#1Investor Presentation H1 2022 July 2022 ADIB مصرف أبوظ الإسـ ــلامـ الي ADIB IR Website IR App Download link: Downlood C App Store Google Play#2= Contents H1 2022 Investor Presentation 1 = 2 2 = 3 II ADIB Profile Operating Environment Strategy Financial Performance = 4 5 Segmental Performance 6 II 7 Performance Track Record Appendix مصرف أبوظبي الاسلامي ADIB 2#3ADIB Profile H1 2022 Investor Presentation ADIB ப الإسـ مصرف أبوظ لام 1234567#4Abu Dhabi Islamic Bank Today ADIB is a digitally advanced Islamic Bank serving as a lifelong partner for its customers, colleagues and community مصرف أبوظبي الاسلامي ADIB #1 Bank for UAE Nationals A Leading Islamic Bank Advanced Digital Bank Leader in Customer Satisfaction 15% UAE retail market share AED 142bn Total Assets 67% Digitally Active Customers 55% 146 Market share of UAE Branches 47% Digital sales Nationals in Abu Dhabi 400K UAE Nationals 520 ATMs 95% Straight Through Processing #1 in UAE NPS #1 in Islamic banking Banker Magazine Best Islamic Bank #1 Digital Best Islamic Digital Bank by Global Finance 4#5= ADIB Key Highlights ADIB is a leading UAE Bank and one of the largest Islamic banks world-wide Presence in 7 markets United Kingdom Iraq Qatar Egypt United Arab Emirates Sudan Saudi Arabia Value Drivers (1H 2022) مصرف أبوظبي الاسلامي ADIB Market leader Net Profit Margin 3.13% Cost of Risk 0.42% ROE 17.3% ROA 2.12% CASA Ratio 75.3% 1.74x Total Assets AED 142 bn Financing AED 97bn Net Income AED 1.4 bn C/I Ratio 40.9% Employees Customers Market Cap* P/B Ratio* 5,000 1mn AED 27 bn Solid Ratings MOODY'S A2 Stable Outlook Fitch Ratings A+ Stable Outlook MSCI ESG RATINGS A * At 30/06/2022 EPS AED0.36 Investments AED 19 bn Deposits AED 115bn Revenues AED 2.8bn CAR 18.0% LO 5#6= Business Segments ADIB's business is comprised of 4 main segments % of Group Revenue Business Segment Description 57% Retail Banking مصرف أبوظبي الاسلامي ADIB Targets individuals and SME entities with main focus on UAE Nationals and mass affluent segment Product ranges offered include everyday banking products such as current accounts, deposits, cards, finance, wealth products, etc. 17% Wholesale Banking 11% Treasury Focuses on large corporates, Governments, GRES and Fls Product offerings include investment and corporate finance, corporate banking, contracting and commercial banking, transaction banking, liquidity, trade finance, payments and cash management services. ADIB offers wholesale banking internationally in Iraq, Qatar and Sudan. Offers risk management; an active investor in the global sukuk market, offering investment opportunities to customers and using debt assets to manage the bank's balance sheet. Expertise in FX, rates, hedging, money markets, equity and debt execution. Treasury also manages ADIB's balance sheet and asset/liability mix. C 15% • Other ADIB is present in the following countries for the following services: ADIB UAE offers IBG, private banking and real estate asset class • ADIB Egypt caters to the needs of corporate and retail customers. • ADIB UK offers commercial and industrial real estate asset class 6#7= Consistent dividend distribution ADIB consistently distribute dividends with average yield of 4% Shareholder Return Metrics 8.00 7.00 6.00 5.00 4.00 3.00 Share Price 9.9% 2.00 8.0% 1.00 Dividend Yield 0.00 مصرف أبوظبي الاسلامي ADIB 7.6% 6.2% 6.5% 7.0% 5.1% 4.1% 4.4% 4.5% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Net Profit in AEDmn 1,201 1,450 1,751 1,934 1,954 2,300 2,501 2,601 1,604 2,330 Cash Dividend Payout Ratio 50.0% 50.0% 40.0% 39.8% 39.8% 39.8% 39.8% 38.2% 46.6% 48.5% (% of Net Profit) Cash Dividend (% of Share Capital) 25.4% 30.7% 23.3% 24.3% 24.5% 28.9% 27.4% 27.4% 20.6% 31.1% Cash Dividend in AEDmn 601 725 700 769 777 915 994 994 747 1,130 Bonus shares Bonus Shares (% of Share Capital) 635.3 26.9% 7#8- = Market Metrics & Ownership Structure ADIB is a liquid stock with 14% foreign ownership Key Metrics* 11.00 10.00 Market Cap AED 27bn Free Float 52 w High 9.00 40% AED 10.00 8.00 7.00 6.00 5.00 3.99 4.00 3M ATVR 36% FOL Limit 40% 52 w Low 3.00 AED D5.36 2.00 ADIB Stock