Qatar Islamic Bank · QSE:QIBK
Qatar Islamic Bank — Investor Presentation (2015)
30 slides from Qatar Islamic Bank's investor presentation, 2015
Slide 1: Investor Presentation Financial Year 2014
Investor Presentation Financial Year 2014
Slide 2: Agenda
Agenda Introduction Operating Environment QIB Business Review QIB Financial Overview Appendix Qatar Islamic Bank Page | 2
Slide 3: Introduction
Introduction Introduction Shareholder structure / Strong Government Linkage • Qatar Islamic Bank (QIB) was incorporated in 1982 as the first Islamic • The Qatar Investment Authority financial institution in Qatar. QIA (QIA) is the single largest • Largest Islamic bank (38% of Islamic assets) and thi
Slide 4: Key Credit Strengths
Key Credit Strengths First and largest Islamic bank in Qatar Strong Government Operates out of one of support with the QIA as the fastest growing its largest shareholder markets in the world Strong brand name & Strong domestic & innovative product international growth offering Ambitious Global footp
Slide 5: Agenda
Agenda Introduction Operating Environment QIB Business Review QIB Financial Overview Appendix Qatar Islamic Bank Page | 5
Slide 6: State of Qatar – Sustainable and Robust Growth Story
State of Qatar – Sustainable and Robust Growth Story… State of Qatar (“Qatar”) – Overview One of the largest hydrocarbon reserves in the world Total oil & gas reserves (billions boe) Ratings 400 Moody’s: Aa2/Stable Oil Gas S&P: AA/Stable 35 300 52 Middle East 212 200 197 23 298 11 266 38 100 155 58
Slide 7: … with Solid Economic Indicators
… with Solid Economic Indicators Strong fiscal surplus Current account surplus Fiscal surplus (USD bn and % of GDP) Current account balance (USD bn and % of GDP) 15.6% 36 20% 75 40% 32 32.7% 30.9% 28.3% 11.4% 30.6% 25.8% 28 16% 60 21.6% 30% 24 13.4% 19.0% 8.5% 12% 45 20 7.8% 7.6% 20% 16 32 5.3% 30 8
Slide 8: Qatari Banking Sector – Robust Operating Environment
Qatari Banking Sector – Robust Operating Environment General Overview The State of Qatar has been supportive throughout crisis • Qatar Central Bank prohibits conventional banks from providing October 2008 QIA announced plans to acquire equity ownership interests of Shari’a-compliant financing – the
Slide 9: Qatari Banking Sector – Continued Growth
Qatari Banking Sector – Continued Growth Assets Bank financings and advances USD bn USD bn 380 300 Domestic Outside Qatar 400 342 24 308 250 278 22 300 252 19 225 200 17 191 12 200 156 9 150 128 110 7 6 221 100 100 5 200 6 162 180 131 147 50 104 0 69 81 61 2008 2009 2010 2011 2012 2013 2014 2015F 20
Slide 10: Agenda
Agenda Introduction Operating Environment QIB Business Review QIB Financial Overview Appendix Qatar Islamic Bank Page | 10
Slide 11: Overview of QIB
Overview of QIB Phase 1: Creation of the bank Phase 2: Creation of a strong banking platform QIB established Al Jazeera QIB listed in Qatar Arab Finance 2010: QIB launches USD750mn Sukuk with paid up finance Exchange House established 2011: Paid up capital increased to QR 2.36bn capital QR 25mn esta
Slide 12: Business Units Overview – Revenue Diversification
Business Units Overview – Revenue Diversification Treasury • Sukuk and Local Equity Investment Portfolio Local Subsidiaries • Treasury Services and Sales • QInvest • Liquidity Management • Aqar Investments • Durrat-Al-Doha • International Associates International Subsidiaries Asian Finance Bank 14
Slide 13: Growth-Focused Strategy
Growth-Focused Strategy A leading, innovative and global Islamic bank adhering to the highest Sharia’h and ethical principles Strategic Intent – Build around the core Improve the Develop an performance & International Become the cross selling Network of QIB- Benchmark Islamic opportunities with Bran
Slide 14: QIB's Organizational Structure
QIB’s Organizational Structure Governing Bodies Shareholders Board of Directors Shari’a Board Chairman of the Supervisory Secretariat Board Board Nomination & Policies & Zakat Remuneration Board Executive Audit & Risk Shari’a Governance Development Committee Committee Committee Committee Executive C
Slide 15: Effective Board Oversight
Effective Board Oversight QIB is committed to strong corporate governance practices, with its Board of Directors meeting at least six times a year Board Committees Board of Directors Executive Committee Audit and Risk Committee Sheikh Jassim Bin Hamad Bin Jassim Bin Jaber Al Thani, Chairman of Six m
