Qatar Islamic Bank · QSE:QIBK

Qatar Islamic Bank — Investor Presentation (February 2013)

24 slides from Qatar Islamic Bank's investor presentation, February 2013

  1. Slide 1: Qatar Islamic Bank (S.A.Q.) Investor Presentation

    Qatar Islamic Bank (S.A.Q.) Investor Presentation February 2013 Copyright  2013 QIB

  2. Slide 2: Agenda

    1. Introduction 2. QIB – Financial Overview 3. QIB – Business Review 4. Operating Environment 5. Appendix Private and confidential. Do not circulate.

  3. Slide 3: QIB Business Overview

    QIB Business Overview Introduction Shareholder structure / Strong Government Linkage • Qatar Islamic Bank (QIB) was incorporated in 1982 as the first Islamic • The Qatar Investment Authority financial institution in Qatar. QIA (QIA) is the single largest • Largest Islamic bank (38% of Islamic assets

  4. Slide 4: Key Credit Strengths

    Key Credit Strengths First and largest Islamic bank in Qatar Strong Government Operates out of one of support with the QIA as the fastest growing its largest shareholder markets in the world Strong brand name & Strong domestic & innovative product international growth offering Ambitious Global footp

  5. Slide 5: QIB – Financial Overview

    1. Introduction 2. QIB – Financial Overview 3. QIB – Business Review 4. Operating Environment 5. Appendix Private and confidential. Do not circulate.

  6. Slide 6: Continued Balance Sheet Growth

    Continued Balance Sheet Growth Strong balance sheet growth driven by growth in Qatar-focused financing Summary Steady Asset Growth USD bn   Continuous balance sheet growth 25 20.1 20 16.0 14.3   Growth driven by multiple products / asset classes 15 10 9.2 10.8 5.9 5   Primarily Qatar-centric e

  7. Slide 7: Strong Asset Quality and Provisioning

    Strong Asset Quality and Provisioning Despite the strong growth, QIB has maintained very good asset quality and comfortable provisioning levels Summary Balanced Financing Book (2012) Others Government & 4.3% Related Entities   Well-diversified & growing (USD 11.8bn) financing book 15.9% Non-Bankin

  8. Slide 8: Sound Funding Base Driven by Strong Deposit Growth

    Sound Funding Base Driven by Strong Deposit Growth QIB’s growth has been enabled by its ability to source financing, primarily in the form of deposits Summary Diverse Sources of Financing (2012) Other Liabilities   Ability to obtain financing from diverse sources Sukuk Financing 7.4% 3.8% Customer

  9. Slide 9: Asset and Liability Management

    Asset and Liability Management QIB’s growth has been managed within a well-defined risk management framework Summary Range-bound Financing to Deposit Ratio Financing to deposit ratio (%)   Financing to Deposit ranging between 95% and 110% 120% 113.7% 111.3%   Strong liquidity position to manage

  10. Slide 10: Strong Capitalisation & Continued Profitability

    Strong Capitalisation & Continued Profitability QIB boasts an ideal platform for future growth, including strong capitalization and supportive margins/returns Summary Capital adequacy ratio 18.76% 17.33% 17.37% 18.58% 17.04%   Capital ratios well above regulatory requirements 15.41%   Strong Net

  11. Slide 11: Stable and Diversified Earnings Profile

    Stable and Diversified Earnings Profile QIB has maintained strong returns even during the recent financial crisis Summary Revenue breakdown(1) USD mn   Recurring financing revenues 750 64 82 115 500 71 79 161 184  294  Continued profitability during crisis 24 76 59 250 203 359 351 346 409 258 13

  12. Slide 12: QIB – Business Review

    1. Introduction 2. QIB – Financial Overview 3. QIB – Business Review 4. Operating Environment 5. Appendix Private and confidential. Do not circulate.

