#1Investor Presentation For the period ending 30 June 2021 بنك دبي الإسلامي Dubai Islamic Bank #ReadyForTheNew#2Disclaimer بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew 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. 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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 1 Overview 2 Financial Performance 3 4 Strategic Focus & Theme - 2021 Appendix#4UAE taking a lead on recovery, safety and security, as vaccination drive continues to be strong World's Safest Countries Rank 1 Country بنك دبي الإسلامي Share of population fully vaccinated (27 Jul 2021) Country Malta Dubai Islamic Bank #Ready For TheNew Share of population fully vaccinated (%) 74 2 3 Iceland United Arab Emirates Qatar Iceland 70 UAE 70 4 Singapore Bahrain 64 5 Finland Chile 64 6 Mongolia Uruguay 62 Norway 8 9 Denmark Canada Aruba Mongolia Qatar 60 60 60 New Zealand Aruba 60 10 UAE Covid-19 daily diagnosed cases 5,000 4,000 3,000 2,000 1,000 0 Feb-20 Mar-20 Apr-20- May-20- Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20- Dec-20- Jan-21 - Sources: Global Finance Magazine, Federal Competitiveness and Statistics Centre, The NY Times Feb-21- Mar-21 - Apr-21- May-21- Jun-21- Jul-21 U.A.E. Malta Bahrain COVID-19 vaccine doses administered per 100 people (27 Jul 2021) Uruguay Chile Qatar Iceland Aruba Canada Mongolia Singapore U.K. Israel Belgium Denmark Spain Portugal Ireland Mainland China Netherlands 169 148 139 136 134 130 130 128 128 127 126 125 122 120 120 115 113 112 112 111 0 50 100 150 200 4#5Key sectors showing signs of improvement, with the economy opening up further UAE Banking Assets (AED bn) UAE Banks CAGR: 5% 2,459 2,593 2,694 2,868 3,083 3,188 3,176 UAE Islamic Banks CAGR: 5% UAE Annual GDP Growth Rates بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew UAE Banks' Capital Adequacy Ratios (CAR) UAE Banks CAR UAE Islamic Banks CAR 20.0% 18.1% 17.5% 17.7% 18.3% 583 550 573 601 604 506 464 II 18.1% 17.9% 17.3% 17.6% 16.4% 2015 2016 2017 2018 2019 2020 Mar 2015 2016 2017 2018 2019 2020 2021 Mar 2021 2017 2018 2019 2020 Mar 2021 Dubai Real Estate Market - Number of Transactions Off Plan Sale YoY: +137% 7,500 YTD: +197% 2019 2020E 2021F 2022F 6,000 Overall GDP 4,500 1.7% -6.1% 2.4% 3.8% 3,000 Non-Oil 1.0% -6.2% 3.8% 3.9% GDP 1,500 Sources: CBUAE, Dubai Land Department 0 Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Existing Properties Sale YoY: +204% Dec 20 Jan 21 Feb 21 YTD: +58% Mar 21 Apr 21 May 21 Jun 21 5#6Contents 1 Overview 2 Financial Performance 3 Strategic Focus & Theme - 2021 4 Appendix#7Overall Financial Performance (for the period ending 30 June 2021) بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew Balance Sheet Key Ratios AED million Dec 2020 Jun 2021 Change Dec 2019 Dec 2020 Jun 2021 Net Financing Assets & Sukuk 232,044 232,807 0.3% Investments Net Financing to Deposit Total Capital Adequacy 92% 96% 89% 16.5% 18.5% 17.0% Total Assets 289,556 293,782 1.5% CET1 12.0% 12.0% 12.3% Non-Performing Financing ("NPF") 3.9% 5.7% 6.3% Customers' Deposits 205,925 218,309 6.0% ROE 17% 10.4% 10.4% Sukuk Financing Instruments 18,744 20,594 9.9% ROA 2.2% 1.2% 1.3% Net Profit Margin ("NPM") 3.15% 2.61% 2.54% Equity 43,130 39,523 -8.4% 1 Cost to Income Total Liabilities and Equity 289,556 293,782 1.5% Dividend Per Share (% of par value) 26.9% 29.4% 35% 20% 26.9% Highlights • • Balance sheet growth momentum maintained, with total assets reaching nearly AED 294 billion. Liquidity coverage ratio (LCR) at 152% remains well above regulatory requirement which along with the finance to deposit ratio of 89% denotes an extremely healthy liquidity position. Robust growth in customer deposits of 6% YTD to reach AED 218 billion. Cost to income ratio improved almost 250bps to 26.9, due to a disciplined approach to cost management. The bank sustained a strong sequential growth of 18% in Net Profit, despite the subdued operating environment. Income Statement • AED million 1H2020 1H2021 Total Income 6,824 5,842 Net Operating Revenue 4,723 4,628 Change -14.4% -2.0% • Operating Expenses (1,471) (1,246) -15.3% Profit before Impairment and 3,253 3,382 4.0% Tax Charges Impairments (2,120) (1,498) -29.3% Gain on bargain purchase 1,015 -100.0% Income Tax (30) (20) -33.3% • Group Net Profit 2,118 1,864 -12.0% 1 Cost to income ratio - Being the ratio of total operating expenses (excluding integration costs) to net income. 