Dubai Islamic Bank Dubai Islamic Bank Investor Relations Presentation - - PowerPoint PPT Presentation

Dubai Islamic Bank Dubai Islamic Bank

Investor Relations Presentation YE 2009 Investor Relations Presentation YE 2009

Disclaimer

The information provided in this presentation should not be used as a substitute for any form of advice. Decisions based on this information are for your

• wn account and risk.

Although DIB attempts to provide accurate, complete and up‐to‐date information, which has been

• btained

from sources that are considered reliable, DIB makes no warranties or representations, express or implied, as to whether information provided is accurate, complete or up‐to‐date.

Corporate Development 2010 2

Contents

Corporate Development 2010 3

1 Background 2 About DIB 3 DIB Financials 4 Peer Group Analysis 5 Stock Information

United Arab Emirates Snap Shot

Country Rating  Aa2 (stable) by Moody’s Federal Structure  7 Emirates  Abu Dhabi & Dubai largest contributors to GDP GDP  US$ 269.9 bln 2008E  2nd largest economy in Arab world Population  4.7 million  80% expatriate Per Capita Income  US$ 57,249  One of the highest GDP per capita in the world Oil & Gas  5th largest proven oil reserves in the world; expected to last for over 100 years  4th largest gas reserves in the world  Least oil & gas dependent economy in GCC region Fixed  Pegged at AED 3.673 = US$ 1 for past 23 years

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Sources: IMF Regional Economic Outlook, SCB Global Research, UAE Central Bank Moody’s,, Ministry of Economy & Planning, UAE, CIA

Banking Sector

Capital Adequacy Ratio for Banking System

Corporate Development 2010 5

• Sector comprises of 51 banks
• 23 national/local banks; 28 foreign banks
• Sector of strategic importance to Govt.
• Direct/indirect govt. ownership in majority of

national banks

• Precedents available for Govt. support
• Sector dominated by the national banks
• Top 6 banks account for approximately 60%
• f total banking sector assets

Overview

Islamic Banking

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 Islamic banking is one of the fastest growing industry segments in the Financial Services sector  Growth momentum, both in the Arab world and globally, estimated at 20% p.a. plus  Assets

• f

the top 500 Islamic banks expanded 28.6% to total $822 billion in 2009, compared with $639 billion in 2008, according to publicly available information  a bright outlook is likely worldwide for Islamic finance in 2010, on the back of steady growth and geographic diversification.  Islamic Sukuk Issuance expected to hit US$200 Billion by 2010  Islamic Sukuk Issuance to increase by 30‐35% annually while Islamic funds to increase by 22% annually  According to Standard and Poor's the value of Islamic Banking will reach $4 trillion in the next 5 years  Targeted regions include GCC, South Asia, South East Asia and select niche markets  Entry by Global Commercial/ Investment banks in this sector  Issuance of Sharia‐compliant sukuk notes currently accounts for about 10% of the global Islamic finance industry  Cumulative total issues topped the symbolic mark of $100 billion at year‐end 2009, compared with less than $500 million at year‐end 2001

Source: Moody’s and Standard & Poor’s

Key Islamic Banking Players

Corporate Development 2010 7 Key Players in the Islamic Banking Market in UAE / Middle East Region Existing Players New Entrants

Contents

Corporate Development 2010 8

1 Background 2 About DIB 3 DIB Financials 4 Peer Group Analysis 5 Stock Information

DIB International Presence

Corporate Development 2010 9 UAE  62 Branches  Reaching 900,000 Retail customers Pakistan  37 Branches  16 Major Cities Jordan  Jordan Dubai Islamic Bank Recently Launched and first branch opened Turkey  DIB Representative office

Longest track-record in Islamic Banking In-house Expertise

• World’s first Islamic bank established in 1975
• Today DIB is one of the largest Islamic financial

institutions in the world

• DIB has embarked on an ambitious international

expansion plan recently setting up offices / operations in Sudan, Pakistan, Turkey, Jordan and Iran. Several other countries are currently being evaluated

• DIB brings together globally recognized expertise

to offer an unparalleled quality and range of Islamic banking services

• Coupled with its well-respected Sharia expertise,

DIB has become the bank of first choice for customers looking for Sharia compliant solutions

Formidable name in Islamic Banking

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DIB Branch Network

Corporate Development 2010 11

Abu Dhabi – 13 Branches Ajman– 2 Branches Sharjah– 13 Branches Dubai – 27 Branches Umm Al Quwain– 1 Branch Fujairah – 2 Branches Ras Al Khaimah – 4 Branches

DIB Group Structure.

