Doha Bank · QSE:DHBK
Doha Bank — Q2 2023 Earnings Presentation
23 slides from Doha Bank's earnings presentation, 2023
Slide 1: Investor Presentation Q2 2023 results
Investor Presentation Q2 2023 results
Slide 2: Table of Contents
Table of Contents 1. Operational & Financial Highlights 2. Overview 3. Financial Summary 4. Sustainable Finance Framework 5. Disclaimer 2
Slide 3: Operational and Financial Highlights
1. Operational and Financial Highlights 1. Wholesale Banking Group: 3. International Banking Group: Sharq Insurance: ✓ Closed ‘2’ sizeable transactions, with drawdowns to ✓ Rep offices: Hong Kong closed in Q1. Sri Lanka ✓ Revenue drivers: New business production occur in Q3 – which will help with th
Slide 4: Operational and Financial Highlights
Operational and Financial Highlights Net interest income +9.3% QoQ, while net operating income +12.1% QoQ Private Sector Lending +2.2% YoY CET1 13.19% and Total CAR of 19.76% Net Fee & Commission Income +3.4% QoQ and +7.0% H1 YoY Staff Costs, depreciation, and other expenses marginally higher at 0.6
Slide 5: Financial Comparison(s) – QoQ & YoY
Financial Comparison(s) – QoQ & YoY QAR Mn Q2 2023 Q1 2023 Q2 2022 Chg Pct QoQ Chg Pct YoY Net Interest Income 537.4 491.5 596.2 9.30% -9.90% Net Fees and Commission Income 95.2 92.1 93.9 3.40% 1.40% Net Income from Insurance Activities 6.7 4.9 1.4 37.00% 376.40% Net Operating Income 715.0 638.1 712
Slide 6: Performance Scorecard
Performance Scorecard Update / Guidance 2023-2027 Guidance for 2023 (A) Q1 2023 (A)Q2 2023 for 2023 5-year Strategy Capital Adequacy Ratio 18.50-19.00% 19.37% 19.76% 18.50-19.00% Maintain min. 17% Net Loan Growth Net 3-5% YTD Net -2.5% YTD Net -3.9% Pvt. 5% 3-5% p.a. / Pvt. 5% / Pvt. +0.2% / Pvt. Fl
Slide 7: Overview
2. Overview • Founded in 1979 • Listed on the Qatar Stock Exchange • Full branch operations in Qatar, United Arab Emirates, India and Kuwait • Largest international network of representative offices among Qatari banks: China, Canada, Turkey, Singapore, Germany, Japan, United Kingdom, South Korea, So
Slide 8: Strong ratings profile and share performance and shareholder base
Strong ratings profile underpinned by highly rated sovereign Share performance and diversified shareholder base Agency Category Ratings Outlook Share price and market capitalization Doha Bank Date Value Last Price 30-Jun-23 1.539 Moody’s Bank Deposit Ratings LT Baa1 Stable 03-Jul-22 2.600 52 Week Hi
Slide 9: Doha Bank at a glance
Doha Bank at a glance ✓ Well-established banking franchise with strong brand value ✓ Global footprint over five continents ✓ Strong capital position ✓ Strong liquidity profile ✓ Healthy diversification of income ✓ Well diversified portfolio ✓ Launched Sustainable Finance Framework and earned Second
Slide 10: Doha Bank is structured in four Business Units and holds 100% of Sharq Insurance
Doha Bank is structured in four Business Units and holds 100% of Sharq Insurance 1. Wholesale 2. Treasury & Investments Focus on corporate and commercial banking, structured finance, public Established in 2007 as part of the Responsible for activities such as sector finance, mortgage finance and Ban
Slide 11: Financial Summary
3. Financial Summary Profitability (QR Mn) Jun-23 Jun-22 Chg Y/Y Assets and Liabilities (QR Mn) Jun-23 Jun-22 Chg Y/Y Interest income 2,628 1,763 49.0% Total assets 93,044 99,027 -6.0% Interest expense (1,599) (523) 205.4% Loans and advances 55,795 60,741 -8.1% Net interest income 1,029 1,240 -17.0%
Slide 12: Funding Mix
Funding Mix Other liabilities Debt securties Comments 3.0% 2.7% ✓ The FY23 funding plan incorporates: *Other borrowings ➢ Issuance(s) to extend duration both QAR and/ or USD 8.0% ➢ Reduction in non-resident funding is in line with QCB guidance. Equity Customer deposits ✓ Liquidity profile: 47.4% 15.
