Alrayan Bank · QSE:MARK

Alrayan Bank — Masraf Al Rayan — Q1 2020 Earnings Presentation

22 slides from Alrayan Bank's earnings presentation, Mar 31, 2020

  1. Slide 1: Investor Presentation

    Investor Presentation 31 March 2020

  2. 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

  3. 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

  4. 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

  5. Slide 5: Overview of Masraf Al Rayan Cont.: Board Composition

    1. Overview of Masraf Al Rayan Cont. 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 Boa

  6. 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

  7. Slide 7: Financial Highlights and Performance: Summary

    Financial Highlights and Performance Summary  Total assets reached QAR 109,058 million compared to QAR 100,314 million on 31 March 2019, an increase of 8.7% Balance Sheet  Financing activities increased to QAR 79,265 million compared to QAR 75,878 million on 31 March 2019, an increase of 4.5%  In

  8. Slide 8: Financial Highlights & Performance: Balance Sheet

    Financial Highlights & Performance Balance Sheet  Financing assets have continued to grow in 2020. Investment securities continue to have high tilt towards high quality Government debt. Assets Asset Mix – 2020 0.5% 3.0% 5-yr CAGR: 3.9% 5.5% 120,000 106,397 109,058 19.8% 102,949 97,294 91,531 9,654

  9. 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 2,892 6,000 5,221 2,736 2,788 4,874 4,347 5,000 162 152 388 30 2,130 2,178 315 30 2,028 1.9% 3.7% 143 4,000 27

  10. Slide 10: Financial Highlights & Performance: Asset Quality

    Financial Highlights & Performance Asset Quality  Masraf Al Rayan’s non-performing financing ratio is at 0.94% 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

  11. 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 800 751 709 671 119,240 700 140,000 109,778 116,257 600 120,000 822 810 368 688 13,614 356 13,495

  12. 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 14,132 13,390 13,473 213 12,946 199 196 2,149 200 2,009 1,809 1,0

  13. 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 92,265 96,113 80,000 89,559 65,612 67,730 83,820 2,387 70,000 62,532 61,569 1,905 1,94

  14. 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

  15. 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

  16. 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

  17. Slide 17: Historical Financials: Consolidated Income Statement

    Historical Financials Consolidated Income Statement QAR mn 2017 2018 2019 Q1 2019 Q1 2020 Net incom e from financing activities 3,101 3,539 3,710 897 918 Net incom e from inves ting activities 792 838 931 216 254 Total Net Income from Financing and Investing Activities 3,893 4,377 4,641 1,113 1,172

  18. Slide 18: Historical Financials: Consolidated Statement of Financial Position

    Historical Financials Consolidated Statement of Financial Position QAR mn 2017 2018 2019 Q1 2019 Q1 2020 Cash and Balances with Qatar Central Bank 2,800 3,027 3,123 2,988 3,300 Due from Banks 3,312 1,513 6,035 973 4,282 Financing Assets 72,097 72,515 74,837 75,878 79,265 Investment Securities 23,423

  19. 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

  20. Slide 20: Operating Environment: Qatar at a Glance

    Operating Environment Qatar at a Glance Snapshot of Qatar Fiscal Balance 20.00 10.00% 8.55% 8.50%  Largest exporter of LNG with a global market share of 25%(1) Economic 6.69% 6.98% 8.00% Fundamentals  3rd largest gas reserves in the world (c.13% of world’s total) (2) 15.00  Largest exporter of LN

  21. 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, 2020 Projections (USD / barrel) 5 93 85.9 3.4 3.3 78.3 3 2.9 2.4 68 2 1.8 1.7 2020 Avg 1.2 1.5 1.3 0.7 Brent 0.1 0.3 49.7 70 $/bl 45.4 -1.1 -2.3 -3.6 -3.5 -4.3 Bahrain Kuwai

  22. 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

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