Liquidity 50% 45% 4,594 40% 35% 3,316 3,523 30% 25% 20% 27% 15% 19% 10% 5% 0% FY2019 FY2020 FY2021 * At 30/06/2022 22% 31 Mar 2020 30 Jun 2020 30 Sep 2020 5,626 Ownership Structure* Foreign Ownership 14.1% 13% 1H2022 (annualized) Value traded (AED M) --Velocity (%) Other UAE Nationals 38.9% 31 Dec 2020 31 Mar 2021 30 Jun 2021 30 Sep 2021 31 Dec 2021 31 Mar 2022 مصرف أبوظبي الاسلامي ADIB 30 Jun 2022 Emirates International Investment Company 39.4% Mamoura Diversified Global Holding Company 7.6% 8 7.50#9- مصرف أبوظبي الاسلامي Digital Banking Progress made on ADIB's digital strategy is reflected in UAE's highest customer ratings and other key digital metrics. Digitally Active Customers (%) Digital Sales (% of Total) Auto Digital Ecosystem ADIB turbo 80% 70% 70% 71% 70% 57% 60% 62% 63% 64% 65% 67% 60% 50% 60% 40% 50% 31% 40% 30% 30% 20% 20% 10% 10% 0% 0% 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 54% 51% 51% 46% 47% 44% 44% 42% 40% Amwali Youth Bank Account 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 Facial Recognition Account Opening Digital Transfers (%) = Straight Through Processing (%) 99.8% 100.0% 99.5% 99.7% 99.8% 100% 99.5% °99.5% 99.3% 94% 95% 95% 95% 95% 95% 99.5% 99.1% 95% 99.0% 91% 91% 89% 99.0% 90% 98.4% 98.5% 85% 82% 98.0% 80% 97.5% 75% 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 burb: a أموالي amwali = API Developer Portal plot </> Al Ghaf Initiative for Paperless Branches ALGHAF GO ALGIL 9#10= Recent Achievements and Accolades ADIB's recognition for excellence in Islamic banking Awards received مصرف أبوظبي الاسلامي ADIB Forbes #1 UAE bank on Forbes' List of the World's Best Banks 2021 IFN Best Islamic Bank in the UAE, Iraq and Egypt MEA Finance Best Digital Banking Innovation Implementation Global Finance Best Islamic Bank in the UAE and Egypt IFN Best Bank in Treasury Management Global Finance Best Islamic Digital Bank The Asian Banker Most Helpful Bank in the Middle East during Covid19- Pandemic Digital Banker Best Digital Banking Innovation The Asian Banker Best Digital Bank Global Finance Outstanding Crisis Finance Innovations for the Middle East Gulf Customer Experience Awards Best Digital Transformation Strategy The Asian Banker Best Islamic Bank in the Middle East 10#11= Outlook and Guidance Improving economic fundamentals and solid YTD financial performance drive a promising outlook for 2022 Market Outlook GDP growth from rising oil prices Real GDP growth (%) 2.3% -6.1% 2020 2021 Expected improvement in oil prices Brent Price/Barrel (avg) (USD) 42 2020 70 2021 Return from deflation to inflation UAE Inflation (avg) (%) 0.2% -2.1% 2020 2021 مصرف أبوظبي الاسلامي ADIB Management Guidance 1H 2022 Reported FY 2022 Guidance as at 1Q 2022 FY 2022 Guidance Revised Gross Financing Growth 4.2% Executing ADIB's growth strategy against the backdrop of an expected economic expansion +4% 5% to 7% 5% to 7% Net Profit Margin 2022 Early benefit of expected rate hikes offset by continued competitive yield pressure 3.13% 2.90% to 3.10% 3.35% to 3.45% - Cost of Risk 111 Stable credit quality outlook and continued build-up of prudent 0.42% 0.60% to 0.70% 0.60% to 0.70% 2022 provisioning - Cost to Income Ratio 2.1% Stable cost base from disciplined management and digital efficiencies with expected growth in revenue 40.9% 38% to 40% 37% to 39% = Net Income Growth 2022 Healthy financing growth, stable NPM and COR, and positive "Jaws" drive expected solid profit growth +30% 15% to 20% 20% to 25% 30% Return on Equity Expenditure expected to remain at 2020 level Government expenditure % of GDP (%) 33% 31% 2020 2021 2022 Solid expected profit growth and focus on capital-efficient income growth expected to drive further ROE increase 17.3% 15% to 17% 17.5% to 18.5% 11#12Operating Environment 1H 2022 Investor Presentation ADIB ப الإسـ مصرف أبوظ لام 1 234569 7#13= UAE Economic Environment The economic environment steadily improved in 1H 2022 Real GDP Growth (%) and Nominal GDP (AEDbn) 20% 1,841 2000 15% 1,551 1,532 1,506 1,318 1500 10% 3.4% 4.2% 5% 1.2% 2.3% 1000 0% -6.1% 500 -5% -10% 2018 2019 UAE Inflation (avg) (%) 