dib 2

7/30/2019 Dib 2

1/27

Dubai Islamic Bank

Investor PresentationMay 2008

7/30/2019 Dib 2

2/27

Contents

Background

About DIB

DIB Financials

Peer Group

Stock Information

7/30/2019 Dib 2

3/27

Sector comprises of 49 banks

22 national/local banks; 27 foreign

banks

Sector of strategic importance to

Govt.

Direct/indirect govt. ownership in

majority of national banks

Precedents available for Govt.

support

Sector dominated by the national

banks

Top 10 banks account forapproximately 60-70% of total

banking sector assets

Sector experiencing strong growth

Highly Profitable Banking SectorBanking Sector Profits

5.06 5.396.66

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Dec-05 Dec-06 Dec-07

USDB

io

Source: UAE Central Bank

UAE BANKING INDICATORS

170

116103

236

152 140

273

168162

0

50

100

150

200

250

300

350

Bank Assets Bank Deposits Loans & Adv

USDBIO

7/30/2019 Dib 2

4/27

Islamic banking is one of the fastest growing industry segments in the Financial Services sector

Growth momentum, both in the Arab world and globally, estimated at 20% p.a. plus

Approximately 400 Islamic institutions globally with assets in excess of US$ 500 billion

More than US$ 20 billion in international Islamic bond issuance to date

Targeted regions include GCC, South Asia, South East Asia and select niche markets

Entry by Global Commercial/ Investment banks in this sector

Key Players in the Islamic Banking Market in UAE / Middle East Region

Existing Players New Entrants

Booming Islamic Banking Market
http://www.ml.com/?id=7695_8134_8296_6012http://www.ubs.com/http://www.abnamro.com/com/homepage.jsp

7/30/2019 Dib 2

5/27

Contents

Background

About DIB

DIB Financials

Peer Group

Stock Information

7/30/2019 Dib 2

6/27

Dubai Islamic Bank

The Worlds First Islamic Bank

The largest Islamic Bank in UAE

Amongst the top 4 Banks in

the country

Government ownership 34%

Part of the Big Five IslamicBanks in the world

Globally recognized Leader

and Innovator in Islamic Banking

Strong Domestic FranchiseNearly 600,000 retail customers

49 branches / nearly

300 ATMs, CDM

7/30/2019 Dib 2

7/27

Rated A1 by Moodys and A by S&P

DIBs ratings reflect its strong franchise as a leading Islamic Financial Institution,i ts relat ionship with th e Dubai government and its satisfactory financial

fundamentals

DIBs foreign curr ency issuer r at ings are set at A1/Prime-1 based on thebanks intr insicsafety and sound ness and on a strong l ikel ihood of external support from the UAE

authori t ies andDIBs main sh areholders in case of need.

DIBs relationship with the Dubai government enhances its franchise

DIBs foreign currency issuer ratings benefit from a high degree of external support

Increasing earning power and profitability

DIB enjoys a good deposit base, with a lower deposit concentration than other UAE banks

One of the Worlds Top Islamic Banks; Systemically important to its domestic

banking market

Key Strengths:

Robust and sustainable financial performance

Strong liquidity

Likely government support in case of need

Solid risk-monitoring architecture, improving asset quality

Profi tabi l i ty :Improved and of good quality, reflecting superior business diversification

7/30/2019 Dib 2

8/27

DIBs principal business is focused on its five core units

Largest business unit within DIB

Full range of products and services

Customer segments: Mass affluent, Wealth management, SME

One of the largest Retail customer base in UAE

Market leaders: Deposits products and Auto finance

Retail & Business

Banking

Real Estate,Contracting

Finance,Direct

Equities

Investment

Banking

CorporateBanking

Treasury

Millennium Capital and Millennium Finance subsidiaries incorporated in Dubai International FinancialCentre

Investment banking activities such as project finance, loan syndication, capital markets, assetmanagement and structured finance as well as Corporate Advisory Services

Global leaders in Sukuk issuance: #1 in the Bloomberg league table in 2006

Leading provider of Real Estate Finance services in the UAE with significant role in supporting realestate developments

