Qatar National Bank Qpsc · QSE:QNBK
Qatar National Bank Qpsc — Qatar National Bank — Investor Presentation (December 2013)
35 slides from Qatar National Bank Qpsc's investor presentation, December 2013
Slide 1: Investor Relations Presentation
Investor Relations Presentation December 2013
Slide 2: Contents
Contents 1. QNB at a Glance 2. QNB Comparative Positioning – Qatar and MENA 3. Financial Highlights – as at 31 December 2013 4. Economic Overview Notes: These results include QNB ALAHLI (formerly known as National Société Générale Bank (“NSGB”)) (unless otherwise stated), which was consolidated in Q
Slide 3: QNB at a Glance
QNB at a Glance
Slide 4: QNB at a Glance: Overview
QNB at a Glance: Overview Overview • Established in 1964 as the first Qatari owned December 2013 Financials 2 (in USD billion) bank • Owned (50%) by the Government of Qatar via 2013 2012 5yr CAGR the Qatar Investment Authority (QIA) Total Deposits 92.2 74.2 26% • Largest bank in Qatar by market cap.
Slide 5: QNB's International Footprint
QNB's International Footprint Sub-Saharan Africa Middle East South Sudan: (1 Branch) Qatar: (76 Branches) Jordan: (1221 Branches, 34.5% stake Asia in Housing Bank of Trade & Finance) Indonesia: (43 Branches, 69.6% stake UAE: (21 (+11) Branches, 40.0% stake In QNB Kesawan) in CBI) Syria: (15 (+301) B
Slide 6: QNB Comparative Positioning – Qatar and MENA
QNB Comparative Positioning – Qatar and MENA
Slide 7: Top Domestic Banks
Top 5 Domestic Banks QNB continues to excel in the domestic market Assets Loans 121.8 85.3 31.0 21.2 18.4 18.3 18.4 12.9 11.4 11.3 Deposits Net Profit 92.2 2.60 17.4 13.8 13.3 0.47 0.44 0.37 0.36 11.7 Note: All amounts are in USD billions as at 31 December 2013 Source: Companies’ December 2013 press
Slide 8: Top Regional Banks
Top 5 Regional Banks QNB strengthened its position as the leading bank in the region across all categories Assets Loans 121.8 85.3 100.6 93.1 88.5 64.9 74.6 50.0 50.0 49.8 Deposits Net Profit 92.2 2.60 80.1 2.09 1.98 65.2 61.7 57.5 1.30 1.29 Note: All amounts are in USD billions as at 31 December 20
Slide 9: Financial Highlights – as at 31 December 2013
Financial Highlights – as at 31 December 2013 Note: Unless stated, these results include QNB ALAHLI which was consolidated in Q2 FY13 under International Financial Reporting Standards
Slide 10: QNB continues to demonstrate sustainable profitable growth
QNB continues to demonstrate sustainable profitable growth Highlights (including QNB ALAHLI as at 31 December 2013) Growth vs. December 2012 • Net interest margin (NIM)2: 2.90% • Cost to income ratio: 20.4% Profit1 • USD 2.60 billion net profit +14% • Earnings per Share (EPS): 3.72 • RoAA: 2.34% • U
Slide 11: Strong profitability growth
Strong profitability growth Income Statement Breakdown (USD billion as at 31 December) Net Profit1 Operating Income2 Net Interest Income % RoAE3 % Cost to Income Ratio % Net Interest Margin4 5 yrs: 21% 2.60 4.04 5 yrs: 24% 3.18 2.29 5 yrs: 32% 2.06 3.16 2.80 2.51 1.57 2.14 2.09 1.15 1.56 1.55 1.02 2
Slide 12: Robust quarterly growth has been consistently delivered
Robust quarterly growth has been consistently delivered Quarterly Income Statement Income Statement USD 000s Q4 2012 Q1 2013 Q2 20131 Q3 20131 Q4 20131 • Net Interest Income 657,770 645,996 901,464 798,171 829,685 – FX Gain 39,972 47,355 73,406 43,300 45,148 – Fees and Commissions 92,472 96,202 169,
Slide 13: Strong asset growth driven by lending activities mainly in QAR and USD
Strong asset growth driven by lending activities mainly in QAR and USD Assets Analysis (as at 31 December) Total Assets Evolution 2013 Split of Assets (%) USD billion By Type By Currency 121.8 Cash and Balances with 5.2 QAR 60.2 Central Banks 5 yrs: 24% 100.8 Due from USD 20.0 3.1 82.9 Banks EGP 8.8
