#1بنك دبي الإسلامي Dubai Islamic Bank #شكراً_خط_دفاعنا_الأول #ThankYouHeroes Investor Presentation For the period ending 30 September 2020 1#2Disclaimer بنك دبي الإسلامي Dubai Islamic Bank By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: This presentation may contain statements about future events and expectations that are forward-looking statements. These statements typically contain words such as "expects" and "anticipates" and words of similar import. Any statement in this presentation that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. None of the future projections, expectations, estimates or prospects in this presentation should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in the presentation. Neither Dubai Islamic Bank P.J.S.C. ("DIB"), nor any of its shareholders, directors, officers or employees assume any obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. This presentation and its contents are confidential and are being provided to you solely for your information and may not be retransmitted, further distributed to any other person or published, in whole or in part, by any medium or in any form for any purpose. In particular, this presentation is not for distribution to retail clients. If handed out at a physical investor meeting or presentation, this presentation should be returned promptly at the end of such meeting or presentation. If this presentation has been received in error it must be returned immediately to DIB. The opinions presented herein are based on general information gathered at the time of writing and are subject to change without notice. DIB relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness. No reliance may be placed for any purposes whatsoever on the information contained in this presentation, or any other material discussed verbally, or on its completeness, accuracy or fairness. The information in this presentation is subject to verification, completion and change. The contents of this presentation have not been independently verified. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of DIB or any of its shareholders, directors, officers or employees or any other person as to, and no reliance should be placed on, the accuracy, completeness or fairness of the information or opinions contained in this presentation. Neither DIB nor any of their shareholders, directors, officers or employees nor their respective advisers and/or agents undertake any obligation to provide the recipient with access to any additional information or to update this presentation or any additional information or to correct any inaccuracies in any such information which may become apparent. Any investment activity to which this communication may relate is only available to, and any invitation, offer, or agreement to engage in such investment activity will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this presentation or any of its contents. The distribution of this presentation in other jurisdictions may also be restricted by law, and persons into whose possession this presentation comes should inform themselves about, and observe, any such restrictions. This presentation contains data compilations, writings and information that are proprietary and protected under copyright and other intellectual property laws, and may not be redistributed or otherwise transmitted by you to any other person for any purpose. Additionally, this presentation contains translations of currency amounts solely for the convenience of the reader, and these translations should not be construed as representations that these amounts actually represent such U.S. dollar amounts or could be converted into U.S. dollars at the rate indicated. 2#3Contents ત 1. . Overview 2. Financial Performance 3. Strategic Focus 4. Appendix بنك دبي الإسلامي Dubai Islamic Bank 3#4Economic fundamentals remain healthy supported by proactive policies by the regulators Robust infrastructure in place to support economic stability and recovery ☐ Large hydrocarbon reserves continue to support economic strength. Strong relations with the international economies supported by stable government with domestic political stability. Successful USD 2 bn bond and Sukuk issuances by Government of Dubai reflects the continued high investor confidence in the Dubai economy by the international investment community. بنك دبي الإسلامي Dubai Islamic Bank Capital Ratios in UAE Banking System (%) CET 1 Ratio Tier 1 Capital Ratio 16.5% 16.4% 15.8% 14.7% 14.7% 13.9% Dec 2019 Mar 2020 Jun 2020 IFRS 9 Guidance and prudential filters Zero Cost Funding