Financing to contractors in the oil, gas, power and water sectors

Short term equity investments in established companies and business start-ups across MENA region

Large & Middle Market

Bankers to top corporate houses in GCC Financing for Trade and Manufacturing and Infrastructure

Cash Management capabilities

Foreign exchange services

Asset-liability management

Islamic derivatives

7/30/2019 Dib 2

9/27

Dubai Islamic Bank Strategic Agenda

To beamongst

the Top3

Banksin UAE

Growth dr ivers to be

Retail , Corp orate Bankin g &

Investment Bankin g

Leveraging on the success

in Dub ai to c api ta l ize on

oppo rtuni t ies in other Emirates

Evolv ing from

a pure banking ent i ty

to a more com prehens ive

Financial Serv ices Grou p

Diversifying DIBs revenue streams

throug h penetration and presence

in new m arkets in the MENA region

Cont inual ly innovate using thelatest technology and p roduc t expert ise

leading to ease and co nvenience

Focus on Value Growth:cross sel ling,

new Is lamic prod ucts

embed cost awareness

7/30/2019 Dib 2

10/27

Diversified portfolio both with respect to economic sectors and customer segments

Key economic sectors include government / public sector and real estate

Among the most significant Arrangers of financing for Dubai Government

Portfolio Diversification, Business Overview

Segmental Revenue; % of Total Revenue (2007)Sectorial Exposure of Financial Assets (2007)

Retail Banking32%

CorporateBanking

7%Real

Estate/Contra

ct Financing12%

Direct Equity16%

InvestmentBanking

7%

Treasury14%

Others12%

Real Estate

26%

Financial

Institutions

38%

Retail

10%

Manuf / Services

19%

Govt

7%

7/30/2019 Dib 2

11/27

Mega Deals

US$ 3.52 Bn Sukuk issue for Nakheel(Dubai World)

US$ 3.5 Bn Sukuk issue for PCFC (Govt ofDubai)

US$ 2 Billion Sukuk for Dubai Civil Aviationfor expansion project of Dubai International

Airport

US$ 600m Government of Malaysia Sukuk

US$ 600m Pakistan Sovereign Sukuk

US$ 550m Sukuk for Emirates Airlines

US$ 530m Lead Arranger for Qatar Gas II

Awards & Accolades (2005-07)

Best Bank in UAE, 2006: The Banker

Best Islamic Bank in ME, 2006: Euromoney

Best Debt house UAE, 2005: Euromoney

Best Sukuk House, 2005: Euromoney

Award for Finance (2005): ShaikhMohammed Bin Rashid Business Award

Quality Recognition Award, 2005: JP MorganChase

Banking Achievement Award for the MiddleEast, by Emerging Markets Publicationduring the IMF Conference in New York,Oct07

An Integral, Recognized player in the Islamic Financesector

7/30/2019 Dib 2

12/27

Contents

Background

About DIB

DIB Financials

Peer Group

Stock Information

7/30/2019 Dib 2

13/27

13

Key Financials Trend

Net Profit: USD Million

Maintaining robust profitability About 12-fold growth in net profits

over the last 5 years

Improved profitability attributed to

both growth in core business and

growth in Islamic market

Strong and consistent growth in total

assets. Increase of 4+ times over last5 years

Focus on quality and portfolio mix of

assets along with aggressive growth

Total Assets: USD Billion44 64126

289

425

681

-50

100150200

250300350400450500550600650700

2002 2003 2004 2005 2006 2007

Net

Profit(USD'Mn)

Years

Net Profit (USD 'Mn)

Value

47%97%

130%

47%

60%

5.3 6.2

8.3

11.7

17.5

22.9

3.0

8.0

13.0

18.0

23.0

2002 2003 2004 2005 2006 2007

TotalAssets

(USD'Bn)

Years

Total Assets (USD 'Mn)

