Dukhan Bank Q.p.s.c. · QSE:DUBK
Dukhan Bank Q.p.s.c — Dukhan Bank — Investor Presentation (September 2024)
34 slides from Dukhan Bank Q.p.s.c's investor presentation, September 2024
Slide 1: Investor Presentation September 2024
Investor Presentation September 2024
Slide 2: Table of Contents
Table of Contents 1 Business Overview 2 Financial Performance Appendix 1
Slide 3: 1. Business Overview
OL_Aa cli4 D> DUKHAN BANK 1. Business Overview
Slide 4: Dukhan Bank – At a Glance
Dukhan Bank – At a Glance Leading Sharia compliant bank with a full suite of financial services Our Vision: Aim to be a bank of choice, preferred by customers for long-lasting partnerships, by shareholders for value creation, sought after by employees and renowned for service excellence 9M 2024 QAR
Slide 5: Dukhan Bank – Rich and Versatile History
Dukhan Bank – Rich and Versatile History Barwa Bank: Fastest growing sharia compliant Bank in Qatar with strong wholesale banking proposition ▪ Barwa Bank ▪ Barwa Bank ▪ Acquisition ▪ Acquired IBQ Al ▪ Khalid Al ▪ Initial ▪ Issued 4 private ▪ Barwa ▪ Ahmed Hashem was founded obtains license to of Fi
Slide 6: Dukhan Bank – Overview
Dukhan Bank – Overview Overview of Dukhan Bank Financial summary Growth CAGR ◼ Net profit: The Group reported a net profit of QAR 1.1 billion for the first nine months of 2024, Balance sheet, QAR’mn 2020 2021 2022 2023 Sep-24 (YE'23 vs (YE’20- reflecting a 3% year-on-year growth. This growth in bott
Slide 7: Dukhan Bank – Four Principal Areas of Business
Dukhan Bank – Four Principal Areas of Business Treasury & Investments Wholesale banking Retail & Private Banking Subsidiaries Group Asset and liability management, trading Financing, deposits, trade finance, Financings, deposits, wealth management Three fully owned subsidiaries and and investment ac
Slide 8: Strong Government Linkage
Strong Government Linkage Strong alignment of objectives and interests between the State of Qatar and Dukhan Bank Government commitment via significant and stable shareholding… …coupled with substantial Public sector deposits contribution… QAR’bn x% Public sector deposits as percentage of total depo
Slide 9: Experienced Board of Directors & Management Team
Experienced Board of Directors & Management Team Board of Directors H.E. Sheikh Mohammad Bin Hamad Bin Jassim Al Thani Government Independent Representatives Mr. Abdulaziz Mohammed Hamad Al Mana ▪ Chairman and Managing Director Sheikh Khalid Bin Hassan Bin Khalid Al-Thani ▪ Vice Chairman ▪ Director
Slide 10: Sustainability is Key Success Factor in Dukhan's Business Model
Sustainability is Key Success Factor in Dukhan’s Business Model Dukhan Bank Sustainability Statement: Creating value through the integration of ESG (Environmental, Social and Governance) initiatives in our Business Model. As a Shariah compliant bank, we have much in common with ESG principles. Throu
Slide 11: Bank Strategy focuses on Customer Partnerships & Shareholder Value
Bank Strategy focuses on Customer Partnerships & Shareholder Value 1 Expansion of Wholesale Banking in Qatar with focus toward higher value added sectors 2 9 Attracting new talent and Build lead on Best-in-class retaining key personnel Private Banking pioneer position in Qatar 3 8 Effective capital
Slide 12: Key Investment Highlights
Key Investment Highlights 1 Strong government commitment via significant ownership, support and mutually beneficial relationship 2 Competitive market positioning through the first, successful domestic Financial Institutions merger in Qatar 3 Proficient leadership with experienced management team and
Slide 13: 2. Financial Performance
OL_Aa cli4 D> DUKHAN BANK 2. Financial Performance
Slide 14: Financial Highlights 9M 2024
Financial Highlights 9M 2024 Net profit increased by +3% Maintained a YoY robust net financing assets Total income to deposits ratio increased +14% of 101.2% YoY Customer NPL ratio deposits decreased to increased +5% 4.7% (5.4% in FY from FY 2023 2023) Total assets at QAR 116.7bn and net financing R
Slide 15: Balance Sheet Composition
Balance Sheet Composition Resilient and primarily deposit-funded balance sheet with a diversified client base Focus on core banking activities Pre-dominantly Qatar-focused balanced financing book Total assets vs. liabilities and equity - Sep 2024 (in QAR’bn) Breakdown of financing assets, Sep 2024 V
Slide 16: Financials – Dukhan has Consistently Outperformed the Market
Financials – Dukhan has Consistently Outperformed the Market Continuous strong growth under Assets and Income streams Total assets Net financing assets Customer deposits (1) QAR QAR QAR bn bn bn 84.9 82.3 116.7 75.2 75.7 77.6 77.4 78.0 110.7 114.4 74.5 106.3 86.3 58.5 53.9 2020 2021 2022 2023 Sep-24
Slide 17: Profitability
Profitability Dukhan Bank is an efficient business with diversified income sources and robust net profit margin Constantly growing revenue base across …with a relatively healthy net profit margin1 …inclining however stabilising funding costs2 diverse income streams… despite challenging macro environ