facility Fiscal strength remains robust supported by strong policy response In July, Dubai announced a new AED 1.5 billion stimulus package to reinforce liquidity of companies and support business continuity. Total stimulus from Dubai government now totaling AED 6.3 billion (1.6% of GDP). AED 100 bn TESS Program from UAE Central Bank have provided support to 300,000 customers, 10,000 SMEs and 1,500 private sector companies. Banks in UAE remain well capitalized, with average CET 1 Ratio at 14.7% and Tier 1 Capital Ratio at 16.4% as of H1 2020. Sources: UAE Central Bank, Dubai Statistics Center UAE CB TESS Program Postponement of Basel III implementation Loan to Value ratio increase for first time home buyers Waiver of CBUAE processing fees in payment systems Increase of the cap for contactless card transactions Payment deferral relief on outstanding loans TESS Program Reduction of reserve requirements Capital buffer relief Stable funding relief 4#5Significant focus on precautionary safety measures as key sectors gradually recover Private sector activities return back following gradual opening of economic sectors. Authorities have reiterated to the public the importance of adhering to safety guidelines, with zero tolerance approach towards violators. Travel on gradual return, with Emirates Airlines now flying to 100+ destinations compared to over 60 in July and nearly O during lockdown. Real Estate: There has been increased demand from end-users and first time buyers for purchasing villas and townhouses, driven primarily by low interest rates, reduced loan-to-value and the need to have larger living spaces during the pandemic times. Emirates Airlines - Increasing number of Destinations (2020) Zero tolerance approach to violations AED 50K AED 50K Failure to comply Violating mandatory with home quarantine rules hospitalisation directive بنك دبي الإسلامي Dubai Islamic Bank AED 10K Hosting gatherings and inviting people AED 5K Attending a gathering as a guest AED 3K Being out in public areas without a mask over Dubai Real Estate Market YTD - Number of Transactions 160 Jan 60 60 Off Plan Sale Existing Properties Sale 4,500 100+ 3,000 1,500 5 0 0 Mar Apr Jul Oct Jan Feb Mar Apr May Jun Jul Aug Sep Sources: DLD, Emirates Airlines 5#6Contents સ 1. Overview 2. Financial Performance 3. Strategic Focus 4. Appendix بنك دبي الإسلامي Dubai Islamic Bank 6#79M2020 Strategic Business Highlights Strategic Highlights Robust balance sheet growth Integration of Noor Bank Extending customer support (TESS Program) Capturing strong recovery on Home Finance market Large presence in Islamic capital markets space (ED بنك دبي الإسلامي Progress Dubai Islamic Bank Gross New Financing of nearly AED 42 billion in Corporate and Consumer On target for year end completion Relief measures of nearly AED 8 billion across corporate and consumer portfolios New bookings of over AED 1 billion during 3Q2020 in Home Finance Supported more than USD 20 billion Sukuk and syndicated transactions 39% Online transactions (IB and MB) Significant progress on digital strategy (YTD) 31% App Transactions 16% New App downloads -13% Decline in ATM transactions Regster Fac - بنك دبي الإسلامي Dubal Islamic Bank Login отез Haus N العربية ky Ring Lepa Foll 7#8Overall Financial Performance (for the period ended 30 Sept 2020) Preserving long term value for our customers and shareholders بنك دبي الإسلامي Dubai Islamic Bank Balance Sheet Financial Highlights AED million Dec 2019 Sept 2020 Change Key Ratios Dec 2018 Dec 2019 Sept 2020 Net Financing Assets & Sukuk 184,157 234,507 27% Investments Net Financing to Deposit Total Capital Adequacy 93% 92% 92% 17.5% 16.5% 17.3% CET1 12.4% 12.0% 12.9% Total Assets 231,796 299,303 29% Non-Performing Financing ("NPF") 3.4% 3.9% 4.8% Customers' Deposits 164,418 214,642 31% ROE 18% 17% 14% ROA 2.32% 2.25% 1.70% Sukuk Financing Instruments 14,852 18,598 25% Net Profit Margin ("NPM") 3.14% 3.15% 2.70% Equity 34,732 40,033 15% 1 Cost to Income 28.3% 26.9% 29.40% Total Liabilities and Equity 231,796 299,303 29% Dividend Per Share (% of par value) 35% 35% Highlights Income Statement AED million 9M2019 9M2020 Change . Total Income 10,250 9,892 (3%) Net Operating Revenue 6,877 6,935 1% Operating Expenses (1,771) (2,134) 20% Profit before Impairment and 5,105 4,801 (6%) Tax Charges • Extraordinary Impairment, ECL (1,056) (2,650)² 151% and Overlay Gain on Bargain Purchase 1,015 100% • Income Tax Group Net Profit (34) 4,015 (41) 20% 3,124 (22%) • Strong balance sheet growth with total assets approaching the AED 300 billion mark, thus translating into a 29% growth rate. Net Operating Revenue largely stable at AED 6,935 million, supported by an increase in fee income of 19% YoY. CASA on the rise, now constituting 39% of overall deposits, compared to 33% at YE2019. Top line income at AED 9,892 million remains robust, despite impacts due to pandemic. 