Pt Bank Qnb Indonesia Tbk · IDX:BKSW
Pt Bank Qnb Indonesia Tbk — QNB Group — Investor Presentation (December 2015)
40 slides from Pt Bank Qnb Indonesia Tbk's investor presentation, December 2015
Slide 1: Investor Relations Presentation
Investor Relations Presentation December 2015
Slide 2: Contents
Contents 1. QNB at a Glance 2. QNB Comparative Positioning – Qatar and MENA 3. Financial Highlights – as at 31 December 2015 4. 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 certain cases,
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 Financials2 (in USD billion) bank • Owned (50%) by the Government of Qatar via 2015 2014 5yr CAGR the Qatar Investment Authority (QIA) Total Assets 147.9 133.6 19% • Largest bank in Qatar by market cap., assets, Loans
Slide 5: QNB's International Footprint
QNB's International Footprint Sub-Saharan Africa Middle East South Sudan: (1 Branch) Qatar: (73 Branches) Jordan: (1592 (+32) Branches, 34.5% stake Togo: (1,265 Branches, 20.0% stake in in Housing Bank of Trade & Finance) Ecobank1) UAE: (27 (+12) Branches, 40.0% stake Asia in CBI) Indonesia: (49 Bra
Slide 6: Rating Excerpts
Rating Excerpts “A+” with “Stable” outlook “QNB has an unrivalled leading position in a narrow but wealthy domestic market, and its international expansion is gradually eroding its domestic concentration…” August 12th, 2015 “Aa3” with “Stable” outlook “Consistently high profitability levels supporte
Slide 7: QNB Comparative Positioning – Qatar and MENA
QNB Comparative Positioning – Qatar and MENA
Slide 8: Top Domestic Banks – December 2015
Top 5 Domestic Banks – December 2015 QNB continues to excel in the domestic market Assets Loans 147.9 106.7 34.9 33.9 24.0 22.9 22.8 21.0 17.1 15.3 Deposits Net Profit 108.6 3.09 25.1 0.57 19.2 15.3 14.5 0.54 0.39 0.38 Note: All amounts are in USD billions 8 Source: Companies’ December 2015 Press Re
Slide 9: Top Regional Banks – December 2015
Top 5 Regional Banks – December 2015 QNB maintained its position as the leading bank in the region across all categories Assets Loans 147.9 106.7 119.7 110.7 110.7 73.7 67.0 84.1 56.1 56.0 Deposits Net Profit 108.6 3.09 86.1 2.42 78.2 68.3 1.94 1.90 63.7 1.64 Note: All amounts are in USD billions 9
Slide 10: Financial Highlights – as at December 2015
Financial Highlights – as at 31 December 2015
Slide 11: QNB continues to demonstrate sustainable profitable growth
QNB continues to demonstrate sustainable profitable growth Financial Highlights (as at 31 December 2015) Growth vs. December 2014 • Net interest margin (NIM)2: 2.80% • Cost to income ratio: 21.5% Profit1 • USD3.1 billion net profit +8% • Earnings per Share USD 4.42 • ROAA 2.20% • USD147.9 billion as
Slide 12: QNB ALAHLI
QNB ALAHLI Highlights (as at 31 December 2015) Growth vs. December 2014 • Net interest margin (NIM)1: 4.69% Profit • USD342.8 Mn +18% • Cost to income ratio: 31.1% • ROAA: 2.14% • USD17.0 Bn assets +14% • NPL (% of gross loans): 2.9% Assets • USD8.1 Bn loans +16% • Coverage ratio: 152% Funding • USD
Slide 13: Strong profitability growth
Strong profitability growth Income Statement Breakdown (USD billion as at 31 December) Net Profit1 Operating Income2 Net Interest Income % % RoAE3 3 RoAE % Cost to Income Ratio % Net Interest Margin4 5 yrs: 16% 5 yrs: 15% 5 yrs: 18% 3.09 4.34 4.47 2.87 4.04 3.50 3.37 2.60 3.18 2.29 3.16 2.06 2.51 2.
