Dukhan Bank Q.p.s.c. · QSE:DUBK
Dukhan Bank Q.p.s.c — Dukhan Bank — Investor Presentation (March 2024)
33 slides from Dukhan Bank Q.p.s.c's investor presentation, March 2024
Slide 1: Investor Relations Presentation March 2024
Investor Relations Presentation March 2024
Slide 2: Table of Contents
Table of Contents 1 Business Overview 2 Financial Performance Appendix 1
Slide 3: 1. Business Overview
OL_Aa cli4 D> DUKHAN BANK 1. Business Overview
Slide 4: Dukhan Bank – At a Glance
Dukhan Bank – At a Glance Leading Sharia compliant bank with a full suite of financial services Our Vision: Aim to be a bank of choice, preferred by customers for long-lasting partnerships, by shareholders for value creation, sought after by employees and renowned for service excellence Q1 2024 QAR
Slide 5: Rich and Versatile History
Rich and Versatile History Barwa Bank: Fastest growing sharia compliant Bank in Qatar with strong Wholesale banking proposition •Barwa Bank •Barwa Bank •Acquisition of •Acquired IBQ Al •Khalid Al •Initial •Issued US$ 500mn under Barwa Bank •Ahmed Hashem was founded on obtains license to First Financ
Slide 6: Dukhan Bank – Overview
Dukhan Bank – Overview Overview of Dukhan Bank Financial summary The Group reported a net profit of QAR 423 million for the first three months of 2024, reflecting a 2% Growth CAGR Balance sheet, QAR’mn 2020 2021 2022 2023 Mar-24 (YE'23 vs (YE’20- year-on-year growth. This growth in bottom-line pro
Slide 7: Dukhan Bank – Four Principal Areas of Business
Dukhan Bank – Four Principal Areas of Business Treasury & Investments Wholesale banking Retail & Private Banking Subsidiaries Division Asset and liability management, trading Financing, deposits, trade finance, Financings, deposits, wealth management Three fully owned subsidiaries and and investment
Slide 8: Strong Government Linkage
Strong Government Linkage Strong alignment of objectives and interests between the State of Qatar and Dukhan Bank Government commitment via significant and stable shareholding… …coupled with substantial Public sector deposits contribution… QAR’bn x% Public sector deposits as percentage of total depo
Slide 9: Experienced Board of Directors & Management Team
Experienced Board of Directors & Management Team Board of Directors H.E. Sheikh Mohammad Bin Hamad Bin Jassim Al Thani Government Independent Representatives Mr. Abdulaziz Mohammed Hamad Al Mana Chairman and Managing Director Sheikh Khalid Bin Hassan Bin Khalid Al-Thani Vice Chairman Director
Slide 10: Sustainability is Key Success Factor in Dukhan’s Business Model
Sustainability is Key Success Factor in Dukhan’s Business Model Dukhan Bank Sustainability Statement: Creating value through the integration of ESG (Environmental, Social and Governance) initiatives in our Business Model. As a Shariah compliant bank, we have much in common with ESG principles. Throu
Slide 11: Bank Strategy focuses on Customer Partnerships & Shareholder Value
Bank Strategy focuses on Customer Partnerships & Shareholder Value 1 Expansion of Wholesale Banking in Qatar with focus toward higher value added sectors 2 9 Attracting new talent and Build lead on Best-in-class retaining key personnel Private Banking pioneer position in Qatar 3 8 Effective capital
Slide 12: Key Investment Highlights
Key Investment Highlights 1 Strong government commitment via significant ownership, support and mutually beneficial relationship 2 Competitive market positioning through the first, successful domestic Financial Institutions merger in Qatar 3 Proficient leadership with experienced management team and
Slide 13: 2. Financial Performance
OL_Aa cli4 D> DUKHAN BANK 2. Financial Performance
Slide 14: Balance Sheet Composition
Balance Sheet Composition Resilient and primarily deposit-funded balance sheet with a diversified client base Focus on core banking activities Pre-dominantly Qatar-focused balanced financing book Total assets vs. liabilities and equity - Mar 2024 (in QAR’bn) Breakdown of financing assets, Mar 2024 V
Slide 15: Financials – Dukhan has Consistently Outperformed the Market
Financials – Dukhan has Consistently Outperformed the Market Continuous strong growth under Assets and Income streams Total assets Net financing assets Customer deposits (1) QAR QAR QAR bn bn bn 80.9 78.5 75.2 75.7 77.6 77.4 78.0 110.7 114.4 112.9 74.5 106.3 86.3 58.5 53.9 2020 2021 2022 2023 Mar-24
Slide 16: Profitability
Profitability Dukhan Bank is an efficient business with diversified income sources and robust net profit margin Constantly growing revenue base across …with a relatively healthy net profit margin1 …inclining however stabilising funding costs2 diverse income streams… despite challenging macro environ
Slide 17: Asset Quality