Value

16%34%

40%

50%

31%

7/30/2019 Dib 2

14/27

14


Total Deposits: USD Billion

Total Financing: USD Billion

Strong and consistent growth intotal deposits

DIB is the #3 bank in customer

deposits in UAE

More than 4 fold growth in gross

financing in 5 years Well diversified and balanced

portfolio, with lending to all key

industry sectors

4.6 5.4

6.8

9.1

13.0

17.6

3.0

5.0

7.0

9.0

11.0

13.0

15.0

17.0

2002 2003 2004 2005 2006 2007

TotalD

eposits

(USD'Bn)

Years

Total Deposits (USD 'Mn)

Value

17% 25%

34%

43%

36%

2.8 3.3

4.8

7.7

9.6

13.3

2.0

3.0

4.0

5.0

6.0

7.08.0

9.0

10.0

11.0

12.0

13.0

14.0

2002 2003 2004 2005 2006 2007

TotalFinancing(USD'Bn)

Years

Total Financing (USD 'Mn)

21%43%

62%

25%

38%

7/30/2019 Dib 2

15/27

15


ROE

ROA

Consistent growth in ROE, in line

with the top 5 banks

Marginal drop in 2006 attributed to

increase in capital of US$906 million

Steady growth in ROA in last 5

years

Return on assets of 3.4%, in the

top end among major UAE

Banks

Source: Bloomberg

12.2%

14.3%

19.7%

31.7%

25.5% 26.4%

0%

10%

20%

30%

40%

2002 2003 2004 2005 2006 2007

ROE

Years

ROE

0.91%1.11%

1.73%

2.89% 2.90%

3.40%

0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%

4.0%

2002 2003 2004 2005 2006 2007

ROA

Years

ROA

7/30/2019 Dib 2

16/27

16

67.5%

15.4%

17.1%

Investment Deposits Current Saving

Customer Deposits Composition

64.8%

13.5%

21.7%

20072001

Strong deposit base to support growth plans

7/30/2019 Dib 2

17/27

17


Cost-Income

Advances to Deposits

Cost to Income at 40%

Increased due to investment in new

branding, new branches, improved

systems and channels

Healthy liquidity maintained

compared to peer banks in

UAE

50%

56%

37%

32%

41% 40%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

2002 2003 2004 2005 2006 2007

Cost/IncomeRatio

Years

Cost/Income Ratio

60% 62%

70%

85%

74% 75%

20%

30%

40%

50%

60%

70%80%

90%

2002 2003 2004 2005 2006 2007

ADRatio

Years

DIB - AD Ratio

7/30/2019 Dib 2

18/27

Contents

About Dubai, UAE

About DIB

DIB Financials

Peer Group

Stock Information

7/30/2019 Dib 2

19/27

Domestic peer group comparisonNet Profit Growth: USD Million

Total Assets: USD Billion

Total assets among the top 5 banks

in UAE

DIB net profits CAGR is the

highest among comparable peer

banks

Net profits among the top 3 banks

in UAE

Total Assets

27.

5

22.

1

13.

0

68.

7

38.

0

28.

9

23.

9

22.

8

19.

9

15.

4

45.2

17.

5

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

ENBD NBAD ADCB FGB DIB MESQ

Banks

TotalAssetss(U

SD

'bln)

2006 2007

52%

38%

31%55%

30% 53%

Net Profit (USD 'Mn)

573

425

428

1,0

74

682

681

541

547

5175

67

815

418

-100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

ENBD NBAD DIB ADCB FGB MESQ

Banks

NetProfit(USD'Mn)

2006 2007

32%

19% 60%

-5% 31%21%

7/30/2019 Dib 2

20/27

Domestic peer group comparison

Total Deposits: USD Billion

Total Financing: USD Billion

Total financing among the top 5 banks

Total deposits among top 3 banks in

UAETotal Deposits

19.

3

13.

0

9.

4

37.

7

22.

3

17.

7

1

5.

6

14

.2

13.

1

1

1.

8

26.

0

9.

