Pt Bank Qnb Indonesia Tbk · IDX:BKSW
Pt Bank Qnb Indonesia Tbk — QNB Group — Investor Presentation (March 2023)
51 slides from Pt Bank Qnb Indonesia Tbk's investor presentation, March 2023
Slide 1: Investor Relations Presentation
Investor Relations Presentation March 2023
Slide 2: Contents
Contents 1.QNB at a Glance 2.QNB Comparative Positioning – Qatar and MEA 3.Financial Highlights 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 certain cases, numbers may
Slide 3: QNB at a Glance
QNB at a Glance
Slide 4: QNB is a strong and highly rated bank with international footprint
QNB is a strong and highly rated bank with international footprint #1 bank in the Middle East and Africa across all balance sheet metrics International network with presence in more than 28 countries Most valuable banking brand in the Middle East and Africa, worth USD 7.7 Bn1 About 29,000 employees
Slide 5: QNB's International Footprint
QNB's International Footprint Sub-Saharan Africa Middle East Qatar: (51 Branches) South Sudan: (1 Branch) KSA: (1 Branch) Togo: (625 Branches3 across Africa, though 20.1% stake in Ecobank) UAE: (71 +11 Branches, 40.0% stake in CBI) Asia Syria: (8 +291 Branches, 50.8% stake in QNB Syria) Indonesia: (
Slide 6: QNB Comparative Positioning – Qatar and MEA
QNB Comparative Positioning – Qatar and MEA
Slide 7: Top Listed Domestic Banks – March 2023
Top 5 Listed Domestic Banks – March 2023 QNB continues to excel in the domestic market Assets Loans 323.6 222.4 49.0 44.9 44.6 32.3 32.0 25.9 28.1 20.4 Deposits Net Profit 227.3 1.07 0.25 0.21 32.4 25.7 0.11 0.11 20.9 19.2 Note: All amounts are in USD billions Source: Banks’ March 2023 Press Release
Slide 8: Top Listed MEA Banks – March 2023
Top 5 Listed MEA Banks – March 2023 QNB maintains its position as the leading bank in the region across all balance sheet categories Assets Loans 323.6 322.7 222.4 260.3 213.0 153.9 151.0 207.0 128.8 119.3 Deposits Net Profit 227.3 1.64 212.5 1.34 162.9 1.11 148.3 146.5 1.07 1.07 Note: All amounts a
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) Top MEA banking brands Key highlights • QNB retains the most valuable Banking Brand in Middle East and Africa region 7.67 • 2023 Brand Value for Group increased to USD 7.67 billion 5.66 • Bran
Slide 10: Financial Highlights
Financial Highlights
Slide 11: QNB Group demonstrate sustainable growth
QNB Group demonstrate sustainable growth Financial Highlights (as at 31 March 2023) Growth vs. March 2022 • Net interest margin (NIM)2: 2.57% Profit1 • USD1.07 billion +7% • Cost to income ratio: 21.7% • Earnings per share: USD 0.11 • USD323.6 billion assets +6% • NPL (% of gross loans): 2.9% Assets
Slide 12: QNB ALAHLI
QNB ALAHLI Financial Highlights (as at 31 March 2023) Growth vs. March 2022 • Net interest margin (NIM)1: 6.01% • USD139.4 million +13% Profit (EGP4.2 billion) (+114%) • Cost to income ratio: 22.2% • USD17.1 billion assets -21% (EGP526.4 billion) (+34%) • NPL (% of gross loans): 4.3% Assets • USD7.7
Slide 13: QNB FINANSBANK
QNB FINANSBANK Financial Highlights (as at 31 March 2023) Growth vs. March 2022 • Net interest margin (NIM)1: 5.43% • USD135.1 million -21% Profit (TRY2.6 billion) (+9%) • Cost to income ratio: 28.7% • USD35.2 billion assets +15% (TRY676.4 billion) (+51%) • NPL (% of gross loans): 1.6% Assets • USD2
Slide 14: Enpara Digital Bank (pro-forma standalone operations)
Enpara Digital Bank (pro-forma standalone operations) Financial Highlights (as at 31 March 2023) Growth vs. March 2022 • USD27.9 million • Cost to income ratio: 16.4% +296% Profit (TRY0.5 billion) (+446%) • Net Interest Margin (NIM): 3.8% • USD2.0 billion loans • NPL (% of gross loans): 1.4% (TRY38.