3.1% UAE Nominal GDP Brent Price/Barrel (Avg) (USD) 71.0 64.0 42.3 70.4 مصرف أبوظبي الاسلامي ADIB 110.8 0 2020 2021 2022 2018 2019 2020 2021 2022 Real GDP growth -1.9% -2.1% 0.2% 3.7% Government Expenditure % of GDP (%) 31% 29% 33% 31% 30% 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 13#14= UAE Banking Sector Update (1) Modest financing growth in recent years reflecting economic conditions and banking sector penetration Financing, Advances & Overdrafts (AEDbn) = Size of the UAE Banking Sector = YOY 1,656 1,759 +5% CAGR 1,779 1,794 1,832 2018 2019 2020 2021 +6% +1% +1% 1Q 22 +2% YTD Bank Deposits (AEDbn) +6% CAGR 1,756 1,870 1,885 1,997 2,006 2018 2019 YOY +7% Sources: UAE Central Bank, Economic Intelligence Unit 2020 2021 1Q 22 +1% +6% +0.5% YTD مصرف أبوظبي الاسلامي ADIB UAE Gross Banking Assets (03/2022) AED 3.3tr UAE Gross Banking Assets (as % of GDP) 221% Market Landscape (03/2022) 82% Share of Conventional Banks (Total Assets) 18% Share of Islamic Banks (Total Assets) 12% Share of Foreign Banks (Total Assets) 14#15= UAE Banking Sector Update (2) Strong sector capitalization and liquidity but lower rate environment impacting profitability - مصرف أبوظبي الاسلامي ADIB Capitalization (%) Liquidity (%) 19% 18.2% 90% 81.0% 77.6% 77.3% 17.7% 80% 82.3% 79.4% 18% 17.2% 17.5% 70% 17% 17.1% 60% 16% 16.2% 17.1% 50% 16.5% 16.0% 40% 16.1% 15% 30% 18.1% 18.4% 19.6% 14.3% 20% 14% 14.9% 14.7% 14.2% 17.5% 19.0% 10% 14.2% 13% 0% 2018 2019 2020 2021 1Q 22 2018 2019 2020 2021 1Q 22 -CET1 ratio T1 ratio CAR ratio Interest Rates (%) 3% 2.57% 3% 2.38% 2% 2.33% 2% 1% 1% 0% 2018 Lending to Stable Resources Ratio Eligible Liquid Assets Ratio (ELAR) Yield and Funding Cost (%) 6% 5.50% 5% 4% 5.00% 3.80% 3.60% 3.80% 3% 1.32% 1.60% 0.65% 2% 1.03% 1.70% 1.00% 0.37% 0.80% 1% 0.80% 0.21% 2021 0% 1H 22 2018 2019 2020 2021 1Q 22 0.43% 2019 2020 LIBOR: USD 3M Average Sources: UAE Central Bank, S&P Capital IQ EIBOR: AED 3M Average Average cost on bank deposits Average yield on credit 15#16ADIB Strategy 1H 2022 Investor Presentation ADIB ப الإسـ مصرف أبوظ لام 1234567#17= A changing banking landscape The global banking industry is experiencing an era of transformation and opportunity Digitalization Drive Low Rate Environment Sustainability Focus Fintech Disintermediation Regulatory Pressure مصرف أبوظبي الاسلامي ADIB 17#18= ADIB Strategy 2025 ADIB has launched strategy 2025 with a renewed purpose and vision Purpose Vision ▸ 4-Pillar Strategy Lifelong partner for customers, colleagues and community The world's most innovative Islamic bank AAA Continuous Innovation Segment Focused Digital Excellence Sustainable Future مصرف أبوظبي الاسلامي ADIB 18#19= ADIB 2025 Strategy Continuous Innovation in Sharia-compliant banking products ▸ Continuous Innovation Continuous Innovation ■ Innovate Sharia-compliant banking products ■ Re-engineer our processes ■ Develop Islamic banking experts Launch digital ventures and new business models مصرف أبوظبي الاسلامي ADIB Segment Focused Digital Excellence Sustainable Future 19#20= ADIB 2025 Strategy Build on strength in Emirati retail segment and expand underweight business segments ▸ Segment Focused Continuous Innovation AAA Segment Focused ■ Grow and strengthen existing segments ■ Focus on Emirati throughout their lifecycle ■ Develop Business Banking ■ Expand offerings to large and mid corporations مصرف أبوظبي الاسلامي ADIB Digital Excellence Sustainable Future 20#21= ADIB 2025 Strategy Become a digital first financial institution ► Digital Excellence Continuous Innovation Segment Focused Digital Excellence ■ Elevate customer convenience through digital ■ Build a modern technology foundation for staff ■ Become a data-driven company through advanced analytics and Al ■Reskill staff and enable them with new digital tools and capabilities مصرف أبوظبي الاسلامي ADIB Sustainable Future 21#22= ADIB 2025 Strategy Embed sustainability and ESG frameworks into our existing Islamic banking DNA ▸ Sustainable Future Continuous Innovation Segment Focused Digital Excellence رواح مصرف أبوظبي الاسلامي ADIB Sustainable Future Focus on employee