Doha Bank · QSE:DHBK
Doha Bank — Investor Presentation (October 2019)
20 slides from Doha Bank's investor presentation, October 2019
Slide 1: Investor Presentation October 2019
Investor Presentation October 2019
Slide 2: Overview of Doha Bank
Overview of Doha Bank Key highlights Strong international footprint • Incorporated in 1979, Doha Bank is the third largest local conventional bank by assets in Qatar with a market share of approximately 7.2%(1) and assets totaling QR106.7bn • Doha Bank has a strong domestic franchise with the 2nd la
Slide 3: Banking sector
Banking sector Loan market size (QRbn) and Doha Bank market share (%) Qatari banking system – Total Loans Vs Deposits (QRbn) 996 940 911 302 844 204 753 832 653 823 810 1.9% 727 Government loans 4.9% 650 601 Services* 154 2014 2015 2016 2017 2018 Q3-19 956 Total Deposit Total Loans Source: QCB banks
Slide 4: Qatar Economy
Qatar Economy Stable economic situation Government fiscal surplus/deficit (% of GDP) Sovereign rating: AA- (Stable) by Fitch / AA- (Stable) by S&P / 14.5% 15.0% Aa3 (Stable) by Moody’s 5.1% 2.2% 5.0% Qatar has the 3rd largest reserves of natural Gas reserves: gas in the world(2) -5.0% -0.7% -6.6% Oi
Slide 5: Qatar Economy
Qatar Economy 3rd largest reserves and 2nd largest exporter of natural gas Infrastructure projects & events to benefit from the National Vision 2030 Natural gas reserves (2018) Export of natural gas in 2018 (cubic meters bn) Infrastructure projects in Qatar Russia 250 • FIFA World Cup Football Stadi
Slide 6: Financial Summary
Financial Summary Profitability (QR Mn) Assets and Liabilities (QR Mn) Q3 2019 Q3 2018 YoY Q3 2019 Q4 2018 Q3 2018 YTD YoY Interest income 3,148 2,934 7.3% Total Assets 106,746 96,132 90,367 11.0% 18.1% Loans and Advances 65,003 59,844 59,215 8.6% 9.8% Interest Expense (1,652) (1,331) 24.2% Investme
Slide 7: Corporate banking
Corporate banking Overview of the corporate banking loan book - September 2019 Loans (QRbn) Non-banking Industry Real estate Contract financing financial institutions 1.3% Others 2.8% 3.0% 3% 19 ):1 6% Q3- 3-19) : Services – 014 – Q 14.8% (20 14 18.3 18.5 CAGR (2 R 17.8 Real estate CAG 31.6% 14.5 10
Slide 8: Real Estate
Real Estate Real estate market share development Qatari market real estate loans (QRbn) 25% 5% 9) : 1 151.5 153.5 - Q3-1 147.3 (2009 CAGR 125.7 135.0 11.6% 95.7 85.6 85.4 76.2 51.0 40.4 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q
Slide 9: Contract Finance
Contract Finance Contract financing market share development Qatari market contract financing loans (QRbn) 16% 2% ):1 3-19 9-Q 40.5 200 40.1 CA GR ( 38.9 37.0 38.4 29.0% 32.0 23.3 18.4 18.2 16.2 13.0 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 2009 2010 2011 2012 2013 2014 2015 20
Slide 10: International Presence
International Presence Timeline of international expansion International asset evolution (QRbn) • 2005: Doha Bank established a representative office in Dubai 11% of total assets • 2006: Representative offices in Singapore and Turkey commenced operations 16.0 16.5 14.2 14.8 • 2007: First full branch
Slide 11: Leading and innovative retail franchise
Leading and innovative retail franchise Innovative range of retail products Distribution channels: Innovative and increasing efficiency • Second largest conventional retail in Qatar widespread Transactional • Doha Bank offers a wide range of accounts to its customers, Branches including term deposit
Slide 12: Credit Quality
Credit Quality NPL evolution Total Reserves* for loans & advances divided by impaired loans 5.84% 5.78% 5.83% 5.65% 186% 169% 171% 5.05% 150% 137% 136% 141% 200% 3.98% 4.29% 3,802 3,681 3,856 3,991 5.3% 138% 150% 3.61% 3,236 5,640 100% 2,684 5,233 5,048 5,263 2,259 2,560 3.3% 4,190 4,323 4,578 4,846
Slide 13: Credit quality in Doha Bank's core businesses and by geography
Credit quality in Doha Bank‘s core businesses and by geography Real estate NPL ratio Corporate NPL ratio Retail NPL ratio Contracting NPL ratio 15.9% 8.1% 7.3% 5.0% 11.6% 4.8% 4.7% 7.9% 3.8% 6.8% 4.6% 4.2% 0.2% 0.2% 0.1% 0.1% 2016 2017 2018 Q3-19 2016 2017 2018 Q3-19 2016 2017 2018 Q3-19 2016 2017 2
Slide 14: High margin and high dividend yield
High margin and high dividend yield Net interest margin % Cash dividend (QR per share) 4.5 4.0 3.0 3.0 3.0 2.50% 2.44% 2.41% 2.37% 2.24% 2.09% 2.00% 2.01% 1.0 2017 Q1-18 Q2-18 Q3-18 2018 Q1-19 Q2-19 Q3-19 2013 2014 2015 2016 2017 2018 Source: Company information Source: Company information Attractiv
Slide 15: Diversified loans and deposits
Diversified loans and deposits By sector – September 2019 By type – September 2019 Loans Deposits Loans Deposits Industry Non-banking financial 1.1% institutions Others Non-banking Government and financial institutions related agencies Savings Accounts 2.3% 2.2% 4.0% 3.5% 8.0% Government and related
Slide 16: Investment Book
Investment Book Portfolio overview Investment portfolio – split by type – September 2019 (%) Total (QR27,765mn) • Conservative investment philosophy -Low hard limits for discretionary trading / investments Mutual funds Equities 0.2% • Majority of portfolio in local sovereign fixed income 2.1% Other
Slide 17: Liquidity and Capitalization
Liquidity and Capitalization Funding mix – September 2019 Evolution of tier 1 and capital adequacy ratio Debt securities Other liabilities 0.4% 5.1% 15.0% 15.7% 15.6% 17.5% 17.0% 16.8% Other borrowings 6.7% 17.4% 15.8% 15.7% 15.4% 15.4% 14.7% Equity 12.6% 12.3% 11.8% 10.4% 10.4% 10.7% 10.6% Customer
Slide 18: Doha Bank strategy – Clear path to future growth
Doha Bank strategy – Clear path to future growth • Maintain conservative and cautious approach to underwriting Improve in particular with regards to contracting sector credit quality • Continue improvement in risk management procedures and systems Further • Leverage on strong existing distribution c
Slide 19: Concluding remarks
Concluding remarks 3rd largest conventional Prime player in Qatari Qatari bank (1) with banking market, strong retail footprint growing at c.7% pa (2) in Qatar Strong regulatory Backdrop of a strong environment aligned macro-economic with international environment banking standards Proactive and Str
Slide 20: www.dohabank.com
»d Am gti DOHA BANK www.dohabank.com IN