Slide 13: Capitalization Net Interest Margin
Capitalization Net Interest Margin Evolution of capital ratios 20.2% 19.9% 19.8% 2.59% 17.0% 17.8% 19.8% 18.6% 19.0% 18.8% 18.6% 2.39% 15.8% 16.6% 2.24% 2.25% 2.23% 13.0% 13.5% 13.3% 13.2% 11.5% 10.7% 1.98% 2018 2019 2020 2021 2022 Jun-23 2018 2019 2020 2021 2022 Jun-23 T1 Ratio CET1 Ratio % Total C
Slide 14: Diversified loans and deposits
Diversified loans and deposits By sector By type Loans Deposits Loans Deposits GRE's Non-banking Industry, 0.5% Others, 1.7% Non-banking FI's , 1.5% 2.0% Savings Accounts , 6.2% FI's, 1.5% Retail Current and GRE's, 2.0% 13.0% Call Deposits Individuals Corporate , , 21.0% Contract , 25.7% 36.5% Finan
Slide 15: Wholesale Banking
Wholesale Banking Overview of the corporate banking loan book Loans (QR Bn) June 2023 Real estate Contract financing Industry, 0.60% CAGR (2018- Jun-2023): +1.8% CAGR (2018- Jun-2023): -8.9% Non-banking Others, 2.00% FI's, 1.70% 20.6 10.5 20.4 10.1 Contracting, 11.80% Real estate, 19.4 40.60% 19.1 6
Slide 16: Doha Bank is being selective in terms of Real Estate and Contract Finance
Doha Bank is being selective in terms of Real Estate and Contract Finance Real Estate Contract Finance Qatar market real estate loans (QR Bn) Qatar market contract financing loans (QR Bn) 16 CAGR (2018- Jun-2023): +3.4% CAGR (2018- Jun-2023): +2.6% 176.5 185.0 154.0 162.3 151.5 148.9 43.7 43.6 43.1
Slide 17: Credit Quality
Credit Quality NPL evolution Total Reserves(1) for loans and advances 138% 124% 101% 6.43% 6.71% 87% 5.84% 5.81% 5.98% 5.83% 81% 77% 2018 2019 2020 2021 2022 Jun-23 2018 2019 2020 2021 2022 Jun-23 Cost of risk(1) June-2023(2) Stage 1 Stage 2 Stage 3 2.22% Percentage on total loans 2.09% 60.36% 32.93
Slide 18: Investment Book
Investment Book Portfolio Overview Investment portfolio breakdown (%) ▪ Investments limits are linked to Tier 1 capital and set at 25% (excluding SOQs) Total (QR 25,380 Mn) as per QCB; total utilized currently sits at 20.18% Equities & Mutual Funds, ▪ Conservative low hard limits for discretionary t
Slide 19: Sustainable Finance Framework 2023
4. Sustainable Finance Framework 2023(1) ✓ In May 2023 Doha Bank has published its inaugural Sustainable Finance Framework which allows for the issuance of Green, Social, and Sustainability Financing Instruments ✓ The Framework is aligned with the ICMA Green Bond Principles 2021, Social Bond Princip
Slide 20: ICMA Eligible Categories and Exclusions
ICMA Eligible Categories Exclusions The Sustainable Finance Asset Pool will explicitly exclude unfunded and non-performing Eligible Category Contribution to UN SDGs exposures, as well as loans to businesses or projects in the following domains: Green Eligible Categories • Fossil fuel-related energy
Slide 21: Doha Bank is committed to ESG Sustainable Practices
Doha Bank is committed to Environmental, Social and Governance (ESG) Sustainable Practices Doha Bank began the publication of its annual sustainability disclosure statements from the year 2009. Doha Bank sustainability reporting is guided by the Qatar Stock Exchange (QSE) ESG reporting methodology;
Slide 22: Disclaimer
5. Disclaimer Our discussion may include forward-looking predictions and or expectations. While these forward-looking statements represent our current judgment on what the future holds for the bank, they are subject to risks and uncertainties that could cause actual results to differ materially. You
Slide 23: Investors Contact
Investors Contact Hesham Kalla Head of Investor Relations Tel: +974 4015 5341 / Mob: +974 5549 8634 Email: hkalla@dohabank.com.qa / ir@dohabank.com.qa www.dohabank.com