7#8Operating Performance Profitability (AED mn) 9,267 9,471 8,202 Net Profit Margin بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew OPEX trends (AED mn) & Cost to Income 2,728 3.14% 3.15% 2,358 2,322 1,700 269,261 262,338 1,580 1,587 29.40% 28.30% 5,004 5,103 4,628 3,160 2.61% 2.54% 1,246 715 201,919 205,288 1,864 26.90% 191 26.90% 134 139 95 838 608 632 436 2018 2019 2020 1H2021 2018 2019 2020 1H2021 2018 2019 2020 1H2021 Net Operating Revenue Group Net Profit Profit Bearing Assets (AED mn)² Net Profit Margin (%) 1 General & Admin Personnel Depreciation Cost to income (%) ROA (%) ROE (%) Cost of Funds 2.32% 2.25% 1.30% 1.22% 18.1% 17.1% 10.4% 10.4% 2.31% 1.93% 1.41% 0.80% 2018 2019 2020 1H2021 2018 2019 2020 1H2021 2018 2019 2020 1H2021 Return on Assets (%) Return on Equity (%) -Cost of funds (Deposits) 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. 8#9Overview of Deployment of Funds/Financing بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew Deployed Funds Composition (AED bn) Deployment by Segment (AED bn) 294 290 ■Dec 2019 ■ Dec 2020 Jun 2021 135 12 9 136 232 10 10 24 28 11 102 35 39 16 33 197 194 151 49 49 39 33 35 39 11 11 10 16 2019 2020 Jun 2021 Corporate Consumer Real Estate ■Net Financing Assets ■Sukuk Investments Interbank placement & CDs ■Investment in equities & properties ■Operating Cash ■ Others June 2020 Real Estate, 19% Breakdown of Financing Portfolio by Sector (%) June 2021 Real Estate, 21% Consumer, 25% Corporate, Consumer, Corporate, 54% 56% 25% Corporate covers all sectors except Real Estate 24 28 10 10 10 Sukuk Interbank Investment investment placements in Equities & CDs & Properties Highlights Corporate portfolio has amounted to AED 135 billion, despite significant prepayments. • Gross new amounted to AED 6.6 billion: consumer financing • This was driven by a 22% YoY increase in new home financing, as domestic real estate market activity gains traction 9#10Segmental Overview - Consumer بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew Management Commentary Breakdown by Portfolio - June 2021 Revenue Trends (AED mn) • Consumer financing now stands at AED 51 billion, supported by gross new financing of AED 6.6 billion, a 9% increase over the same period last year. This was primarily the result of a 22% YoY rise in new home financing. Home Finance, 42% 2,079 Personal Finance, 37% 1,796 451 400 AED 6.38% 51 bn 5.62% 1,627 1,396 1H2020 1H2021 . Auto, personal and home finance continued to be the key contributors to Auto Finance, 17% Cards, 4% the consumer portfolio. Segment Gross Financing / Deposits (AED bn) Fees & Commission, Others ONet Funded Income Yield on Financing CASA (AED bn) 34 32 41 73 2019 91 52 52 51 93 21 221 19 19 14 2020 Jun 2021 2019 2020 Jun 2021 Deposits Current Account Savings Account ■Gross Financing 10#11Segmental Overview - Corporate • Management Commentary Gross corporate financing remained stable at nearly AED 150 billion, despite significant prepayments during the period. Meanwhile, net operating revenue reached AED 1,578 million during 1H2021. Services, 15% • DIB has continued to maintain a well- diversified corporate financing book, across the primary sectors of the economy. Focus has remained on lower risk sectors such as sovereign and related entities. Segment Gross Financing / Deposits (AED bn) 114 92 2019 بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew Breakdown by Portfolio - June 2021 Revenue Trends (AED mn) Utilities, Automobile, Trade, 6% 3% 4% Aviation, 13% 1,713 1,578 318 