Slide 18: Asset Quality
Asset Quality Strong risk-management culture and prudent provisioning policy Commentary Prudent risk management… ◼ Considering the global economic circumstances, Dukhan Bank has shown resilience Cost of risk1 (in bps) – impairment charge over average net financing assets 168 ◼ The Bank has been clos
Slide 19: Asset Quality (continued)
Asset Quality (continued) Prudent overall coverage with staging aligned with the Qatari Banking Sector Portfolio Breakup Portfolio Breakup As at 30 Sep 2024 Stage I Stage II Stage III Total As at 31 Dec 2023 Stage I Stage II Stage III Total Financing assets 82.5% 12.8% 4.7% 100.0% Financing assets 8
Slide 20: Capital, Funding and Liquidity
Capital, Funding and Liquidity Robust capital structure with optimal funding and healthy liquidity position Well diversified funding base Granular deposit base with significant contribution from private banking & the public sector(1) Funding breakdown (9M 2024) Deposits breakdown by sector (9M 2024)
Slide 21: Dividend History
Dividend History Consistently being one of the highest Pay-out ratio among peers on the back of robust capital & strong profitability Dividend distribution (in QAR'mn) 70% 68% 68% 63% 58% 55% (1) 56% 51% 831 831 727 520 520 415 444 417 2017 2018 2019 2020 2021 2022 2023 Jun-24 Dividends Dividend pay
Slide 22: Dukhan Bank – Competitive Positioning vs. Qatari peers
Dukhan Bank – Competitive Positioning vs. Qatari peers Dukhan Dukhan Bank Bank –– 5th largest Qatari 5th largest Qatari bank bank and and 33rd largestIslamic rd largest Islamicbank bankininQatar Qatar Total Assets Total Loans Total Deposits Net profit (QAR’ billions; as at 30-Jun-24) (QAR’ billions;
Slide 23: Appendix
OL_Aa cli4 DUKHAN BANK Appendix
Slide 24: Ownership Structure
Ownership Structure Shares outstanding 5,234,100,000 Ownership structure General Retirement and General Retirement and Al Sanad Trading Co and Broog Trading Co Social Insurance Social Insurance Qatar Holding Other Shareholders related entities Authority Authority 33.19% 13.47% (Pension fund) (Milita
Slide 25: Ownership Structure
Ownership Structure As at 30-Sep-2024 Ownership % Number of Shareholders 100.0% 100.0% 2,615 93.4% 93.9% 2,500 88.0% 90.0% 2,218 80.0% 2,000 1,873 1,787 70.0% 60.0% 1,500 50.0% 40.0% 1,000 30.0% 674 20.0% 500 377 397 297 10.0% 5.4% 5.7% 5.9% 6.1% 0.7% 0.5% 0.1% 0.2% 86 68 54 14 0.0% Qatar GCC Foreig
Slide 26: Share Price Movement
Share Price Movement From Listing Date till 30-Sep-2024 Average (YTD) High Low Close Share Price* 3.839 4.350 2.838 3.860 4.5 Volume in millions Price (QAR) 180 4.3 160 4.1 140 3.9 120 3.7 100 3.5 80 3.3 60 3.1 40 2.9 2.7 20 2.5 0 *Based on daily closing price 25
Slide 27: Snapshot of the Consolidated Statement of Financial Position
Snapshot of the Consolidated Statement of Financial Position (in QAR‘000) YE 2020 YE 2021 YE 2022 YE 2023 30-Sep-24 Cash and balances with Qatar Central Bank 3,367,553 7,245,842 6,425,410 3,644,932 3,816,323 Due from banks 5,891,788 5,558,980 1,499,934 11,072,244 8,073,326 Financing assets 58,536,99
Slide 28: Snapshot of the Consolidated Statement of Income
Snapshot of the Consolidated Statement of Income For the year For the nine-month ended 31 December period ended 30 Sep (in QAR ‘mn) 2021 2022 2023 2023 2024 Net income from financing activities 2,933 3,216 4,666 3,324 3,897 Net income from investing activities 682 756 957 631 837 Total net income fr
Slide 29: Dukhan Bank has an Award Winning Customer Service Proposition
Dukhan Bank has an Award Winning Customer Service Proposition Awards and Acclamations 2022 ▪ MENA Wealth Manager of the year – 2024 Best Digital Bank Award ▪ Best Retail Bank Qatar 2024 Best Consumer Digital Bank in Qatar ▪ Best Islamic Product Offering 2024 Best Integrated Consumer Most Innovative
Slide 30: Dukhan Bank has an Award Winning Customer Service Proposition
Dukhan Bank has an Award Winning Customer Service Proposition 29
Slide 31: Qatar Macro Overview
OL_Aa cli4 D> DUKHAN BANK Qatar Macro Overview
Slide 32: Hydrocarbons underpin a Strong Economy
Hydrocarbons underpin a Strong Economy Hydrocarbon reserves per capita (2021) Qatar’s current and expected share of global LNG market 160 144 Qatar plans to increase its LNG production by 85% K barrels of oil equivalent (boe) 140 700 600 Million metric tons p.a. 120 600 100 500 365 Phase 3 80 400 Ph
Slide 33: Qatar's Banking and Financial Sector remains Resilient and Healthy
Qatar’s Banking and Financial Sector remains Resilient and Healthy Highly rated sovereign Banking sector liquidity Standard & Poor’s Sovereign Ratings Germany, Canada, Switzerland, Norway, Sweden, Netherlands, Luxembourg, AAA Singapore Given its 66.6% 67.3% 67.6% 67.2% 66.6% 66.1% AA+ US, Austria, F
Slide 34: Disclaimer
Disclaimer By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: – These materials contain statements about future events and expectations that are forward-looking statements. – These statements typically