Slide 14: Good asset growth driven by lending activities mainly in QAR and USD
Good asset growth driven by lending activities mainly in QAR and USD Assets Analysis (as at 31 December) Total Assets Evolution 2015 Split of Assets (%) USD billion By Type By Currency 147.9 Cash and 5 yrs: 19% Balances with 5.9 QAR 46.5 133.6 Central Banks 121.8 Due from USD 25.0 3.2 100.8 Banks EG
Slide 15: Good loan growth
Good loan growth Loans Analysis (as at 31 December) Total Loans Evolution 2015 Split of Loans (%) USD billion By Geography By Sector 106.7 Qatar 75.8 Government 13.5 5 yrs: 25% 92.9 85.3 Government Egypt 7.6 31.8 Agencies 68.7 Other GCC Services/ 4.0 24.9 Countries Commerce 53.3 North 0.4 Real Estat
Slide 16: 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 December unless stated) Non Performing Loans (NPL) by Segment • QNB has continued to x Total NPL’s increase its provisions in USD million response to the global 1,430 1,532 1,530 economic situation 1,116 1,
Slide 17: High quality investment portfolio with 86% of securities rated AA or better
High quality investment portfolio with 86% of securities rated AA or better Investments Analysis (USD million as at 31 December 2015) Available-for-Sale Investment Securities Held to Maturity Financial Investments Quoted Fixed rate Unquoted Floating rate State of Qatar 3,693 State of Qatar 5,875 Sov
Slide 18: Robust growth in customer deposits and funding
Robust growth in customer deposits and funding Funding Analysis (as at 31 December) Total Customer Deposits Evolution 2015 Split of Deposits (%) USD billion By Sector By Type 108.6 Government 7.7 Time 5 yrs: 19% 71.7 Deposits 98.2 91.8 Government 29.1 Agencies Saving 74.0 2.7 Accounts 54.8 Corporate
Slide 19: Solid liquidity profile above regulatory minimums
Solid liquidity profile above regulatory minimums Liquidity Analysis (as at 31 December) Loans to Deposits Ratio Evolution 2015 Sources of Liquidity % % of total liabilities 97.2% 92.7% 93.0% 94.6% 98.3% Due to Banks 7.6 Customer Deposits 82.9 Debt 3.4 Securities 2011 2012 2013 2014 2015 Other 3.2 B
Slide 20: Sources of Institutional Funding
Sources of Institutional Funding EMTN and Certificate of Deposits EMTN Certificate of Deposits Set-Up • November 2011 in Reg S format • Issued by QNB London Branch and regulated by Set-Up the FCA and the PRA Current • Programme limit USD 12.5 billion and outstanding Values is USD 6.0 billion Establi
Slide 21: 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) Total Equity1 Evolution Basel III Capital Adequacy Ratio USD billion x Gearing2 % 16.0 14.1 12.8 16.2 16.3 12.5 (QCB) 2013 2014 2015 2014 2015 9.5 9.5 9.2 • Capital base has been r
Slide 22: Increasing geographical diversification positively contributes to growth
Increasing geographical diversification positively contributes to growth Geographical Contribution (as at 31 December) Domestic International % Share of International as percentage of the total Net Profit Loans Deposits USD billion USD billion USD billion 3.09 106.7 108.6 2.87 98.2 92.9 91.8 2.60 85
Slide 23: Diversifying business mix will bolster sustainable growth
Diversifying business mix will bolster sustainable growth Business Mix Contribution (% share as at 31 December 2015) Lines of Business Net Profit Op. Income Loans Deposits 91 82 89 77 • Maintain dominant domestic Group market share Corporate • Grow international contribution • Nurture SME business i
Slide 24: QNB Group Financials
QNB Group Financials Key data (as at 31 December 2015) QNB QNB incl. QNB ALAHLI % Contribution Financials Ratios Presence USD billion 148 3.09 18.2% 123% 127% 131 2.75 16.3% 107 109 99 95 15,283 1.3% 1.4% 452 637 9,890 Total Loans & Customer Profit Capital NPL Coverage Branches Staff Assets Advances
Slide 25: Economic Overview
Economic Overview
Slide 26: Qatar oil and gas wealth per capita is the highest in the world
Qatar oil and gas wealth per capita is the highest in the world … Oil and Gas Reserves Per Capita (2014) k barrels of oil equivalent (boe) Qatar 84.6 Kuwait 28.3 U.A.E. 14.8 Venezuela 11.2 Saudi Arabia 10.4 Libya 9.4 Canada 5.2 Iran 4.9 Iraq 4.8 Kazakhstan 2.3 Russia 2.2 • Qatar is endowed with majo
Slide 27: Qatar was one of the world's fastest growing economies during 2009-14