1 Cost to income ratio - Being the ratio of total operating expenses (excluding integration costs) to net income (normalized with synergies). 2 Impairment provision of AED 2.65 bn includes one offs. 8#9Operating Performance Profitability (AED mn) Net Profit Margin بنك دبي الإسلامي Dubai Islamic Bank Cost to income ratio (%) 9,267 8,202 3.11% 3.14% 3.15% 7,687 6,935 30.4% 5,004 5,103 2.70% 4,504 3,124 270,376 185,228 201,919 205,288 FY2019 9M2020 FY2017 Net Profit FY2017 FY2018 Net Operating Revenue ROA (%) 2.34% 2.32% 2.25% 1.70% ROE (%) FY2018 FY2019 28.3% 26.9% 9M2020 FY2017 FY2018 Profit Bearing Assets (AED mn)² Net Profit Margin (%) 1 18.7% 18.1% 17.1% Highlights FY2019 • Cost to income (%) 29.4% 9M2020 14.0% • Profitability remains robust despite highly prudent and conservative approach to provisions. Margins slightly lower primarily because of deliberate strategy of focusing on sovereign and related business. Cost to income ratio has already stabilized in 9M and is expected to improve as integration synergies continue to materialize. 2017 2018 2019 9M2020 2017 2018 2019 9M2020 Return on Assets (%) Return on Equity (%) 1Net Profit Margin is calculated as Depositors' share of profits subtracted from income from Islamic Financing and Investing Assets transactions divided by Average Profit Bearing Assets. 2Profit Bearing Assets are calculated as the sum of Islamic placements with UAE Central Bank and banks, Islamic financing and investing assets and investment in Islamic Sukuk. ROE - Being the ratio of annualized net profit (excluding one off / exceptional items) attributable to equity holders to average shareholders' equity, adjusted for estimated dividend distribution. ROA - Being the ratio of annualized net profit (excluding one off / exceptional items) for the group to average total assets. 9#10Overview of Deployment of Funds/Financing Deployed Funds Composition (AED bn) 299 13 232 224 30 10 10 11 37 10 21 16 33 31 197 145 151 Dec 2018 ■Net Financing Assets Interbank placement & CDs Operating Cash Dec 2019 Real Estate, 21% Dec 2019 Sept 2020 Sukuk Investments Investment in equities & properties ■Others Deployment by Segment (AED bn) 101105 143 بنك دبي الإسلامي Dubai Islamic Bank Dec 2018 Dec 2019 ■Sept 2020 52 52 39 41 31 33 37 30 10 11 10 21 161 10 10 11 Corporate Consumer Real Estate Breakdown of Financing Portfolio by Sector (%) Sept 2020 Real Estate, 20% Corporate, Consumer, Consumer, 26% 53% 25% Corporate, 55% Corporate covers all sectors except Real Estate • Interbank Sukuk Investment in investment placements & Equities & CDs Properties Highlights Earning assets continue to show strong growth with a focus on low risk sectors Segmental financing: o Corporate financing book reached AED 143 bn ○ Gross new consumer financing amounted to AED 9.5 bn ○ Real estate concentration maintained within the guidance 10#11بنك دبي الإسلامي Dubai Islamic Bank Breakdown by Portfolio - Sept 2020 Revenue Trends (AED mn) Segmental Overview - Consumer • • Management Commentary Consumer financing now stands at AED 52 billion, supported by gross new financing of AED 9.5 billion. Auto, personal and home finance continued to be the key contributors to the consumer portfolio. Home Finance, 41% • Net operating revenue increased 15% YoY to AED 2,982 million. • Significant jump in CASA by nearly 43% YTD. Segment Gross Financing / Deposits (AED bn) 73 69 39 41 2018 52 22 91 2,982 2,601 703 Personal Finance, 38% 509 AED 7.11% 52 bn 6.34% 2,092 2,279 Auto Finance, 17% 9M2019 9M2020 Cards, 4% Fees & Commission, Others Net Funded Income Yield on Financing CASA (AED bn) 20 20 13 2019 Sept 2020 2018 Deposits Gross Financing 21 21 14 30 20 20 2019 Sept 2020 Current Account Savings Account 11#12Segmental Overview - Corporate بنك دبي الإسلامي Dubai Islamic Bank Management Commentary Breakdown by Portfolio – Sept 2020 - Revenue Trends (AED mn) • Gross corporate financing amounted to AED 153 billion, a growth of 34% YTD. Utilities, Automobile, 2,604 2% 4% Trade, 6% 2,345 Aviation, 13% 490 449 • Portfolio remains well-diversified with a 5.2% strategic focus on sovereign and lower risk sectors during the pandemic Services, 18% Contracting, 4% AED 153 bn Financial Institutions, 7% • Focus on operating accounts led to CASA growth of 60% YTD. 2,114 3.7% 1,896 