Qatar National Bank Qpsc · QSE:QNBK
Qatar National Bank Qpsc — QNB Group — Investor Presentation (September 2014)
38 slides from Qatar National Bank Qpsc's investor presentation, September 2014
Slide 1: Investor Relations Presentation
Investor Relations Presentation September 2014
Slide 2: Contents
Contents 1. QNB at a Glance 2. QNB Comparative Positioning – Qatar and MENA 3. Financial Highlights – as at 30 September 2014 4. Economic Overview Notes: These results include QNB ALAHLI (formerly known as National Société Générale Bank (“NSGB”)) (unless otherwise stated), which was consolidated in
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 Sep-14 Sep-13 5yr CAGR the Qatar Investment Authority (QIA) Total Deposits 96.7 91.0 27% • Largest bank in Qatar by market cap., assets, T
Slide 5: QNB's International Footprint
QNB's International Footprint Sub-Saharan Africa Middle East South Sudan: (1 Branch) Qatar: (77 Branches) Jordan: (1232 (+32) Branches, 34.5% stake Togo: (1,241 Branches, 23.5% stake in in Housing Bank of Trade & Finance) Ecobank1) UAE: (22 (+12) Branches, 40.0% stake in CBI) Asia Syria: (15 (+302)
Slide 6: QNB Comparative Positioning – Qatar and MENA
QNB Comparative Positioning – Qatar and MENA
Slide 7: Top Domestic Banks
Top 5 Domestic Banks QNB continues to excel in the domestic market Assets Loans 130.6 90.3 31.4 25.6 19.4 21.4 19.3 16.1 15.1 12.3 Deposits Net Profit 96.7 2.20 17.7 16.5 16.0 0.41 0.39 12.1 0.31 0.31 Note: All amounts are in USD billions 7 Source: Companies’ September 2014 Press Release or Financia
Slide 8: Top Regional Banks
Top 5 Regional Banks QNB maintained its position as the leading bank in the region across all categories Assets Loans 130.6 90.3 116.7 108.4 96.4 67.4 79.6 56.9 54.3 53.9 Deposits Net Profit 96.7 2.20 91.7 1.82 72.1 68.0 66.7 1.42 1.14 1.12 Note: All amounts are in USD billions 8 Source: Companies’
Slide 9: Financial Highlights – as at September 2014
Financial Highlights – as at 30 September 2014
Slide 10: QNB continues to demonstrate sustainable profitable growth
QNB continues to demonstrate sustainable profitable growth Highlights (including QNB ALAHLI as at 30 September 2014) Growth vs. September 2013 unless stated • Net interest margin (NIM)2: 2.86% Profit1 • USD 2.2 billion net profit +13% • Cost to income ratio: 20.9% • USD 130.6 billion assets +9% from
Slide 11: Strong profitability growth
Strong profitability growth Income Statement Breakdown (USD billion as at 30 September) Net Profit1 Operating Income2 Net Interest Income % RoAE3 % Cost to Income Ratio % Net Interest Margin3 5 yrs: 23% 5 yrs: 21% 5 yrs: 27% 2.20 3.21 3.00 2.50 1.95 2.35 1.71 2.33 1.49 1.86 1.96 1.14 1.48 1.50 1.11
Slide 12: Robust quarterly growth has been consistently delivered
Robust quarterly growth has been consistently delivered Quarterly Income Statement Income Statement USD 000s Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 • Net Interest Income 798,171 829,685 812,072 828,129 855,537 – FX Gain 43,300 45,148 49,368 54,550 65,223 – Fees and Commissions 131,356 132,252 135,4
Slide 13: 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 30 September) Total Assets Evolution 2014 Split of Assets (%) USD billion By Type By Currency 130.6 Cash and 120.0 Balances with 6.5 QAR 53.9 5 yrs: 25% Central Banks Due from USD 23.5 96.4 4.7 Banks 76.9 EGP
Slide 14: Good loan growth
Good loan growth Loans Analysis (as at 30 September) Total Loans Evolution 2014 Split of Loans (%) USD billion By Geography By Sector 90.3 83.5 Qatar 78.9 Government 13.0 5 yrs: 29% Government 38.8 65.5 Egypt 7.3 Agencies Services/ 22.2 Other GCC Commerce 46.2 2.5 Countries Real Estate 10.7 34.1 Eur
Slide 15: 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 929 1,430 1,478 economic situation SME 26 24