… and Qatar was one of the world’s fastest growing economies during 2009-14 Real GDP: Countries with fastest growth (2009-14) % CAGR, annual growth 11.2% 11.1% 10.6% 10.2% • Qatar’s compound annual real growth rate of 9.1% 9.1% during 2009-14 was one of the world’s fastest, driven by the expansion i
Slide 28: Hydrocarbon growth driven by gas production expansion; now plateaued
Hydrocarbon growth has been driven by a large expansion in gas production; but has now plateaued given the moratorium on gas exploration Production of Gas by Usage* Production of Oil and Other Hydrocarbon Liquids* m boe/d, % shares shown m b/d, % shares shown LNG Exports Domestic Consumption 2.5 Con
Slide 29: The economic expansion has driven population growth and created significant wealth
The economic expansion has driven population growth and created significant wealth Total Population* GDP per Capita* USD thousands and % CAGR Millions and % CAGR Thousands USD PPP and % CAGR 4.1% 7.5% 2.6 147.5 148.9 144.8 8.5% 2.5 138.4 136.0 141.1 2.4 2.2 122.0 2.0 1.7 1.8 2011 2012 2013 2014 2015
Slide 30: Qatar's banking sector is growing rapidly and remains highly profitable
Qatar’s banking sector is growing rapidly and remains highly profitable Banking Sector USD billions and % Assets • Assets saw a healthy expansion over the period Dec-2009 Deposits to Dec-2014, growing by a CAGR of 16.5% Loans Loans to Deposit Ratio 111% • Deposits grew strongly by a CAGR of 19.5% ov
Slide 31: 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* % annual growth Hydrocarbon Non-Hydrocarbon Total 6.4 6.4 10.6 4.7 10.0 • Qatar is well-positioned to withstand low oil prices 4.0 9.9 thanks to a low fiscal breakeven oil price, the 10.4 2.7 2.4 accumulation o
Slide 32: Large investment spending focused on real estate and transport
Large investment spending focused on real estate and transport will be a key driver of the economy going forward Investment Spending by Sector (2015-17) Major Projects % shares shown Budget Project End (bn USD) Lusail Mixed-Use 45.0 2022 Real Estate 49% Estate Development Real Barwa Al Khor Developm
Slide 33: Inflation is moderating on lower international commodity prices
Inflation is moderating on lower international commodity prices and slowing rent inflation, but should pick up gradually going forward CPI Inflation* % change; weights given in brackets Domestic (74%)* Foreign (26%)* Total • Lower international food prices were witnessed in 2015 due to slowing world
Slide 34: Strong fundamentals have kept CDS spreads low
Strong fundamentals have kept CDS spreads low Qatar Credit Default Swap (CDS) Spreads, 5-year USD CDS spreads are the annual cost of insuring sovereign debt against default in basis points 100 90 80 70 60 50 40 30 20 10 0 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 D
Slide 35: 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 - High levels of government spending and personal 1st in MENA World Economic Forum consump
Slide 36: Qatar is the fastest growing economy in the MSCI Emerging Market group
Qatar is the fastest growing economy in the MSCI Emerging Market group… MSCI EM: Real GDP CAGR (2009-14, %) 12 9.6 9 8.5 7.2 6.3 7 5.8 5.8 5.8 5.4 4.8 4.6 4.4 4.0 Average, 4.1 3.7 3.6 4 3.3 3.2 3.0 2.8 2.7 2.4 1.2 0.9 2 -1 -4 -6 -4.9 Korea Thailand Poland Turkey Colombia Taiwan Indonesia Malaysia Pe
Slide 37: …with the lowest inflation rate…
…with the lowest inflation rate… MSCI EM: Average CPI inflation (2009-14, %) 14 12 10.8 9.3 9 7.8 7.8 7 5.4 5.6 5.8 Average, 3.9 3.8 4.1 4 2.9 3.0 3.4 2.2 2.4 2.5 2.5 2.6 2.1 1.2 1.4 1.6 2 0.9 0.4 -1 -4 -6 Thailand Korea Poland Taiwan Colombia Turkey Malaysia Peru Czech Republic Mexico Indonesia Ind
Slide 38: …the highest current account surplus…
…the highest current account surplus… MSCI EM: Average Current Account Balances (2009-14, % of GDP) 28 25 24.1 23 20 18 15 13 11.2 10.2 10 8.7 8 5 4.1 3.8 3.7 2.9 2.8 Average, 1.5 3 1.8 0 -3 -1.0 -1.0 -1.4 -1.6 -2.3 -2.5 -2.6 -3.0 -5 -3.3 -3.4 -3.8 -8 -5.3 -6.3 -10 Poland Korea Thailand Colombia Tur
Slide 39: …and the highest fiscal surplus
…and the highest fiscal surplus MSCI EM: Average General Government Fiscal Balance (2009-14, % of GDP) 15 12.4 13 10 8 5.2 5 3 1.0 0.5 0 -3 -0.7 -0.8 -0.9 -1.4 -1.5 -1.7 -1.7 Average, -2.2 -2.4 -5 -3.2 -3.4 -3.6 -4.1 -4.2 -4.3 -4.5 -5.2 -8 -8.0 -8.0 -10 -10.5 -13 Korea Thailand Colombia Turkey Polan
Slide 40: 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