Corporate Development 2010 12

100 %

• wned

Strategic Stakes

DIB Core Business Operations

Corporate Development 2010 13

• Largest business Group within DIB
• Full range of products and services
• Customer segments: Mass Affluent, HNWI, SMEs
• One of the largest Retail customer base in UAE
• Market leaders in Islamic products

Retail & Business Banking Real Estate, Contracting Finance Investment Banking Corporate Banking Treasury

• DIB Capital incorporated in Dubai International Financial Centre
• Investment banking activities such as project finance, loan syndication, capital markets, asset

management and structured finance as well as Corporate Advisory Services

• Global leaders in Sukuk

issuance: #3 in the Bloomberg league table in 2006

• Financing of Real Estate, primarily within ‘non‐freehold’

area

• Financing to contractors in the real estate, oil, gas, power and

water sectors

• Large Corporates

& Middle Market segments is primary focus

• Financing for Trade and Manufacturing and Infrastructure
• Cash Management capabilities
• Various products/offerings under Sharia

umbrella such as:

• Foreign exchange services
• Asset‐liability management
• Islamic derivatives

Medium Term Strategic Agenda

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Portfolio Diversification, Business Overview

Sectorial Exposure of Financing & Investing Assets (2009) Segmented Revenue; % of Total Revenue (Q4 2009)

Corporate Development 2010 15

• Real Estate Exposure 97% of which is to ‘non

freehold’ sector

• Real Estate Revenue only relates to property

development and other real estate investment

Mega Deals: Capital Market Transactions

Corporate Development 2010 16

$550 million Sukuk Mandated Lead Manager & Joint Bookrunner June 2005 Emirates Airline $1 billion Debut Intl. Sukuk Mandated Lead Manager & Joint Bookrunner Nov 2004

• Govt. of Dubai

$3.5 billion Sukuk Lead Manager & Joint Bookrunner June 2006 Ports, Customs & Free Zone Corp., UAE $250 mn Sukuk Co-Lead Manager Jun 2004 LMC - Bahrain $3.52 Billion Sukuk Joint Lead Manager & Bookrunner Nov 2006 $ 1.5 billion Sukuk Joint Lead Manager & Joint Bookrunner June 2007 DP World $1.25 billion Sukuk Co – Manager Jun 2007 DIFC $600 million Sukuk Co-Lead Manager 2002

• Govt. of Malaysia

$600 million Debut International Sukuk Co-Manager Jan 2005 Government of Pakistan $ 200 million Sukuk Mandated Lead Manager & Joint Bookrunner May 2005 Dubai Metals & Commodities Centre $500 million Sukuk Joint Lead Manager Jun 2005 Islamic Development Bank $270 million Sukuk Joint Lead Arranger and Bookrunner Aug 2006 Qatar Real Estate Investment Co. Sukuk Joint Lead Manager & Book runner June 2007 $ 1.00 billion JAFZ AED 7.50 Billion Sukuk Joint Lead Manager & Bookrunner Nov 2007 AED 3.60 Billion Sukuk Joint Lead Manager & Bookrunner May 2008 AED 3.75 Billion Sukuk Joint Lead Manager & Bookrunner June 2008 AED 3.20 Billion Sukuk Joint Lead Manager & Bookrunner June 2008

DEWA

AED 1.1 Billion Sukuk Joint Lead Manager & Bookrunner July 2008

PF & Syndications Transactions

Corporate Development 2010 17

$150 million financing Co-Lead Arranger Aluminum Bahrain $530 million financing Mandated Lead Arranger Dec 2004 Qatargas II $2.35 billion financing Joint Lead Arranger Oct 2004 Mobily, Saudi Arabia $1 billion Istisna’ & Ijara Mandated Lead Arranger & Joint Bookrunner Sep 2005 Dolphin Energy, UAE $ 250 million Facility Co-Arranger Umm Al Nar, Abu Dhabi $100 million Ijarah Sole Arranger April 2007 Tabreed, Abu Dhabi $150 million financing Sole Lead Arranger Dubai Ports Authority $322 mn financing Co-Lead Arranger Dec 2004 Pertamina $330 million Ijara Mandated Lead Manager BAPCO – Bahrain $ 2.1 billion Finance Facility Joint Lead Arranger and Bookrunner April 2008 Aldar Properties PJSC $ 1.85 billion Syndicated Ijarah Facility Arranger & Bookrunner Aug 2007 Nakheel $ 400 million equiv. Dual currency Ijara Facility Joint Mandated Lead Arranger & Bookrunner April 2008 Al Jaber Group $ 2.2 billion equiv. Dual currency Ijara Facility Joint Mandated Lead Arranger & Bookrunner April 2008

DEWA

$ 1.25 billion Dual currency Conventional & Islamic Facility Joint Mandated Lead Arranger & Bookrunner

PFZW

$ 6 billion Dual Tranche Conventional & Islamic Murabaha Facility Joint Mandated Lead Arranger & Bookrunner Sep 2008

ICD

$ 2.50 billion Dual currency Conventional & Islamic Facility Joint Mandated Lead Arranger & Bookrunner Feb 2009

