Doha Bank · QSE:DHBK
Doha Bank — Investor Presentation (December 2020)
44 slides from Doha Bank's investor presentation, December 2020
Slide 1: Investor Presentation December 2020
Investor Presentation December 2020
Slide 2: Disclaimer
Disclaimer Our discussion may include forward-looking predictions and or expectations. While these forward-looking statements represent our current judgment on what the future holds for the bank, they are subject to risks and uncertainties that could cause actual results to differ materially. You ar
Slide 3: Table of Contents
Table of Contents 1. Macroeconomic Update 2. Doha Bank Overview 3. Operational & Financial Highlights Appendix 3
Slide 4: Macroeconomic Update: Qatar State Budget for 2021
1 Macroeconomic Update Qatar State Budget for 2021 shows strength • Revenue is anticipated to reach QR160.1 billion based on an average oil price of $40 per barrel • Expenditure is estimated at QR194.7 billion • The Budget deficit is estimated at QR34.6 billion • A total of QR72.1 billion is allocat
Slide 5: Sector Allocation
QAR Billion QATAR Fiscal Budget Chg Pct 2016 2017 2018 2019 2020(1) 2021 Y-O-Y % Total Revenue 170.9 163.3 207.9 214.7 170.5 160.1 -6.1% Oil & Gas 140.7 133.0 173.1 170.0 132.0 121.6 -7.9% Other Revenues 30.1 30.3 34.8 44.8 38.5 38.5 0.0% Total 221.7 203.3 192.8 208.4 182.2 194.7 6.9% Expenditure Sa
Slide 6: Stable economic position
Stable economic position Sovereign rating Moody’s Aa3/ S&P AA-/ Fitch AA- Post ‘blockade’ resolve Maintained ratings with Stable Outlook Qatar has the 3rd largest reserves of Gas reserves(1) natural gas in the world, totaling 24.7 trillion cubic meters Oil reserves(1) 25.2 billion barrels of proven
Slide 7: Government fiscal surplus / deficit and revenues
Government fiscal surplus / deficit (% nominal GDP) 2.0 % +0.9% +2.2% -9.2% -6.6% 2018 2019 -2.2% (2.0 %) 2020(1) (6.0 %) 2017 (10.0 %) 2016 Sources / Notes 1. QCB Annual Reports, and for 2020 estimated as per forecast of Qatar Planning and Statistics Authority Government revenues (QR Bn) Gov't Rev.
Slide 8: Ongoing diversification of the national economy backed by deep natural gas reserves
Ongoing diversification of the national economy backed by deep natural gas reserves Major projects in 2021(1) Estimated projects value of QR 72 Bn or c.USD$20 Bn Main sector allocations: • QR21 Bn for Municipality and Environment • QR17.3 Bn for Defense and Security • QR7.4 Bn Transportation and Com
Slide 9: 3rd largest reserves and 2nd largest exporter of natural gas
3rd largest reserves and 2nd largest exporter of natural gas Billion Cubic Meters 300 Russia Saudi Arabia 19.1% 3.0% 257 250 Iran UAE 16.1% 3.0% 200 Qatar Others #2 #3 150 12.4% 30.1% 129 123 116 105 100 Turkmenistan 9.8% 50 US 6.5% 0 Russia Qatar US Norway Australia Source British Petroleum Statist
Slide 10: Doha Bank Overview: COVID-19 response
2 Doha Bank Overview COVID - 19 response When cases of COVID-19 infection appeared, Qatar issued a package of policies to contain the virus and its effect on public health and a package of economic measures to mitigate its negative repercussions on the Qatari economy, including a support program imp
Slide 11: 5Rs Strategy
5Rs Strategy In the wake of the coronavirus pandemic, Doha Bank has developed a 5Rs strategy model to focus the Bank’s response in the short term. The 5Rs stand for: • Rationalisation • Revenue enhancement • Restructuring • Remedial management • Remodeling of business During the initial months of th
Slide 12: Doha Bank overview and ratings profile
