Qatar Islamic Bank · QSE:QIBK

Qatar Islamic Bank — Investor Presentation (June 2024)

30 slides from Qatar Islamic Bank's investor presentation, June 2024

  1. Slide 1: Qatar Islamic Bank Investor Presentation Jun 2024

    Qatar Islamic Bank (Q.P.S.C.) Investor Presentation Jun 2024

  2. Slide 2: Agenda

    Agenda 1 Introduction 2 Operating Environment 3 QIB Business Review 4 QIB Financial Overview 5 Appendix Qatar Islamic Bank Page | 2

  3. Slide 3: Introduction

    Introduction Introduction Financial Snapshot  Qatar Islamic Bank (“QIB” or the “Bank”) was incorporated in QAR Mln Jun-24 Dec-23 Jun-23 1982 as the first Islamic financial institution in Qatar.  Largest Islamic bank in terms of total assets (approximately Total Assets 192,283 189,157 183,357 36% o

  4. Slide 4: Key Strengths

    Key Strengths First and largest Islamic bank in Qatar by total assets Second largest bank in Strong Government Qatar by total assets, support with the QIA as financing assets and its largest shareholder net profit Qatar-centric with Strong brand in Islamic selective international banking & innovativ

  5. Slide 5: Agenda

    Agenda 1 Introduction 2 Operating Environment 3 QIB Business Review 4 QIB Financial Overview 5 Appendix Qatar Islamic Bank Page | 5

  6. Slide 6: State of Qatar – Sustainable and Robust Growth Story

    State of Qatar – Sustainable and Robust Growth Story… Overview of the State of Qatar (“Qatar”) One of the Largest Hydrocarbon Reserves in the World Total oil & gas reserves (bn boe) Ratings Moody’s: Aa2/ Stable 400 Oil Gas S&P: AA/ Stable Fitch: AA/ Stable 35 300 52 Middle East 212 200 197 23 298 11

  7. Slide 7: Economic Indicators

    Economic Indicators Fiscal Position Current Account Balance Fiscal surplus / deficit (USD bn and % of GDP) Current account balance (USD bn and % of GDP) 31.9 33 18% 70 26.7% 31% 28 25.3 60 50 63 17.6% 23% 23 14.6% 13.5% 12% 40 15% 18 10.8% 30 13 20 42 7% 1.8 7.8 6% 8 10 -3 26 (1%) 1.2% 0 3 4.3% -2.1

  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 QIA announced plans to acquire equity ownership interests of • Qatar Central Bank prohibits conventional banks from providing October 2008 up to 20% in domestic banks listed

  9. Slide 9: Qatari Banking Sector – Continued Growth

    Qatari Banking Sector – Continued Growth Assets (2) Bank Financings and Advances (2) QAR bn QAR bn 2400 1600 2100 1400 1800 1200 1500 1000 1200 800 2,022 2,085 2,092 1,345 1,382 1,400 900 1,743 1,838 600 1,199 1,244 600 400 300 200 0 0 2020 2021 2022 2023 Mar-24 2020 2021 2022 2023 Mar-24 Source : F

  10. Slide 10: Agenda

    Agenda 1 Introduction 2 Operating Environment 3 QIB Business Review 4 QIB Financial Overview 5 Appendix Qatar Islamic Bank Page | 10

  11. Slide 11: Overview of QIB

    Overview of QIB Phase 1: Creation of the Bank Phase 2: Creation of a strong banking platform 2010: QIB launched USD 750 mn Sukuk QIB established with Al Jazeera Finance QIB listed on QE Arab Finance House 2011: Paid up capital increased to QAR 2,362 mn (USD 649 mn) paid up capital QR established (30

  12. Slide 12: Business Units Overview – Revenue & Profit Diversification

    Business Units Overview – Revenue & Profit Diversification Group Function Local & International Subsidiaries Treasury • Sukuk and Local Equity Local Subsidiaries Investment Portfolio • QInvest • Treasury Services and Sales • Aqar • Liquidity Management 4.6% • Durat-Al-Doha Investments International

  13. Slide 13: 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 Sheikh Jassim Bin Hamad Bin Jassim Bin Jaber Al Thani, Chairman of the Audit, Risk & Compliance Committee Board Membe

  14. Slide 14: Sharia'a Supervisory Board

    Sharia’a Supervisory Board QIB enjoys a strong Islamic heritage and has based its success on sound Sharia’a-compliant principles, under the supervision of an expert Shari’a Supervisory Board (“SSB”) The SSB currently meets at least four times each year. The Shari’a Sharia’s Supervisory Board Members

  15. Slide 15: Experienced Leadership

    Experienced Leadership Bassel Gamal Group CEO • Over 30 years of experience • Ahli United Bank Group • Chase National Bank Tarek Youssef Fawzi Constantinos Constantinides Gourang Hemani General Manager, Chief Strategy Officer Chief Financial Officer Wholesale Banking Group • Over 30 years experience

