong liquidity position with LDR of 74%, providing ample room for future asset growth in targeted markets regionally and internationally

• PBG profitability improved significantly yoy, driven by a 13% reduction in operating expenses on the back of synergy realisation, coupled with a 71% decrease in impairment charges

• Growth in fee income of 6% yoy was offset by lower net interest income due to the adverse impact of risk-asset optimisation on margins, leading to a 3% decrease in total revenues

• Loan book contracted 6% yoy reflecting risk-asset optimisation and tighter risk appetite, while strategically targeted areas continued to grow; customer deposits are flat yoy

• During Q2’18, FAB announced plans to integrate the business of its consumer finance subsidiary, Dubai First, into PBG, as part of the bank’s ongoing integration journey and efforts to optimise its operations, products and services

In AED Mn H1’18 YoY %

Revenues 4,929 2

Operating expenses (866) (16)

Impairment charges, net (472) NA.

Profit after taxes 3,493 (7)

Loans (AED Bn) 247.3 12

Deposits (AED Bn) 334.1 20


Revenues 3,710 (3)

Operating expenses (1,404) (13)

Impairment charges, net (352) (71)

Profit after taxes 1,891 110

Loans (AED Bn) 97.3 (6)

Deposits (AED Bn) 91.9 ↔

45

Segmental Performance (by geography)

87% UAE

International (Middle East & Africa, Asia Pacific and Europe & Americas)

of Group Revenue

• UAE businesses posted a strong yoy growth in H1’18 on the back of growth momentum in balance sheet, coupled with continued merger-related synergy realisation and lower impairment charges

• Operating expenses were lower by 12% yoy with the cost-to-income ratio reducing to 26.0% from 28.9% a year ago

• Impairment charges were lower by 32% yoy post IFRS9 reflecting healthy asset quality and adequate provision coverage

• Loan growth of 5% yoy was led by corporate and private sector lending, and trade-related loans

• Strong deposit growth of 21% yoy on the back of significant inflow of corporate and government deposits

• FAB’s international business remains a key differentiator supporting revenue and risk diversification

• Revenues grew 6% yoy in H1’18, driven by sustained momentum in strategically targeted markets

• Loans and advances grew 16% yoy primarily driven by growth in APAC. Although, deposits declined by 4% yoy, loans-to-deposits ratio remained healthy at 81% providing ample room for future asset growth

• As of June-end’18, international loans and deposits represent 22% each of Group loans and deposits, respectively


Revenues 8,481 (2)

Operating expenses (2,202) (12)

Impairment charges, net (869) (32)

Profit after taxes 5,408 11


Deposits (AED Bn) 337.0 21


Revenues 1,311 6

Operating expenses (462) 11

Impairment charges, net 6 (63)

Taxes (178) (10)

Profit after taxes 676 6


Deposits (AED Bn) 94.3 (4)

of Group Revenue

13%

46

Our commitment to sustainability

Signatory to the Equator Principles1

• The global best practice in environmental and social risk management for major capital projects

FAB Green Bond Report – June 20182

• We launched our first annual Green Bond Report in June 2018, which describes the use of proceeds and

expected environmental benefits and is externally assured

Signatory to United Nations Global Compact (UNGC) principles • First UAE bank to become signatory to UNGC Principles in December 2017

GHG emissions disclosure to CDP – August 2018 • The bank continues to report and disclose its GHG emissions to CDP (formerly the Carbon Disclosure Project)

• FAB’s GHG emissions data is externally verified against the ISO 14064-3 standard for greenhouse gas

emissions

Private Sector Advisory Council on the Sustainable Development Goals (SDGs) • FAB has recently been appointed a member of the Private Sector Advisory Council (PSAC), which is led by the

UAE’s National Committee on the SDGs Her Excellency Reem Al Hashimy, Minister of State for International

Cooperation and Chairwoman of the Federal Competitiveness and Statistics Authority (FCSA)

Signatory of the Dubai Declaration on Sustainable Finance • Signed in 2017 by financial institutions in the United Arab Emirates

1 - The Equator Principles report for 2017 is available on the sustainable page of our corporate website 2 - The Green Bond Report is available on the investor relations section of our corporate website

Executed Landmark Transactions in Q2 2018 Debt Capital Market Loan Capital Market