325 Contracting, 3% 1,395 Financial AED 150 bn Institutions, 3% 4.0% 1,253 2.7% Government, 17% Real Estate, 30% Oil & Gas, 1% Manufacturing, 5% 1H2020 1H2021 Fees & Commission, Others Net Funded Income Yield on Financing CASA (AED bn) 19 18 18 17 150 150 125 12 114 8 2020 Jun 2021 2019 2020 Deposits Current Account ■Gross Financing Corporate banking charts reflect corporate and real estate, excluding treasury Jun 2021 Savings Account 11#12Segmental Overview - Treasury Management Commentary • • Gross Financing and Sukuk Investments increased 9% YTD, to AED 42 billion, despite the challenging environment. Large improvement in net operating revenue (+29% YoY) to nearly AED 1 billion. Rising revenues supported by growth in both net funded income and fees & commissions (+27% YoY, and +32% YoY, respectively). Treasury yields remained stable at nearly 4%. Segment Gross Financing & Sukuk (AED bn) 35 2019 38 Breakdown by Portfolio – June 2021 - بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew Revenue Trends (AED mn)* Services, 9% Aviation, 3% 996 Real Estate, 8% Financial Institutions, 14% 770 489 3.94% 370 AED 42 bn 3.72% 507 400 42 2020 ■Gross Financing & Sukuk 1H2021 *Based on shadow accounting for fees and commissions Government, 66% 1H2020 1H2021 Fees & Commission, Others O Net Funded Income Yield on Financing & Sukuk CASA (AED mn) 48 238 185 301 2019 2020 Current Account 55 492 1H2021 Savings Account 12#13Asset Quality Non-Performing Financing ("NPF ")¹ 3.9% 2019 بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew Financing Provisions and Coverage Ratios Overall Coverage Ratio² Provision Coverage Ratio 6.3% 135% 5.7% 2020 Jun 2021 Cumulative Provisioning (AED million) Provisions NPF Cost of Risk 1.37% 13,126* 1.03% 0.87% 12,061* 9,203 9,655 ** 6,310 6,333 2019 2020 Jun 2021 101% 104% 103% 76% 74% 2019 2020 Jun 2021 Highlights • NPF ratio increased marginally by 10 bps QoQ to 6.3%: . • The increase in NPF ratio is primarily due to overall asset growth remaining flat in 1H Core DIB NPF (excluding NMC and Noor POCI) at 4.9%, is at the lower end of the market range • Coverage ratio including collateral has remained above 100% • Declining cost of risk at 103 bps compared to 137 bps in at YE2020. ¹NPF ratio includes Bilateral Sukuk and is calculated as the sum of individually impaired 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; ** Total provision includes stage 1 & 2 ECL held in Noor Bank and PPA adjustments Cost of Risk - Being ratio of net impairment charge on financing assets (normalized) divided by the gross financing and investment in Sukuk. 13#14Asset Quality - Detailed Insights NPF (AED mn) NMC Noor POCI DIB - NPF DIB - NPF, 10,292 Coverage Ratio (%) AED 13,126 mn NMC, 1,660 Noor - POCI, 1,174 NMC Noor - POCI DIB-NPF بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew NPF Ratio (%) NMC Noor POCI DIB - NPF NMC, 0.8% Noor - POCI, 0.6% NPF 6.3% DIB - NPF, 4.9% COR (%) DIB - NPF NMC, 57% DIB - NPF, 84% Coverage 74% DIB - NPF, 1.03% COR 1.03% Noor - POCI, 5% 14#15Asset Quality (contd.) Islamic financing and investing assets (Gross Exposure by stages) Stage 1 (AED million) Stage 2 (AED million) Gross Exposure ECL Coverage* Gross Exposure - ECL Coverage* بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew Stage 3 and POCI (AED million) Gross Exposure ECL Coverage* 1.0% 8.0% 18,637 0.90% 64.9% 16,484 0.8% 59.8% 57.50% 12,102 176,545 6.6% 6.0% 171,415 138,667 13,127 12,061 6,225 2019 2020 Jun 2021 2019 2020 Jun 2021 2019 2020 Jun 2021 Expected Credit Loss (AED million) Stage 1 Stage 2 Stage 3 and POCI 6,919 4,039 6,332 Highlights • 1,076 966 1,133 936 931 1,039 • 2019 2020 Jun 2021 Sustained and conservative approach towards provisioning continued during 1H2021. • Stage 1 provision coverage maintained at nearly 1%, whilst Stage 2 coverage at 6.0%, is only slightly lower than 2020. Marginal decline in stage 3 coverage, which still remains strong, despite the underlying market conditions. 