Asset Quality Strong risk-management culture and prudent provisioning policy Commentary Prudent risk management… Considering the global economic circumstances, Dukhan Bank has shown Cost of risk1 (in bps) – impairment charge over average net financing assets resilience 168 The Bank has been clos
Slide 18: Asset Quality (continued)
Asset Quality (continued) Prudent overall coverage with staging aligned with the Qatari Banking Sector Portfolio Breakup Portfolio Breakup As at 31 Mar 2024 Stage I Stage II Stage III Total As at 31 Dec 2023 Stage I Stage II Stage III Total Financing assets 80.8% 14.1% 5.1% 100.0% Financing assets 8
Slide 19: Capital, Funding and Liquidity
Capital, Funding and Liquidity Robust capital structure with optimal funding and healthy liquidity position Well diversified funding base Granular deposit base with significant contribution from private banking & the public sector(1) Funding breakdown (Q1 2024) Deposits breakdown by sector (Q1 2024)
Slide 20: Dividend History
Dividend History Consistently being one of the highest Pay-out ratio among peers on the back of robust capital & strong profitability Dividend distribution (in QAR'mn) 70% 68% 68% 63% 58% 55% (1) 51% 831 831 727 520 520 415 444 2017 2018 2019 2020 2021 2022 2023 Dividends Dividend payout ratio Con
Slide 21: Comparative Sizes of Qatari banks
Comparative Sizes of Qatari banks Dukhan Bank – 5th largest Qatari bank and 3rd largest Qatari Islamic bank Total Assets (QAR bn, 2023) Net financing assets (QAR bn, 2023) Total Deposits (QAR bn, 2023) QNB 1,231 (59%) QNB 853 (62%) QNB 857 (64%) QIB 189 (9%) QIB 122 (9%) QIB 121 (9%) CBQ Masraf 164
Slide 22: Appendix
OL_Aa cli4 DUKHAN BANK Appendix
Slide 23: Ownership Structure
Ownership Structure Shares outstanding 5,234,100,000 Ownership structure General Retirement and General Retirement and Al Sanad Trading Co and Broog Trading Co Social Insurance Social Insurance Qatar Holding Other Shareholders related entities Authority Authority 33.17% 13.47% (Pension fund) (Milita
Slide 24: Ownership Structure
Ownership Structure As at 31-Mar-2024 Ownership % Number of Shareholders 100.0% 100.0% 2,487 93.4% 93.2% 2,500 87.9% 90.0% 2,096 80.0% 2,000 1,753 70.0% 1,671 60.0% 1,500 50.0% 40.0% 1,000 30.0% 669 20.0% 500 373 384 6.3% 296 10.0% 5.5% 5.7% 5.9% 0.6% 0.5% 0.1% 0.3% 82 52 65 13 0.0% Qatar GCC Foreig
Slide 25: Share Price Movement
Share Price Movement From Listing Date till 31-Mar-2024 Average High Low Close Share Price* 3.804 4.350 2.838 3.860 4.5 180 4.3 160 4.1 140 3.9 120 3.7 100 3.5 80 3.3 60 3.1 2.9 40 2.7 20 2.5 0 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Volume i
Slide 26: Snapshot of the Consolidated Statement of Financial Position
Snapshot of the Consolidated Statement of Financial Position (in QAR‘000) YE 2020 YE 2021 YE 2022 YE 2023 31-Mar-24 Cash and balances with Qatar Central Bank 3,367,553 7,245,842 6,425,410 3,644,932 3,813,715 Due from banks 5,891,788 5,558,980 1,499,934 11,072,244 8,724,426 Financing assets 58,536,99
Slide 27: Snapshot of the Consolidated Statement of Income
Snapshot of the Consolidated Statement of Income For the year For the three-month ended 31 December period ended 31 Mar (in QAR ‘mn) 2021 2022 2023 2023 2024 Net income from financing activities 2,933 3,216 4,666 1,070 1,288 Net income from investing activities 682 756 957 202 300 Total net income f
Slide 28: Dukhan Bank has an Award Winning Customer Service Proposition
Dukhan Bank has an Award Winning Customer Service Proposition Awards and Acclamations 2022 Best Private Bank – Qatar 2023 Best Multi-Channel Offering 2022 Best Digital Bank Award Best Multi-Channel Offering 2023 Best Next-Generation Offering 2022 Excellence in Omni-Channel Best Use of AI
Slide 29: Dukhan Bank has an Award Winning Customer Service Proposition
Dukhan Bank has an Award Winning Customer Service Proposition 28
Slide 30: Qatar Macro Overview
OL_Aa cli4 D> DUKHAN BANK Qatar Macro Overview
Slide 31: Hydrocarbons underpin a Strong Economy
Hydrocarbons underpin a Strong Economy Hydrocarbon reserves per capita (2021) Qatar’s current and expected share of global LNG market 160 144 Qatar plans to increase its LNG production by 85% K barrels of oil equivalent (boe) 140 700 600 Million metric tons p.a. 120 600 484 500 441 100 365 Phase 3 8
Slide 32: Qatar’s Banking and Financial Sector remains Resilient and Healthy
Qatar’s Banking and Financial Sector remains Resilient and Healthy Highly rated sovereign Banking sector liquidity Standard & Poor’s Sovereign Ratings Germany, Canada, Switzerland, Norway, Sweden, Netherlands, Luxembourg, AAA Singapore Given its 66.6% 67.3% 67.6% 67.2% 66.6% AA+ US, Austria, Finland
Slide 33: 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 co