wellbeing ■ Develop ESG risk framework and policies ■ Develop Group sustainability strategy and roadmap ■ Elevate risk, compliance and governance profile ■ Develop and Strengthen existing talents 22#23= Update on Strategy Progress ADIB continues to deliver on its strategy in 1H 2022 Continuous Innovation Segment Focused Key product launches Amwali Youth Account Asset Management • Launch of API Developer Portal plot +7,478 $162 mn • New land finance product Exclusive partnership deal with Visa Accounts Global Sukuk Fund UAE Nationals Grow wholesale banking Retail sales Attract new customers +21,346 +16.4% +31% +48,000 New to bank UAE Nationals Financing growth YoY Asset growth YoY New customers مصرف أبوظبي الاسلامي ADIB Payment Service AED 3.9 mn Revenue Deepen relationships 1.50 Cross-sell Ratio Digital Excellence Digitize processes Digitize channels Automate processes Leverage digital channels Paperless strategy: 99% 99% Payments: Volumes received from Mobile App & Online Channels Digital transfers 44% Personal finance 69 bots 4.70/5 4.54/5 AppStore rating * Google Play rating 2m Papers Saved (2021) Sustainable Future Leader in financial conduct Employer of choice 1st ESG report MSCI GRI 78% Employee engagement index Best customer experience #1 Number 1 bank NPS in UAE: 78% ESG RATINGS GRI accreditation 23#24= Committed to Sustainability Supporting ESG Initiatives Sustainable Future Leader in Financial Conduct Employer of Choice MSCI A 'A' ESG rating (MSCI) 78% Employee engagement index مصرف أبوظبي الاسلامي ADIB Best Customer Experience #1 Number 1 bank NPS in UAE: 78% Environment Green Finance Low Carbon Operation Plantation Electric Cars 11 4 Green building certificates 50k Mangrove trees 3 Electric charging stations installed at different locations planted Green finance deals 2mn Papers saved 13kg Plastic recycled Social Create Economic Value Diversity & Inclusion Social Impact Empowering the Underbanked 40% Emiratization rate TESS Relief Program Responsible Governance Practices 36% Women in the workforce 12 Charity organizations 7,000 386 Youth empowered by Amwali ATM (people of determination) Governance Compliance & Risk Management 6 Board committees 5 Independent Board members * AAOIFI & IFSB complaint *Consumer protection guidelines 1st ESG Report Launched 24#25= ADIB Strategy 2025 Strategic Targets A commitment to driving value ROE Net Profit C/I Ratio NPS 20% 2x <36% #1 STP >85% مصرف أبوظبي الاسلامي ADIB 25#26Financial Performance 1H 2022 Investor Presentation ADIB ப الإسـ مصرف أبوظ لام 123 3 4 6 7 599#27= Income Statement Highlights Strong YoY growth in profitability driven by revenue growth and OPEX optimization = Profit After Zakat & Tax (AEDmn) 1,109 1H 21 +30% Revenues (AEDmn) 2,644 1H 21 1,442 Expenses (AEDmn) 1H 22 Key Highlights The rebound in UAE economic activity and an improvement in business momentum lifted revenues by 7% Profit growth was further boosted by a 0.2% YoY reduction in expenses The improved economic outlook allowed us to keep impairments stable YoY 1,162 1H 21 Impairments (AEDmn) +7% -0.2% -38% 367 1H 21 2,838 1H 22 1,160 1H 22 227 1H 22 مصرف أبوظبي الاسلامي ADIB 27#28= Income Statement 30% growth in profitability underscored by positive increases in our assets, revenue and gross financing Net Income (AEDmn) Net Income Movement YoY (AEDmn) مصرف أبوظبي الاسلامي ADIB 800 700 728 715 726 600 608 501 493 +30% 500 400 300 139 1,109 82 112 2 1,442 200 -2 100 0 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 Profit after zakat & tax 1H 21 Funded income Non-funded income Expenses Impairments Zakat & tax Profit after zakat & tax 1H 22 +5% +11% -0% -38% +31% Income Statement Highlights AED (mn) 1H 2022 1H 2021 A% 2Q 2022 2Q 2021 A% Net Income Movement by Segment YoY (AEDmn) +30% Funded income 1,669 1,587 +5% 880 803 +10% 160 26 1,109 103 140 1,442 6 Non-funded income 1,169 1,057 +11% 549 506 +8% -101 Revenues 2,838 2,644 +7% 1,429 1,309 +9% Operating expenses (1,160) (1,162) -0% (583) (570) +2% Profit after zakat & tax Retail Wholesale Private Treasury Real estate Other Provision for impairment (227) (367) -38% (114) (233) -51% 1H 21 Profit after zakat & tax 1H 22 Net Income after zakat and income tax 1,442 1,109 +30% 726 501 +45% +19% -160% -171% -26% -738% +184% 28#29= Non-Funded Income Robust fee generation drives 11% YoY growth in non-funded income Non-Funded Income (AEDmn) Non-Funded Income Movement YoY (AEDmn) +8% 667 1,057 620 551 506 549 491 -51 +11% 48 118 مصرف أبوظبي الاسلامي ADIB 1,169 -3 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 QoQ -8% -3% +36% -7% 2Q 22 -12% Non-funded income 1H 21 Investment income Fees and commission income Foreign exchange Other income income Non-funded income 1H 22 -11% +26% +41% -46% Non-Funded Income Composition (%) Foreign exchange income 14.1% Risk participation 5.4% Trade related 3.4% Cards income 13.7% Other 3.9% Fee & Commission Income Movement YoY (AEDmn) +26% 461 30 28 7 8 1H 22 Investment income 36.0% -0 46 46 Retail & others 23.5% Fee & Risk commission participation income 1H 21 Cards income Trade related Brokerage Property management Retail & others +90% +21% +23% +63% -1% +20% 579 Fee & commission income 1H 22 29#30= Funded Income Net profit margin saw a 21bps rebound from 1Q 2022 مصرف أبوظبي الاسلامي ADIB - Net Profit Margin (%) Net Profit Margin Movement QoQ (%) 4% 3.64% 3.50% 3.47% 3.56% 3.44% 3.23% 4% +21bps 3% 3.32% 3.15% 3.13% 3.25% 3.13% 3% 2.92% 2.92% 0.07% 0.08% 0.02% 0.02% 0.03% 3.13% 2% 2% 0.00% 1% 0.35% 0.33% 0.31% 0.31% 0.31% 0.30% 1% 0% 1Q 21 1H 21 9M 21 FY 21 1Q 22 1H 22 Net profit margin 1Q 22 Retail financing Wholesale financing FI Treasury Cost of funding Other Net profit margin 1H 22 Gross margin Cost of funding -Net profit margin Average Profit Earning Assets (AEDbn) +5% Funded Income Composition (%) Net Revenue From Funding Activities Movement QoQ (AEDmn) Treasury 106.7 -6.6% Other 3.2% +12% 101.3 789 18 37 10 10 3 13 880 Private 11.4 9.6 11.4 4.4% 13.2 1H 22 T 30.6 34.0 Wholesale 19.1% Retail 80.0% 47.8 49.8 1H 21 Other Wholesale financing 1H 22 I Placements Incl. CD's ■Retail financing Net revenue Retail from funding financing activities 1Q 22 Wholesale financing FI Treasury Cost of funding Other Net revenue from funding activities 2Q 22 +3% +25% +80% +80% -3% +25% 30#31= - - Operating Expenses Relatively stable expenses YoY with cost to income ratio improving on positive jaws Cost To Income Ratio (%) Expenses Movement YoY (AEDmn) -306bps 44.3% 43.9% 42.2% 40.7% 40.9% 40.9% 1,162 5 -0% -1 -6 مصرف أبوظبي الاسلامي ADIB 1,160 1Q 21 1H 21 9M 21 FY 21 1Q 22 1H 22 Expenses 1H 21 Digital Infrastructure Other Expenses 1H 22 YoY -37bps -168bps -160bps +29bps -7bps Expenses (AEDmn) +2% Expenses Composition (%) Depreciation 11.2% 592 570 567 577 583 531 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 QoQ -4% -0% -6% +9% +1% Expenses Movement YoY (AEDmn) Amortisation of intangibles 2.3% -0% 1,162 3 13 1,160 General & administrative costs 1H 22 24.3% Employee costs 62.1% -17 Expenses 1H 21 Employee costs General & administrative Other Expenses 1H 22 costs +0% -6% +9% 31#32Non-Performing Financing High asset quality leading to a lower NPA formation - NPA (AEDmn) NMC Group +5% مصرف أبوظبي الاسلامي ADIB 8,175 85% NPA Coverage 7,746 7,786 8,025 8,286 8,355 1,273 1,273 1,273 1,273 1,273 1,273 QoQ 1Q 21 NPA Composition by Sector (%) Other 2.6% Individual 37.9% FI 1.7% +1% 2Q 21 2Q 22 +3% 3Q 21 PSE 2.9% Corporate +3% 4Q 21 +1% NPA Movement YTD (AEDmn) 8,286 1Q 22 -1% -2% 2Q 22 8,175 -46 -3 -48 -13 55.0% NPA 4Q 21 Corporate FI Individual Other NPA 2Q 22 -1% -2% -2% -3% 32#33Non-Performing Financing Lower NPA ratio with higher coverage on non-performing financing NPA Ratio (%) 10.0% NPA Coverage Ratio (%) مصرف أبوظبي الاسلامي ADIB 140% 111.9% 115.2% 118.2% 120.0% 121.1% 123.7% 9.5% 120% 9.0% 8.8% 8.9% 8.8% 100% 9.0% 8.9% 80% 8.5% 8.4% 60% 8.0% 40% 60.1% 64.2% 65.7% 66.8% 68.7% 71.4% 7.5% 20% 7.0% 0% 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 ECL by Stage (AEDbn) 4.9 4.0 +3% 5.0 4.1 0.4 0.5 4Q 21 Stage 1 8.5 1Q 22 Stage 2 NPA Coverage Ratio +1% QoQ NPA Coverage Ratio with Collaterals 5.0 4.1 0.4 0.5 Stage 3 2Q 22 33#34Balance Sheet ADIB reported 9% growth in total assets versus last year Total Assets (AEDbn) Total Assets Movement YTD (AEDbn) مصرف أبوظبي الاسلامي ADIB 144 +4% 142 138.6 141.9 140 136.9 138 136.9 3.9 4.9 0.3 141.9 136 133.4 134. 