Qatar Islamic Bank · QSE:QIBK
Qatar Islamic Bank — Investor Presentation (May 2014)
27 slides from Qatar Islamic Bank's investor presentation, May 2014
Slide 1: Investor Presentation Year 2014
Investor Presentation Year 2014 Chief Financial Officer | Qatar Islamic Bank May 2014
Slide 2: Agenda
Agenda Introduction Operating Environment QIB Business Review QIB Financial Overview Appendix Qatar Islamic Bank Page | 2
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
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
Slide 5: Agenda
Agenda Introduction Operating Environment QIB Business Review QIB Financial Overview Appendix Qatar Islamic Bank Page | 5
Slide 6: 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 Oil Gas S&P: AA/Stable 300 31 46 Middle East 186 200 250 20 297 10 265 34 100 141 Nom
Slide 7: … 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) 24 11.9% 16% 75 40% 9.9% 32.4% 32.6% 13.4% 30.9% 20 30.3% 29.2% 60 25.3% 12% 30% 16 9.6% 19.0% 7.7% 7.5% 45 12 8% 20% 23 30 20 21 4.7% 8 2
Slide 8: 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 Shari’a-compliant financing – the
Slide 9: Qatari Banking Sector – Continued Growth
Qatari Banking Sector – Continued Growth Assets Bank financings and advances USD bn USD bn 250 Domestic Outside Qatar 400.00 351 16 350.00 314 14 281 200 300.00 252 13 250.00 225 12 191 150 9 200.00 156 7 150.00 128 110 100 205 6 183 100.00 5 6 164 131 147 50.00 50 104 69 81 0.00 61 2008 2009 2010 2
Slide 10: Agenda
Agenda Introduction Operating Environment QIB Business Review QIB Financial Overview Appendix Qatar Islamic Bank Page | 10
Slide 11: Overview of QIB
Overview of QIB Phase 1: Creation of the bank Phase 2: Creation of a strong banking platform QIB established Al Jazeera QIB listed in Qatar Arab Finance 2009: BEEMA established 25% owned by QIB with paid up finance Exchange House established QIB Capital increased to QR 2.06 Billion capital QR 25mn e
Slide 12: 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 • Arab Finance House Investments Local Subsidiary • International Assoc
Slide 13: Growth-Focused Strategy
Growth-Focused Strategy A leading, innovative and global Islamic bank adhering to the highest Sharia’h and ethical principles Strategic Intent – Build around the core Improve the Develop an performance & International Become the cross selling Network of QIB- Benchmark Islamic opportunities with Bran
Slide 14: QIB's Organizational Structure
QIB’s Organizational Structure Governing Bodies Shareholders Board of Directors Shari’a Board Chairman of the Supervisory Secretariat Board Board Nomination & Policies & Zakat Remuneration Board Executive Audit & Risk Shari’a Governance Development Committee Committee Committee Committee Executive C
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 Six me
Slide 16: Experienced Leadership
Experienced Leadership Bassel Gamal Group CEO • 23 years experience • Egyptian • Ahli United Bank Group • Chase National Bank Bert De Ruiter Dinos Constantinides Ghazi Qarout Wholesale Banking Chief Strategy Officer Information Technology • 20 years experience • 30 years experience • 24 years experi
Slide 17: Shari'a Supervisory Board
Shari’a Supervisory Board QIB enjoys a strong Islamic heritage and has based its success on sound Shari’a-compliant principles, under the supervision of a world-renowned Shari’a Supervisory Board The Shari’a Supervisory Board acts as an independent body of experts in Islamic Sharia’s Supervisory Boa
Slide 18: Agenda
Agenda Introduction Operating Environment QIB Business Review QIB Financial Overview Appendix Qatar Islamic Bank Page | 18
Slide 19: 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 21.3 20 16.0 14.3 Growth driven by multiple products / asset classes 15 10 9.2 10.8 5 Primarily Qatar-centric
Slide 20: 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 (2013) Others Govt & GREs Well-diversified & growing (USD 12.95bn) financing 6.2% 12.7% book Personal NBFIs 3.7% 19.4% I
Slide 21: 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 (2013) Other Liabilities Sukuk Financing 7.0% Customer's Ability to obtain financing from diverse sources Du
Slide 22: 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
Slide 23: Strong Capitalization & Continued Profitability
Strong Capitalization & Continued Profitability QIB boasts an ideal platform for future growth, including strong capitalization and supportive margins/returns Summary Capital adequacy ratio 17.3% 18.6% 17.4% 17.0% Capital ratios well above regulatory requirements 15.4% 16.5% Strong Net Finan
Slide 24: 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 and investing revenues 750 64 82 115 79 500 71 161 220 79 184 294 Continued profitability during crisis 76 59 250 359 351
Slide 25: Agenda
Agenda Introduction QIB Financial Overview QIB Business Review Operating Environment Appendix Qatar Islamic Bank Page | 25
Slide 26: Rating Excerpts
Rating Excerpts “A” with “Stable” outlook Outlook on the FSR had been changed to ‘Stable’ in view of the significant improvement in financing asset quality […] The FSR is supported by the Bank’s low leverage and good quality capital adequacy ratios – as well as by improved liquidity – which have ben
Slide 27: QIB's Award-Winning Franchise
QIB’s Award-Winning Franchise Selected Awards World Finance The Bankers World Finance “Best SME “Islamic Bank of “Best Islamic “Best Islamic “Safest Islamic “Islamic Bank of the Year, Qatar” Bank in Qatar ” Financial Bank in Qatar” Islamic Bank of the Year, Qatar” the Year, Qatar” Institution” 2014
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