Qnb Corp. · NASDAQ:QNBC
Qnb — Investor Presentation (December 2021)
43 slides from Qnb's investor presentation, December 2021
Slide 1: Investor Relations Presentation
Investor Relations Presentation December 2021
Slide 2: Contents
Contents 1.QNB at a Glance 2.QNB Comparative Positioning – Qatar and MEA 3.Financial Highlights – as at 31 December 2021 4.Sustainability 5.Economic Overview Notes: All figures in US Dollars have been converted from Qatari Riyals based on the exchange rate of 1 US Dollar = 3.6405 Qatari Riyals In ce
Slide 3: QNB at a Glance
QNB at a Glance
Slide 4: QNB is a strong and highly rated bank with a growing international footprint
QNB is a strong and highly rated bank with a growing international footprint #1 bank in the Middle East and Africa across all financial metrics International network with presence in more than 31 countries Most valuable banking brand in the Middle East and Africa, worth USD 7.1 Bn1 About 27,000 empl
Slide 5: QNB's International Footprint
QNB's International Footprint Sub-Saharan Africa Middle East South Sudan: (1 Branch) Qatar: (53 Branches) Togo: (690 Branches3, 20.1% stake in KSA: (1 Branch) Ecobank) UAE: (7 (+11) Branches, 40.0% stake Asia in CBI) Indonesia: (17 Branches, 92.48% stake Syria: (15 (+291) Branches, 50.8% stake In QN
Slide 6: QNB Comparative Positioning – Qatar and MEA
QNB Comparative Positioning – Qatar and MEA
Slide 7: Top Listed Domestic Banks – December 2021
Top 5 Listed Domestic Banks – December 2021 QNB continues to excel in the domestic market Assets Loans 300.2 209.8 53.3 47.8 45.5 35.3 33.1 26.9 27.8 17.2 Deposits Net Profit 215.8 3.63 0.98 36.0 29.4 0.63 0.47 22.5 13.8 0.28 Note: All amounts are in USD billions Source: Banks’ December 2021 Press R
Slide 8: Top Listed MEA Banks – December 2021
Top 5 Listed MEA Banks – December 2021 QNB maintained its position as the leading bank in the region across all balance sheet categories Assets Loans 300.2 209.8 272.3 243.5 187.2 176.4 132.1 120.6 118.1 111.7 Deposits Net Profit 215.8 3.93 3.63 3.41 3.37 167.3 156.3 136.4 2.53 124.3 Note: All amoun
Slide 9: QNB is the leading financial institution in the MEA region with regards to brand value
QNB is the leading financial institution in the MEA region with regards to brand value Brand value (USD Bn as at 31-Dec-21) Top MEA banking brands Key highlights • QNB retains the most valuable Banking Brand in Middle East and Africa region 7.056 • January 2022 Brand Value for Group increased to USD
Slide 10: Financial Highlights – as at December 2021
Financial Highlights – as at 31 December 2021
Slide 11: QNB demonstrate sustainable growth
QNB demonstrate sustainable growth Financial Highlights (as at 31 December 2021) Growth vs. December 2020 • Net interest margin (NIM)2: 2.47% • Cost to income ratio: 22.2% Profit1 • USD3.63 billion +10% • Earnings per share: USD 0.36 • ROAA: 1.25% • USD300.2 billion assets +7% • NPL (% of gross loan
Slide 12: QNB ALAHLI
QNB ALAHLI Financial Highlights (as at 31 December 2021) Growth vs. December 2020 • Net interest margin (NIM)2: 5.25% • USD437.0 million -2% • Cost to income ratio: 28.2% Profit1 (EGP6.8 billion) (-2%) • ROAA: 2.1% In EGP terms 2.1% • USD23.1 billion assets +24% (EGP362.3 billion) (+24%) • NPL (% of
Slide 13: QNB FINANSBANK
QNB FINANSBANK Financial Highlights (as at 31 December 2021) Growth vs. December 2020 • Net interest margin (NIM)2: 3.74% • USD447.6 million +14% • Cost to income ratio: 35.5% Profit1 (TRY4.0 billion) (+44%) • ROAA: 1.4% In TRY terms 1.3% • USD30.0 billion assets -7% (TRY391.9 billion) (+62%) • NPL
Slide 14: Solid domestic presence with geographical diversification contributes to growth