Government, 16% 9M2019 9M2020 Real Estate, 26% Fees & Commission, Others Manufacturing, 4% Net Funded Income Segment Gross Financing / Deposits (AED bn) 109 114 87 2018 92 92 2019 153 116 CASA (AED bn) Yield on Financing 13 7 12 8 15 17 17 Sept 2020 2018 2019 Sept 2020 Current Account Savings Account Gross Financing Deposits Corporate banking charts reflect corporate and real estate, excluding treasury 12#13Segmental Overview - Treasury بنك دبي الإسلامي Dubai Islamic Bank Management Commentary Breakdown by Portfolio - Sept 2020 Revenue Trends (AED mn)* • Gross Financing and Sukuk Investments crossed AED 40 billion. • Significant improvement in net operating Manufacturing & Services, 9% Aviation, 3% 1,200 730 4.3% 597 revenue (+64% YoY) to AED 1.2 billion. Real Estate, 9% 3.9% 321 Treasury yields remained healthy at nearly 4%. Financial Institutions / Banking, 15% AED 40 bn Government, 603 409 63% Segment Gross Financing & Sukuk (AED bn) 35 33 2018 40 40 2019 Sept 2020 ■Gross Financing & Sukuk *Based on shadow accounting for fees and commissions CASA (AED mn) 9M2019 9M2020 Fees & Commission, Others I Net Funded Income Yield on Financing & Sukuk 66 47 48 255 238 529 2018 2019 Sept 2020 Current Account Savings Account 13#14Asset Quality Non-Performing Financing ("NPF")¹ Financing Provisions and Coverage Ratios NPF Ratio Impaired Financing Ratio Overall Coverage Ratio² 150% 4.8% 4.6% 135% 112% 3.9% 3.9% 3.4% 3.3% Dec 2018 Dec 2019 Sept 2020 Cumulative Provisioning (AED million) Provisions NPF Cost of Risk • 0.99% 0.87% * 10,049 0.51% 7,355 6,333 6,310 5,857 5,251 Dec 2018 Dec 2019 Sept 2020 بنك دبي الإسلامي Dubai Islamic Bank Provision Coverage Ratio 114% 101% 81% Dec 2018 Dec 2019 Sept 2020 Highlights Non-Performing Financing and impaired financing ratios continued to be robust during the current times, at 4.8% and 4.6% respectively. • Normalized cost of risk for the period was 99 bps (excluding one-off charges). . Overall coverage including collateral has remained well above 100%. ¹NPF ratio includes Bilateral Sukuk and is calculated as the sum of individually impaired and 90-day overdue Financing Assets; 2Overall Coverage Ratio is calculated as the sum of provisions held including regulatory credit risk reserve (if any) and collateral held relating to facilities individually determined to be impaired divided by non-performing financing. *Includes Purchased or Originated Credit Impaired (POCI) through Noor Bank acquisition Cost of Risk - Being ratio of net impairment charge on financing assets (normalized) divided by the gross financing and investment in Sukuk. 14#15Asset Quality (contd.) Islamic financing and investing assets (Gross Exposure by stages) Stage 1 (AED million) Gross Exposure -ECL Coverage 1.01% Stage 2 (AED million) Gross Exposure ECL Coverage 19,031 0.78% 176,075 8.40% 12,102 138,667 7.98% Dec 2019 Sept 2020 Dec 2019 Sept 2020 Highlights Expected Credit Loss (AED million) ■Stage 1 Stage 2 ■Stage 3 • 4,039 1,076 966 1,199 1,301 4,855 Dec 2019 Sept 2020 Note: 2020 ECL % for stage 1 and 2 includes ECL held in Noor book and PPA adjustments • Stage 3 (AED million) بنك دبي الإسلامي Dubai Islamic Bank Gross Exposure ⚫ECL Coverage 64.88% 57.40% 8,463 6,225 Dec 2019 Sept 2020 Proactive approach taken to enhance coverage of performing stage 1 and 2 exposures, in view of uncertain economic conditions. Stage 1 provision coverage improved from 0.78% to 1.01%, whilst Stage 2 coverage improved from 7.98% to 8.10%. 15#16Funding Sources and Liquidity Funding Sources (AED bn) Due to banks & Fls Other payables Sukuk ■ Equity Customers' Deposits Customers' Deposits (AED bn) Customer Deposits Net Financing to Deposit Ratio* بنك دبي الإسلامي Dubai Islamic Bank Liquidity Coverage Ratio (LCR) Liquidity Coverage Ratio (%) 299 142% 93% 92% 92% 17 121% 232 ྂསྐབ 224 40 35 34 12 15 855 19 215 215 156 164 156 164 Dec 2018 Dec 2019 Sept 2020 101% Dec 2018 Dec 2019 Sept 2020 Sept 2019 Dec 2019 Sept 2020 Highlights Customer Deposits (AED 215 bn as at 30 September 2020) By Type By Business • Savings Account, 17% Consumer, 42% Current Account, 21% Investment Deposits, 61% Wholesale, 58% *Net Financing to Deposit Ratio excludes Bilateral Sukuk. • . • The bank's liquidity position remained robust at 92%, despite market-leading growth. Strong growth in deposits, with an increase of 31% YTD indicates strength of the franchise to mobilize liquidity despite the current operating environment. CASA jumps 52% YTD, now constituting 39% of deposits. DIB credit continues to be attractive in the capital markets space, and in June 2020, the bank successfully raised USD 1.3 billion Sukuk (including tap), which was subscribed nearly 4.5 times. 