Dubai Islamic Bank Investor Presentation First Quarter (Q1) 2011 www.dib.ae
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 own account and risk. Although DIB attempts to provide accurate, complete and up to date information, which has been obtained 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.
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Dubai Islamic Bank The world s first Islamic Bank Established in 1975 UAE Pakistan Jordan Turkey 70 Branches Reaching 1,200,000 customers 54 Branches Jordan Dubai Islamic Bank DIB Representative office
Formidable Name is Islamic Banking Strong Islamic Bank with a large and loyal customer base Strong Franchise Value Innovators and drivers of Islamic Banking trends Strong geographical coverage within UAE (branches, ATMs,), internet and online, mobile banking Choice employer for Islamic Banking Professionals Strong in deposits and market leader in auto finance Leader in home finance and cards among Islamic banks Only bank offering Salam (Personal Finance) proposition to individuals and consumers Huge cross sell opportunity to one of the largest retail and corporate customer base Strong liquidity compared to Qualified and Experience Staff Significant government peers in all segments ownership
DIB Group Structure 100 % owned Strategic t Stakes
DIB s Core Businesses Retail & Business Banking Investment Banking 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: Deposits products and Auto finance, Islamic mortgages, Islamic credit cards 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 Lead numerous key Islamic investment banking transaction since inception Global leaders in Sukuk issuance: #3 in the Bloomberg league table in 2006 Real lett Estate, Financing i to contractors t in the real estate, tt oil, gas, power and water sectors Short term equity investments in established companies and business start ups across MENA region Contracting Finance Corporate Banking Treasury Focus on Large & Middle Market Bankers to top corporate houses in GCC Financing for Trade and Manufacturing and Infrastructure Strong transactional banking capabilities including Cash Management, FI s corresponding bank, etc. Foreign exchange services Asset liability management Islamic derivatives
Mega Deals: Capital Market Transactions AED 1.1 Billion Sukuk Joint Lead Manager & July 2008 AED 3.75 Billion Sukuk Joint Lead Manager & June 2008 AED 3.20 Billion Sukuk Joint Lead Manager & June 2008 AED 3.60 Billion Sukuk Joint Lead Manager & May 2008 AED 7.50 Billion Sukuk Joint Lead Manager & Nov 2007 $ 1.5 billion Sukuk Joint Lead Manager & Joint June 2007 $ 1.00 billion Sukuk Joint Lead Manager & Book runner June 2007 $3.52 Billion Sukuk Joint Lead Manager & Nov 2006 Ports, Customs & Free Zone Corp., UAE $3.5 billion Sukuk Lead Manager & Joint June 2006 Qatar Real Estate Investment Co. $270 million Sukuk Joint Lead Arranger and Aug 2006 Emirates Airline $550 million Sukuk Mandated Lead Manager & Joint June 2005 Dubai Metals & Commodities Centre $ 200 million Sukuk Mandated Lead Manager & Joint May 2005 $1 billion Debut Intl. Sukuk Mandated Lead Manager & Joint Nov 2004 Government of Pakistan $600 million Debut Dbt International Sukuk Co Manager Jan 2005 Govt. of Malaysia $600 million Sukuk k Co Lead Manager 2002 LMC Bahrain $250 mn Sukuk Co Lead Manager Jun 2004 Islamic Development Bank $500 million Sukuk Joint Lead Manager Jun 2005 $1.25 billion Sukuk Co Manager Jun 2007
PF & Syndications Transactions $ 2.2 billion equiv. Multi currency Multi Tranche Ijara & Conventional Facilities Joint Mandated Lead Arranger & April 2009 $ 2.50 billion Dual currency Conventional & Islamic Facility Joint Mandated Lead Arranger & Feb 2009 PFZW $ 1.25 billion Dual currency Conventional & Islamic Facility Joint Mandated Lead Arranger & $ 6 billion Dual Tranche Conventional & Islamic Murabaha Facility Joint Mandated Lead Arranger & Sep 2008 $ 2.2 billion equiv. Dual currency Ijara Facility Joint Mandated Lead Arranger & April 2008 Al Jaber Group $ 400 million equiv. Dual currency Ijara Facility Joint Mandated Lead Arranger & April 2008 $ 2.1 billion Finance Facility Joint Lead Arranger and April 2008 $ 1.85 185 billion Syndicated Ijarah Facility Arranger & Aug 2007 $1 billion Istisna & Ijara Mandated Lead Arranger & Joint Sep 2005 Tabreed, Abu Dhabi $100 million Ijarah Sole Arranger April 2007 BAPCO Bahrain $330 million Ijara Mandated Lead Manager Aluminum Bahrain $150 million financing Co Lead Arranger $2.35 billion financing Joint Lead Arranger Oct 2004 Qatargas II $530 million financing Mandated Lead Arranger Dec 2004 Pertamina $322 million financing Co Lead Arranger Dec 2004 Umm Al Nar, Abu Dhabi $ 250 million Facility Co Arranger Dubai Ports Authority $150 million financing Sole Lead Arranger
