Dukhan Bank Q.p.s.c. · QSE:DUBK
Dukhan Bank Q.p.s.c — Dukhan Bank — Investor Presentation (December 2023)
33 slides from Dukhan Bank Q.p.s.c's investor presentation, December 2023
Slide 1: Investor Relations Presentation
Investor Relations Presentation December 2023
Slide 2: Table of Contents
Table of Contents 1 Business Overview 2 Financial Performance Appendix 1
Slide 3: 1. Business Overview
OL_Aa cli4 D> DUKHAN BANK 1. Business Overview
Slide 4: Dukhan Bank – At a Glance
Dukhan Bank – At a Glance Leading Sharia compliant bank with a full suite of financial services Our Vision: Aim to be a bank of choice, preferred by customers for long-lasting partnerships, by shareholders for value creation, sought after by employees and renowned for service excellence QAR 114.4bn
Slide 5: Rich and Versatile History
Rich and Versatile History Barwa Bank: Fastest growing sharia compliant Bank in Qatar with strong Wholesale banking proposition •Barwa Bank •Barwa Bank •Acquisition of •Acquired IBQ Al •Khalid Al •Initial •Issued US$ 500mn under Barwa Bank •Ahmed Hashem was founded on obtains license to First Financ
Slide 6: Dukhan Bank – Overview
Dukhan Bank – Overview Overview of Dukhan Bank Financial summary Growth CAGR ◼ The Bank was incorporated in 2008 under the name of Barwa Bank Q.P.S.C. Balance sheet, QAR’mn 2020 2021 2022 2023 (FY'22 vs (FY’20- FY'23) FY’23) ◼ Barwa Bank’s and International Bank of Qatar’s (ibq) successful merger Ne
Slide 7: Dukhan Bank – Four Principal Areas of Business
Dukhan Bank – Four Principal Areas of Business Treasury & Investments Wholesale banking Retail & Private Banking Subsidiaries Division Asset and liability management, trading Financing, deposits, trade finance, Financings, deposits, wealth management Three fully owned subsidiaries and and investment
Slide 8: Strong Government Linkage
Strong Government Linkage Strong alignment of objectives and interests between the State of Qatar and Dukhan Bank Government commitment via significant and stable shareholding… …coupled with substantial Public sector deposits contribution… QAR’bn x% Public sector deposits as percentage of total depo
Slide 9: Experienced Board of Directors & Management Team
Experienced Board of Directors & Management Team Board of Directors H.E. Sheikh Mohammad Bin Hamad Bin Jassim Al Thani Government Independent Representatives Mr. Abdulaziz Mohammed Hamad Al Mana ▪ Chairman and Managing Director Sheikh Khalid Bin Hassan Bin Khalid Al-Thani ▪ Vice Chairman ▪ Director
Slide 10: Sustainability is Key Success Factor in Dukhan’s Business Model
Sustainability is Key Success Factor in Dukhan’s Business Model Dukhan Bank Sustainability Statement: Creating value through the integration of ESG (Environmental, Social and Governance) initiatives in our Business Model. As a Shariah compliant bank, we have much in common with ESG principles. Throu
Slide 11: Bank Strategy focuses on Customer Partnerships & Shareholder Value
Bank Strategy focuses on Customer Partnerships & Shareholder Value 1 Expansion of Wholesale Banking in Qatar with focus toward higher value added sectors 2 9 Attracting new talent and Build lead on Best-in-class retaining key personnel Private Banking pioneer position in Qatar 3 8 Effective capital
Slide 12: Key Investment Highlights
Key Investment Highlights 1 Strong government commitment via significant ownership, support and mutually beneficial relationship 2 Competitive market positioning through the first, successful domestic Financial Institutions merger in Qatar 3 Proficient leadership with experienced management team and
Slide 13: 2. Financial Performance
OL_Aa cli4 D> DUKHAN BANK 2. Financial Performance
Slide 14: Balance Sheet Composition
Balance Sheet Composition Resilient and primarily deposit-funded balance sheet with a diversified client base Focus on core banking activities Pre-dominantly Qatar-focused balanced financing book Total assets vs. liabilities and equity - 2023 (in QAR’bn) Breakdown of financing assets, 2022 Vs 2023 1
Slide 15: Financials – Dukhan has Consistently Outperformed the Market
Financials – Dukhan has Consistently Outperformed the Market Continuous strong growth under Assets and Income streams Total assets Net financing assets Customer deposits (1) QAR QAR QAR bn bn bn 75.2 75.7 77.6 77.4 78.0 110.7 114.4 74.5 106.3 86.3 58.5 51.9 53.9 77.1 47.9 2019 2020 2021 2022 2023 20
Slide 16: Profitability
Profitability Dukhan Bank is an efficient business with diversified income sources and robust net profit margin Constantly growing revenue base across …with a relatively healthy net profit margin1 …inclining however stabilising funding costs2 diverse income streams… despite challenging macro environ
Slide 17: Asset Quality