130.6 132 -2.1 -2.0 130 130.7 128 126 124 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 Total assets 4Q 21 Cash & balances with central banks Due from financial institutions Customer financing, net Investments Other Total assets 2Q 22 -10% -43% +4% +36% +4% - - Balance Sheet Highlights AED (mn) 2Q 2022 1Q 2022 A% 4Q 2021 A% Funding Movement YTD (AEDbn) +4% Customer financing, net 92,190 90,224 +2% 88,252 +4% 136.9 Investments 18,572 17,139 +8% 13,691 +36% 5.6 0.8 -0.2 141.9 -1.1 Total assets 141,944 138,583 +2% 136,868 +4% Total Deposits 115,188 110,808 +4% 109,611 +5% Total liabilities 121,541 118,699 +2% 116,309 +4% Total equity 20,404 19,885 +3% 20,559 -1% 4Q 21 Total liabilities & Due to financial equity institutions -32% Total deposits Other liabilities Total equity Total liabilities & +5% +25% -1% equity 2Q 22 34#35= Customer Financing ...with 4% YTD customer financing growth driven mainly by growth in Retail and Corporate financing... Customer Financing, net (AEDbn) Customer Financing, Gross Movement YTD (AEDbn) مصرف أبوظبي الاسلامي ADIB 95 92.2 Customer Financing, Gross by Segment (%) 90.2 90 88.3 85 83.1 83.7 84.4 Private 4.4% +4% Other 2.8% 93.1 2.6 0.1 0.4 1.5 2Q 22 80 Wholesale 39.9% 97.2 -0.2 -0.2 Retail 75 52.9% 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 Customer financing, Retail Government & public Coporate FI Private Others Customer financing, gross sector gross 4Q 21 2Q 22 +5% +0% +2% +54% -5% -6% Customer Financing, Gross by Sector (%) Retail Financing, Gross Composition (%) Retail Financing, Gross Movement YTD (AEDbn) +5% Real estate 7.6% Card 3.4% 1.6 0.6 0.4 0.1 48.9 Government & public sector Individual 16.3% Home finance 32.9% 58.1% 2Q 22 Corporate 20.4% 2Q 22 FI Auto finance 9.6% Personal finance Other 0.7% 46.7% 4.5% -0.1 51.4 Retail financing, gross Personal finance Home finance Auto finance Card Real estate Retail financing, gross 4Q 21 +7% +3% +9% +7% -3% 2Q 22 35#36= Customer Deposits - Total Deposits Movement by Segment YTD (AEDbn) ...and 5% deposit growth with CASA comprising 75% of total customer deposits Total Deposits (AEDbn) 120 115.2 115 110.8 109.6 107.0 110 105.2 105 103.1 100 95 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 Total Deposits by Segment (%) Treasury 3.2% Private 5.3% Wholesale 20.3% Total Deposits by Type (%) Time 2.6% Wakala 7.5% STI 14.0% +5% مصرف أبوظبي الاسلامي ADIB 109.6 4.0 0.3 0.5 0.7 0.1 115.2 Total deposits 4Q 21 Retail Wholesale Private Treasury Community & others +5% +1% +9% +25% Community & Total deposits others 2Q 22 +4% 2.5% 2Q 22 Retail 68.8% Total Deposits Movement by Type YTD (AEDbn) 109.6 4.4 Other 0.6% -1.6 +5% 3.0 -0.2 0.0 115.2 2Q 22 CASA 75.3% Total deposits CASA STI Wakala Time Other 4Q 21 Total deposits 2Q 22 +5% -9% +52% -6% +2% 36#37Capital and Liquidity ...while maintaining robust capitalization and liquidity positions, well within regulatory requirements. = Capitalization Ratios (%) =Liquidity Ratios (%) مصرف أبوظبي الاسلامي ADIB 25% 100% 84.4% 19.2% 19.1% 19.5% 83.1% 82.4% 84.1% 86.6% 85.1% 18.6% 18.1% 18.0% 20% 80% 80.6% 79.6% 78.9% 80.5% 81.4% 80.0% 15% 18.1% 18.0% 18.4% 17.5% 60% 17.0% 16.9% 10% 13.3% 13.3% 13.8% 12.9% 12.7% 12.8% 40% 20.9% 20.5% 19.9% 19.7% 16.0% 17.4% 5% 20% 0% 1Q 21 0% 1H 21 9M 21 FY 21 1Q 22 1H 22 1Q 21 1H 21 9M 21 FY 21 1Q 22 1H 22 CAR ratio CET1 ratio T1 ratio Eligible Liquid Asset Ratio (ELAR) Advances to stable fund ratio (AFR) FTD Ratio RWA (AEDbn) +9% = Capitalization (AEDbn) +6% Total Capital Movement YTD (AEDbn) 104.4 110.1 114.2 2.6 2.9 3.3 10.4 10.4 19.4 19.9 20.6 1.4 19.4 10.5 1.2 1.3 1.1 4.8 4.8 4.8 +6% -0.1 -0.1 20.6 91.0 96.4 101.2 +4% 13.5 13.9 QoQ +4% QoQ 14.6 4Q 21 1Q 22 2Q 22 4Q 21 1Q 22 2Q 22 Total Capital Net income FY 21 Tier 1 Sukuk cost Other Total Capital 1H 22 Credit Operational Market CET1 Additional T1 ■T2 37#38Segmental Performance 1H 2022 Investor Presentation ADIB ப الإسـ مصرف أبوظ لام 