4

-

10.0

20.0

30.0

40.0

ENBD NBAD DIB ADCB FGB MESQ

Banks

Tota

lDeposits(USD'bln)

2006 2007

45%

16%

36%32%

52% 39%

Total Financing (USD 'Mn)

15.7

17.0

9.6

6.8 8

.0

45.3

21.7

20.6

13.3

12.1

10.4

29.7

(3.0)

7.0

17.0

27.0

37.0

47.0

ENBD NBAD ADCB DIB FGB MESQ

Banks

FinanceAmt(USD

'Bn)

2006 2007

CAGR

53%

39%21%

39% 77%30%

7/30/2019 Dib 2

21/27

21


ROE: 2007

ROA: 2007

ROA among top 3 banks

ROE top amongst peer banks

Compares favorably with major

banks globally

Source: Bloomberg

ROE

26.

0%

25.

0%

23.

8%

22.

0%

21.

0%

18.

0%

15%

17%

19%

21%

23%

25%

27%

DIB NBAD ENBD MESQ FGB ADCB

Banks

ROE

ROA

3.

38%

3.

32%

2.

63%

2.

12%

2.

08%

1.

89%

1.5%

1.7%

1.9%

2.1%

2.3%

2.5%

2.7%

2.9%

3.1%

3.3%

3.5%

DIB FGB MESQ ADCB NBAD ENBD

Banks

ROA

2007

7/30/2019 Dib 2

22/27

22


Cost Income Ratio 2007

Financing to Deposit 2007

Most liquid amongst banks inUAE

Increased due to infrastructure

spend, technology, new branches,

and staff packages in line with the

market

Source: Bloomberg

Advance / Deposit Ratio

75%79%

85%

98%

120%

132%

0%

20%

40%

60%

80%

100%

120%

140%

DIB MESQ FGB NBAD ENBD ADCB

Banks

Advance/Deposit

Ratio

2007

Cost/ Income Ratio

27%29%

37% 38%40%

22%

0%

10%

20%

30%

40%

50%

FGB ADCB NBAD MESQ ENBD DIB

Banks

Cost

/IncomeRatio

2007

7/30/2019 Dib 2

23/27

Contents

About Dubai, UAE

About DIB

DIB Financials

Peer Group

Stock Information

7/30/2019 Dib 2

24/27

24

Key MetricsBloomb erg ID: DIB UH Equity

Key Indicators: USD

US$ 2.40

US$ 3.40

CurrentUS$

2.5

0

Face value for 2003, 2004 equated to $0.27/ shareSource: DFM, DIB Published accounts

1.752.98

7.5

2.65 2.93 3.4

12.75

14.78

26.2

11.67 11.29

14.61

0

5

10

15

20

25

30

35

40

2003 2004 2005 2006 2007 Q1 2008

Percentage

PB Rat io PE Rat io

7/30/2019 Dib 2

25/27

25

Steady growth in dividend payments to shareholders

2006 and 2007 dividend includes payment of bonus through shares of 7% and 15%respectively

Dividend payments

Dividend Payment History

10%

15%

20%

40%42%

55%

0%

10%

20%

30%

40%

50%

60%

2002 2003 2004 2005 2006 2007

7/30/2019 Dib 2

26/27

26

DIB Shares

Share Trading on DFM

Highly Liquid

DIB capitalization as a % of totalDFM: 6.9%

5th largest market capitalization

Percentage of DIB sharesallowed to be owned byforeigners: 15%

Source: DFM

The information provided in this presentation should not be used as a substitute for any form of advice. Decisions based on this information are for your own accountand risk. Although DIB attempts to provide accurate, complete and up-to-date information, which has been obtained from sources that are considered reliable,DIB makes no warranties or representations, express or implied, as to whether information provided is accurate, complete or up-to-date.

YTD Mar 2008

DFM trading volume (bn) 26.34

DIB trading volume (bn) 0.81

DIB % of DFM Volume 3.07%

DFM trading value (USD Bio) $ 34.14

DIB trading value (USD Bio) $ 2.49

DIB % of DFM Value 7.29%

DFM Market Cap Value (USD Bio) $126.81

DIB Market Cap Value $8.77

DIB % of DFM Market Cap 6.91%

7/30/2019 Dib 2

27/27

THANK YOU

dib 2

Documents