Slide 15: Strong domestic franchise with widespread geographical footprint
Strong domestic franchise with widespread geographical footprint contributes to diversification and growth Geographical Contribution (as at 31 March) Domestic International % Share of International as percentage of the total Net Profit1 Loans Deposits USD billion USD billion USD billion 1.06 222.4 2
Slide 16: Consistent Profitability and Cost Discipline
Consistent Profitability and Cost Discipline Income Statement Breakdown (USD billion as at 31 March) Net Profit1 Operating Income2 Net Interest Income % Cost to Income Ratio % Net Interest Margin3 5 yrs: 2.5% 1.07 5 yrs: 9% 2.55 0.99 5 yrs: 15% 0.98 0.98 1.98 0.91 2.12 1.72 1.84 1.83 1.48 1.48 1.71
Slide 17: Asset growth driven by lending activities mainly in USD and QAR
Asset growth driven by lending activities mainly in USD and QAR Assets Analysis (as at 31 March) Total Assets Evolution 2023 Split of Assets (%) USD billion By Type By Currency 5 yrs: 7% 323.6 Cash and 304.5 Balances with 8.3 QAR 25.6 286.4 Central Banks 264.9 USD 43.4 242.3 Due from 7.0 Banks TRY 5
Slide 18: Stable loan momentum
Stable loan momentum Loan Analysis (as at 31 March) Total Loans Evolution 2023 Split of Loans (%) USD billion By Geography By Sector1 5 yrs: 6% 222.4 Govt. & Govt. Qatar 78.7 36.4 209.6 Agencies 194.5 198.0 Turkey 9.5 Services/ 172.5 39.8 Commerce Egypt 3.6 Industry 4.9 Europe 2.4 Real Estate & 10.1
Slide 19: 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 March) Non Performing Loans (NPL) by Segment • QNB has continued to x increase its provisions in USD million Total NPL’s response to the global 5,039 6,505 6,498 economic situation on 4,935 4,938 account
Slide 20: 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 March 2023) Fair Value Through Other Comprehensive Income Amortised Cost Quoted Fixed rate Unquoted Floating rate State of Qatar 5,288 State of Qatar 7,581 Sovereign Debt 0 Sover
Slide 21: Robust growth in customer deposits and funding
Robust growth in customer deposits and funding Funding Analysis (as at 31 March) Customer Deposits Evolution 2023 Split of Deposits (%) USD billion By Sector By Type By Geography 5 yrs: 6% Qatar 60.9 227.3 Govt. & Time 216.5 Govt. 26.7 76.5 Deposits 205.9 Agencies GCC 1.5 194.0 175.3 Europe 13.1 Sav
Slide 22: Solid liquidity profile
Solid liquidity profile Liquidity Analysis (as at 31 March) Loans to Deposits Ratio Evolution Sources of Liquidity % % of total liabilities 98.4 100.2 96.1 96.8 97.9 Due to 14.1 Banks Customer 77.0 Deposits Debt 3.1 Securities 2019 2020 2021 2022 2023 Other 2.4 Borrowings Liquid Assets1 Evolution Ot
Slide 23: 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 March) Basel III Capital Adequacy Ratio % 19.3 18.2 14.3 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 th
Slide 24: Diversifying business mix will bolster sustainable growth
Diversifying business mix will bolster sustainable growth Business Mix Contribution (% share as at 31 March 2023) Lines of Business Net Profit1 Op. Income Loans Deposits 79 74 91 82 • Maintain dominant domestic market share Group Corporate • Grow international contribution • Nurture SME business in
Slide 25: IFRS 9 – Additional buffers for long-term earnings stability
IFRS 9 – Additional buffers 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 26: QNB Group Financials
QNB Group Financials Key data (as at March 2023) % Contribution of QNB AA QNB excluding QNB AA and QNB Finansbank QNB incl. QNB ALAHLI QNB incl. QNB Finansbank % Contribution of QNB Finansbank Financials Presence USD billion 2.55 324 29,151 288 271 1.79 222 227 194 201 204 1.48 190 15,978 1.07 0.93
Slide 27: Sustainability
Sustainability
Slide 28: Sustainability entails delivering positive impact in the pillars of ESG