1234567#39Segmental Balance Sheet Summary Financing and deposit growth led by growth across all business segments Customer Financing, Gross Movement YTD (AEDbn) +4% 2.6 1.9 93.1 -0.2 -0.2 97.2 = Customer Financing, Gross Composition (AEDbn) Other 2.8% مصرف أبوظبي الاسلامي ADIB Private 4.4% 2Q 22 Retail 52.9% Wholesale 39.9% Customer financing, Retail Wholesale Private Other Customer financing, gross 4Q 21 +5% +5% -5% -6% gross 2Q 22 = Total Deposits Movement YTD (AEDbn) +5% = Total Deposits Composition (AEDbn) Treasury 3.2% 4.0 0.3 0.5 0.7 0.1 115.2 109.6 Community & others 2.5% Private 5.3% 2Q 22 Retail 68.8% Wholesale 20.3% Total deposits Retail Wholesale Private Treasury Community & others 4Q 21 Total deposits 2Q 22 +5% +1% +9% +25% +4% 39#40Segmental Income Statement Summary Profit growth driven mainly by core business growth Total Operating Income Movement YoY (AEDmn) +7% مصرف أبوظبي الاسلامي ADIB = Total Operating Income Composition (AEDmn) Real estate 1.1% Others 10.9% 2,644 100 57 5 3 126 2,838 Treasury 11.1% -97 1H 22 Retail Private 2.5% 57.4% Total operating income 1H 21 Retail Wholesale Private Treasury Real estate Others Total operating income 1H 22 Wholesale 16.9% +7% +14% +7% -24% +12% +69% = Profit After Tax & Zakat Movement YoY (AEDmn) +30% Profit After Tax & Zakat Composition (AEDmn) Others 15.0% 160 26 103 1,109 140 1,442 6 -101 Treasury 20.0% Retail 1H 22 45.9% Private 0.7% Profit after tax & Retail Wholesale Private Treasury Real estate Others Profit after tax & zakat zakat Wholesale 18.0% 1H 21 1H 22 +19% +160% +171% -26% +738% +184% Real estate 0.3% 40#41= Retail 19% retail profit increase driven by growth in customer financing and lower provisions Profit After Tax & Zakat Movement YoY (AEDmn) Cost Income Ratio (%) 93 7 558 +19% 14 65.0% 57.5% مصرف أبوظبي الاسلامي ADIB 60.1% 59.7% 59.1% 57.4% 55.5% 661 45.0% 1Q 21 1H 21 9M 21 FY 21 1Q 22 1H 22 -10 Cost of Risk (%) Profit after tax & Funded income Non-funded zakat income 1H 21 +8% +2% Operating expenses excluding impairments -2% Impairment charge Profit after tax & 0.2% 0.1% 0.1% 0.5% 0.0% zakat 1H 22 0.2% +19% -1.0% 1Q 21 1H 21 9M 21 FY 21 1Q 22 1H 22 Customer Financing, Gross (AEDbn) +5% Deposits (AEDbn) +5% 47.5 47.6 48.1 48.9 49.8 51.4 72.7 73.6 74.3 75.3 77.4 79.2 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 QoQ +0% +1% +2% +2% +3% QoQ +1% +1% +1% +3% +2% 41#42= Wholesale Increase in profit by 160% driven by a decrease in impairment charges Profit After Tax & Zakat Movement YoY (AEDmn) Cost Income Ratio (%) 65.0% +160% 103 23 34 1 100 -1 35.6% 32.4% 32.7% 31.9% 30.5% مصرف أبوظبي الاسلامي ADIB 260 -35.0% 1Q 21 1H 21 9M 21 FY 21 1Q 22 1H 22 Profit after tax Funded income Non-funded & zakat income 1H 21 +8% +27% Operating Impairment expenses charge excluding impairments -1% Tax & Zakat Profit after tax & zakat 1H 22 -57% +27% Customer Financing, Gross (AEDbn) +5% Cost of Risk (%) 1.6% 1.6% 1.1% 0.9% 28.3% 0.4% 0.0% 0.4% 1Q 21 1H 21 9M 21 FY 21 1Q 22 1H 22 Deposits (AEDbn) +1% 36.9 38.0 38.8 23.1 23.4 32.5 33.3 33.6 19.1 20.5 20.9 21.9 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 QoQ +3% +1% +10% +3% +2% QoQ +7% +2% +11% -5% +7% 42#43= Treasury 26% profit decline impacted by inventive income Profit After Tax & Zakat Movement YoY (AEDmn) - 390 -26% Cost Income Ratio (%) 10.0% مصرف أبوظبي الاسلامي ADIB 5.0% 5.1% 5.3% 4.9% 6.5% 4.7% 0.0% 1Q 21 1H 21 9M 21 FY 21 1Q 22 1H 22 289 -42 -56 -0 -4 Investment Yield (%) 10.0% Profit after tax & Funded income zakat Non-funded income 1H 21 Operating expenses excluding impairments Impairment charge Profit after tax & zakat 5.0% 5.0% 4.7% 3.8% 5.6% 1H 22 -60% -12% +0% +334% 2.7% 0.0% 1Q 21 1H 21 9M 21 FY 21 1Q 22 1H 22 Investments (AEDbn) +36% Deposits (AEDbn) +25% 18.6 17.1 14.5 14.3 13.4 13.7 3.7 2.8 3.1 2.9 2.7 2.1 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 QoQ -1% -6% +2% +25% +8% QoQ -24% +45% -6% -8% +36% 43#44Performance Track Record 1H 2022 Investor Presentation ADIB ப الإسـ مصرف أبوظ لام 12345 6 7#45- Balance Sheet Trends Steady balance sheet growth Total Assets (AEDbn) YOY +3% CAGR Customer