15#16Analysis of TESS (as at 30 June 2021) Segment (AED m) Outstanding deferrals Exposure Provisions Collaterals Group 1* Corporate Banking 2,066 22,894 307 24,805 Consumer Banking 6 3,837 69 2,362 Group 1 Total 2,072 26,731 376 27,167 Group 2** Corporate Banking 668 7,467 291 10,093 Consumer Banking 1 804 275 410 Group 2 Total 669 8,271 566 10,503 TOTAL 2,741 35,002 942 37,670 AED mn Corporate Banking Consumer Banking Total Total deferral 9,013 572 9,585 Outstanding deferral at year end 2020 3,613 14 3,627 Outstanding deferral as at 30 June 2021 2,734 7 2,741 * Group 1: Customers that are not expected to face substantial changes in their creditworthiness, beyond liquidity issues and are temporarily and mildly impacted by the COVID-19 crisis. ** Group 2: Customers that are expected to face substantial changes in their creditworthiness, in addition to liquidity issues that will be addressed by payment deferrals. بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew 16#17Funding Sources and Liquidity Funding Sources (AED bn) Due to banks & Fls ■Customers' Deposits ■ Equity ■Other payables ■Sukuk Customers' Deposits (AED bn) Customer Deposits Net Financing to Deposit Ratio* بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew Liquidity Coverage Ratio (LCR) Liquidity Coverage Ratio (%) 294 290 96% 92% 13 89% 232 40 43 142% 20 19 35 15 218 206 218 206 164 164 2019 2020 Jun 2021 Customer Deposits (AED 218 bn as at 30 June 2021) By Type Current Account, 24% 129% 152% 2019 2020 Jun 2021 2019 2020 Jun 2021 Highlights • By Business Investment Deposits, 59% Consumer, 43% Wholesale, 57% Savings Account, 17% *Net Financing to Deposit Ratio excludes Bilateral Sukuk Improving liquidity position: • LCR up 23% to 152% . NSFR up 4% to 107% Customer deposits grew 6% YTD, now reaching AED 218 billion CASA now stands at AED 90 billion (+5% YTD), and accounting for 41% of overall deposits • Wholesale banking continues to be the key contributor to deposit growth 17#18Capitalization Overview Regulatory Capital¹ (AED billion) ■ CET 1 AT1 Tier 2 Capital Ratios** CAR -CET1 Ratio بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew 41.4 39.3 17.5% 18.5% 16.5% 17.0% 2.6 2.6 31.3 11.9 8.3 2.2 6.4 12.4% 12.0% 12.0% 12.3% 26.9 28.4 22.7 2019 2020 Jun 2021 Dividend History² 2018 2019 2020 Jun 2021 Highlights • Capital ratios continue to be stable as at 30 June 2021, and are well above the regulatory requirements: • CAR is at 17.0% 45% 45% 45% 40% 35% 35% 20% • CET1 ratio is at 12.3% 25% 15% 2012 2013 2014 2015 2016 2017 2018 2019 2020 1 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 18#19Aligning towards UAE's sustainable ambitions (ESG) ENIVRONMENT FRIENDLY INITIATIVES 40+ 30 >50% NATIONALITIES LANGUAGES JAE NATIONALS WOMEN IN WORKFORCE 2016 26% 2020 35% بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew EMPLOYEE GROWTH & PEOPLE @ DIB GENDER DIVERSITY DEVELOPMENT Prominent player in the Green Islamic Capital Market SOVEREIGN GREEN SUKUK CORPORATE GREEN SUKUK الاتحاد REPUBLIC OF INDONESIA USD 3,000,000,000 USD 1.250m 3.7504 5.5* USD 1.7504400% 10y ILM & Bookrunner February 2018 "Graco Tranche WORLD'S 1 SOVEREIGN Green Iss REPUBLIC OF INDONESIA USD 2,000,000,000 USD 750mm 8900% Syr USD 1,2504450% 10y JH & Booknunner February 2019 Green Tranche 2ND SOVEREIGN Green Sucuk Issued fry indonesia REPUBLIC OF INDONESIA USD 2,500,000,000 USD 750m2.30% 5yrs) USD 1,000mm 2.80% 10y USD 750mm 3 60% 30yr ILM & Bockrunner June 2020-Green Tranche 3RD SOVEREIGN Green Sucuk Iss sed by Indonesia ماجد الفطيم MAJID AL FUTTAIM MAJID AL FUTTAIM USD 600,000,000 4.538% 10yr Sukuk JLM & Bouk May 2019 WORLD'S 1st INT'L CORP SUKUK Creen issue ماجد الفطيم MAJID AL FUTTAIM MAJID AL FUTTAIM USD 600,000,000 3933% Long 10yr Sukuk JLM Z Buku October 2019 2nd INT'L CORP SUKUK Green Issue ETIHAD ETIHAD AIRWAYS USD 600,000,000 2.3945 Transition Suku JUM & Bookrunner October 2020 WORLD'S 1ST AVIATION Sustainability-linked issue 19#20Contents 1 Overview 2 