Slide 1: Investor Relations Presentation
Investor Relations Presentation March 2017
Slide 2: Contents
Contents 1. QNB at a Glance 2. QNB Comparative Positioning – Qatar and MEA 3. Financial Highlights – as at 31 March 2017 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, num
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 2017 2016 5yr CAGR the Qatar Investment Authority (QIA) Total Assets 204.1 151.1 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: (66 Branches) Togo: (1,268 Branches1, 20.0% stake in KSA: (1 Branch) Ecobank) UAE: (27 (+12) Branches, 40.0% stake Asia in CBI) Indonesia: (48 Branches, 82.59% stake Syria: (15 (+302) Branches, 50.8% stake In
Slide 6: Rating Excerpts
Rating Excerpts “A+” “QNB has an unrivalled leading market position in Qatar, which supports our assessment of its business position as strong. QNB's large size and government majority ownership are key advantages in financing large GRE projects. Our assessment also reflects the quality of managemen
Slide 7: QNB Comparative Positioning – Qatar and MEA
QNB Comparative Positioning – Qatar and MEA
Slide 8: Top Domestic Banks – March 2017
Top 5 Domestic Banks – March 2017 QNB continues to excel in the domestic market Assets Loans 204.1 147.2 39.4 37.1 27.3 25.9 24.9 22.5 18.5 16.3 Deposits Net Profit 148.6 0.88 28.6 0.15 0.14 19.7 17.3 14.8 0.10 0.06 Note: All amounts are in USD billions 8 Source: Companies’ March 2017 Press Release
Slide 9: Top MEA Banks – March 2017
Top 5 MEA Banks – March 2017 QNB improved its position as the leading bank in the region Assets Loans 204.1 147.2 185.8 142.4 100.1 123.1 119.7 80.4 77.6 67.8 First Abu 1 2 2 First Abu 1 Dhabi Bank Dhabi Bank Deposits Net Profit 148.6 0.88 0.80 0.72 113.2 0.59 86.9 83.6 0.51 80.9 First Abu 1 2 First
Slide 10: QNB is the leading financial institution in the MEA region with regards to brand value and market capitalisation
QNB is the leading financial institution in the MEA region with regards to brand value and market capitalisation Brand value and market capitalisation (USD Bn as at 31-Dec-16) Top MEA banking brands Top MEA banks by market capitalisation 3.83 37.6 3.41 27.3 2.50 22.7 2.13 21.1 1.97 17.4 Source: Bran
Slide 11: Financial Highlights – as at March 2017
Financial Highlights – as at 31 March 2017
Slide 12: QNB continues to demonstrate sustainable profitable growth
QNB continues to demonstrate sustainable profitable growth Financial Highlights (as at 31 March 2017) Growth vs. March 2016 • Net interest margin (NIM)2: 2.73% NIM (excl. impact of av. FX rates resetting)3: 2.87% Profit1 • USD880 million +12% • Cost to income ratio: 28.9% • USD204.1 billion assets +
Slide 13: QNB ALAHLI
QNB ALAHLI Highlights (as at 31 March 2017) Growth vs. March 2016 • USD62.9 million -36% • Net interest margin (NIM)2: 5.12% Profit1 (EGP1,115 million) (+41%) • Cost to income ratio: 27.9% • USD10.9 billion assets -31% (EGP 198.9 billion) (+42%) • NPL (% of gross loans): 2.7% Assets • USD5.3 billion
Slide 14: QNB FINANSBANK
QNB FINANSBANK Highlights (as at 31 March 2017) Growth vs. March 2016 • USD105.8 million +68% • Net interest margin (NIM)2: 5.17% Profit1 (TRY390.9 million) (+111%) • Cost to income ratio: 46.3% • USD31.2 billion assets -2% (TRY113.7 billion) (+27%) • NPL (% of gross loans): 5.5% Assets • USD20.1 bi
Slide 15: Increasing geographical diversification positively contributes to growth
Increasing geographical diversification positively contributes to 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 0.88 147.2 148.6 0.79 0.74 110.4 110.7 100.5 7
Slide 16: Consistently High Profitability
Consistently High Profitability Income Statement Breakdown (USD billion as at 31 March) Net Profit1 Operating Income2 Net Interest Income NIM Compression % Cost to Income Ratio % Net Interest Margin3 % 2 bps 5 yrs: 10% 2.89 2.87 0.88 1.49 1.15 2.73 5 yrs: 14% 5 yrs: 13% 0.79 0.73 0.67 1.12 0.87 0.90
Slide 17: 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 March) Total Assets Evolution 2017 Split of Assets (%) USD billion By Type By Currency 204.1 Cash and QAR 37.9 Balances with 6.3 5 yrs: 19% Central Banks USD 30.2 151.1 Due from 7.1 137.8 Banks TRY 7.4 125
Slide 18: Good loan growth
Good loan growth Loans Analysis (as at 31 March) Total Loans Evolution 2017 Split of Loans (%) USD billion By Geography By Sector 147.2 Qatar 68.2 Government 21.8 5 yrs: 22% Turkey 13.7 Government 24.0 110.4 Agencies 94.9 Egypt 3.9 Services/ 87.1 23.1 Commerce 71.1 Europe 5.0 Real Estate 12.5 Other
Slide 19: 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 1,530 2,600 2,660 economic situation 1,148 97