Slide 14: Strong loan growth
Strong loan growth Loans Analysis (as at 31 December) Total Loans Evolution 2013 Split of Loans (%) USD billion By Geography By Sector 85.3 Qatar 80.7 Government 12.2 5 yrs: 25% 68.7 Government 44.8 Egypt 7.0 Agencies 53.3 Services/ 17.5 Other GCC Commerce 2.9 Countries 36.2 Real Estate 11.2 29.9 Eu
Slide 15: High quality lending portfolio is highlighted by low NPL ratios
High quality lending portfolio is highlighted by low NPL ratios Asset Quality Analysis (as at 31 December) Non Performing Loans (NPL) by Segment • QNB has continued to increase its provisions in response to the USD million x Total NPL’s global economic situation 233 367 619 929 1,430 • The bank’s co
Slide 16: High quality investment portfolio with 57% of securities rated AA or better
High quality investment portfolio with 57% of securities rated AA or better Investments Analysis (USD million as at 31 December 2013) Available-for-Sale Investment Securities Held to Maturity Financial Investments Quoted Fixed rate Unquoted Floating rate State of Qatar 1,890 Sovereign Debt 10,131 0
Slide 17: Robust growth in customer deposits and funding
Robust growth in customer deposits and funding Funding Analysis (as at 31 December unless otherwise stated) Total Customer Deposits Evolution 2013 Split of Deposits (%) USD billion By Sector By Type 92.2 Government 9.7 Time 5 yrs: 26% 74.2 74.1 Deposits Government 55.0 39.6 Agencies Saving 2.2 45.5
Slide 18: Solid liquidity profile with loans to deposit ratio consistently below 97%
Solid liquidity profile with loans to deposit ratio consistently below 97% Liquidity Analysis (as at 31 December) Loans to Deposits Ratio Evolution 2013 Sources of Liquidity % % of total liabilities 96.9% 92.6% 92.6% 86.4% Due to 79.6% 2.9 Banks Customer 86.1 Deposits 2009 2010 2011 2012 2013 Debt 5
Slide 19: Strong capital adequacy ratio maintained above both QCB and Basel II requirements
Strong capital adequacy ratio maintained above both QCB and Basel II requirements Capital Analysis (as at 31 December) Total Equity1 Evolution Capital Adequacy Ratio USD billion x Gearing2 % x Eligible Capital (USD billion) 12.8 22.0 21.0 USD ~3.5 Bn rights 11.7 issue in 2011; fully 10.7 subscribed
Slide 20: Increasing geographical diversification positively contributes to growth
Increasing geographical diversification positively contributes to growth Geographical Contribution (as at 31 December) Domestic International % Share of International as percentage of the total Net Profit Loans Deposits USD billion USD billion USD billion 2.60 85.3 92.2 2.29 2.06 68.7 74.2 53.3 58.5
Slide 21: Diversifying business mix will bolster sustainable growth
Diversifying business mix will bolster sustainable growth Business Mix Contribution (% share as at 31 December 2013) Lines of Business Net Profit Loans Deposits 67 73 46 Corporate • Maintained market dominance • Expanded into new markets International 37 28 19 • Reinforced existing positions Asset a
Slide 22: QNB's underlying performance continues
QNB’s underlying performance continues Highlights (excluding QNB ALAHLI as at 31 December 2013) Growth vs. December 2012 • Net interest margin (NIM)2: 2.71% Profit1 • USD 2.39 Bn net profit +5% • Cost to income ratio: 17.8% • RoAA: 2.26% • USD 111.0 Bn assets +10% • NPL (% of gross loans): 1.5% Asse
Slide 23: QNB ALAHLI
QNB ALAHLI Highlights Growth vs. December 2012 • Net interest margin (NIM)2: 4.90% Profit1 • USD 231.1 Mn net profit +17% • Cost to income ratio: 33.9% • RoAA: 2.14% • USD 11.8 Bn assets +21% • NPL (% of gross loans): 4.0% Assets • USD 6.0 Bn loans +8% • Coverage ratio: 111% Funding • USD 9.9 Bn dep
Slide 24: QNB Group Financials
