Slide 1: Investor Relations Presentation
Investor Relations Presentation June 2021
Slide 2: Contents
Contents 1.QNB at a Glance 2.QNB Comparative Positioning – Qatar and MEA 3.Financial Highlights – as at 30 June 2021 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 certai
Slide 3: QNB at a Glance
+< QNB QNB at a Glance
Slide 4: QNB is a strong and highly rated bank with a growing international footprint
QNB is a strong and highly rated bank with a growing international footprint #1 bank in the Middle East and Africa across all financial metrics International network with presence in more than 31 countries Most valuable banking brand in the Middle East and Africa, worth USD 6.1 Bn1 About 28,000 empl
Slide 5: QNB's International Footprint
QNB's International Footprint Sub-Saharan Africa Middle East South Sudan: (1 Branch) Qatar: (53 Branches) Togo: (700 Branches3, 20.1% stake in KSA: (1 Branch) Ecobank) UAE: (8 (+11) Branches, 40.0% stake Asia in CBI) Indonesia: (17 Branches, 92.48% stake Syria: (15 (+301) Branches, 50.8% stake In QN
Slide 6: QNB Comparative Positioning – Qatar and MEA
QNB Comparative Positioning – Qatar and MEA
Slide 7: Top Domestic Banks – June 2021
Top 5 Domestic Banks – June 2021 QNB continues to excel in the domestic market Assets Loans 292.5 205.1 50.5 44.5 34.9 27.6 25.1 34.4 30.0 19.8 Deposits Net Profit 210.7 1.86 0.44 0.36 34.4 0.31 22.6 20.9 16.2 0.17 Note: All amounts are in USD billions Source: Banks’ June 2021 Press Release or Finan
Slide 8: Top MEA Banks – June 2021
Top 5 MEA Banks – June 2021 QNB maintained its position as the leading bank in the region across all categories Assets Loans 292.5 205.1 256.9 239.0 188.9 177.3 134.2 121.9 108.5 104.1 Deposits Net Profit 210.7 1.86 1.85 156.8 1.47 1.46 156.6 1.30 124.7 119.3 Note: All amounts are in USD billions So
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 as at 31-Dec-20) Top MEA banking brands Key highlights • QNB retains the most valuable Banking Brand in Middle East and Africa region 6.10 • 2021 Brand Value for Group increased to USD 6.107 bi
Slide 10: Financial Highlights – as at June 2021
Financial Highlights – as at 30 June 2021
Slide 11: QNB demonstrate sustainable growth
QNB demonstrate sustainable growth Financial Highlights (as at 30 June 2021) Growth vs. June 2020 • Net interest margin (NIM)2: 2.46% Profit1 • USD1.86 billion +6% • Cost to income ratio: 22.9% • Earnings per share: USD 0.19 • USD292.5 billion assets +10% • NPL (% of gross loans): 2.3% Assets • Cove
Slide 12: QNB ALAHLI
QNB ALAHLI Financial Highlights (as at 30 June 2021) Growth vs. June 2020 • USD230.0 million +2% • Net interest margin (NIM)2: 5.33% Profit1 (EGP3.6 billion) (+1%) • Cost to income ratio: 28.3% • USD20.2 billion assets +13% (EGP316.4 billion) (+10%) • NPL (% of gross loans): 3.3% Assets • USD11.0 bi
Slide 13: QNB FINANSBANK
QNB FINANSBANK Financial Highlights (as at 30 June 2021) Growth vs. June 2020 • USD189.0 million -10% • Net interest margin (NIM)2: 3.16% Profit1 (TRY1.5 billion) (+10%) • Cost to income ratio: 41.4% • USD31.7 billion assets -2% (TRY275.0 billion) (+24%) • NPL (% of gross loans): 4.0% Assets • USD19
Slide 14: Solid domestic presence with geographical diversification contributes to growth
Solid domestic presence with geographical diversification contributes to growth Geographical Contribution (as at 30 June) Domestic International % Share of International as percentage of the total Net Profit1 Loans Deposits USD billion USD billion USD billion 2.03 205.1 210.7 193.6 195.6 1.86 1.76 1
Slide 15: Consistent Profitability and Cost Discipline
Consistent Profitability and Cost Discipline Income Statement Breakdown (USD billion as at 30 June) Net Profit1 Operating Income2 Net Interest Income % Cost to Income Ratio % Net Interest Margin3 5 yrs: 2% 5 yrs: 3% 2.03 3.73 5 yrs: 4% 1.95 3.45 3.52 1.83 1.86 3.34 3.04 1.76 2.87 3.02 2.59 2.70 2.36
Slide 16: Asset growth driven by lending activities mainly in QAR and USD
Asset growth driven by lending activities mainly in QAR and USD Assets Analysis (as at 30 June) Total Assets Evolution 2021 Split of Assets (%) USD billion By Type By Currency 292.5 Cash and 5 yrs: 9% QAR 26.6 267.0 Balances with 7.5 243.5 Central Banks 231.9 USD 41.8 Due from 211.0 6.7 Banks TRY 3.