Financial Performance 3 4 Strategic Focus & Theme - 2021 Appendix#21Strategic Theme - 2021 (P.I.N.G) بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew PROTECT INNOVATE NURTURE 7991 GROW 2021 - Target Metrics Growth 5% 0.3% NPF 5.5% 6.3% Real Estate Concentration ~ 20% Return on 1.4% 21% Assets 1.3% Net Profit Margin 2.5% -2.6% 110% * Cost Income ~28% Return on 11% Total Coverage 2.54% 103% Ratio 26.9% Equity 10.4% Including collateral 21#22Contents 1 Overview 2 Financial Performance 3 Strategic Focus & Theme - 2021 4 Appendix#23DIB - A more resilient franchise enters 2021 میرا Increasing domestic market share Growing international footprint Strengthened and diversified balance sheet Strong advancement of digital capabilities اشا Sustained profitability through the years بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew Robust capital and liquidity I Strengthened disclosures & transparency Noor Bank fully integrated 23#24The Way forward.. Introducing the NEW: V-P-V-P (Vision - Purpose - Values-Proposition) Our Vision To be the most progressive Islamic financial institution in the world. Our new Purpose To make financial solutions simple, convenient and accessible through a personal and engaging experience. Our new Values C A RE INCLUSIVE COLLABORATIVE AGILE RESPONSIBLE ENGAGED Our new Tagline #Ready For TheNew بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew 24#25ESG IN EVERYTHING WE DO As an Islamic bank, through the years, DIB has always been at the forefront in promoting economic diversity and development. Over the past decade, more than AED 2 billion was contributed by the bank to support various sectors including education, healthcare, poverty alleviation, to name a few. #ICARE 25#26Aligning towards UAE's sustainable ambitions (ESG) بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew ESG @ DIB Dubai Islamic Bank is committed towards sustainability. Focusing its efforts to align with the initiatives of the UAE Government and regulators within the country, the collective objective is to keep up with global standards and build a longstanding culture that will help make the UAE and the world at large a better place to live in. For us at DIB, ESG is a commitment to improve the environment which also helps us in our global business strategy, relationship with stakeholders, investors and partners, building sustainable operations, supporting employees across the group and managing risks. ENVIRONMENT FRIENDLY INITIATIVES At DIB, we are committed to protecting the environment and doing our bit to preserve the planet for the future generation. There are several initiatives implemented in this regard. Prominent player in the Green Islamic Capital Market SOVEREIGN GREEN SUKUK CORPORATE GREEN SUKUK ▸ Starting 2014, introduced Energy Efficient (Energy Saving) LED Lights fixtures in all offices and over 60 branches in the UAE ▸ Optimisation of Water Consumption by installing Tap Aerators/Flow Regulators at Branches across the UAE الاتحاد REPUBLIC OF INDONESIA REPUBLIC OF INDONESIA USD 3,000,000,000 USD 2,000,000,000 USD 1.250m 3.750455* USD 1.750m 4.400% 10 ILM & Booknunner February 2018 "Green Tranche WORLD'S 1 SOVEREIGN Green Iso USD 750mm 3900% 5 USD 1,2504450% 10y J.H & Booknunner February 2019 *Green Tranche 2ND SOVEREIGN Green Sukuk Issued fry Indonesia REPUBLIC OF INDONESIA USD 2,500,000,000 USD 250 2.305) USD 1,000 2.80% 10 USD 750m 3 60% 30yr LM & Bockrunner June 2020-Green Tranche 3RD SOVEREIGN Green Sack Issued by Indonesia ماجد الفطيم MAJID AL FUTTAIM MAJID AL FUTTAIM USD 600,000,000 4.538% 10yr Sukuk JLM & Bouku May 2019 WORLD'S 1st INT'L CORP SUKUK Creen issue ค ماجد الفطيم MAJID AL FLTTAIM MAJID AL FUTTAIM USD 600,000,000 3933% Long 10yr Sukuk JLM & Buku October 2019 2nd INT'L CORP SUKUK Green Issue ETIHAD ETIHAD AIRWAYS USD 600,000,000 2.394 5 Transition Subuk JUM & Bookrunner October 2020 WORLD'S 1ST AVIATION Sustainability-linked Issue 26#27Employee Growth & Development EMPLOYEE