QNB Group Financials Key data (as at 31 December 2013) QNB QNB incl. QNB ALAHLI % Growth Financials Ratios Presence USD billion 122 21.8% 126% 123% 111 92 85 15.6% 79 82 13,900 1.5% 1.6% 424 590 9,294 Total Assets Loans & Customer Capital NPL Coverage Branches Staff Advances Deposits Adequacy 9.7% 7
Slide 25: Economic Overview
Economic Overview
Slide 26: Qatar has the world's highest hydrocarbon wealth per national
Qatar has the world’s highest hydrocarbon wealth per national GCC oil & gas wealth (2012) Hydrocarbon revenue Hydrocarbon reserves (USD thousands/national) (k boe*/national) 183 Qatar 721 98 UAE 138 73 Kuwait 93 11 Saudi 16 11 Bahrain 2 11 Oman 6 • Qatar has the world’s highest state revenue per nat
Slide 27: The non-hydrocarbon sector will drive growth in the next few years
The non-hydrocarbon sector will drive growth in the next few years Qatar Real GDP growth (2008-14) % annual growth Overall Hydrocarbon Non-Hydrocarbon 17.7 16.7 12.0 13.0 • Expansion plans in the oil and gas sector are now on 6.2 6.5 6.8 hold and real hydrocarbon sector growth is expected to remain
Slide 28: Hydrocarbon receipts will continue to result in large fiscal and current account surpluses
Hydrocarbon receipts will continue to result in large fiscal and current account surpluses Fiscal Balance, % of GDP (2008/09-2014/15) Current Account, % of GDP (2008-14) GDP in % Revenue GDP in % and (USD billions) Exports Expenditure Imports and non-physical balance Budget balance Current account b
Slide 29: Qatar was the world's fastest growing economy during 2008-12
Qatar was the world’s fastest growing economy during 2008-12 Real GDP: Countries with fastest growth (2008-12) % annual growth • Qatar’s annual real growth of 12.0% during 2008-12 12.0% was the world’s fastest, reflecting the expansion in 11.5% 10.7% 10.2% 9.2% LNG production • Qatar’s growth eased
Slide 30: Growth has been driven by a dramatic expansion in gas production
Growth has been driven by a dramatic expansion in gas production Gas production and usage (m tonnes/year) Oil-related production (m barrels/day) GTL production Condensates and NGLs Pipeline exports Crude oil Production for other domestic use 2.0 5.5% 2.0 LNG production 142.4 5.7% 114.8 1.4 18.3% 17.
Slide 31: Expansion has driven population growth and created significant wealth
Expansion has driven population growth and created significant wealth Total Population GDP per Capita (Purchasing Power Parity) Millions USD thousands 10.5% 5.7% 6.1% 2.2 102.2 105.1 108.2 2.0 98.0 1.7 1.8 88.3 1.6 1.7 77.6 77.4 1.4 2008 2009 2010 2011 2012 2013f 2014f 2008 2009 2010f 2011 2012 2013
Slide 32: Inflation remains moderate notwithstanding a recovery in rents
Inflation remains moderate notwithstanding a recovery in rents CPI Inflation including and excluding rent (2008-14) % change in consumer prices 20 Overall Index (100%) 15.2 Rent (32%) • Rents account for about one third of the CPI basket Transport and Communications (21%) and fell during 2009-12, tu
Slide 33: Strong fundamentals have lowered CDS spreads
Strong fundamentals have lowered CDS spreads Qatar CDS Spread (Aug 2012 – Dec 2013) Credit Default Swap spreads are the annual cost of insuring sovereign debt against default in basis points 130 120 110 100 90 80 70 60 50 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 • Strong fiscal
Slide 34: Qatar's business environment is one of the strongest in the MENA region
Qatar’s business environment is one of the strongest in the MENA region Business Environment Rankings Contributing factors • Strong economic fundamentals - Strong growth and successful focus on diversification - High levels of government spending and personal 1st in MENA World Economic Forum consump
Slide 35: 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
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