16#17Capitalization Overview Regulatory Capital¹ (AED billion) ■ СЕТ 1 AT1 ■Tier 2 Capital Ratios* CAR -CET1 Ratio بنك دبي الإسلامي Dubai Islamic Bank 18.3% 39.2 17.2% 17.5% 17.3% 16.5% 31.3 2.6 30.8 7.4 2.0 2.2 7.0 6.4 12.0% 12.4% 12.9% 11.5% 12.0% 29.2 21.8 22.7 Dec 2018 Dec 2019 Sept 2020 Dec 2016 Dec 2017 Dec 2018 Dec 2019 Sept 2020 Dividend History² 45% 45% 45% 40% 35% 35% 25% 15% 2012 2013 2014 2015 2016 2017 2018 2019 Cash Dividend as a % of Par Value Refers to Regulatory Capital under Basel III; 2 Dividend is calculated as dividend per share divided by par value of a share; *This graph reflects ratios under Basel III regime Highlights • Equity position strengthened to AED 40 billion, up by 15% compared to YE2019. • Capital adequacy and CET 1 ratios improved to 17.3% (+80 bps YTD) and 12.9% (+90 bps YTD), respectively. . Despite strong growth during the year, capital levels are intact and remain above the minimum regulatory requirement. 17#18Acquisition of Noor Bank - key milestones From a pioneering Islamic bank to becoming a powerhouse in Islamic finance APRIL BOD approval to consider acquisition of Noor Bank DECEMBER SEPTEMBER Central Bank of UAE approval on acquisition of Noor Bank General Assembly approved the acquisition بنك دبي الإسلامي Dubai Islamic Bank MARCH Integration Management Office constituted to drive integration MAY & JUNE Entered execution phase of the Integration and completed key deliverables on policies and operating model. Data migration in progress. 2019 Q2 Q3 Q4 2020 Q1 Q2 92 Q3 JUNE BOD resolved to recommend the acquisition Key Highlights NOVEMBER SCA approval to hold General Assembly JANUARY Share transfer completed; Board of Directors of Noor Bank reconstituted; Integration Steering Committee established APRIL Integration program underway, with COVID-19 risks addressed (work- from-home, virtual conferencing, etc.) JULY-SEPTEMBER Continued execution phase of the Integration and completed key deliverables in technology platforms' integration. On track for completion in 4Q The integration program is on track with all key milestones met. The Bank continues to adhere to the established operational governance and oversight structure for the integration. The Bank has made significant progress in terms of its technology platforms' integration. It has successfully completed Data Migration Rehearsals, System Integrated Testing, Value Chain Testing cycles and Performance Testing. The Bank has initiated the Customer Communications process on account of the integration, in line with the Central Bank requirements. The Bank also initiated dispatch of Welcome letters with new DIB Cards to Noor Bank Debit and Credit Card customers. ✓ Onboarding of Noor Bank new to Bank customers stopped from 15th September 2020 and is now being shifted to DIB. ✓ Continued execution of Non-technology Projects, including collateral and property migration. ✓ Targeted for completion in 4Q. 18#19Contents 1. Overview 2. Financial Performance 3. Strategic Focus 4. Appendix بنك دبي الإسلامي Dubai Islamic Bank 19#20Strategic Focus 2020 C CUSTOMER EXPERIENCE Digitally Intelligent Bank (DIB) A CARE IDEOLOGY ACQUISITION بنك دبي الإسلامي Dubai Islamic Bank R E RETENTION ENGAGEMENT ADD TO BAG + New digital offerings to Reduction in branch 'WOW' customer experience transactions traffic Enhance platform upgrades O 120 Maintain cost discipline Create key Digital customer journeys 2020 - Target Metrics Growth 8% to 10% 27% 4.0% NPF 4.8% Real Estate Concentration ~ 20% 20% Return on Assets 2.10% to 2.20% 1.70% Net Profit Margin 3.00% to 3.15% 2.70% 100% Cost Income 26% to 27% Cash Coverage 81% Ratio 29.4% Return on Equity 17% to 18% 14.0% 20#21Contents 1. Overview 2. Financial Performance 3. Strategic Focus 4. Appendix بنك دبي الإسلامي Dubai Islamic Bank 21#22Consolidated Income Statement AED million Net Income Income from Islamic financing and investing transactions Commission Income (loss) from other investments measured at fair value Income from properties held for development and sale Income from investment properties Share of profit from associates and joint ventures Other Income Total Income Depositors' and Sukuk holders' share of profit Net Income Operating Expenses Personnel expenses بنك دبي الإسلامي Dubai Islamic Bank 9M2020 9M2019 FY 2019 FY 2018 Reviewed Reviewed Audited Audited 7,973 8,100 10,723 9,481 1,318 1,106 1,483 1,476 45 66 65 45 42 92 126 124 50 278 295 156 13 66 58 137 450 543 934 311 9,892 10,250 13,684 11,730 (2,957) (3,373) (4,418) (3,528) 