Slide 16: High quality investment portfolio with 61% of securities rated AA or better
High quality investment portfolio with 61% of securities rated AA or better Investments Analysis (USD million as at 30 September 2014) Available-for-Sale Investment Securities Held to Maturity Financial Investments Quoted Fixed rate Unquoted Floating rate State of Qatar 1,890 State of Qatar 5,888 So
Slide 17: Robust growth in customer deposits and funding
Robust growth in customer deposits and funding Funding Analysis (as at 30 September) Total Customer Deposits Evolution 2014 Split of Deposits (%) USD billion By Sector By Type 96.7 91.0 5 yrs: 27% Government 9.6 Time 70.0 73.7 Deposits Government 37.2 Agencies Saving 53.7 1.6 Accounts 40.8 Corporate
Slide 18: Solid liquidity profile with loans to deposit ratio consistently below 94%
Solid liquidity profile with loans to deposit ratio consistently below 94% Liquidity Analysis (as at 30 September) Loans to Deposits Ratio Evolution 2014 Sources of Liquidity % % of total liabilities 88.9% 91.8% 93.4% 83.5% 86.1% Due to Banks 4.9 Customer Deposits 84.0 Debt 5.2 Securities 2010 2011
Slide 19: Sources of Institutional Funding
Sources of Institutional Funding EMTN and Certificate of Deposits EMTN 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 USD 7.5 billion and outstanding Values is USD 6.3 billion Establis
Slide 20: 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 % 15.0 12.8 16.6 11.7 15.0 12.5 (QCB) 2012 2013 Sep-14 2013 Sep-14 8.6 9.5 8.7 • Capit
Slide 21: Increasing geographical diversification positively contributes to growth
Increasing geographical diversification positively contributes to growth Geographical Contribution (as at 30 September) Domestic International % Share of International as percentage of the total Net Profit Loans Deposits USD billion USD billion USD billion 2.20 90.3 96.7 83.5 91.0 1.95 1.71 73.7 65.
Slide 22: Diversifying business mix will bolster sustainable growth
Diversifying business mix will bolster sustainable growth Business Mix Contribution (% share as at 30 September 2014) Lines of Business Net Profit Loans Deposits 68 72 49 Corporate • Maintained market dominance • Expanded into new markets International 34 27 21 • Reinforced existing positions Asset
Slide 23: QNB's underlying performance continues
QNB’s underlying performance continues Highlights (excluding QNB ALAHLI as at 30 September 2014) Growth vs. September 2013 unless stated • Net interest margin (NIM)2: 2.66% Profit1 • USD 2.0 Bn net profit +12% • Cost to income ratio: 18.5% +7% from Sep-13 • USD 118.0 Bn assets +6% from Dec-13 • NPL
Slide 24: QNB ALAHLI
QNB ALAHLI Highlights (as at 30 September 2014) Growth vs. September 2013 unless stated • Net interest margin (NIM)1: 4.62% Profit • USD 215.6 Mn +21% • Cost to income ratio: 32.4% +21% from Sep-13 • USD 13.7 Bn assets • NPL (% of gross loans): 3.8% +16% from Dec-13 Assets • USD 6.6 Bn loans +10% fr
Slide 25: QNB Group Financials
QNB Group Financials Key data (as at 30 September 2014) QNB QNB incl. QNB ALAHLI % Contribution Financials Ratios Presence USD billion 131 2.20 19.9% 125% 124% 118 2.01 97 15.0% 90 86 84 14,000 1.4% 1.6% 610 9,100 432 Total Loans & Customer Profit Capital NPL Coverage Branches Staff Assets Advances
Slide 26: Economic Overview
Economic Overview
Slide 27: Qatar has the world's highest hydrocarbon wealth per national
Qatar has the world’s highest hydrocarbon wealth per national GCC oil & gas wealth (2013) Hydrocarbon GDP Hydrocarbon reserves (USD thousands/national) (k boe*/national) 403 Qatar 687 152 UAE 133 99 Kuwait 98 17 Saudi 16 18 Oman 5 14 Bahrain 2 • Qatar has the world’s highest hydrocarbon GDP per • Qa
Slide 28: The non-hydrocarbon sector will drive growth in the next few years