Sustainability entails delivering positive impact in the pillars and topics of Environmental, Social and Governance (ESG) Universal sustainability topics mapped against the pillars of ESG ESG Pillars Environmental Social Governance Climate change Human rights Board oversight Carbon emissions Labour
Slide 29: QNB has engaged key stakeholder groups to identify and map material topics
QNB has engaged key stakeholder groups1 to identify and map the topics that are most material to them with regards to sustainability QNB stakeholder assessment approach 4 Define S ustainability strategy and framework to address material topics 3 Ma p material topics to ESG frameworks (e.g. UNSDGs2)
Slide 30: QNB's material topics have been prioritised and mapped against the UNSDGs
QNB’s material topics have been prioritised and mapped against the UNSDGs QNB Group materiality matrix Material topics mapped to UNSDG’s Financial stability and systemic risk management Governance, compliance and risk management Financial stability and systemic risk management Customer experience an
Slide 31: QNB has defined a sustainability framework and strategy along the pillars of ESG
QNB has defined a sustainability framework and strategy along the pillars of ESG, as well as incorporating material topics Environmental Social Governance Sustainable financial performance Sustainable investment Financial inclusion Sustainable finance SMEs and entrepreneurship Customer engagement an
Slide 32: QNB has delivered and achieved a number of key ESG milestones
QNB has delivered and achieved a number of key ESG milestones across all areas of our sustainability framework Established QNB Group Sustainability Strategy, Policy and Governance Sustainable financial performance Sustainable Sustainable Beyond finance operations banking External Commitments Reporti
Slide 33: QNB Group's commitment to enhancing its sustainability practices helped improve ESG ratings
QNB Group’s commitment to enhancing its sustainability practices helped improve ESG ratings As at 31 December 2022 QNB Disclosures 2020 2021 2022 41 (59th percentile) 42 (62nd percentile) 46 (82nd percentile) A AA A Credit & ESG Medium risk Medium risk Medium risk Rating (27.9) (22.4) (22.6) Agencie
Slide 34: QNB has been recognised for its sustainable, innovative and inclusive offerings
QNB has been recognised for its sustainable, innovative and inclusive offerings from internationally renowned institutions Selected Sustainability Awards and Performance Recognitions (2021-2022) • Outstanding Leadership in Sustainable Finance: 2022 • Outstanding Leadership in Social Bonds: 2022 • Ou
Slide 35: QNB continues to enhance its frameworks to support sustainable financing efforts
QNB continues to enhance its frameworks in accordance with latest international standards to support sustainable financing efforts QNB issued a USD 600m debut green bond Environmental Impact First Green Bond issued in the State of Qatar Largest conventional green bond issued by a bank in the GCC
Slide 36: QNB's SFPF framework has clearly defined use of proceeds categories
QNB’s SFPF1 framework has clearly defined use of proceeds categories for green and social projects to facilitate positive impact Green Bond/ Loan Use of Proceeds Social Bond/ Loan Use of Proceeds Sustainable water and Green buildings wastewater Access to essential services Certified buildings, top m
Slide 37: Sustainable finance at a glance
Sustainable finance at a glance Financing Customer experience QR10.25 billion 34 77.2% Lending portfolio Number of sustainable Digital transactions financing financial products and (online & mobile environmentally frien dly, services offered to as a % of total) low carbon activities customers First