Bank of China

USD 1.5 billion Senior Unsecured

Floating Rates Notes due 2021 & 2023 Joint Bookrunner

April 2018

National Bank of Ras Al-Khaimah

USD 145 million

Floating Rates Notes Due 2023

Sole Arranger June 2018

Abu Dhabi National Energy USD 1.75 billion

Senior Unsecured Dual Tranche Notes

4.375% due 2025 4.875% due 2030 Joint Bookrunner

April 2018

Republic of Maldives

USD 100 million Senior Unsecured 5.500% due 2023

Sole Bookrunner & Lead Arranger

April 2018

Sharjah Islamic Bank

USD 500 million Senior Sukuk

4.231% due 2023

Joint Bookrunner April 2018

China Huarong USD 400 & 550 million Floating Rates Notes

Due 2021 & 2023 USD 150 million

Tap of 2027 Notes Joint Bookrunner

June 2018

Private Placements

ISBank USD 1.46 billion

Term Loan Facility Bookrunner, Mandated Lead

Arranger & Facility Agent

April 2018

Agility Mayan USD 725 million

Revolving Credit Facility Bookrunner, Mandated Lead


April 2018

VakifBank USD 244 million



April 2018

Induslnd

USD 500 million Term Loan Facility

Mandated Lead Arranger & Bookrunner

May 2018

Dubai Aerospace Enterprise USD 480 million

Revolving Credit Facility Bookrunner, Mandated Lead

Arranger & Agent

May 2018

GarantiBank USD 1.38 billion



May 2018

Fosun International


Bookrunner & Mandated Lead Arranger

May 2018

Konkala Copper Mines

USD 100 million Pre-Export Facility

Mandated Lead Arranger

May 2018

National Bank of Egypt USD 600 million



May 2018

YapiKredi Bank

USD 1.46 billion Term Loan Facility

Bookrunner

May 2018

Tata Steel USD 1.29 billion & EUR 469

million Term Loan Facility

Bookrunner, Mandated Lead Arranger & Agent

June 2018

Giti Tires



June 2018

JSW


Mandated Lead Arranger & Agent

June 2018

Gunvor

USD 985 million Revolving Credit Facility


June 2018

VP Bank Finance



June 2018

UA Finance

HKD 4.5 billion Term Loan Facility


June 2018

Macquarie Group

GBP 2.0 billion Term Loan Facility


June 2018

Astra Sedaya Finance

USD 100 million Islamic Club Term Loan


June 2018

Puma International USD 1.4 billion

Term Loan Facility


April 2018

47

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Seamless

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Prestigious awards highlight FAB’s strength and industry expertise

• Best Bank in UAE

• Best Equity Bank in the Middle East

• Best Investment Bank in the UAE

• Best FX provider in UAE

• Best Overall Cash Management Bank in the Middle East

• Best Bank for Liquidity Management in the Middle East

• Safest Bank in the UAE

• Safest Bank in the Middle East

• 4th Safest Bank in Emerging Markets

• 17th Safest Commercial Bank

• 31st Safest Bank in the World

• Best Bank in the UAE

• Best SME Value Proposition

• Best Brokerage Company (NBAD Securities)

• Best Consumer Finance Company in MENA (Dubai First)

• Best Investment Bank in the United Arab Emirates

• Best Bank for Financing in the Middle East

• Most Innovative Investment Bank in MENA

• Best Arranger of Loans in the Middle East

• Best Equity House in the Middle East

• Best M&A House in the Middle East

• Best Fixed Income of the Year

• UAE Asset Manager of the Year

Global Finance

Euromoney

The Banker

Banker Middle East

EMEA Finance

MENA Fund Manager

Global Capital

• Best Trade Finance Bank in MENA Global Trade Review

• Most Outstanding Islamic Banking Window KLIFF

• Sukuk House of the Year - UAE

• Best Islamic Deal of the Year

• Best Islamic Structured Trade Finance Deal of the Year

Asset Asian Awards

• Best Seamless Government Experience

The M&A Atlas Awards

• Emerging Markets M&A Deal of the Year

Click here to view FAB’s 2017 Annual Report

Click here to view FAB’s first Green Bond Report

THANK YOU!

For more information, please visit www.bankfab.com or contact FAB Investor Relations team [email protected] You can also download FAB’s Investor Relations App from App Store / Google Play to access latest corporate updates, FAB pro forma financial information and FGB/NBAD archives

Scan to download

https://www.bankfab.com/en/reports/annual-report-2017


https://www.nbad.com/content/dam/NBAD/documents/investor-relations/fab-green-bond-2018/fab-green-bond-2018.pdf


http://www.bankfab.com/

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DEBT INVESTOR PRESENTATION - First Abu Dhabi Bank - UAE · 2018-10-14 · Abu Dhabi - All Properties (YoY Change) Dubai - All Properties (YoY Change) Construction and Real Estate

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