Qatar National Bank Qpsc · QSE:QNBK
Qatar National Bank Qpsc — QNB — Investor Presentation (September 2013)
35 slides from Qatar National Bank Qpsc's investor presentation, September 2013
Slide 1: Investor Relations Presentation September 2013
Investor Relations Presentation September 2013
Slide 2: Contents
Contents 1. QNB at a Glance 2. QNB Comparative Positioning – Qatar and MENA 3. Financial Highlights – September 2013 4. Economic Overview Note: These results include NSGB (unless stated), which was consolidated in 2Q13 under International Financial Reporting Standards 2
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 bank September 2013 Financials (in USD Bn) • Owned (50%) by the Government of Qatar via the 5yr Qatar Investment Authority (QIA) 2013 2012 CAGR • Largest bank in Qatar Total Assets 120.0 96.4 25% • Listed on Qatar Exc
Slide 5: QNB's International Footprint
QNB's International Footprint Qatar: 75 Branches Lebanon: 1 Branch Egypt: 163 Branches Mauritania: 1 Branch Through 97% stake in QNB Al Ahli Jordan: 117 (+3*) Branches Singapore: 1 Branch Through 35% stake in Housing Bank of Trade & Finance Indonesia: 43 Branches South Sudan: 1 Branch Through 70% st
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 120.0 83.5 28.9 17.8 19.9 18.4 17.3 11.9 11.9 10.7 Deposits Net Profit 91.0 1.95 15.9 13.9 12.5 0.36 0.34 0.30 0.27 11.0 Note: All amounts are in USD billions as at 30 September 2013 Source: Companies’ September 2013 pre
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 120.0 83.5 97.9 94.0 90.5 63.9 72.8 49.7 49.3 49.1 Deposits Net Profit 91.0 1.95 78.7 1.62 1.57 62.5 62.2 60.0 1.00 0.93 Note: All amounts are in USD billions as at 30 September 20
Slide 9: Financial Highlights – September 2013
Financial Highlights – September 2013 Note: Unless stated these results include NSGB which was consolidated in the 2Q13 under International Financial Reporting Standards
Slide 10: QNB continues to demonstrate sustainable profitable growth
QNB continues to demonstrate sustainable profitable growth September 2013 Highlights (Including NSGB) Growth vs. September 2012 (unless stated) • Net interest margin (NIM): 2.89% Profit • USD 1.95 Bn net profit +14% • Efficiency ratio: 20.4% • USD 120.0 Bn assets +25% since Sep-12 +19% since Dec-12
Slide 11: Strong profitability growth
Strong profitability growth Income Statement Breakdown (USD Bn as at September) Net Profit Operating Income1 Net Interest Income % Efficiency Ratio % Net Interest Margin 5 yrs: 19% 1.95 3.00 5 yrs: 24% 2.35 1.71 5 yrs: 33% 1.49 2.33 1.86 1.96 1.14 1.48 1.50 0.86 1.11 1.14 0.74 2009 2010 2011 2012 20
Slide 12: Robust quarterly growth has been consistently delivered
Robust quarterly growth has been consistently delivered Quarterly Income Statement Income Statement USD 000s Q3 2012 Q4 2012 Q1 2013 Q2 20131 Q3 20131 • Net Interest Income 623,109 657,770 645,996 901,464 798,171 – FX Gain 37,854 39,972 47,355 73,406 43,300 – Fees and Commissions 84,663 92,472 96,20
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 September) Total Assets Evolution 2013 Split of Assets (%) USD Bn By Type By Currency 120.0 Cash and Balances with 5.1 QAR 2 39.0 Central Banks 5 yrs: 25% 96.4 USD Due from 41.6 3.9 Banks 76.9 EGP 8.4 Loans
Slide 14: Strong loan growth fueled by domestic economic tailwinds
Strong loan growth fueled by domestic economic tailwinds Loans Analysis (as at September) Total Loans Evolution 2013 Split of Loans (%) USD Bn By Geography By Sector 83.5 Qatar 80.0 Government 11.6 Government 5 yrs: 27% 65.5 45.7 Egypt 7.2 Agencies Services/ 18.6 Other GCC Commerce 46.2 2.8 Countrie
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 September) Non Performing Loans (NPL) by Segment • One of the lowest NPL ratios among MENA banks USD Mn x Total NPL’s 215 288 501 834 1,370 • QNB has continued to increase its provisions in 13 15 19 19 42 S
Slide 16: High quality investment portfolio with a majority of securities rated AA or better
High quality investment portfolio with a majority of securities rated AA or better Investments Analysis (USD Mn as at September 2013) Available for Sale Investment Securities Held to Maturity Financial Investments Quoted Fixed rate Unquoted Floating rate State of Qatar 1,477 Sovereign Debt 9,925 0 Q
Slide 17: Robust growth in customer deposits and funding
Robust growth in customer deposits and funding Funding Analysis (as at September 2013) Total Customer Deposits Evolution 2013 Split of Deposits (%) USD Bn By Sector By Type 91.0 Government 8.1 Time 71.8 73.7 Deposits 5 yrs: 29% Government 45.5 Agencies Saving 53.7 2.1 Accounts 40.8 Corporates 30.3 2