6,935 6,877 9,266 8,202 (1,311) (1,202) (1,587) (1,580) General and administrative expenses (679) (476) (632) (608) Depreciation of investment properties (40) (28) (37) (35) Depreciation of property, plant and equipment (104) (65) (102) (99) Total Operating Expenses (2,134) (1,771) (2,358) (2,322) Profit before net impairment charges and income tax expense 4,801 5,106 6,908 5,880 Impairment charge for the period, net (2,650) (1,056) (1,763) (834) Gain on Bargain Purchase 1,015 Profit for the period before income tax expense 3,166 4,050 5,145 5,046 Income tax expense (41) (34) (42) (43) Net Profit for the period 3,124 4,016 5,103 5,004 Attributable to Owners of the Bank Non-Controlling Interests 3,125 3,967 5,015 4,916 (1) 48 88 88 22 22#23Consolidated Balance Sheet AED million Assets Cash and balances with central banks Due from banks and financial institutions Islamic financing and investing assets, net Investments in Islamic Sukuk measured at amortized cost Other investments at fair value Investments in associates and joint ventures Properties held for sale Investment properties Receivables and other assets Property, plant and equipment Total Assets بنك دبي الإسلامي Dubai Islamic Bank 30 Sept 2020 Reviewed 31 Dec 2019 Audited 31 Dec 2018 Audited 22,546 37,917 21,268 4,897 6,248 8,297 197,436 150,913 144,739 37,071 33,244 31,179 1,254 1,266 1,687 1,918 1,977 1,928 1,388 1,337 1,449 6,588 5,209 4,495 9,385 8,743 6,048 1,449 1,590 1,314 299,303 231,796 223,682 Liabilities and Equity Liabilities Customers' deposits Due to banks and financial institutions Sukuk financing instruments Payables and other liabilities Total Liabilities Equity Share Capital 214,642 164,418 155,657 17,323 9,147 13,203 18,598 14,852 12,371 8,707 8,646 8,323 259,270 197,063 189,555 7,241 6,590 6,590 Tier 1 Sukuk 8,264 6,428 7,346 Other Reserves and Treasury Shares 13,785 11,113 10,861 Investments Fair Value Reserve (883) (1,175) (850) Exchange Translation Reserve (1,218) (1,095) (1,052) Retained Earnings 10,119 10,131 8,569 Equity Attributable to owners of the banks 37,308 31,993 31,464 Non-Controlling Interest 2,725 2,739 2,663 Total Equity 40,033 34,732 34,127 Total Liabilities and Equity 299,303 231,796 223,682 23#24Dubai Islamic Bank at a Glance Preserving long term value for our customers and shareholders بنك دبي الإسلامي Dubai Islamic Bank ■ Dubai Islamic Bank ("DIB" or the "Bank") was established in 1975 as the world's first full service Islamic bank by an Emiri Decree. ■ ■ ◉ DIB is the largest Islamic bank in the UAE by total assets, providing a range of retail and wholesale banking, treasury and investment banking, and capital markets products and services to individual, corporate and institutional customers. Robust credit ratings reflecting strong domestic franchise, healthy profitability, sound funding & liquidity and adequate capital ratios. In January 2020, DIB successfully completed the acquisition of Noor Bank, with the integration of the latter's operations currently underway, and on track for completion soon. 3 million + customers globally More than 9,000 employees across the Group Designated ("D-SIB")* in 2018 - *Domestic Systemically Important Bank Saeed A. Lootah, 6.54% FOL increase to 40% approved by shareholders Public, 67.64% Significant Subsidiaries and Associates Cailly 60.0% Ran AT SITA DELA TAMWEEL92.0% THE HOME OF HOME FINANCE ينك الخرطوم ينك دبي الإسلامي Bank of Khartoum Dubai Islamic Bank Pakistan 100.0% Credit Ratings Investment Corporation of Dubai (ICD), Ownership (as at 30 September 2020) 29.5% Moody's A3 Negative Fitch A Stable 25.82% Around 68 branches and more than 614 ATMs and CDMs across UAE UAE Branch Network International Geographic Presence Existing Presence & Branch Numbers Bosnia (36) Turkey BBI Bosna Bank International ديار DEYAAR Panin Dubai 38.3% Syarlah Bank 27.3% 44.9% DIB Bank Kenya Limited 100.0% A subs cary of Dubai Islamic Bank PJSC NOOR BANK 100% Islamic International Rating Agency (IIRA) A/A1 Positive Pakistan (235) Sudan (123) UAE (68) Indonesia (12) + (24) on shared basis Kenya (5) 24#25Strategy Realignment in COVID times S 0 0 بنك دبي الإسلامي Dubai Islamic Bank Preserving Quality of Assets Focusing on Low Risk Assets/Sectors Protecting the Franchise Maximizing Integration Synergies 25 25#26Response to Date on COVID-19 - In It Together with Our People, Clients & Communities Our People Gradual progression to Work from Office with social ✓ ✓ distancing guidelines implemented Encourage flexible working hours, relocations and installing acrylic sheets on work stations where social