Solid domestic presence with geographical diversification contributes to growth Geographical Contribution (as at 31 December) Domestic International % Share of International as percentage of the total Net Profit1 Loans Deposits USD billion USD billion USD billion 3.94 209.8 215.8 198.8 202.9 3.63 18
Slide 15: Consistent Profitability and Cost Discipline
Consistent Profitability and Cost Discipline Income Statement Breakdown (USD billion as at 31 December) Net Profit1 Operating Income2 Net Interest Income % RoAE % Cost to Income Ratio % Net Interest Margin3 5 yrs: 1% 5 yrs: 4% 3.94 7.80 5 yrs: 5% 3.79 3.61 3.63 7.04 7.00 6.33 3.30 6.74 5.77 6.30 5.5
Slide 16: Asset growth driven by lending activities mainly in QAR and USD
Asset growth driven by lending activities mainly in QAR and USD Assets Analysis (as at 31 December) Total Assets Evolution 2021 Split of Assets (%) USD billion By Type By Currency 5 yrs: 9% 300.2 Cash and 281.6 Balances with 8.1 QAR 24.0 259.5 Central Banks 236.8 USD 45.0 222.8 Due from 6.3 Banks TR
Slide 17: Good loan growth
Good loan growth Loan Analysis (as at 31 December) Total Loans Evolution 2021 Split of Loans (%) USD billion By Geography By Sector1 5 yrs: 8% 209.8 Govt. & Govt. Qatar 78.2 36.5 198.8 Agencies 186.4 169.5 Turkey 8.3 Services/ 160.5 40.1 Commerce Egypt 5.4 Industry 5.3 Europe 2.6 Real Estate & 9.9 C
Slide 18: High quality lending portfolio is underpinned by low NPL ratios
High quality lending portfolio is underpinned by low NPL ratios Asset Quality Analysis (as at 31 December) Non Performing Loans (NPL) by Segment • QNB has continued to x increase its provisions in USD million Total NPL’s response to the global 3,527 4,345 5,039 economic situation as a 3,309 result o
Slide 19: High quality investment portfolio with 68% of securities rated AA or Sovereign
High quality investment portfolio with 68% of securities rated AA or Sovereign Investments Analysis (USD million as at 31 December 2021) Fair Value Through Other Comprehensive Income Amortised Cost Quoted Fixed rate Unquoted Floating rate State of Qatar 4,585 State of Qatar 5,735 Sovereign Debt 0 So
Slide 20: Robust growth in customer deposits and funding
Robust growth in customer deposits and funding Funding Analysis (as at 31 December) Total Customer Deposits Evolution 2021 Split of Deposits (%) USD billion By Sector By Type By Geography 5 yrs: 9% Qatar 54.6 215.8 Govt. & Time Govt. 24.4 76.6 202.9 Deposits 188.0 Agencies GCC 3.1 170.5 160.8 Europe
Slide 21: Solid liquidity profile
Solid liquidity profile Liquidity Analysis (as at 31 December) Loans to Deposits Ratio Evolution 2021 Sources of Liquidity % % of total liabilities 99.8 99.4 99.2 98.0 97.2 Due to 11.2 Banks Customer 79.1 Deposits Debt 4.0 Securities 2017 2018 2019 2020 2021 Other 2.6 Borrowings Liquid Assets1 Evolu
Slide 22: Strong capital adequacy ratio maintained above both QCB and Basel III requirements
Strong capital adequacy ratio maintained above both QCB and Basel III requirements Capital Analysis (as at 31 December) Basel III Capital Adequacy Ratio % 19.3 18.2 14.2 16.0 (QCB) 13.0 (QCB) 11.0 (QCB) CET 1 Tier 1 Total CAR • Capital adequacy ratio is above QCB and Basel III requirements including
Slide 23: Diversifying business mix will bolster sustainable growth
Diversifying business mix will bolster sustainable growth Business Mix Contribution (% share as at 31 December 2021) Lines of Business Net Profit1 Op. Income Loans Deposits 84 79 92 82 • Maintain dominant domestic market share Group Corporate • Grow international contribution • Nurture SME business
Slide 24: IFRS 9 – Additional buffer for long term earnings stability
IFRS 9 – Additional buffer for long term earnings stability • QNB implemented IFRS 9 with effect from 1 January 2018 based on the QCB guidelines. Financial Impacts • As per QCB instructions, ECL impact has been treated as Tier 2 Capital for CAR purposes with no amortisation of the transition impact.