Slide 16: Experienced Leadership
Experienced Leadership Bassel Gamal Group CEO • 24 years experience • Egyptian • Ahli United Bank Group • Chase National Bank Tarek Youssef Fawzi Dinos Constantinides Krishna Kumar Wholesale Banking Chief Strategy Officer Chief Operating Officer • 31 years experience • 25 years experience • 21 years
Slide 17: Shari'a Supervisory Board
Shari’a Supervisory Board QIB enjoys a strong Islamic heritage and has based its success on sound Shari’a-compliant principles, under the supervision of a world-renowned Shari’a Supervisory Board The Shari’a Supervisory Board acts as an independent body of experts in Islamic Sharia’s Supervisory Boa
Slide 18: Agenda
Agenda Introduction Operating Environment QIB Business Review QIB Financial Overview Appendix Qatar Islamic Bank Page | 18
Slide 19: QIB Profit & Loss Performance in 2014
QIB Profit & Loss Performance in 2014 SECTOR Y-O-Y Y-O-Y Y-O-Y 2014 (QAR Mn) (QAR MN) (%) (%) Fund based Income 2,355 +174 8% 8% Non Fund based Income +200 59% 16% 542 Total Operating Income 2,897 +373 15% 10% Operating Expenses 920 +72 9% 11% (100) (27)% (12)% Provisions 270 Net Profit 1,601 +266 2
Slide 20: Financial Overview
Financial Overview in QAR Millions Financial snapshot Summary 2013 2014 Change % • Strong Balance Sheet Growth assets stands at QAR 96 Bln i.e. up 24 % vs. 2013 Total Assets 77,354 96,106 24% • Financing assets are up by 27% from 2013 Total Financing 47,139 59,682 27% • Deposits are up by 32% from 2
Slide 21: Continued Balance Sheet Growth
Continued Balance Sheet Growth Strong balance sheet growth driven by growth in Qatar-focused financing Summary Steady Asset Growth QAR bn Continuous balance sheet growth 120 96.1 100 73.2 77.4 80 Growth driven by multiple products / asset classes 52.1 58.3 60 39.3 33.6 40 20 Primarily Qa
Slide 22: Strong Asset Quality and Provisioning
Strong Asset Quality and Provisioning Despite the strong growth, QIB has maintained very good asset quality and comfortable provisioning levels Summary Balanced Financing Book (2014) Others Govt & GREs Well-diversified & growing (QAR 59.7bn) financing 8.0% 11.4% NBFIs book 4.8% Industry Personal
Slide 23: Sound Funding Base Driven by Strong Deposit Growth
Sound Funding Base Driven by Strong Deposit Growth QIB’s growth has been enabled by its ability to source financing, primarily in the form of deposits Summary Diverse Sources of Financing (2014) Sukuk Financing Other Liabilities 5.7% 3.6% Current Ability to obtain financing from diverse sources
Slide 24: Asset and Liability Management
Asset and Liability Management QIB’s growth has been managed within a well-defined risk management framework Summary Range-bound Financing to Deposit Ratio Financing to deposit ratio (%) Financing to deposit ratio ranging between 90% and 110% 113.7% 115% 111.3% 106.3% Strong liquidity positi
Slide 25: Strong Capitalization & Continued Profitability
Strong Capitalization & Continued Profitability QIB boasts an ideal platform for future growth, including strong capitalization and supportive margins/returns Summary Capital adequacy ratio(1) 17.3% 18.6% 17.4% 17.0% Capital ratios well above regulatory requirements 15.4% 16.5% 14.6% Strong
Slide 26: Stable and Diversified Earnings Profile
Stable and Diversified Earnings Profile QIB has maintained strong returns even during the recent financial crisis Summary Key Revenue breakdown(1) QAR mn 2500 392 Recurring financing and investing revenues 233 300 417 288 2000 649 259 585 801 289 670 1500 1,071 276 214 Continued profitabilit
Slide 27: Agenda
Agenda Introduction QIB Financial Overview QIB Business Review Operating Environment Appendix Qatar Islamic Bank Page | 27
Slide 28: Rating Excerpts
Rating Excerpts “A” with “Stable” outlook “The Financial Stability Rating (FSR) is supported by the continued improvement in the Bank’s financing asset quality, with the non-performing financing (NPF) ratio declining to a peer group best and more than full loss reserve coverage now achieved. Improve
Slide 29: QIB Award – Winning Organization
QIB Award – Winning Organization “Best Call “Best Islamic “Islamic “Safest Centre “Best Treasury Bank in Bank of the Islamic Bank customer Products Qatar” Year” in Qatar ” experience in Management – Qatar ” Qatar” 2014 2014 2014 2014 2014 “Islamic “Best SME “Best Co- Bank of the Islamic Finance Bran
Slide 30: Thank You
Thank You Qatar Islamic Bank Page | 30