GROWTH & DEVELOPMENT A successful organisation can remain successful as long as its employees are happy, dedicated and motivated, and this is another area that DIB is continuously striving to improve. The group is working tirelessly to enhance employee satisfaction and motivation by instilling a sense of purpose and belonging which in turn increases the overall productivity. بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew GENDER DIVERSITY WOMEN IN WORKFORCE 2016 26% 2020 35% Gender diversity is another area that DIB excels in with over 35% of staff being women. The bank has ensured that women are present at all levels and divisions within the organisation. DIB has plans to further improve its gender balance at the senior management level by including women in executive positions. The objective is to have no glass ceiling for women, so that they may aspire to grow and excel in their roles within the banking group. PEOPLE @ DIB 40+ 30 >50% NATIONALITIES LANGUAGES UAE NATIONALS Originating as a home-grown bank which as now become a multinational financial powerhouse, DIB's organisational framework from an employee standpoint is synonymnous with the population mix of the UAE. The banking group comprises of employees from over 40 nationalities, who can speak nearly 30 languages. While at the same time, DIB has taken great care to ensure all efforts are placed to promote UAE Nationals in the workforce and testimony of this is the fact that it can boast having one of the largest Emirati (UAE National) employee base amongst banks in the country. 27#28Business Continuity & Corporate Governance BUSINESS CONTINUITY PLANNING BUSINESS تهم 888 80 بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew CORPORATE 888 GOVERNANCE DIB has implemented business continuity planning (BCP) and disaster recovery (DR) systems to prepare for unexpected business disruption events. Business continuity testing is carried out on an annual basis for all of the Group's critical systems. In addition, each year a plan is put in place to perform disaster recovery drills for such critical systems. The Group reviews its BCP and DR capabilities on an ongoing basis and updates them to include the latest technologies and handle any new threats to the Group's business. CONTINUITY 15 PLANNING The Board of Dubai Islamic Bank is responsible for the overall management of the Group and for ensuring that proper standards of corporate governance are maintained. The Board is sufficiently diverse in its outlook and collectively has the appropriate balance of skills, experience, independence and knowledge to enable it to perform its duties and responsibilities effectively. DIB REMAINS COMMITTED TO DELIVER SUSTAINABLE VALUE TO ITS SHAREHOLDERS AND PROMOTE A CULTURE OF TRANSPARENCY. WITH ROBUST PROCESSES AND POLICIES IN PLACE, THE BANK ENSURES THAT IT OPERATES WITH THE HIGHEST STANDARDS OF CONDUCT WHICH IS INTEGRAL TO IT'S LONG TERM GROWTH STRATEGY OF MAKING ISLAMIC FINANCE THE NORM AROUND THE WORLD. 28#29Consolidated 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 #Ready For TheNew 1H2021 Reviewed 1H2020 FY2020 FY 2019 Reviewed Audited Audited 4,448 5,537 10,370 10,723 836 873 1,646 1,483 13 44 50 65 52 30 54 126 55 34 83 295 96 (1) 20 58 342 307 919 934 5,842 6,824 13,142 13,684 (1,214) (2,101) (3,671) (4,418) 4,628 4,723 9,471 9,266 (715) (927) (1,699) (1,587) General and administrative expenses (436) (447) (838) (632) Depreciation of investment properties (31) (27) (57) (37) Depreciation of property, plant and equipment (64) (69) (134) (102) Total Operating Expenses (1,246) (1,470) (2,728) (2,358) Profit before net impairment charges and income tax expense 3,382 3,253 6,743 6,908 Impairment charge for the period, net (1,498) (2,120) (4,552) (1,763) Gain on Bargain Purchase 1,015 1,015 Profit for the period before income tax expense 1,884 2,148 3,206 5,145 Income tax expense (20) (30) (46) (42) Net Profit for the period 1,864 2,118 3,160 5,103 