Alrayan Bank · QSE:MARK
Alrayan Bank — Masraf Al Rayan — FY2019 Earnings Presentation
22 slides from Alrayan Bank's earnings presentation, Dec 31, 2019
Slide 1: Investor Presentation
Investor Presentation 31 December 2019
Slide 2: Contents
Contents 1. Introduction to Masraf Al Rayan 2. Financial Highlights and Performance 3. Operating Segments 4. Historical Financial Statements 5. Overview of Qatar 2
Slide 3: Introduction to Masraf Al Rayan: Corporate Profile
Introduction to Masraf Al Rayan Corporate Profile Overview of Masraf Al Rayan Q.P.S.C (MAR or the Bank) Branch Network Fully Sharia compliant bank incorporated in Qatar on 4 January Profile 2006 and licensed by the Qatar Central Bank 6 branches Classified as a DSIB (Domestic Systemically Importa
Slide 4: Ownership Structure & Financial Highlights
Introduction to Masraf Al Rayan Ownership Structure & Financial Highlights Shareholding Structure Credit Rating Government, GREs and Qatari institutional investors hold approx. 48.7% of MAR’s shares Long-term and short-term foreign currency and local currency issuer ratings: Considering both d
Slide 5: Board Composition
Introduction to Masraf Al Rayan Board Composition The principal role of the Board is to oversee the implementation of the Bank's strategic initiatives and its functions within the agreed framework in accordance with relevant statutory and regulatory structures Chairman & Managing Director Board Me
Slide 6: Contents
Contents 1. Introduction to Masraf Al Rayan 2. Financial Highlights and Performance 3. Operating Segments 4. Historical Financial Statements 5. Overview of Qatar 6
Slide 7: Financial Highlights and Performance
Financial Highlights and Performance Summary Total assets reached QAR 106,397 million compared to QAR 97,294 million on 31 December 2018, an increase of 9.4% Balance Sheet Financing activities increased to QAR 74,837 million compared to QAR 72,515 million on 31 December 2018, an increase of 3.2%
Slide 8: Financial Highlights & Performance: Balance Sheet
Financial Highlights & Performance Balance Sheet Financing assets have continued to grow in 2019. Investment securities continue to have high tilt towards high quality Government debt. Assets Asset Mix – 2019 0.5% 2.9% 5.7% 120,000 102,949 97,294 106,397 100,000 91,531 20.6% 83,331 30,852 31,560 2
Slide 9: Financial Highlights & Performance: Profitability
Financial Highlights & Performance Profitability Stable profitability with consistent strong efficiency and high return on assets and shareholders’ equity Profitability Income Composition 6,000 5,221 2,892 4,874 30 2,736 2,788 4,347 162 2,538 5,000 3,756 30 152 37 388 2,075 2,130 2,178 143 315 2,0
Slide 10: Financial Highlights & Performance: Asset Quality
Financial Highlights & Performance Asset Quality Masraf Al Rayan’s non-performing financing ratio is at 1.01% reflecting robust asset quality, prudent risk management policies and a conservative lending strategy. Non-Performing Financing Assets (Stage 3) Non-Performing Financing Coverage Ratio (St
Slide 11: Financial Highlights & Performance: IFRS Impact
Financial Highlights & Performance IFRS 9 Impact As per QCB requirements, MAR has adopted ECL regulations from 1 January 2018. ECL on all exposures - by Stages All exposures subject to ECL - by Stages 800 709 120,000 116,257 671 109,778 700 112,681 822 115,000 600 688 110,000 356 13,495 500 334 10
Slide 12: Financial Highlights & Performance: Capital Adequacy
Financial Highlights & Performance Capital Adequacy Masraf Al Rayan is well capitalized with CAR exceeding the regulatory threshold indicating ample room for growth Total Equity Breakdown Overview of the Bank’s Capitalisation Levels 20.27% 18.85% 19.32% 19.23% 14,132 13,390 13,474 12,874 213 199 1
Slide 13: Financial Highlights & Performance: Funding & Liquidity
Financial Highlights & Performance Funding & Liquidity Masraf Al Rayan primarily relies on customer deposits and is seeking to diversify its funding mix as part of its strategic objective Funding Mix Deposit Mix 100,000 92,265 65,613 89,559 70,000 61,569 83,820 62,531 90,000 1,905 1,949 58,024 6,5
Slide 14: Contents
Contents 1. Introduction to Masraf Al Rayan 2. Financial Highlights and Performance 3. Operating Segments 4. Historical Financial Statements 5. Overview of Qatar 14
Slide 15: Business Overview & Segments
Introduction to Masraf Al Rayan Business Overview & Segments For the purpose of financial reporting, the Bank provides breakdown by four segments which offer different products and services, and are managed separately based on the Bank's management and internal reporting structure Asset Management
Slide 16: Contents
Contents 1. Introduction to Masraf Al Rayan 2. Financial Highlights and Performance 3. Operating Segments 4. Historical Financial Statements 5. Overview of Qatar 16
Slide 17: Historical Financials: Consolidated Income Statement
Historical Financials Consolidated Income Statement QAR mn 2016 2017 2018 2019 Net income from financing activities 2,621 3,101 3,539 3,710 Net income from investing activities 534 792 838 931 Total Net Income from Financing and Investing Activities 3,155 3,893 4,377 4,641 Fee and commission income
Slide 18: Historical Financials: Consolidated Statement of Financial Position
Historical Financials Consolidated Statement of Financial Position QAR mn 2016 2017 2018 2019 Cash and Balances with Qatar Central Bank 3,126 2,800 3,027 3,123 Due from Banks 5,692 3,312 1,513 6,035 Financing Assets 67,635 72,097 72,515 74,837 Investment Securities 14,012 23,423 19,222 21,379 Invest
Slide 19: Contents
Contents 1. Introduction to Masraf Al Rayan 2. Financial Highlights and Performance 3. Operating Segments 4. Historical Financial Statements 5. Overview of Qatar 19
Slide 20: Operating Environment: Qatar at a Glance
Operating Environment Qatar at a Glance Snapshot of Qatar Fiscal Balance 15.00 8.00% Largest exporter of LNG with a global market share of 25%(1) Economic Fiscal Balance (USD bn) Fiscal Balance % of GDP 3rd largest gas reserves in the world (c.13% of world’s total) (2) 8.80 6.00% Fundamentals 10
Slide 21: Operating Environment: Qatar vs Other GCC Countries
Operating Environment Qatar vs Other GCC Countries Real Gross Domestic Product (GDP) Growth of GCC Fiscal Breakeven Oil Price, 2019 Projections (USD / barrel) 94.9 3.8 85.4 85.9 3.1 2.8 2.5 2019 Avg 2.1 2.2 2 2.2 2.2 1.8 2 1.7 1.6 1.7 1.6 65 Brent 0.6 0.8 67 $/bl 0.2 48.8 45.4 -0.7 -3.5 Bahrain Kuwa
Slide 22: Overview of the Qatari Banking Sector & Regulatory Support
Operating Environment Overview of the Qatari Banking Sector & Regulatory Support Snapshot of the Qatari Banking Sector State of Qatar’s Track Record of Support A total of 18 banks licensed by the Qatar Central Bank: Historically, the Government, through the QCB and QIA, has taken several steps t