distancing is a challenge Protecting Touchpoints via thorough sanitization of +DIB Offices, Branches & ATM spots, deployment of hand sanitizers in all locations and temperature scanning at all DIB sites ए Educating our staff on precautionary actions via regular emails and on-site posters SME & Corporate Customers Effective 15 March 2020 and based on eligibility customer may get deferment of finance with no additional charges for existing customers Introduced Low profit rates, reduction in processing fees and simplified documentation process Facilitating clients to manage operations through digital channels Retail Customers بنك دبي الإسلامي Dubai Islamic Bank Effective 15 March 2020 and based on eligibility, special finance postponement schemes as well as waivers and benefits on various consumer products have been put in place to help customers during this difficult time Encouraging customers to use contactless payments accessible by activating Apple Pay or Samsung Pay Bank From Home with wide range of banking services available via DIB Online Banking and Mobile App Regular Updates via DIB Digital channels such as SMS, Emailers, Social Media & Phone Banking Supporting Community The Bank announced largest Contribution of AED120 million in UAE to the Community Solidarity Fund Against Covid-19. The gesture represents bank's commitment to supporting all national humanitarian initiatives Crisis Management Team setup to monitor the situation Circulate inspiring and uplifting messages across various social media channels 26#27DIB's Key Business Lines Core Business Profiles 0 Consumer Banking Serving more than 2 million customers in the UAE Offers its retail and business banking services through a network of 68 branches and more than 614 ATMs and CDMs across UAE Broad range of retail products and services that include: Auto Finance; Sharia-compliant Cards; Personal Finance; Mortgages and SME Solutions. Corporate Banking بنك دبي الإسلامي Dubai Islamic Bank Corporate Banking has sector-specific focus units which target clients across both private and public sectors. Corporate Banking manages relationships (including sovereigns/ GREs, middle market, contracting finance and real estate finance companies) and is instrumental in leveraging its client relationships to cross-sell other products offered by DIB, including investment banking and treasury services. Investment Banking الراييييي DIB's Investment Banking business is primarily responsible for management of DIB's proprietary investment portfolios, strategic stakes and international operations and expansion. The business group provides advisory and related services to DIB's corporate clients both within UAE and across borders. Treasury Treasury offers a comprehensive range of products backed by DIB's expert understanding of local and international markets. Its principal customers are corporate clients, financial institutions, high net worth individuals, SME companies and similar businesses. It is responsible for managing DIB's liquidity requirements, fixed income portfolio and capital markets funding. 27#28DIB's Digital Journey PAPERLESS BRANCHES INTRODUCED Simplified branch visit with handheld devices to fill forms and complete transactions بنك دبي الإسلامي SUCCESSFULLY LAUNCHED DIGITAL DEPARTMENT CREATED 巴 Tablet-based banking Instant Credit Card printing in branches Single page account opening form Introduction of DIB Chatbot Revamp of DIB Website, Online Banking, DIB Mobile App Dubai Islamic Bank JOURNEY TOWARDS DIGITALLY INTELLIGENT BANK PF & Credit Cards on Mobile App - Salary transfer (existing customers) Remote signing of contracts digital customers - non eCheck Implementation of E-cheque- Digitally authenticated by the customer replacing physical cheque 2014 2015 2016 2017 2018 2019 2020 CUSTOMER INNOVATION DEPARTMENT ESTABLISHED Department setup to promote design, research, develop, analyze and suggest new marketing concepts as well as strategies ADVANCED THE YEAR WITH Initiating the development of End to End customer journey through digital channels Express Transfer/Instant Remittances DIGITAL STRATEGY FORMULATION Successful launch of DIB's Digital Lab Digital customer journeys launched "Banking-in-Minutes" concept launched with public introduction of New to Bank ✓ CASA account opening and Credit Card 品 Journeys Personal Finance for Salary Transfer Relationship customer (New /Existing) was launched on Internet Banking and Tablet Set Foundation for Digital Academy & Advanced Analytics 28#29Select DIB Debt Capital Market Transactions الإمارات الإسلامي - EMIRATES ISLAMIC