Attributable to Owners of the Bank Non-Controlling Interests 1,854 2,121 3,294 5,015 10 (3) (134) 88 29#30Consolidated 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 #Ready For TheNew 30 June 2021 Reviewed 31 Dec 2020 Audited 34,065 29,206 31 Dec 2019 Audited 21,268 2,808 6,448 6,248 194,290 196,689 150,913 38,517 35,355 33,244 1,196 1,111 1,266 1,933 1,939 1,977 1,376 1,391 1,337 5,904 5,947 5,209 12,242 10,040 8,743 1,451 1,431 1,590 293,782 289,556 231,796 Liabilities and Equity Liabilities Customers' deposits Due to banks and financial institutions Sukuk financing instruments Payables and other liabilities Total Liabilities Equity Share Capital 218,309 205,925 164,418 7,222 13,496 9,147 20,594 18,744 14,852 8,133 8,261 8,646 254,259 246,426 197,063 7,241 7,241 6,590 Tier 1 Sukuk 8,264 11,937 6,428 Other Reserves and Treasury Shares 13,785 13,785 11,113 Investments Fair Value Reserve (1,019) (1,102) (1,175) Exchange Translation Reserve (1,269) (1,177) (1,095) Retained Earnings 9,926 9,860 10,131 Equity Attributable to owners of the banks 36,928 40,544 31,993 Non-Controlling Interest 2,595 2,587 2,739 Total Equity 39,523 43,131 Total Liabilities and Equity 293,782 289,556 34,732 231,796 30#31◉ Dubai Islamic Bank at a Glance Preserving long term value for our customers and shareholders Dubai Islamic Bank ("DIB" or the "Bank") was established in 1975 as the world's first full service Islamic bank by an Emiri Decree. بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew " 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 More than 10,000 employees across the Group Saeed A. Lootah, 6.54% Investment Corporation of Dubai (ICD), 27.97% Around 56 branches and more than 584 ATMs and CDMs across UAE 3 million + customers globally FOL approved by shareholders to 40% Designated ("D-SIB")* in 2018 *Domestic Systemically Important Bank Significant Subsidiaries and Associates وار الفرن TAMWEEL 92.0% 100.0% THE HOME OF HOME FINANCE DAR AL SHARIA بنك دبي الإسلامي Dubai Islamic Blank Pakistan BBI® Bosna Bank International بنك الخرطوم 100.0% Bank of Khartoum 27.3% ـار 44.9% DEYAAR Ownership (as at 30 June 2021) Public, 65.50% Credit Ratings Moody's Fitch 29.5% A3 Negative A Stable Panin Dubai Syariah Bank 25.1% DIB Bank Kenya Limited 100.0% APSC NOOR BANK 100% Islamic International Rating Agency (IIRA) A/A1 Positive UAE Branch Network International Geographic Presence Existing Presence & Branch Numbers Bosnia (35) Turkey Pakistan (235) Sudan (128) UAE (56) Indonesia (11) + (23) on shared basis Kenya (5) 31#32DIB's Key Business Lines Core Business Profiles Consumer Banking Corporate Banking Offers its retail and business banking services through a network of 56 branches and more than 584 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. بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew 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 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. 32#33DIB's Digital Journey PAPERLESS BRANCHES INTRODUCED Simplified branch visit with handheld devices to fill forms and complete transactions SUCCESSFULLY LAUNCHED Tablet-based banking Instant Credit Card printing in branches Single page account opening form DIGITAL DEPARTMENT CREATED Introduction of DIB Chatbot Revamp of DIB Website, Online Banking, DIB Mobile App بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew JOURNEY TOWARDS DIGITALLY INTELLIGENT BANK PF & Credit Cards on Mobile App - Salary transfer (existing customers) Remote signing of contracts - non digital customers 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 D 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 Journeys Personal Finance for Salary Transfer Relationship customer (New /Existing) was launched on Internet Banking and Tablet Set Foundation for Digital Academy & Advanced Analytics 33#34Acquisition of Noor Bank - key milestones From a pioneering Islamic bank to becoming a powerhouse in Islamic finance بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew MARCH Integration Management Office MAY & JUNE Entered execution phase of the Integration and completed key deliverables on policies and operating model. Data migration in progress. OCTOBER Noor Bank fully integrated with Dubai Islamic Bank APRIL BOD approval to consider acquisition of Noor Bank SEPTEMBER Central Bank of UAE approval on acquisition of Noor Bank DECEMBER General Assembly approved the acquisition constituted to drive integration 2019 Q2 Q3 Q4 2020 Q1 Q2 Q3 Q4 JUNE BOD resolved to recommend the acquisition 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. Current focus is on Cutover readiness and Dress Rehearsals Key Highlights ✓ 8 MONTHS To deliver the programme- A record in UAE Banking History ✓ Around 125K Number of customers migrated ✓ 100+ Number of Systems involved I 34#35DIB experience in Green/Sustainability Sukuk الاتحاد Sovereign Green Sukuk بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew Corporate Green Sukuk ماجد الفطيم ETIHAD AIRWAYS Etihad Airways USD 600,000,000 2.394% 5yr Transition Sukuk JLM & Bookrunner Oct 2020 Republic of Indonesia Republic of Indonesia Republic of Indonesia USD 3,000,000,000 USD 1,250mn 3.750% 5.5yr* USD 1,750mn 4.400% 10yr JLM & Bookrunner Feb 2018 World's 1st Aviation Sustainability-linked Issue *Green Tranche World's 1st Sovereign Green Issue S USD 2,000,000,000 USD 750mn 3.900% 5yr* USD 1,250mn 4.450% 10yr JLM & Bookrunner Feb 2019 *Green Tranche 2nd Sovereign Green Sukuk Issued by Indonesia USD 2,500,000,000 USD 750mn 2.30% 5yr* (Green) USD 1,000mn 2.80% 10yr USD 750mn 3.80% 30yr JLM & Bookrunner Jun 2020 *Green Tranche 3rd Sovereign Green Sukuk S Issued by Indonesia MADAL PUTTAIM Majid Al Futtaim USD 600,000,000 4.638% 10yr Sukuk JLM & Bookrunner May 2019 ub World's 1st Int'l Corp Sukuk Green Issue ماجد الفطيم MAJID AL FUTTAIM Majid Al Futtaim USD 600,000,000 3.933% Long 10yr Sukuk JLM & Bookrunner Oct 2019 2nd Int'l Corp Sukuk Green Issue ubumb 35#36Select Award & Accolades World EMEA Finance ME Banking Awards Best Sukuk House in UAE Best Private Bank in UAE Islamic Banking Conference Best Islamic Bank (Financial Performance) 2019 Enterprise Agility Awards Islamic Bank of the Year Forbes ME Islamic Finance Dr. Adnan Chilwan ranked #1 in the "Top Indian Executives making impact in the Middle News Awards Emirates Institute for Banking and Financial بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew The Asian Banker Awards Most Recommended Bank in the Middle East for Home Loan CMD Portal. Awards Best Sukuk Dealer Forbes ME DIB ranked 16th amongst Top 100 Companies in the Middle East Studies Dubai Islamic Bank was recognized for its efforts in the Emiratisation domain Forbes ME DIB ranked 15th amongst Top 100 Companies in the Middle East 2021 Islamic Finance News Awards 2020 Best Islamic Bank in the UAE • • UAE Deal of the Year (6th year in row) • Overall Best Islamic Bank • Sovereign Deal of the year Overall Best Islamic Bank Social Impact Deal of the Year Sovereign Deal of the Year • Indonesia Deal of the Year • UAE Deal of the Year East" Award 2019 • Most Innovative Deal of the year • Best Islamic Bank in Kenya • Hybrid Deal of the Year • Best Islamic Retail Bank • Best Islamic Bank in Kenya EMEA Finance Best Financial • Institution Sukuk by EMEA Finance Achievement Awards • 2019 2021 Islamic Finance News Awards Best Islamic Retail Bank Commodity Murabahah / Tawarruq Deal of the Year • Indonesia Deal of the Year Mudarabah Deal of the Year Perpetual Deal of the Year • UAE Deal of the Year • Best Islamic Bank in Kenya (DIB Kenya) • Structured Finance Deal of the Year (DIB Pakistan) 36#37THANK 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: 4 P. O. Box: 1080, Dubai, UAE ☎ +971 4 2075 454 [email protected] www.dib.ae/about-us/investor-relations -D Google play *WINNER Islamic Business & Finance Best Investor Relations Available on the App Store بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew 37