Asset Quality Strong risk-management culture and prudent provisioning policy Commentary Prudent risk management… ◼ Considering the global economic circumstances, Dukhan Bank has shown Cost of risk1 (in bps) – impairment charge over average net financing assets resilience 168 ◼ The Bank has been clos
Slide 18: Asset Quality (continued)
Asset Quality (continued) Prudent overall coverage with staging aligned with the Qatari Banking Sector Portfolio Breakup Portfolio Breakup As at 31 Dec 2023 Stage I Stage II Stage III Total As at 31 Dec 2022 Stage I Stage II Stage III Total Financing assets 80.0% 14.6% 5.4% 100.0% Financing assets 8
Slide 19: Capital, Funding and Liquidity
Capital, Funding and Liquidity Robust capital structure with optimal funding and healthy liquidity position Well diversified funding base Granular deposit base with significant contribution from private banking & the public sector(1) Funding breakdown (YE’2023) Deposits breakdown by sector (YE’2023)
Slide 20: Dividend History
Dividend History Consistently being one of the highest Dividend Payout ratio & Yield among peers on the back of robust capital & strong profitability Dividend distribution (in QAR'mn) 70% 68% 68% 63% 58% 55% (1) 51% 831 831 727 520 520 415 444 2017 2018 2019 2020 2021 2022 2023* *Subject to AGM appr
Slide 21: Comparative Sizes of Qatari banks
Comparative Sizes of Qatari banks Dukhan Bank – 5th largest Qatari bank and 3rd largest Qatari Islamic bank Total Assets (QAR bn, 2023) Net financing assets (QAR bn, 2023) Total Deposits (QAR bn, 2023) QNB 1,231 (59%) QNB 853 (62%) QNB 857 (64%) QIB 189 (9%) QIB 122 (9%) QIB 121 (9%) CBQ Masraf 164
Slide 22: Appendix
OL_Aa cli4 DUKHAN BANK Appendix
Slide 23: Ownership Structure
Ownership Structure - Free Float of 33.26% Shares outstanding 5,234,100,000 Ownership structure General Retirement and General Retirement and Al Sanad Trading Co and Broog Trading Co Social Insurance Social Insurance Qatar Holding Other Shareholders related entities Authority Authority 33.26% 13.47%
Slide 24: Ownership Structure
Ownership Structure As at 31-Dec-2023 Ownership % Number of Shareholders 100.0% 100.0% 2,484 93.8% 93.2% 2,500 87.8% 90.0% 2,100 80.0% 2,000 70.0% 1,747 1,663 60.0% 1,500 50.0% 40.0% 1,000 30.0% 676 20.0% 500 390 384 6.0% 6.8% 286 10.0% 5.3% 5.5% 0.6% 0.5% 0.1% 0.3% 84 47 61 14 0.0% Qatar GCC Foreig
Slide 25: Share Price Movement
Share Price Movement From Listing Date till 31-Dec-23 Average High Low Close Share Price 3.751 4.350 2.838 3.975 4.5 180 4.3 160 4.1 140 3.9 120 3.7 100 3.5 80 3.3 60 3.1 2.9 40 2.7 20 2.5 0 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Volume in millions Price (QAR) 2
Slide 26: Snapshot of the Consolidated Statement of Financial Position
Snapshot of the Consolidated Statement of Financial Position (in QAR‘000) YE 2020 YE 2021 YE 2022 YE 2023 Cash and balances with Qatar Central Bank 3,367,553 7,245,842 6,425,410 3,644,932 Due from banks 5,891,788 5,558,980 1,499,934 11,072,244 Financing assets 58,536,992 75,221,707 75,676,514 77,585
Slide 27: Snapshot of the Consolidated Statement of Income
Snapshot of the Consolidated Statement of Income For the year ended 31 December (in QAR ‘mn) 2020 2021 2022 2023 Net income from financing activities 2,782 2,933 3,216 4,666 Net income from investing activities 683 682 756 957 Total net income from financing and investing activities 3,465 3,615 3,97
Slide 28: Dukhan Bank has an Award Winning Customer Service Proposition
Dukhan Bank has an Award Winning Customer Service Proposition Awards and Acclamations 2022 ▪ Best Private Bank – Qatar 2023 ▪ Best Multi-Channel Offering 2022 Best Digital Bank Award ▪ Best Multi-Channel Offering 2023 ▪ Best Next-Generation Offering 2022 ▪ Excellence in Omni-Channel ▪ Best Use of AI
Slide 29: Dukhan Bank has an Award Winning Customer Service Proposition
Dukhan Bank has an Award Winning Customer Service Proposition 28
Slide 30: Qatar Macro Overview
OL_Aa cli4 D> DUKHAN BANK Qatar Macro Overview
Slide 31: Hydrocarbons underpin a Strong Economy
Hydrocarbons underpin a Strong Economy Hydrocarbon reserves per capita (2021) Qatar’s current and expected share of global LNG market 160 144 600 Qatar plans to increase its LNG production by 64% K barrels of oil equivalent (boe) 140 484 Million metric tons p.a. 120 500 441 100 400 365 80 Phase 2 30
Slide 32: Qatar’s Banking and Financial Sector remains Resilient and Healthy
Qatar’s Banking and Financial Sector remains Resilient and Healthy Highly rated sovereign Banking sector liquidity Standard & Poor’s Sovereign Ratings Germany, Canada, Switzerland, Norway, Sweden, Netherlands, Luxembourg, AAA Singapore Given its 66.6% 67.3% 67.6% 67.2% 66.6% AA+ US, Austria, Finland
Slide 33: 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 co