17 • Founded in 1979 • Listed on the Qatar Exchange • Full branch operations in Qatar, the UAE (Dubai & Abu Dhabi), India (Mumbai, Chennai & Kochi) and Kuwait • Largest international network of representative offices among Qatari banks: China (Shanghai & Hong Kong), Canada, Turkey, Singapore, German
Slide 13: Doha Bank at a glance
Doha Bank at a glance 08 09 13 10 14 21 19 04 12 01 02 03 05 15 07 06 20 11 18 16 01 Qatar 12 Shanghai-China 02 Dubai-UAE 13 Seoul-South Korea 03 Abu Dhabi-UAE 14 Tokyo-Japan 04 Kuwait City-Kuwait 15 Hong Kong-China 05 Mumbai-India 16 Sydney-Australia 06 Kochi-India 17 Toronto-Canada 07 Chennai-Indi
Slide 14: Doha Bank Overview
Doha Bank Overview Date Value Last Price 28 - Feb - 21 2.275 52 Week High 19 - Oct - 21 2.520 52 Week Low 31 - Mar - 20 1.800 Current Market Qatari Riyals Mn 7,054 Capitalization USD Mn 1,937 Diversified shareholder base and strong support(1) Other Domestic 65.26% QIA 17.15% Foreign 10.14% Civil Pen
Slide 15: Key Ratios
Key Ratios 2017 2018 2019 2020 Total equity to total asset 15.8% 13.3% 12.3% 13.3% Net loans to total asset 64.0% 62.3% 60.8% 63.2% Net loans to total deposit 100.6% 107.3% 112.5% 118.8% Non-performing loans 3.61% 5.84% 5.81% 5.98% Cost of Risk 1.00% 1.59% 1.78% 2.09% Cost to Income 37.4% 35.6% 33.6
Slide 16: Doha Bank strategy – Transformation with a clear path to growth
Doha Bank strategy – Transformation with a clear path to growth To be recognized as the bank of choice in Qatar, delivering superior shareholder returns and an unparalleled customer experience. Vision We strive to become a platform for innovative financial services and deliver superior customer expe
Slide 17: Guiding principles
Guiding principles Customer Experience “Place the customer at the core of all we do and deliver a leading omni-channel experience” Empowerment and Accountability “Empower our employees to make decisions” Talent Management “Hire, train and retain best in class talent” Cost Reduction “Optimize cost to
Slide 18: Doha Bank is committed to ESG Sustainable Practices
Doha Bank is committed to Environmental, Social and Governance (ESG) Sustainable Practices Doha Bank began the publication of its annual sustainability disclosure statements from the year 2009. Doha Bank sustainability reporting is guided by the Qatar Stock Exchange (QSE) ESG reporting methodology;
Slide 19: Achieved a score of 100% of the QSE ESG Indicators
Achieved a score of 100% of the QSE ESG Indicators being reported for 2018 and 2019 As on 21 December 2020, Doha Bank received a FTSE ESG Rating of 3.00 out of 5. Doha Bank was the 1st listed company on the Qatar Stock Exchange to be included in the FTSE4Good Index in November 2018. Disclaimer: FTSE
Slide 20: Four Business Units and 100% in Sharq Insurance
Doha Bank is structured in four Business Units and holds 100% in Sharq Insurance Total income 31 Dec 2020 (QAR million) 2,568 Wholesale Focus on corporate and commercial banking, structured finance, public sector finance, mortgage finance and real estate services, trade finance, factoring services a
Slide 21: International, Treasury & Investments
Total income 31 Dec 2020 (QAR million) 158 International Provides a range of products and services including guarantees, letters of credit, risk mitigation and discounting products and risk Total income participation in international trade 31 Dec 2020 (QAR million) 1,185 Assets 31 Dec 2020 (QAR mill
Slide 22: Digitization transactions have increased significantly
DIGITIZATION transactions have increased significantly Significant Growth in E-Commerce • Online Payment Gateway transactions has increased by 97% YoY • Exponential growth in e-commerce, Online Payment Gateway transaction volumes increased by 405% YoY Shift to Digital • 86% of all branch transaction