Slide 17: Good loan growth
Good loan growth Loan Analysis (as at 30 June) Total Loans Evolution 2021 Split of Loans (%) USD billion By Geography By Sector1 5 yrs: 8% 205.1 Qatar 76.3 Govt. & Govt. 193.6 Agencies 35.8 174.3 Turkey 9.6 Services/ 166.6 39.2 151.7 Commerce Egypt 5.4 Industry 5.7 Europe 2.9 Real Estate & 10.3 Cont
Slide 18: 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 30 June) Non Performing Loans (NPL) by Segment • QNB has continued to x increase its provisions in USD million Total NPL’s response to the global 3,527 4,345 4,913 economic situation as a 2,962 result of CO
Slide 19: High quality investment portfolio with 67% of securities rated AA or Sovereign
High quality investment portfolio with 67% of securities rated AA or Sovereign Investments Analysis (USD million as at 30 June 2021) Fair Value Through Other Comprehensive Income Amortised Cost Quoted Fixed rate Unquoted Floating rate State of Qatar 5,889 State of Qatar 3,815 Sovereign Debt 0 Sovere
Slide 20: Robust growth in customer deposits and funding
Robust growth in customer deposits and funding Funding Analysis (as at 30 June) Total Customer Deposits Evolution 2021 Split of Deposits (%) USD billion By Sector By Type By Geography 5 yrs: 9% Qatar 54.8 210.7 Govt. & Time Govt. 24.0 74.7 195.6 Deposits Agencies GCC 2.4 177.3 169.5 154.4 Europe 18.
Slide 21: Solid liquidity profile
Solid liquidity profile Liquidity Analysis (as at 30 June) Loans to Deposits Ratio Evolution 2021 Sources of Liquidity % % of total liabilities 98.3 98.3 98.3 99.0 97.4 Due to 10.4 Banks Customer 79.3 Deposits Debt 4.5 Securities 2017 2018 2019 2020 2021 Other 2.9 Borrowings Liquid Assets1 Evolution
Slide 22: 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 30 June) Basel III Capital Adequacy Ratio % 18.8 17.7 16.0 (QCB) 13.7 13.0 (QCB) 11.0 (QCB) CET 1 Tier 1 Total CAR • Capital adequacy ratio is above QCB and Basel III requirements including the
Slide 23: Diversifying business mix will bolster sustainable growth
Diversifying business mix will bolster sustainable growth Business Mix Contribution (% share as at 30 June 2021) Lines of Business Net Profit1 Op. Income Loans Deposits 84 78 92 81 • Maintain dominant domestic market share Group Corporate • Grow international contribution • Nurture SME business in Q
Slide 24: IFRS 9 – Additional buffer for long term earnings stability
IFRS 9 – Additional buffer 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 25: QNB Group Financials
QNB Group Financials Key data (as at 30 June 2021) QNB QNB incl. QNB ALAHLI QNB incl. QNB Finansbank % Contribution of QNB AA % Contribution of QNB Finansbank Financials Ratios Presence USD billion 108.2% 1.86 293 107.7% 107.6% 28,012 1.70 265 247 1.49 205 211 186 192 175 176 15,261 2.14% 8,531 2.07
Slide 26: Sustainability
+< QNB Sustainability
Slide 27: QNB Group is committed to enhancing its Environmental, Social and Governance (ESG) practices
QNB Group is committed to enhancing its Environmental, Social and Governance (ESG) practices Established QNB Group Sustainability Strategy, Policy and Governance External Commitments Reporting & Disclosures1 Green, Social & Sustainability Qatar National Vision 2030 Independently Bond (GSSB) Framewor
Slide 28: Sustainability at QNB is the delivery of long-term value
Sustainability at QNB is the delivery of long-term value in financial, environmental, social and ethical terms, for the benefit of our stakeholders QNB Group Sustainability Framework Stakeholder engagement Our sustainability framework consists of three pillars: Customers • Engagement through custome
Slide 29: Introduction to QNB Green, Social and Sustainability Bond Framework
Introduction to QNB Green, Social and Sustainability Bond Framework Defining an ambitious Framework, in line with best practices and standards Rationale for issuing QNB Green, Social, Sustainability Bond Framework description QNB intends to: • Under this Framework, Green and Social and • Align its s
Slide 30: QNB Green and Social “Use of Proceeds”