The non-hydrocarbon sector will drive growth in the next few years Qatar Real GDP growth (2010-16f) % annual growth Overall Hydrocarbon 30 Non-Hydrocarbon 20 16.7 13.0 • Expansion plans in the oil and gas sector are now on 10 6.1 6.5 6.8 7.5 7.8 hold and real hydrocarbon sector growth is expected to
Slide 29: Hydrocarbon receipts will continue to result in large fiscal and current account surpluses
Hydrocarbon receipts will continue to result in large fiscal and current account surpluses Fiscal Balance, % of GDP (2012/13-2016f/17f) Current Account, % of GDP (2012-16f) % of GDP % of GDP and USD billions Revenue Exports Expenditure Imports and non-physical balance Budget balance Current account
Slide 30: Qatar banking sector is growing rapidly and remains highly profitable
Qatar banking sector is growing rapidly and remains highly profitable Banking Sector (2009-13) Assets 252 Deposits • Assets saw a healthy expansion over the period 2009-13, 225 Loans growing by a compound annual growth rate (CAGR) of Loan to Deposit Ratio 18% 192 • Deposits grew strongly by a CAGR o
Slide 31: Qatar was the world's fastest growing economy during 2008-13
Qatar was the world’s fastest growing economy during 2008-13 Real GDP: Countries with fastest growth (2008-13) % annual growth • Qatar’s annual real growth of 10.7% during 2008-13 was the world’s fastest, reflecting the expansion in 10.7% 10.5% 10.4% 10.2% 10.1% LNG production • Qatar’s growth accel
Slide 32: Growth has been driven by a dramatic expansion in gas production
Growth has been driven by a dramatic expansion in gas production Gas production and usage (m tonnes/year) Oil-related production (m barrels/day) Exports (Pipeline) Condensates and NGLs Production for domestic use Crude Oil Exports (LNG) 151 2.1 143 2.0 11.1% 11.7% 1.4 37.7% 1.3 1.3 35.7% (64.8%) 80
Slide 33: Expansion has driven population growth and created significant wealth
Expansion has driven population growth and created significant wealth Total Population GDP per Capita (Purchasing Power Parity) Millions USD thousands 6.0% 1.6% 8.8% 2.2 2.4 2.5 100.9 98.8 98.9 100.1 99.4 97.9 2.0 90.9 1.7 1.8 1.7 2010 2011 2012 2013 2014f 2015f 2016f 2010 2011 2012 2013 2014f 2015f
Slide 34: Growth in the non-hydrocarbon sector is driven by higher project spending
Growth in the non-hydrocarbon sector is driven by higher project spending MEED Project Spending (2000-16f)* USD billions 45.1 45.4 41.8 30.8 31.1 29.5 28.8 27.8 25.9 19.2 16.3 10.5 6.1 3.5 4.5 1.5 2.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014f 2015f 2016f • Qatar’s d
Slide 35: Inflation remains moderate notwithstanding a recovery in rents
Inflation remains moderate notwithstanding a recovery in rents CPI Inflation, Domestic and Foreign (2011-16f) % change in consumer prices 6 Domestic Foreign CPI • Rents account for about one third of the CPI basket 5 and fell during 2009-12, turning inflation negative in 4.4 2009-10 4 3.5 3.4 • The
Slide 36: Strong fundamentals have lowered CDS spreads
Strong fundamentals have lowered CDS spreads Qatar CDS Spread (Sep 2012 – Sep 2014) Credit Default Swap spreads are the annual cost of insuring sovereign debt against default in basis points 120 100 80 60 40 20 0 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep
Slide 37: Qatar's business environment is one of the strongest in the MENA region
Qatar’s business environment is one of the strongest in the MENA region Business Environment Rankings Contributing factors • Strong economic fundamentals - Strong growth and successful focus on diversification - High levels of government spending and personal 2nd in MENA World Economic Forum consump
Slide 38: 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