Slide 23: Financial Transactions - Digital vs. Branch
Financial Transactions - Digital Vs. Branch 100% 91% 87% 87% 88% 87% 87% 88% 86% 87% 90% 80% 80% 71% 71% 70% 60% 50% 40% 29% 29% 30% 20% 13% 13% 12% 13% 13% 12% 14% 13% 20% 9% 10% 0% Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. Digital Branch Online Payment Gateway - Transaction Volum
Slide 24: Long-standing experience in lending into key sectors of Qatar
Long-standing experience in lending into the key sectors of Qatar and good insights Loan market size (QAR billion) ‘major sectors’ and Doha Bank market share (%) Government Loans Services 372 3.1% 228 5.0% Total Loans Real Estate Loans 154 1,129 12.6% 6.1% Trade Loans Retail Loans 151 Contract Finan
Slide 25: Historical Loan market size and Doha Bank market share
Historical Loan market size (QAR billion) ‘major sectors’ and Doha Bank market share (%) 2020 2019 2018 2017 System DB System DB System DB System DB Government Loans 372 3.1% 334 2.2% 360 1.0% 315 1.6% Services 228 5.0% 209 5.6% 135 4.7% 125 5.4% Real Estate Loans 154 12.6% 149 12.3% 147 12.4% 135 1
Slide 26: Key Credit Highlights
Key Credit Highlights 1 Well-established banking franchise with strong brand value backed by +40 years of history 2 Highly experienced Executive Management team 3 Strong investment grade ratings profile underpinned by high probability of Qatari authorities’ support 4 Qatar exchange primary listing a
Slide 27: Operational and Financial Highlights
3 Operational and Financial Highlights Financial Summary Key Ratios 2020 2019 Chg Y/Y Interest income 3,744 4,167 -10.2% Interest expense (1,424) (2,187) -34.9% Net interest income 2,320 1,980 17.1% Fees and commission 304 394 -22.8% Foreign exchange gain 106 112 -5.1% Income from investment securit
Slide 28: Corporate Banking
Corporate Banking Overview of the corporate banking loan book Real Estate 39.2% Trade 22.8% Services 20.1% Contracting 11.2% Non-Banking FI's 3.2% Industry 2.0% Others 1.5% Total: QR49.5 Bn Comments • A significant contributor to the total income of Doha Bank • Evolved to be one of the core competen
Slide 29: Loans (QR Bn)
Loans (QR Bn) % ) : 12 2020 14 – CAG R (20 CAGR (2014 – 2020) : -6.7% 9.8 11.6 14.5 18.3 18.5 18.3 19.4 8.4 10.1 10.7 11.0 10.5 10.1 5.5 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020 Real estate Contract financing % 020 ) : 20 4 – 2020) : 4% 1 4–2 CAGR (201 R (20 CAG 8.8 9.4
Slide 30: Real Estate
Real Estate Qatar market real estate loans (QR Bn) % 020 ) : 13 (200 9–2 CAGR 40.4 51.0 76.2 85.6 85.4 95.7 125.7 135.0 147.3 151.5 148.9 154.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Real estate market share development 28% 12.2% 12.6% 12.3% 12.6% 12.5% 12.6% 11.4% 11.3% 11.6% D
Slide 31: Contract Finance
Contract Finance Qatar market contract financing loans (QR Bn) 2020 ) : 11% (2 009 - CAGR 13.0 18.4 16.2 18.2 23.3 32.0 38.9 40.5 40.1 37.0 37.3 40.3 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Contract financing market share development 28.5% 28.9% 29.0% 27.4% 27.2% 23.6% 8% 20.7% 1
Slide 32: Credit Quality
Credit Quality NPL evolution 5.84% 5.81% 5.98% 3.61% 2,259 3,802 4,122 4,115 2017 2018 2019 2020 NPL (QR Mn) NPL % Net impairment loss on loans and cost of risk(1) 2.09% 1.59% 1.78% 1.00% 593 952 1,118 1,369 2017 2018 2019 2020 Net impairment loss on loans (QR Mn) Cost of Risk % Note 1. Includes exp
Slide 33: Total Reserves for loans and advances divided by impaired loans
