Doha Bank · QSE:DHBK
Doha Bank — Investor Presentation (February 2019)
20 slides from Doha Bank's investor presentation, February 2019
Slide 1: Investor Presentation February 2019
Investor Presentation February 2019
Slide 2: Overview of Doha Bank
Overview of Doha Bank Key highlights Strong international footprint • Incorporated in 1979, Doha Bank is the third largest local conventional bank by assets in Qatar with a market share of approximately 6.8%(1) and assets totaling QR96.1bn • Doha Bank has a strong domestic franchise with the 2nd lar
Slide 3: Significant player in a fast growing banking sector
Significant player in a fast growing banking sector Net Loans (QRbn) - December - 2018 Total Deposits (QRbn) - December - 2018 QNB 612.5 QNB 616.8 QIB 102.2 QIB 100.6 CBQ 83.7 CBQ 71.3 Rayan 72.2 Rayan 61.6 Doha Bank 59.8 #3 position* Doha Bank 55.5 #3 position* Ahli 27.3 Ahli 21.6 0 50 100 620 0 50
Slide 4: Qatar has strong historic and planned economic growth...
Qatar has strong historic and planned economic growth... Stable economic situation Government fiscal surplus/deficit (% of GDP) Sovereign rating: AA- (Stable) by Fitch / AA- (Stable) by S&P / 15.0% 13.7% Aa3 (Stable) by Moody’s 3.3% 5.1% 5.0% Qatar has the 3rd largest reserves of natural Gas reserve
Slide 5: …With large planned expenditure to diversify the economy benefiting the banking sector
…With large planned expenditure to diversify the economy benefiting the banking sector 3rd largest reserves and 2nd largest exporter of natural gas Infrastructure projects & events to benefit from the National Vision 2030 Natural gas reserves (2017) Export of natural gas in 2017 (cubic meters bn) In
Slide 6: Leading franchise of Doha Bank and entrenched position
Leading franchise of Doha Bank and entrenched position Loan market size (QRbn) and Doha Bank market share (%) 940 337 164 151 128 91 37 6.9% 1.2% 12.2% 5.5% 6.5% 14.8% 28.5% Total loans Government loans Services* Real estate loans Retail loans Trade loans Contract financing * Includes Non-Banking Fi
Slide 7: Strong corporate banking franchise
Strong corporate banking franchise Overview of the corporate banking loan book - December 2018 Loans (QRbn) Non-banking Real estate Contract financing financial institutions Industry Others 1.4% 0.6% % 3.4% 8) : 15 201 18.5 18) : 7% Services 13 – 18.3 013 – 20 14.1% R (20 CAGR (2 Real estate CAG 10.
Slide 8: Conservative approach to the fast growing real estate sector
Conservative approach to the fast growing real estate sector Real estate market share development Qatari market real estate loans (QRbn) 28.4% 151.5 147.3 16% 018) : 135.0 12.2% 00 8-2 125.7 R (2 CAG 95.7 85.6 85.4 76.2 51.0 40.4 33.3 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 20
Slide 9: Leading market position in the contract financing sector based on strong relationships
Leading market position in the contract financing sector based on strong relationships Contract financing market share development Qatari market contract financing loans (QRbn) 16.2% % : 12 28.5% 18) 40.5 - 20 38.9 40.1 (2008 CAGR 37.0 32.0 23.3 18.4 18.2 16.2 11.5 13.0 Dec-16 Mar-17 Jun-17 Sep-17 D
Slide 10: Leading international franchise on the back of a targeted network of branches and representative offices
Leading international franchise on the back of a targeted network of branches and representative offices around the world Timeline of international expansion International asset evolution (QRbn) • 2005: Doha Bank established a representative office in Dubai 12% of total assets • 2006: Representative
Slide 11: Leading and innovative retail franchise
Leading and innovative retail franchise Innovative range of retail products Distribution channels: Innovative and increasing efficiency Transactional • Doha Bank offers a wide range of accounts to its customers, Branches • Second largest retail footprint in Qatar widespread throughout / Deposit incl
Slide 12: Credit Quality
Credit Quality NPL evolution Total Reserves* for loans & advances divided by impaired loans 5.85% 5.06% 188% 186% 4.30% 3,802 5.3% 171% 150% 138% 3.61% 3.99% 109% 3.27% 3,236 2,684 2,259 2,560 3.3% 4,846 5,233 4,578 2,012 4,190 4,323 3,781 1.3% (0.7%) 2016 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 2016 2
Slide 13: Credit quality in Doha Bank's core businesses and by geography
Credit quality in Doha Bank‘s core businesses and by geography Real estate NPL ratio Corporate NPL ratio Retail NPL ratio Contracting NPL ratio 15.9% 7.3% 4.7% 4.8% 4.1% 4.6% 3.8% 4.2% 7.9% 3.0% 6.6% 6.8% 1.1% 0.1% 0.1% 0.2% 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017
Slide 14: High margin and high dividend yield
High margin and high dividend yield High net interest margin % - December 2018 Cash dividend (QR per share) 4.5 2.24% 2.38% 2.24% 2.10% 4.0 2.03% 2.00% 3.0 3.0 3.0 1.0 DB QNB Rayan Ahli QIB CBQ 2013 2014 2015 2016 2017 2018 Source: Company information Source: Company information Attractive dividend
Slide 15: Diversified loans and deposits
Diversified loans and deposits By sector – December 2018 By type – December 2018 Loans Deposits Loans Deposits Industry Non-banking financial 1.1% institutions Others Non-banking Government and 2.7% 0.5% financial institutions related agencies Savings Accounts 2.5% 6.4% 3.8% Government and related a
Slide 16: Investment Book
Investment Book Portfolio overview Investment portfolio – split by type – December 2018 (%) Total (QR20,552mn) • Conservative investment philosophy Mutual funds -Low hard limits for discretionary trading / investments Equities 0.4% 2.6% • Majority of portfolio in local sovereign fixed income Other d
Slide 17: Liquidity and Capitalization
Liquidity and Capitalization Funding mix – December 2018 Evolution of tier 1 and capital adequacy ratio Debt securities Other liabilities 0.8% 3.0% 15.9% 15.0% 15.7% 15.6% 17.5% 17.0% Other borrowings 5.0% 17.4% 15.4% 15.4% 15.8% 14.3% 14.7% Due to banks 13.2% 11.8% 12.3% 11.2% 10.4% 10.4% 10.7% Cus
Slide 18: Doha Bank strategy – Clear path to future growth
Doha Bank strategy – Clear path to future growth Improve • Maintain conservative and cautious approach to underwriting in credit quality particular with regards to contracting sector • Continue improvement in risk management procedures and systems Further • Leverage on strong existing distribution c
Slide 19: Concluding remarks
Concluding remarks 3rd largest conventional Prime player in Qatari Qatari bank (1) with 2nd banking market, largest retail footprint growing at c.9% pa (2) in Qatar Strong regulatory Backdrop of a strong environment aligned macro-economic with international environment banking standards Proactive an
Slide 20: www.dohabank.com
»d Am gti DOHA BANK www.dohabank.com IN