Alrayan Bank · QSE:MARK
Alrayan Bank — Masraf Al Rayan — FY2020 Earnings Presentation
22 slides from Alrayan Bank's earnings presentation, Dec 31, 2020
Slide 1: Investor Presentation
Investor Presentation 31 December 2020
Slide 2: Contents
Contents 1. Introduction to Masraf Al Rayan 2. Financial Highlights and Performance 3. Operating Segments 4. Historical Financial Statements 5. Overview of Qatar 2
Slide 3: Introduction to Masraf Al Rayan: Corporate Profile
Introduction to Masraf Al Rayan Corporate Profile Overview of Masraf Al Rayan Q.P.S.C (MAR or the Bank) Branch Network Fully Sharia compliant bank incorporated in Qatar on 4 January Profile 2006 and licensed by the Qatar Central Bank 5 branches Classified as a DSIB (Domestic Systemically Importa
Slide 4: Ownership Structure & Financial Highlights
Introduction to Masraf Al Rayan Ownership Structure & Financial Highlights Shareholding Structure Credit Rating Government, Government-related entities (GREs) and Qatari institutional investors hold approx. 48.9% of MAR’s shares Long-term and short-term foreign currency and local currency issuer
Slide 5: Overview of Masraf Al Rayan Cont.: Board Composition
1. Overview of Masraf Al Rayan Cont. Board Composition The principal role of the Board is to oversee the implementation of the Bank's strategic initiatives and its functions within the agreed framework in accordance with relevant statutory and regulatory structures Chairman & Managing Director Boa
Slide 6: Contents
Contents 1. Introduction to Masraf Al Rayan 2. Financial Highlights and Performance 3. Operating Segments 4. Historical Financial Statements 5. Overview of Qatar 6
Slide 7: Financial Highlights and Performance: Summary
Financial Highlights and Performance Summary Total assets reached QAR 121,115 million compared to QAR 106,397 million on 31 December 2019, an increase of 13.8% Balance Sheet Financing activities increased to QAR 85,983 million compared to QAR 74,837 million on 31 December 2019, an increase of 14
Slide 8: Financial Highlights & Performance: Balance Sheet
Financial Highlights & Performance Balance Sheet Financing assets have continued to grow in 2020. Investment securities continue to have high tilt towards high quality Government debt. Assets Asset Mix – 2020 5-yr CAGR: 0.5% 5.8% 140,000 5.2% 7.3% 121,115 120,000 102,949 106,397 17.4% 97,294 14,01
Slide 9: Financial Highlights & Performance: Profitability
Financial Highlights & Performance Profitability Stable profitability with consistent strong cost efficiency and high return on assets and shareholders’ equity Profitability Income Composition 6,000 5,221 5,047 3,229 4,874 4,347 162 158 2,788 2,892 5,000 152 30 22 2,736 388 143 30 261 37 315 2,130
Slide 10: Financial Highlights & Performance: Asset Quality
Financial Highlights & Performance Asset Quality Masraf Al Rayan’s non-performing financing ratio is at 1.13% reflecting robust asset quality, prudent risk management policies and a conservative lending strategy. Non-Performing Financing Assets (Stage 3) Non-Performing Financing Coverage Ratio (St
Slide 11: Financial Highlights & Performance: IFRS Impact
Financial Highlights & Performance IFRS 9 Impact As per QCB requirements, MAR has adopted ECL regulations from 1 January 2018. ECL on all exposures - by Stages All exposures subject to ECL - by Stages 1,200 1,065 127,724 1,000 140,000 109,778 116,257 1,043 709 120,000 822 15,739 800 671 688 606 13
Slide 12: Financial Highlights & Performance: Capital Adequacy
Financial Highlights & Performance Capital Adequacy Masraf Al Rayan is well capitalized with CAR exceeding the regulatory threshold indicating ample room for growth Total Equity Breakdown Overview of the Bank’s Capitalisation Levels 14,592 20.27% 14,132 20.31% 13,390 13,473 19.32% 19.23% 213 226 1
Slide 13: Financial Highlights & Performance: Funding & Liquidity
Financial Highlights & Performance Funding & Liquidity Masraf Al Rayan primarily relies on customer deposits and is seeking to diversify its funding mix as part of its strategic objective Funding Mix Deposit Mix 106,523 92,265 2,332 80,000 68,918 89,559 65,612 83,820 7,294 70,000 62,532 61,569 1,9
Slide 14: Contents
Contents 1. Introduction to Masraf Al Rayan 2. Financial Highlights and Performance 3. Operating Segments 4. Historical Financial Statements 5. Overview of Qatar 14
Slide 15: Business Overview & Segments
Introduction to Masraf Al Rayan Business Overview & Segments For the purpose of financial reporting, the Bank provides breakdown by four segments which offer different products and services, and are managed separately based on the Bank's management and internal reporting structure Asset Management
Slide 16: Contents
Contents 1. Introduction to Masraf Al Rayan 2. Financial Highlights and Performance 3. Operating Segments 4. Historical Financial Statements 5. Overview of Qatar 16
Slide 17: Historical Financials: Consolidated Income Statement
Historical Financials Consolidated Income Statement QAR mn 2017 2018 2019 2020 Net incom e from financing activities 3,101 3,539 3,710 3,680 Net incom e from inves ting activities 792 838 931 925 Total Net Income from Financing and Investing Activities 3,893 4,377 4,641 4,606 Fee and com m is s ion
Slide 18: Historical Financials: Consolidated Statement of Financial Position
Historical Financials Consolidated Statement of Financial Position QAR mn 2017 2018 2019 2020 Cas h and Balances with Qatar Central Bank 2,800 3,027 3,123 7,071 Due from Banks 3,312 1,513 6,035 6,308 Financing As s ets 72,097 72,515 74,837 85,983 Inves tm ent Securities 23,423 19,222 21,379 20,586 I
Slide 19: Contents
Contents 1. Introduction to Masraf Al Rayan 2. Financial Highlights and Performance 3. Operating Segments 4. Historical Financial Statements 5. Overview of Qatar 19
Slide 20: Operating Environment: Qatar at a Glance
Operating Environment Qatar at a Glance Snapshot of Qatar Fiscal Balance (USDbn) Largest exporter of LNG with a global market share of 22%(1) 6.5% Economic 5.9% Fundamentals 3rd largest gas reserves in the world (c.12% of world’s total) (2) 4.9% Largest exporter of LNG for over a decade(1) 3.0
Slide 21: Operating Environment: Qatar vs Other GCC Countries
Operating Environment Qatar vs Other GCC Countries Real Gross Domestic Product (GDP) Growth of GCC Fiscal Breakeven Oil Price, 2021 Projections (USD / barrel) 2.3% 2.5% 2.4% 3.1% 1.8%1.8% 1.7% 1.2% 1.2% 1.2% 1.3% 109.5 0.6% 0.8% 0.4% 0.3% 83.4 2021F Avg 65.7 67.9 66.5 Brent Breakeven 72 $/bl 38.1 -4
Slide 22: Overview of the Qatari Banking Sector & Regulatory Support
Operating Environment Overview of the Qatari Banking Sector & Regulatory Support Snapshot of the Qatari Banking Sector State of Qatar’s Track Record of Support A total of 18 banks licensed by the Qatar Central Bank: Historically, the Government, through the QCB and QIA, has taken several steps t