Slide 20: High quality investment portfolio with 87% of securities rated AA or Sovereign
High quality investment portfolio with 87% of securities rated AA or Sovereign Investments Analysis (USD million as at 31 March 2017) Available-for-Sale Investment Securities Held to Maturity Financial Investments Quoted Fixed rate Unquoted Floating rate State of Qatar 5,096 State of Qatar 3,530 Sov
Slide 21: Robust growth in customer deposits and funding
Robust growth in customer deposits and funding Funding Analysis (as at 31 March) Total Customer Deposits Evolution 2017 Split of Deposits (%) USD billion By Sector By Type 148.6 Government 4.5 Time 78.0 Deposits 5 yrs: 20% Government 110.7 17.8 Agencies Saving 100.5 2.5 94.5 Accounts 76.8 Corporates
Slide 22: Solid liquidity profile
Solid liquidity profile Liquidity Analysis (as at 31 March) Loans to Deposits Ratio Evolution 2017 Sources of Liquidity % % of total liabilities 94.4% 99.7% 99.0% 92.7% 92.1% Due to Banks 8.5 Customer Deposits 80.5 Debt 3.5 Securities 2013 2014 2015 2016 2017 Other 3.3 Borrowings Liquid Assets1 Evol
Slide 23: Sources of Institutional Funding
Sources of Institutional Funding EMTN and Certificate of Deposits EMTN1 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 USD17.5 billion and outstanding Values is USD10.9 billion Establi
Slide 24: 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 unless stated) Total Equity1 Evolution Basel III Capital Adequacy Ratio USD billion x Gearing2 % 18.4 19.2 16.0 16.0 15.7 14.8 (QCB) 2015 2016 Mar-17 2016 Mar-17 9.2 10.7 10.6 • Cap
Slide 25: Diversifying business mix will bolster sustainable growth
Diversifying business mix will bolster sustainable growth Business Mix Contribution (% share as at 31 March 2017) Lines of Business Net Profit1 Op. Income Loans Deposits 94 78 89 76 • Maintain dominant domestic Group market share Corporate • Grow international contribution • Nurture SME business in
Slide 26: QNB Group Financials
QNB Group Financials Key data (as at 31 March 2017) QNB QNB incl. QNB ALAHLI QNB incl. QNB Finansbank % Contribution of QNB AA % Contribution of QNB Finansbank Financials Ratios Presence USD billion 0.88 204 20.8% 114% 28,126 108% 178 98% 0.73 169 17.1% 0.68 15.7% 147 149 132 122 127 124 15,849 10,0
Slide 27: Economic Overview
Economic Overview
Slide 28: 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 (2015) k barrels of oil equivalent (boe) Qatar 76.9 Kuwait 27.6 UAE 14.4 Venezuela 11.1 Saudi Arabia 10.4 Libya 9.2 Canada 5.2 Iran 4.8 Iraq 4.8 Russia 2.2 Kazakhstan 2.0 • Qatar is endowed with major oil
Slide 29: Large infrastructure investment projects have driven diversification and strong growth in the non-hydrocarbon sector
Large infrastructure investment projects have driven diversification and strong growth in the non-hydrocarbon sector • Text Qatar’s Diversification Strategy Real GDP Growth by Sector %, year-on-year Hydrocarbon Non-Hydrocarbon Total Government Surplus 10.4 9.8 Investment 9.9 Diversification 8.2 Spen
Slide 30: Over 2016, oil prices rebounded from multi-year lows as excess supply diminished
Over 2016, oil prices rebounded from multi-year lows as excess supply in oil markets diminished • Text Brent Crude Oil Price USD per barrel (/b) 120 115.1 110 • At the start of 2016, Brent crude prices fell close 100 to a 13-year low, reaching USD27.9/b 90 • Since then, oil prices have made a steady
Slide 31: We expect Brent oil prices to be range-bound at USD55-60/b in 2017
We expect Brent oil prices to be range-bound at USD55-60/b in 2017 • Text Brent Crude Oil Price USD per barrel (/b) 70 Daily historical oil price • OPEC cuts have expedited the clearing of oil 60 markets 58.0 • However, higher oil prices will encourage re- 55.0 entrance of high-cost producers, which
Slide 32: Low breakeven oil prices, accumulated savings and moderate public debt place Qatar in a strong position
Low breakeven oil prices, accumulated savings and moderate public debt place Qatar in a strong position to withstand low oil prices Accumulated Current Account Fiscal Breakeven Oil Prices Public Debt (% GDP) Surpluses (bn USD, 2005-16) Fiscal Breakeven Oil Price Oil Price 0 100 200 300 400 0 20 40 6
Slide 33: Large investment spending focused on construction and transport will be a key driver of the economy
Large investment spending focused on construction and transport will be a key driver of the economy going forward Investment Spending by Sector (2015-18) Major Projects % shares shown Budget Project End (bn USD) Construction 45.5% Lusail Mixed-Use 45.0 2019 truction Cons- Development Transport 29.4%
Slide 34: 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