Borse Dubai

$ 2.2 billion equiv. Multi currency Multi Tranche Ijara & Conventional Facilities Joint Mandated Lead Arranger & Bookrunner April 2009

DEWA

Awards

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Banker Middle East Award:

• Best Islamic Bank in

the Region

• New Product

Innovation (for Sukuk) January ‐ Euromoney Islamic Finance Award:

• Best Islamic Bank in the

Middle East

• Best Global Sukuk House

Global Finance Award – for Best Internet Bank (UAE) December – Ethos Customer Survey ranked DIB as No. 1 in customer service levels for the Islamic Banking category. Also Best Call Center June – Euromoney Award for Excellence ‐ Best Debt House in UAE Inaugural Mohammed Bin Rashid Business Award ‐ for Finance June – Banker Middle East Award for Best Islamic Bank (4th consecutive time) January – inaugural Banker Middle East Product Awards: Best Islamic Credit Card April ‐Global Finance inaugural World’s Best Islamic Financial Institutions Awards:

• Best Islamic Retail

Bank

• Best Islamic Bank in

the UAE November – Bank

• f the Year (UAE)

for 2006 at THE BANKER awards January ‐ Islamic Business & Finance Award :

• Best Wealth Management

Firm,

• Best Globalization Effort,
• Best Sukuk Structuring (for

JAFZA Sukuk)

• Lifetime Achievement

Award for Dr. Hussain May – Banker Middle East Award for Best Islamic Bank (3rd consecutive time) January ‐ Euromoney Islamic Finance Award for Best Islamic Bank in the Middle East and PCFC deal recognized as the Deal of the Year

2005 2007 2006 2008 2010

February – Banker Middle East Product Award: Best Internet Banking Service April – Global Finance

• Best Sukuk Bank
• Best Islamic Bank

in the UAE (2nd year in a row)

2009

June – Banker Middle East Award for Best Islamic Bank (5th consecutive time)

Contents

Corporate Development 2010 19

1 Background 2 About DIB 3 DIB Financials 4 Peer Group Analysis 5 Stock Information

Financials

Net Profit: USD Mln Total Assets: USD Bln

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• Maintaining profitability despite challenging environment
• 2007 profits exclude One Off gain of 168 Million on

transfer of DIB subsidiary

• Profitability attributed to both growth in core business

and prudent cost controls

• Provisioning of $110 million taken YTD
• Focus on quality and portfolio mix of assets
• Risk management is the primary driver

Financials

Total Deposits: USD Bln Total Financing: USD Bln

Corporate Development 2010 21

• DIB Ranked 5th in Customer Deposits in the UAE
• 2010 Focus is on managed and selective

growth

Financials

ROE ROA

Corporate Development 2010 22

• ROE in line with top 5 banks
• 2007 ROW excluding one off gain on DIB subsidiary
• 2007 ROA excluding one off gain on DIB

subsidiary

Financials

Corporate Development 2010 23 Customer Deposits Composition Q4 2009 Q4 2001

Financials

Cost to Income Ratio Advance to Deposit Ratio

Corporate Development 2010 24

• Cost to Income Ratio at 39% as of YE 2009
• Extremely strong liquidity maintained compared

to peer bank in the UAE

Contents

Corporate Development 2010 25

1 Background 2 About DIB 3 DIB Financials 4 Peer Group Analysis 5 Stock Information

Domestic Peer Group Analysis

Corporate Development 2010 26

Net Profit: USD Mln

• $110 Mln Provisions taken during 2009

Domestic Peer Group Analysis

Corporate Development 2010 27

Total Assets: USD Bln

• Focus on quality and portfolio mix of assets
• Risk management is the primary driver

Domestic Peer Group Analysis

Corporate Development 2010 28

Total Deposits

Domestic Peer Group Analysis

Corporate Development 2010 29

Total Financing: USD Bln

Domestic Peer Group Analysis

ROE ROA

Corporate Development 2010 30

• ROE amongst the highest in the banking sector
• ROA amongst the highest in the banking sector

Domestic Peer Group Analysis

Cost to Income Ratio Financing to Deposit Ratio

Corporate Development 2010 31

• Most liquid bank amongst peer group

Contents

Corporate Development 2010 32

1 Background 2 About DIB 3 DIB Financials 4 Peer Group Analysis 5 Stock Information

Share Information

Corporate Development 2010 33

Investor Relations Dubai Islamic Bank P.O. Box 1080 Tel: +97142925703 Email: Investorrelations@dib.ae Husam Basaddiq Tel: +97142925703 Email: Husam.Basaddiq@dib.ae Reema Abu Obaid Tel: +97142925703 Email: Reema.AbuObaid@dib.ae Kashif Moosa Tel: +97142925710 Email: Kmoosa@dib.ae