  16. Slide 16: Agenda

    Agenda 1 Introduction 2 Operating Environment 3 QIB Business Review 4 QIB Financial Overview 5 Appendix Qatar Islamic Bank Page | 16

  17. Slide 17: Financial Overview

    Financial Overview Financial Position Key Highlights Growth Growth • Total Assets at QAR 192.3 bln with a growth of QAR million Jun-24 Dec-23 Vs Dec-23 Jun-23 Vs Jun-23 4.9% vs Jun-23 and 1.7% vs Dec-23. Total Assets 192,283 189,157 1.7% 183,357 4.9% • Financing assets at QAR 126.9 bln with a growth

  18. Slide 18: QIB – Quarterly Financial Highlights

    QIB – Quarterly Financial Highlights Assets (QAR Bn) Financing (QAR Bn) Deposits (QAR Bn) 5% 6% 5% 200 125 125 150 100 100 75 75 100 183 187 189 192 192 127 120 122 122 125 117 122 121 123 123 50 50 50 25 25 0 0 0 Jun'23 Sep'23 Dec'23 Mar'24 Jun'24 Jun'23 Sep'23 Dec'23 Mar'24 Jun'24 Jun'23 Sep'23 De

  19. Slide 19: Key Quarterly Ratios

    Key Quarterly Ratios Yields (%) Financing Staging Ratio (%) Financing Coverage Ratio (%) Total Coverage Ratio* Stage 3 Coverage ratio Financing Yield Deposit Cost Stage 3 Stage 2 Stage 1 Net Margin 7.6% 7.6% 7.5% 7.2% 7.3% 357.2% 79.8% 80.0% 80.1% 333.9% 79.5% 79.3% 336.8% 327.1% 333.0% 18.9% 19.2%

  20. Slide 20: Operating Income and Cost

    Operating Income and Cost Quarterly Operating Income YTD Operating Income Change Drivers YTD Operating Income 1,613 1,620 +4% 3,233 1,595 8 236 247 42 3,110 483 227 376 360 365 611 538 475 +2% 736 694 +6% 2,127 2,333 2,334 3,110 3,233 4,057 4,668 +15% (1,124) (2,116) +25% (2,654) (1,332) (1,321) Q2-

  21. 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 200 160  120 Growth driven by multiple products / asset classes 193.9 189.2 192.3 174.4 184.0 80 40  Primarily Qatar-centric

  22. 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 Financing – Key Growth Driver (QAR bn)  Well-diversified & growing financing book 130 110  Strong asset quality and conservative provisioning 90 1

  23. 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 funding, primarily in the form of deposits Summary Diverse Sources of Funding  Ability to obtain funding from diverse sources 2% 6% 8% 13%  Diverse deposit base 14% 57%  Stable funding from d

  24. Slide 24: Asset and Liability Management

    Asset and Liability Management QIB’s growth has been managed within a well-defined risk management framework Summary Financing to Deposit Ratio(2) Financing to Deposit Ratio  Financing to deposit ratio below industry average 103.3% 100.8% 97.5% 101.3% 98.0%  Strong liquidity position to manage mar

  25. 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)  14.56% Capital ratios well above regulatory requirements of 20.4% 20.7% 19.4% 18.9% 19.9% 14.56% 16.4% 

  26. Slide 26: Stable and Diversified Earnings Profile

    Stable and Diversified Earnings Profile QIB has remained profitable even during the global financial crisis Summary Revenue(1) Breakdown (QAR mn) 111  273 204 Recurring financing and investing revenues 132 810 889 726 661 1,536 1,132 1,452 1,208 54 60 415 429  Continued profitability during crisis

  27. Slide 27: Agenda

    Agenda 1 Introduction 2 Operating Environment 3 QIB Business Review 4 QIB Financial Overview 5 Appendix Qatar Islamic Bank Page | 27

  28. Slide 28: Consolidated Statement of Financial Position

    Consolidated Statement of Financial Position QAR million Jun-2024 Dec-2023 Dec-2022 Cash and balances with central banks 7,829 8,037 7,951 Due from banks 744 3,262 3,188 Financing assets 126,876 122,381 119,285 Investment Securities 49,291 48,013 45,774 Investment in associates 1,127 1,128 1,130 Inv

  29. Slide 29: Consolidated Statement of Income

    Consolidated Statement of Income QAR million YTD Jun-24 YTD Jun-23 FY Dec-2023 Net income from financing activities 4,668 4,057 8,580 Net income from investing activities 736 693 1,535 Sukuk holders’ share of profit (225) (187) (373) Total income from financing and investing activities 5,179 4,563 9

  30. Slide 30: QIB Award Winning Organization

    QIB AWARD WINNING ORGANIZATION Qatar Islamic Bank Page | 30

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