Total Reserves(1) for loans and advances divided by impaired loans 186% 138% 124% 81% 4,190 5,233 5,130 3,348 2017 2018 2019 2020 Total Reserves for loans & advances (QR Mn) Total Reserves for loans & advances / impaired loans Note 1. Includes expected credit losses from 2018 onwards (2017 includes
Slide 34: Credit Quality
Credit Quality Real Estate 1.3% 0.1% 0.1% 0.2% 0.2% 2016 2017 2018 2019 2020 Corporate 4.2% 4.2% 7.3% 7.9% 11.3% 2016 2017 2018 2019 2020 Retail 3.8% 4.7% 4.8% 4.7% 6.0% 2016 2017 2018 2019 2020 34
Slide 35: Contracting
Contracting 6.8% 7.9% 15.9% 15.9% 11.3% 2016 2017 2018 2019 2020 Comments • GCC branches showing significantly high NPL % • High Corporate and Contracting NPL % mainly attributable to exposure from GCC branches • Qatar operation’s NPL % remains low to stable 5.98% 2.89% 63.59% 2.37% Qatar GCC India
Slide 36: Diversified loans and deposits
Diversified loans and deposits By sector – December 2020 Loans Real Estate Contract Financing 28.2% 8.1% GRE's Non-banking FI's 16.7% 2.3% Trade Industry 16.4% 1.4% Services Others 14.4% 1.1% Retail 11.4% Total loans: QR65.5 Bn Deposits Corporate 38.9% GRE's 36.7% Individuals 22.7% Non-banking FI's
Slide 37: By type – December 2020
By type – December 2020 Loans Corpoate 71.9% GRE's 16.7% Retail 11.4% Total loans: QR65.5 Bn Deposits Term Deposits 77.9% Current and call deposits 16.7% Savings Accounts 5.4% Total deposits: QR55.1 Bn Comments • Doha Bank consistently ensures it retains a diversified deposit and funding base to min
Slide 38: Investment Book
Investment Book Portfolio Overview • Conservative investment philosophy • Low hard limits for discretionary trading / investments • Majority of portfolio in local sovereign fixed income, Qatar 77.8% and Qatar banks 9.8% • Fixed Income holdings – average purchase yield 3.78%, Bond average Duration –
Slide 39: Investment portfolio breakdown – December 2020
Investment portfolio breakdown – December 2020 (%) Total (QR24,667 Mn) State of Qatar Debt Securities 78.3% Other Debt securities 19.6% Equities 1.9% Mutual Funds 0.2% FVOCI (QR16,414 Mn) State of Qatar Debt Securities 71.6% Other Debt securities 25.6% Equities 2.8% Amortized Cost (QR8,199 Mn) State
Slide 40: Liquidity and Capitalization
Liquidity and Capitalization Funding mix – December 2020 Customer Deposits 53.2% Due to Banks 22.3% Equity 13.3% Other Borrowings 7.9% Other Liabilities 3.0% Debt Securties 0.3% Total liabilities and equity: QR103.5 Bn Evolution of capital ratios 15.9% 15.0% 15.7% 17.5% 17.0% 17.8% 19.8% 14.7% 11.8%
Slide 41: Loan to Deposit ratio and Net Interest Margin
Loan to Deposit ratio (%) – December 2020 101% 107% 113% 119% 125% 2017 2018 2019 2020 System Doha Bank Qatar banking system as at 31 December 2020 Net Interest Margin – December 2020 2.50% 2.24% 1.98% 2.25% 2017 2018 2019 2020 Comments • Doha Bank has a diverse funding profile including a mixture o
Slide 42: Sustainable performance
Sustainable performance Outstanding Crisis Leadership – Global Finance 2020 Community Award The Golden Peacock Institute of Global Award for 2020 Directors Sustainability Global Economics Best Digital Bank 2020 Awards Best Trade Finance Global Finance 2020 Provider Best Employer Brand World HRD 2020
Slide 43: Awards: IT Infrastructure and other recognitions
ICMG International IT – Infrastructure – Enterprise, Digital – Data Centre / & IT Architecture 2019 Networks Excellence Regional Awards Best Talent LinkedIn 2019 Acquisition Team The Golden Peacock Global Award Institute of 2019 for Corporate Directors Governance The Golden Peacock Asian Banking Glo
Slide 44: Investors contact
Investors contact Hesham Kalla Head of Investor Relations Tel: +974 4015 5341 Mob: +974 55498634 Email: hkalla@dohabank.com.qa 44 | ir@dohabank.com.qa