QNB Green and Social “Use of Proceeds” Applying strict Eligibility Criteria when selecting green and/or social projects Green Bond Use of Proceeds Green buildings Renewable energy Clean transportation Energy efficiency Environmentally Sustainable water Pollution New and existing Wind, Solar, Hydro,
Slide 31: Economic Overview
3< QNB Economic Overview
Slide 32: Qatar’s hydrocarbon reserves make it one of the richest countries in the world
Qatar’s hydrocarbon reserves make it one of the richest countries in the world Hydrocarbon reserves per capita (2019) GDP per capita (2020) k barrels of oil equivalent (boe) k USD PPP Qatar 139 Luxembourg 113 Kuwait 23 Singapore 96 Venezuela 12 Qatar 92 UAE 12 Ireland 89 Saudi Arabia 10 Switzerland
Slide 33: Qatar’s hydrocarbon expansion generated significant wealth, used to diversify the economy
Qatar’s hydrocarbon expansion generated significant wealth, which is being used to diversify the economy via Qatar National Vision (QNV) 2030 Hydrocarbon production Current account surplus QNV 2030 Mn boe Cumulative, USD Bn 5.5 350 Hydrocarbon Phase Hydrocarbon Phase Diversification Phase 5.0 300 4.
Slide 34: QNV 2030 aims to transform Qatar into an advanced knowledge-based economy
QNV 2030 aims to transform Qatar into an advanced knowledge- based economy through human, social, economic and environmental development QNV 2030 pillars Comments Human development • To enable all of Qatar’s people to sustain a prosperous Advanced Economy society Social development Environmental Dev
Slide 35: A USD ~200 Bn physical and social infrastructure investment programme is laying the foundation for QNV 2030
A USD ~200 Bn physical and social infrastructure investment programme is laying the foundation for QNV 2030 Major projects spending (USD Bn) Major Physical Infrastructure Projects Diversification Phase Lusail Mixed-Use Development 27 Qatar Integrated Rail 24 21 22 20 Hamad International Airport 19 1
Slide 36: QNV 2030 and the investment programme have reduced the impact of oil price volatility
QNV 2030 and the investment programme have already reduced the impact of oil price volatility on Qatar’s economy Real GDP Growth by Sector (USD Bn) and Oil Price (USD/barrel) CAGR Diversification Phase (’11-’20) 111 112 184 183 185 109 178 181 178 2% 170 162 153 146 99 70 73 72 71 69 74 -1% 75 75 75
Slide 37: Qatar has maintained a substantial trade surplus despite oil price volatility
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) Diversification Phase 111 112 109 99 Trade 102 102 surplus 96 72 88 64 53 55 45 43 51 49 42 37 Exports 133 133 25 1
Slide 38: Financial system remains resilient and healthy
Financial system remains resilient and healthy Capital adequacy and asset quality improved in 2019 Financial Soundness Indicators (2017-2020, %) 2017 2018 2019 2020 Capital Adequacy Tier 1 capital/risk-weighted assets 16.5 17.0 17.5 17.6 Regulatory capital/risk-weighted assets 16.8 18.0 18.6 18.8 As
Slide 39: The 2022 FIFA World Cup and North Field East expansion expected to drive stronger economic growth
The 2022 FIFA World Cup and enabling work for the North Field East expansion are expected to drive stronger economic growth in 2021 and 2022 Real GDP Consensus forecast (% y-o-y) 2021 (f) 2022 (f) 3.8 4.2 Ø 2.9 Ø 3.3 2.3 1.9 Reopening the economy and final preparations for the Hosting the World Cup
Slide 40: Qatar is set to significantly increase its LNG production
Qatar is set to significantly increase its LNG production, boosting domestic growth while maintaining its position as the world’s largest exporter Qatar’s current and expected share of global LNG market Million metric tons per annum (mmtpa) • Globally Qatar is the largest LNG exporter with a market
Slide 41: Investment Grade
Qatar is one of the highest rated sovereigns in the world, ranking above a number of advanced economies Moody’s Sovereign Ratings1 AAA US, Germany, Canada, Australia, N Zealand, Switz’nd, Norway, Sweden, Denmark, Neth’lands, Lux’bourg, Singapore Aa1 Austria, Finland Aa2 France, South Korea, Faroe Is
Slide 42: 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