Key Awards 2006 Best Islamic Bank in the Middle East Best Global Sukuk House Euromoney Islamic Finance Award Best Debt House in UAE Euromoney Award for Excellence Bank of the Year (UAE) The Banker Awards 2007 Best Islamic Bank in the Middle East and PCFC deal recognized as the Deal of the Year Euromoney Islamic Finance Award Banker Middle East Award Best Islamic Bank (3 rd consecutive time) 2008 Best Islamic Retail Bank Best Islamic Bank in the UAE Global Finance inaugural World s Best Islamic Financial Institutions Awards Best Islamic Credit Card Banker Middle East Product Awards Best Islamic Bank (4th consecutive time) Banker Middle East Award 2009 Best Sukuk Bank Best Islamic Bank in the UAE (2 nd year in a row) Global Finance Award Best Wealth Management Firm Best Globalization Effort, Best Sukuk Structuring (for JAFZA Sukuk) Lifetime Achievement Award for Dr. Hussain Islamic Business & Finance Award The Banker s Top 500 Islamic Financial Institutions ranks DIB as No.1 in the Best Islamic Finance Bank in the UAE 2010 UAE and 7 th in the World ld(b (By Shaira Global lfinance compliant assets)
Key Awards Recent Mudaraba Deal of The Year ENOC AED 1.1 billion Islamic Finance News Award Forbes Middle East s Credit Cards Ranking: Dubai Islamic Bank ranked No. 1 in Gold and Classic Cards Tiers and No. 2 in the Platinum Cards Tier in the UAE 2011
Medium Term Strategy Retail Expansion Enhance Distribution/Channels/POS Implement Products enhancement / develop new products Implement Customer segmentation Roll out CRM Risk Management Focus Enhance Risk Management Processes Strong and close monitoring and controls Minimizing losses and NPLs Effective collections agenda Strengthening Balance Sheet Building Cushion / coverage through adequate provisions Utilizing excess liquidity optimally Changing Balance Sheet mix Building a core, stable & sustainable funding base Cross Selling Enhance Cross Sell ratio by 10% ever year for the next three years Customer Service Enhance customer service to be competitive with peer group Technology enhancement and process reengineering Trained Resources People Up skilling Emiratization Targets Focus on Retention Strategy and talent acquisition Bench Strength
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Portfolio Snapshot Q1 2011 Deposit Breakdown 26% 23% 51% A large and stable deposit base providing core funding for the bank Banking generation of UAE Nationals Primary funding coming form Retail deposits and hence well diversified Branch expansion strategy and franchise value have been instrumental deposit growth Retail Banking Corporate Banking Real Estate & Contracting Finance The most liquid bank in the country Finance to Deposit Ratio of under 80% including Tamweel
Portfolio Snapshot Q1 2011 Financing Breakdown 24% 30% 46% Retail Banking Corporate Banking Real Estate & Contracting Finance Retail focused strategy paying rich dividends The retail financing base has grown to more than a quarter of total bank financing on its own and more than a third with Tamweel mortgages consolidated Still significant growth opportunity in Retail through cross selling of existing and new finance products to a base of more than a million customers and constantly growing
Portfolio Snapshot Q1 2011 Revenue Breakdown 11% 8% 19% 16% 47% Retail focus is real visible as retail financing has grown to almost half of the overall financing portfolio including Tamweel. Corporate finance and corporate banking activity expected to grow in the 3 rd and 4 th quarter of 2011 Commercial real estate financing book counties to be in a runoff mood *Retail Banking Corporate Banking Commercial Real Estate & Contracting Finance Treasury Others *Including Tamweel which is a part of Retail Products
Key Financials Q1 2011 Assets (USD Bln) Net Profit (USD Bln) 30.0 25.0 20.0 15.0 10.0 5.0 2.5 3.2 4.2 5.3 6.2 8.3 11.7 17.5 23.0 23.2 21.3 23.7 27.3 0.80 0.70 0.60 0.50 0.40 0.30 020 0.20 0.10 0.03 0.03 0.04 0.05 0.07 013 0.13 0.29 0.43 0.68 0.47 0.33 0.22 0.06 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Q1 2011 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Q1 2011 Financing (USD Bln) Deposits (USD Bln) 20.0 15.0 10.0 5.0 1.2 1.5 2.3 2.8 3.4 4.8 7.3 8.0 11.0 14.3 13.4 15.6 15.1 25.0 20.0 15.0 10.0 5.0 2.1 2.7 3.6 4.6 5.4 6.8 9.1 13.0 17.7 18.1 17.5 17.3 19.9 1999 9 2000 0 2001 2002 2 2003 2004 2005 2006 2007 2008 2009 2010 0 Q1 2011 1 1999 9 2000 0 2001 2002 2 2003 2004 2005 2006 2007 2008 2009 2010 0 Q1 2011 1
Key Financials Ratios (%) 100 90 80 90 77 76 20 18 16 16.4 19 18 18.6 70 60 14 12 12 50 40 45 40 41.4747 10 8 9.33 30 6 20 10 0 15 15 18 Cost to Financing Fee to Income to Deposit Income 2009 4 2010 2 Q1 2011 0 0.91.4 1.08 ROE ROA CAR 2009 2010 Q1 2011
Key Financials Ratios (%) 3.71 3.65 3.47 1.5 2.3 2.7 Net Spread Cost of Fund Q1 2011 Dec 10 Dec 09
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Dividend payments Dividend Payment History (%) 60 50 40 30 20 10 10 0 15 20 40 42 55 30 20 10 10 2002 2003 2004 2005 2006 2007 2008 2009 2010 Q1 2011
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