Slide 25: QNB Group Financials
QNB Group Financials Key data (as at 31 December 2021) QNB QNB incl. QNB ALAHLI QNB incl. QNB Finansbank % Contribution of QNB AA % Contribution of QNB Finansbank Financials Ratios Presence USD billion 116.2% 3.63 300 116.2% 116.8% 27,381 3.23 274 253 2.84 210 216 193 198 182 180 14,443 2.30% 2.20%
Slide 26: Sustainability
Sustainability
Slide 27: QNB Group is committed to enhancing its Environmental, Social and Governance (ESG) practices
QNB Group is committed to enhancing its Environmental, Social and Governance (ESG) practices Established QNB Group Sustainability Strategy, Policy and Governance Sustainable financial performance Sustainable Sustainable Beyond finance operations banking External Commitments Reporting & Disclosures2
Slide 28: Sustainability at QNB is the delivery of long-term value in financial, environmental, social and ethical terms
Sustainability at QNB is the delivery of long-term value in financial, environmental, social and ethical terms, to benefit our stakeholders QNB Group Sustainability Framework Stakeholder engagement Customers Our sustainability framework consists of three pillars: • Engagement through customer satisf
Slide 29: Introduction to QNB Green, Social and Sustainability Bond Framework
Introduction to QNB Green, Social and Sustainability Bond Framework Defining an ambitious Framework, in line with best practices and standards Rationale for issuing QNB GSSB Framework description QNB intends to • Under this Framework, Green and Social and • Align its sustainability strategy to its f
Slide 30: QNB Green and Social “Use of Proceeds”
QNB Green and Social “Use of Proceeds” Applying strict Eligibility Criteria when selecting green and/or social projects Green Bond Use of Proceeds Green buildings Renewable energy Clean transportation Energy efficiency Environmentally Sustainable water Pollution New and existing Wind, Solar, Hydro,
Slide 31: Economic Overview
Economic Overview
Slide 32: Qatar holds the world’s largest non-associated gas field (North Field)
Qatar holds the world’s largest non-associated gas field (North Field) and is strategically located between Europe and Asia Comments • Qatar is a peninsula located in the Persian Gulf and is member of the Gulf Cooperation Council (GCC) • Qatar’s total population is around 2.8 million • Qatar is endo
Slide 33: Qatar’s hydrocarbon production generates significant wealth via exports
Qatar’s hydrocarbon production generates significant wealth via exports and has fueled substantial current account surpluses Hydrocarbon production Current account surplus Mn boe Cumulative, USD Bn 5.5 400 5.0 350 4.5 300 4.0 3.5 250 3.0 200 2.5 2.0 150 1.5 100 1.0 50 0.5 0.0 0 2000 2005 2010 2015 2
Slide 34: The development of Qatar’s vast hydrocarbon reserves make it one of the richest countries
The development of Qatar’s vast hydrocarbon reserves make it one of the richest countries in the world Hydrocarbon reserves per capita (2020) GDP per capita (2021) k barrels of oil equivalent (boe) k USD PPP Qatar 138 Luxembourg 127 Kuwait 23 Ireland 111 Venezuela 12 Singapore 108 UAE 12 Qatar 100 S
Slide 35: Qatar introduced the Qatar National Visions 2030 (QNV 2030)
Qatar introduced the Qatar National Visions 2030 (QNV 2030) with the aim to transform the country into a knowledge-based economy QNV 2030 Comments QNV 2030 aims to promote diversification away from oil and foster human, social, economic and environmental Knowledge based development: economy Human de
Slide 36: A major physical infrastructure and investment programme is laying the foundation for QNV 2030
A major physical infrastructure and investment programme is laying the foundation for QNV 2030 and diversification Major projects spending (USD Bn) Major Physical Infrastructure Projects Diversification Phase Lusail Mixed-Use Development 27 Qatar Integrated Rail 24 21 22 19 20 17 Hamad International
Slide 37: Qatar has maintained a substantial trade surplus despite oil price volatility
Qatar has maintained a substantial trade surplus with exports much greater than imports despite oil price volatility during diversification Trade surplus, exports, imports (USD Bn) and oil price (USD/barrel) Diversification Phase 111 112 109 99 Trade 102 102 surplus 96 71 71 87 64 53 55 45 43 51 49
Slide 38: Diversification has enabled Qatar to develop trade relationships with major economies
Diversification and a leading energy sector have enabled Qatar to develop trade relationships with major economies around the world 2020 exports by destination (USD Bn) 2020 imports by source country (USD Bn) Japan 8.0 USA 4.1 China 7.8 China 3.9 India 7.4 UK 1.8 South Korea 6.6 Germany 1.6 Singapor
Slide 39: Qatar is one of the highest rated sovereigns in the world
Given its wealth and stable outlook, Qatar is one of the highest rated sovereigns in the world Moody’s Sovereign Ratings1 AAA US, Germany, Canada, Australia, N Zealand, Switz’nd, Norway, Sweden, Denmark, Neth’lands, Lux’bourg, Singapore Aa1 Austria, Finland Aa2 France, South Korea, Faroe Islands Aa3
Slide 40: Qatar’s banking and financial system remains resilient and healthy
Qatar’s banking and financial system remains resilient and healthy Financial Soundness Indicators (2017-2020, %) 2017 2018 2019 2020 Capital Adequacy Tier 1 capital/risk-weighted assets 16.5 17.0 17.5 17.6 Regulatory capital/risk-weighted assets 16.8 18.0 18.6 18.8 Asset Quality Non-performing loans
Slide 41: Qatar will increase its LNG production by 64%
Qatar will increase its LNG production by 64% maintaining its position as the world’s largest exporter and fuelling diversification Qatar’s current and expected share of global LNG market • Globally Qatar is the largest LNG exporter with a market share of 20- 30% of total LNG exports Million metric
Slide 42: The 2022 FIFA World Cup and the North Field expansion are expected to drive strong economic growth
The 2022 FIFA World Cup and the North Field expansion are expected to drive strong economic growth in 2021 and 2022 Real GDP Consensus forecast (% y-o-y) 2021 (e) 2022 (f) 6.1 Ø 4.2 3.4 Ø 2.7 2.5 1.3 Reopening the economy and final preparations for the Hosting the 2022 FIFA World Cup and the North F
Slide 43: 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