Slide 18: Solid liquidity profile with loans to deposit ratio consistently below 92%
Solid liquidity profile with loans to deposit ratio consistently below 92% Liquidity Analysis (as at September) Loans to Deposits Ratio Evolution 2013 Sources of Liquidity % % 86.6% 88.9% 91.8% 83.5% 86.1% Due to 4.1 Banks Customer 85.8 Deposits Debt 2009 2010 2011 2012 2013 4.2 Securities Liquid As
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 December unless otherwise stated) Total Equity1 Evolution Capital Adequacy Ratio USD Bn % RoAE % x Eligible Capital (USD Bn) 13.5 22.0 21.0 USD ~3.5 Bn rights 11.7 issue in 2011; fully 10.7 subs
Slide 20: Increasing geographical diversification positively contributes to growth
Increasing geographical diversification positively contributes to growth Geographical Contribution (as at September) Domestic International % Share of International Net Profit Loans Deposits USD Mn USD Bn USD Bn 1,951.8 83.5 91.0 1,710.4 65.5 73.7 1,487.9 58.9 1,402.5 53.7 46.2 66.8 1,435.6 51.2 1,2
Slide 21: Diversifying business mix will bolster sustainable growth
Diversifying business mix will bolster sustainable growth Business Mix Contribution (% share as at September 2013) Lines of Business Net Profit Loans Deposits 67 73 • Maintained market dominance 51 Corporate • Expanded into new markets • Reinforced existing positions International 35 28 20 • Maintai
Slide 22: QNB continues to demonstrate sustainable profitable growth (Excluding NSGB)
QNB continues to demonstrate sustainable profitable growth September 2013 Highlights (Excluding NSGB) Growth vs. September 2012 (unless stated) • Net interest margin (NIM): 2.70% Profit • USD 1.79 Bn net profit +5% • Efficiency ratio: 17.6% • USD 109.8 Bn assets +14% since Sep-12 +9% since Dec-12 •
Slide 23: QNB Group Financials
QNB Group Financials Key data (as at end September 2013) xxx Growth QNB QNB incl. NSGB Key Data 109.8 Financials (USD Bn) Total Assets 9.3% 120.0 Loans & 77.5 7.8% Advances 83.5 Highlights Customer 81.7 11.3% • QNB Group finalised incorporation of the Deposits 91.0 financial results of NSGB during t
Slide 24: Economic Overview
Economic Overview
Slide 25: 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 (k USD/national) (k boe*/national) 183 Qatar 721 98 UAE 138 73 Kuwait 93 11 Saudi 16 11 Bahrain 2 11 Oman 6 • Qatar’s hydrocarbons reserves are mostly held in the • Qata
Slide 26: 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 12.0% • Qatar’s annual real growth of 12.0% during 11.5% 10.7% 10.2% 9.2% 2008-12 was the world’s fastest, reflecting the expansion in LNG production • Qatar’s growth eased
Slide 27: 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 28: 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 k USD 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 2013f 2014f
Slide 29: 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 13.0 • Expansion plans in the oil and gas sector are now 12.0 on hold and real hydrocarbon sector growth is 6.2 6.5 6.8 expected to remain
Slide 30: Non-hydrocarbon growth will be driven by increased investment spending
Non-hydrocarbon growth will be driven by increased investment spending Investment Spending (2000-18f) USD Bn 7.5% 41.8 38.4 35.1 30.8 31.7 29.5 28.8 29.1 28.9 27.8 25.9 19.2 16.3 10.5 6.1 3.5 4.5 1.5 2.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013f 2014f 2015f 2016f 2017f 2
Slide 31: 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%) Transport and Communications (21%) • Rents account for about one third of the CPI Food (13%) basket and fell during
Slide 32: 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) % of GDP Revenue % of GDP Exports Expenditure Imports and non-physical balance Budget balance Current account balance 39.6 38.2 38
Slide 33: Strong fundamentals have lowered CDS spreads
Strong fundamentals have lowered CDS spreads Qatar CDS Spread (Aug 2012 – Sep 2013) Basis points above US Treasuries for a 5yr bond 130 120 110 100 90 80 70 60 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 • Strong fiscal and economic fundamentals
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 1st in MENA - High levels of government spending and personal World Economic Forum consump
Slide 35: Disclaimer
Disclaimer This presentation may contain certain forward-looking statements with respect to the financial condition, results of operations and business of QNB. These forward-looking statements represent QNB’s expectations or beliefs concerning future events and involve known and unknown risks and un