Emirates Islamic Bank USD 500,000,000 1.827% 5yr Sukuk JLM & Bookrunner GOVERNMENT OF DUBAI Dubai Department of Finance USD 1,000,000,000 2.763% 10yr Sukuk Sep 2020 بنك دبي الإسلامي Dubai Islamic Bank JLM & Bookrunner Sep 2020 بنك دبي الإسلامي Dubai Islamic Bank DP WORLD DP World USD 1,500,000,000 6.000% Perpetual Sukuk JLM & Bookrunner بنك دبي الإسلامي Jun 2020 Dubai Islamic Bank بنك دبي الإسلامي Dubai Islamic Bank بنك دبي الإسلامي Dubai Islamic Bank مصرف الشارقة الإسلامي Sharjah Islamic Bank Dubai Islamic Bank (Tap) USD 300,000,000 2.950% Long 5yr Sukuk JLM & Bookrunner Republic of Indonesia USD 2,500,000,000 USD 750mn 2.300% 5yr USD 1,000mn 2.800% 10yr USD 750mn 3.800% 30yr JLM & Bookrunner Sharjah Islamic Bank USD 500,000,000 2.850% 5yr Sukuk JLM & Bookrunner Jun 2020 بنك دبي الإسلامي Dubai Islamic Bank Jun 2020 بنك دبي الإسلامي Dubai Islamic Bank Jun 2020 بنك دبي الإسلامي Dubai Islamic Bank Dubai Islamic Bank USD 1,000,000,000 2.950% Long 5yr Sukuk Sole Arranger JLM & Bookrunner Jun 2020 بنك دبي الإسلامي Dubai Islamic Bank Government of Sharjah USD 1,000,000,000 2.942% 7yr Sukuk JLM & Bookrunner Jun 2020 Dubai Islamic Bank بنك دبي الإسلامي DAR AL ARKAN دار الأركان DAR Al-Arkan USD 400,000,000 6.875% 7yr Sukuk JLM & Bookrunner Feb 2020 بنك دبي الإسلامي IsDB Islamic Development Bank USD 2,000,000,000 1.809% 5yr Sukuk JLM & Bookrunner Dubai Islamic Bank Feb 2020 بنك دبي الإسلامي Dubai Islamic Bank بنك أبوظبي الأول FAB Fint Abu Dhabi Bank First Abu Dhabi Bank USD 500,000,000 2.500% 5yr Sukuk JLM & Bookrunner Jan 2020 بنك دبي الإسلامي Dubai Islamic Bank Select Syndicated / Club Transactions Govt. of Egypt USD 2,000,000,000 Mandated Lead Arranger Aug 2020 بنك دبي الإسلامي Dubai Islamic Bank PFZW Ports & Free Zone World USD 9,000,000,000 Mandated Lead Arranger & Bookrunner Apr 2020 بنك دبي الإسلامي Dubai Islamic Bank Network > International Payment Solutions Network International USD 525,000,000 Mandated Lead Arranger TOPAZ▼ ENERGY AND MARINE Topaz Energy & Marine Ltd. USD 392,000,000 Mandated Lead Arranger Mar 2020 بنك دبي الإسلامي Dubai Islamic Bank Feb 2020 بنك دبي الإسلامي Dubai Islamic Bank بنك دبي الإسلامي Dubai Islamic Bank 29#30Select Awards & Accolades . • • • Middle East Forbes Dr. Adnan Chilwan Forbes 2018 Top Indian Leaders in the Arab World 2018 Banker MIDDLE EAST INDUSTRY AWARDS 2018. CEO Award - Excellence in Global Islamic Finance and Banking awarded to Dr. Adnan Chilwan Best Islamic Bank Best Islamic Retail bank Best Islamic Corporate Bank Best Sukuk Arranger • • THE ASSET TRIPLE A ASIAN AWARDS 2018 Islamic Bank of the Year Best Islamic Retail Bank Best Islamic Trade Finance Sukuk Best Islamic REIT Best Supranational Sukuk Bank of the Year 2018 26TH ANNUAL WORLD ISLAMIC BANKING CONFERENCE • • Best Islamic Bank (Financial Performance) GIFA GLOBAL ISLAMIC FINANCE AWARDS Best Islamic Bank 2018 بنك دبي الإسلامي Dubai Islamic Bank • • Islamic Finance pews Awards Best Islamic Bank in the UAE UAE Deal of the Year Overall Best Islamic Bank Sovereign Deal of the year Indonesia Deal of the Year Most Innovative Deal of the year • Hybrid Deal of the Year Best Islamic Retail Bank • Best Islamic Bank in Kenya • Best Investor Relations Middle East Forbes TOP 100 COMPANIES IN THE MIDDLE EAST 2020 DIB ranked 16th amongst Top 100 Companies in the Middle East 2020 Best Sukuk Dealer الك يبني الاسلمي Dual Manic fark cmdportal Best Sukuk Dealer by The Collaborative Market Data (CMD) Portal Awards 2019 INTERNATIONAL 9M2020 Middle East Forbes Dr. Adnan Chilwan ranked #1 in the "Top Indian Executives making impact in the Middle East Award 2019 Most Innovative Islamic Bank - UAE ENTERPRISE AGILITY AWARDS Entrepreneur OF THE YEAR Islamic Bank of the Year . Islamic Finance news Awards Overall Best Islamic Bank (6th year in row) Social Impact Deal of the Year Sovereign Deal of the Year UAE Deal of the Year Best Islamic Bank in Kenya Best Financial Institution Sukuk بنتكاسي الإسلامي batik Bank Best Financial Institution Sukuk by EMEA Finance Achievement Awards 2019 emeafinance MIDDLE EAST BANKING AWARDS 2018 • Best Sukuk House in UAE • Best Private Bank in UAE 30#31بنك دبي الإسلامي Dubai Islamic Bank THANK YOU! Our latest financial information, events and announcements can now be accessed by downloading DIB Investor Relations App: Available on the App Store ANDROID APP ON Google play You may also contact us as follows: P. O. Box: 1080, Dubai, UAE +971 4 2075 454 [email protected] www.dib.ae/about-us/investor-relations B WINNER. Islamic Business & Finance 2019 Best Investor Relations AEONDID ATT ON Google play Available on the App Store