Slide 38: Sustainable operations at a glance
Sustainable operations at a glance Climate impact Gender diversity 16.5% 17% 0.91 Reduction in energy % Women Board Female/ consumption (CO2) since 2017 members in our male pay subsidiaries ratio -1.26 tonnes CO2 per employee 32% 47% Reduction in carbon intensity since 2015 % Women in middle and sen
Slide 39: Economic Overview
Economic Overview
Slide 40: Qatar is strategically located between Europe and Asia and possesses large gas reserves
Qatar is strategically located between Europe and Asia and possesses one of the largest gas reserves in the world Comments • Qatar is a peninsula located in the Persian Gulf and is a member of the Gulf Cooperation Council (GCC) • Qatar’s total population is around 2.8 million • Qatar is endowed with
Slide 41: 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 5.5 500 5.0 450 4.5 400 4.0 350 3.5 300 3.0 250 2.5 200 2.0 150 1.5 1.0 100 0.5 50 0.0 0 2000 2005 201
Slide 42: 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 (2021) GDP per capita (2022) k barrels of oil equivalent (boe) k USD PPP Qatar 144 Luxembourg 120 Kuwait 24 Singapore 112 UAE 14 Ireland 111 Venezuela 12 Qatar 97 Sa
Slide 43: Qatar introduced the Qatar National Vision 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 44: Economic diversification has accelerated over the last decade
Economic diversification has accelerated over the last decade in order to achieve the QNV 2030 Real GDP Growth by Sector %, year-on-year 28 26 24 Hydrocarbon 22 Non-Hydrocarbon 20 18 16 14 Accelerated Diversification 12 10 8 6 4 2 0 -2 -4 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 S
Slide 45: Qatar's transformation supported by major infrastructure and investment spending
Qatar’s transformation has been supported by a range of major infrastructure and investment spending programmes Major projects spending (USD Bn) Major Projects Completed* 27 Hamad International Ashghal Major Hamad Port 24 Airport Projects 21 22 19 19 19 FIFA World Cup 17 17 Education City Msheireb D
Slide 46: Qatar will increase its LNG production by 64%
Furthermore, Qatar will increase its LNG production by 64%, maintaining its position as the world’s largest exporter 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 tons per annum
Slide 47: Qatar has maintained a substantial trade surplus
Qatar has maintained a substantial trade surplus with exports much greater than imports despite oil price volatility Trade surplus, exports, imports (USD Bn) and oil price (USD/barrel) 111 112 109 99 100 Oil price Trade surplus 71 70 108 106 64 98 97 52 54 92 44 42 52 59 44 44 Exports 37 133 133 127
Slide 48: Qatar's diversification and expansion efforts will deliver strong economic growth
Qatar’s diversification and expansion efforts will continue and deliver strong economic growth today as well as in the coming years Real GDP forecast (% y-o-y) Consensus 2023 (f) IMF 2023 – 2027 (f) 4.0 3.8 Ø 2.9 2.8 2.7 2.4 2.3 1.7 2023 2024 2025 2026 2027 Lowest Highest Average of all forecasts So
Slide 49: 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 Standard & Poor’s Sovereign Ratings* AAA Germany, Canada, Australia, Switzerland, Norway, Sweden, Denmark, Netherlands, Luxembourg, Singapore AA+ US, Austria, Finland, N Zealand, Taiwan, Hong Kong AA Qatar
Slide 50: Qatar's banking and financial system remains resilient and healthy
Qatar’s banking and financial system remains resilient and healthy Financial Soundness Indicators (2018-2021, %) 2018 2019 2020 2021 Capital Adequacy Tier 1 capital/risk-weighted assets 17.0 17.5 17.6 18.0 Regulatory capital/risk-weighted assets 18.0 18.6 18.8 19.2 Asset Quality Non-performing loans
Slide 51: 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