  13. Slide 13: Overview of QIB

    Overview of QIB Evolution of QIB QIB established with Al Jazeera finance QIB listed in Qatar Arab Finance House 2009: BEEMA established 25% owned by QIB paid up capital QR established (30% Exchange established in Beirut Capital increased to QR 2.06 Billion 25mn owned by QIB) (37% owned by QIB) 2010:

  14. Slide 14: Business Units Overview – Revenue Diversification

    Business Units Overview – Revenue Diversification Treasury • Sukuk and Local Equity Investment Portfolio International Subsidiaries • Treasury Services and Sales • QInvest • Financial Institutions • QIB UK • Liquidity Management Local Subsidiary Investments • Aqar • International Associates 4%  Ara

  15. Slide 15: Effective Board Oversight

    Effective Board Oversight QIB is committed to strong corporate governance practices, with its Board of Directors meeting at least six times a year Board Committees Board of Directors Executive Committee Audit and Risk Committee Sheikh Jassim Bin Hamad Bin Jassim Bin Jabr Al Thani, Chairman of the Bo

  16. Slide 16: Operating Environment

    1. Introduction 2. QIB – Financial Overview 3. QIB – Business Review 4. Operating Environment 5. Appendix Private and confidential. Do not circulate.

  17. Slide 17: State of Qatar – Sustainable and Robust Growth Story

    State of Qatar – Sustainable and Robust Growth Story… State of Qatar (“Qatar”) – Overview One of the largest hydrocarbon reserves in the world Total oil & gas reserves (billions boe) Ratings 400 Moody’s: Aa2/Stable S&P: AA/Stable Oil Gas 300 31 46 Middle East 186 200 250 Nominal GDP (2011): USD173.8

  18. Slide 18: … with Solid Economic Indicators

    … with Solid Economic Indicators Strong fiscal surplus Current account surplus Fiscal surplus (USD bn and % of GDP) Current account balance (USD bn and % of GDP) 16 14.7% 16% 13.7% 30 30% 12 9.3% 12% 18.7% 20 20% 14.7% 14.1% 8 8% 12.3% 4.9% 5.0% 10 6.5% 10% 4 4% 10.5 10.7 13.4 6.2 8.7 10.4 14.2 6.4

  19. Slide 19: Qatari Banking Sector – Robust Operating Environment

    Qatari Banking Sector – Robust Operating Environment General Overview The State of Qatar has been supportive throughout crisis • Qatar Central Bank prohibits conventional banks from providing October 2008 QIA announced plans to acquire equity ownership interests of up to Shari’a-compliant financing

  20. Slide 20: Qatari Banking Sector – Continued Growth

    Qatari Banking Sector – Continued Growth Assets Bank financings and advances USD bn USD bn 225.3 150 Domestic 8.7 240.00 Outside Qatar 190.7 125 200.00 7.4 155.8 160.00 100 5.6 128.5 110.4 5.1 120.00 75 6.0 80.8 131.3 80.00 50 3.9 103.5 80.7 60.7 69.2 40.00 25 40.2 0.00 0 2007 2008 2009 2010 2011 20

  21. Slide 21: Appendix

    1. Introduction 2. QIB – Financial Overview 3. QIB – Business Review 4. Operating Environment 5. Appendix Private and confidential. Do not circulate.

  22. Slide 22: Rating Excerpts

    Rating Excerpts “A-” with “Stable” outlook “QIB will remain an important player in Qatar, with no significant change in its business and financial profiles over the next 12 to 24 months. We expect strong balance sheet growth accompanied by continued high dividend payouts. We nevertheless anticipate

  23. Slide 23: QIB’s Award-Winning Franchise

    QIB’s Award-Winning Franchise Selected Awards “Best Islamic “Best Islamic in “Best Islamic “Best Islamic “Islamic Finance Financial Qatar” Bank in Qatar” Bank of the Deal of the Year” Institution” Year” 2012 2012 2011 2011 2010 Certificate Certificate Certificate “Best Bank” QIB ACHIEVES “BS 25999 “

  24. Slide 24: Thank you.

    Thank you. Private and confidential. Do not circulate.

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