Financing, Net (AEDbn) +4% CAGR مصرف أبوظبي الاسلامي ADIB 123.3 125.2 126.0 127.8 136.9 76.5 78.7 81.1 83.4 88.3 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 +2% +1% +1% +7% YOY +3% +3% +3% +6% Investments (AEDbn) YOY +4% CAGR Total Deposits (AEDbn) +2% CAGR 109.6 13.7 12.9 13.8 13.7 100.0 100.4 101.4 101.3 11.6 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 +18% -5% +7% -1% YoY +0% +1% -0% +8% 45#46= Asset Quality, Capital & Liquidity - Improving capitalization and strong, stable liquidity position mitigate challenging credit quality NPA Ratio (%) NPA Coverage Ratio with Collaterals (%) مصرف أبوظبي الاسلامي ADIB 132.6% 10.0% 8.8% 8.9% 140.0% 127.1% 9.0% 120.0% 110.7% 120.0% 8.0% 6.5% 7.0% 100.0% 6.0% 80.0% 5.0% 4.8% 72.9% 4.0% 60.0% 3.0% 62.8% 66.8% 40.0% 57.9% 2.0% 1.0% 20.0% 0.0% 0.0% 2018 2019 2020 2021 2018 2019 2020 2021 NPA Coverage Ratio with Collaterals NPA Coverage Ratio Capitalization Ratios (%) Liquidity Ratios (%) 18.8% 18.6% 100% 17.9% 84.1% 85.8% 84.1% 20% 18% 80% 82.9% 17.2% 78.4% 17.7% 17.5% 16% 16.1% 16.8% 60% 12.9% 12.9% 14% 12.1% 40% 12% 11.3% 10% 8% 2018 2019 2020 20% 19.8% 0% 2021 CET1 ratio -T1 ratio CAR ratio 2018 80.0% 82.4% 80.5% 19.9% 20.7% 19.7% 2019 Advances to stable fund ratio (AFR) 2020 2021 Eligible Liquid Asset Ratio (ELAR) FTD Ratio 46#47= Revenues and Expenses Stable revenue and operating expense trends Revenues (AEDmn) Net Profit Margin (%) - YOY مصرف أبوظبي الاسلامي ADIB 5.00% 4.50% -0% CAGR 4.00% 4.15% 3.50% 4.42% 4.25% 3.51% 3.25% 3.00% 5,632 5,769 5,915 5,358 5,560 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 +2% +3% -9% +4% Expenses (AEDmn) YOY -3% CAGR Cost to Income Ratio (%) 47.5% 45.0% 44.5% 2,509 2,644 2,653 2,450 42.5% 2,260 40.0% 45.8% 45.7% 44.9% 37.5% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 +5% +0% -8% -8% 40.7% 47#48Impairments and Profitability Return to stable profitability and cost of risk in 2021 = Impairments (AEDmn) Cost of risk (%) 1.50% - +5% CAGR 1.00% 0.96% 0.65% 0.55% 1,314 954 790 620 658 0.50% 1.28% مصرف أبوظبي الاسلامي ADIB 0.00% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 YOY -22% +6% +100% -27% Profit After Zakat & Tax (AEDmn) YOY +0% CAGR Returns (%) 25.0% 19.5% 19.3% 18.6% 20.0% 15.0% 2,300 2,501 2,601 2,330 1,604 10.0% 5.0% 1.9% 0.0% 2017 2018 2019 2020 2021 2017 2018 +9% +4% -38% +45% 0.99% 14.3% 9.6% 2.0% 2.1% 1.3% ROAE 2019 ROAA 1.8% 2020 2021 48#49Appendix 1H 2022 Investor Presentation ADIB ப 00 رف أبوظ لام الإسـ 1234569 7#50= Additional Information Please contact the Investor Relations team for additional information or download ADIB's IR App - ADIB Investor Relations Contact Mrs. Lamia Khaled Hariz Head of Public Affairs and Investor Relations E: [email protected] T: +917 2 634 3000 M: +971 50 682 4207 = ADIB Investor Relations Website https://adib.com/en/Pages/Investor-Relations.aspx ADIB Investor Relations App ADIB Download link: Downlood te App Store Google Play ADIB AM THANK P مصرف أبوظبي الاسلامي ADIB 50#51= Disclaimer مصرف أبوظبي الاسلامي ADIB = The information contained herein has been prepared by Abu Dhabi Islamic Bank PJSC (ADIB). ADIB relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness. This presentation has been prepared for information purposes only and is not and does not form part of any offer for sale or solicitation of any offer to subscribe for or purchase or sell any securities nor shall it, or part of it, form the basis of or be relied on in connection with any contract or commitment whatever. Some of this information in this presentation may contain projections or other forward-looking statements regarding future events or the future financial performance of ADIB. These forward-looking statements include all matters that are not historical facts. The inclusion of such forward looking information shall not be regarded as representation by ADIB or any other person that the objectives or plans of ADIB will be achieved. ADIB undertakes no obligation to publicly update or publicly revise any forward-looking statement, whatever as a result of new information, future events or otherwise. 51