Alrayan Bank · QSE:MARK
Alrayan Bank — Masraf Al Rayan — Q3 2019 Earnings Presentation
21 slides from Alrayan Bank's earnings presentation, Sep 30, 2019
Slide 1: Investor Presentation
Investor Presentation 30 September 2019
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 6 branches Classified as a DSIB (Domestic Systemically Importa
Slide 4: Ownership Structure and Credit Rating
Introduction to Masraf Al Rayan Ownership Structure and Credit Rating Shareholding Structure Credit Rating Government, government related entities and other Qatari institutional investors hold approx. 47.9% of MAR’s shares Long-term and short-term foreign currency and local currency issuer ratin
Slide 5: Board Composition
Introduction to Masraf Al Rayan 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 Board Me
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 105,050 million compared to QAR 97,294 million on 31 December 2018, an increase of 8.0% Balance Sheet Financing activities increased to QAR 75,563 million compared to QAR 72,515 million on 31 December 2018, an increase of 4.2%
Slide 8: Balance Sheet
Financial Highlights and Performance Balance Sheet Financing assets have continued to grow in Q3 19. Investment securities continue to have high tilt towards high quality Government debt. Assets Asset Mix - Q3 19 1.0% 3.3% 20,000 105,050 4.0% 102,949 97,294 91,531 00,000 30,852 29,487 19.8% 24,779
Slide 9: Profitability
Financial Highlights and Performance Profitability Stable profitability with consistent strong efficiency and high return on assets and shareholders’ equity Profitability Income Composition 6,000 4,874 5,000 4,346 152 30 3,896 3,755 143 315 37 3,662 116 4,000 274 134 130 26 154 28 307 3,000 313 22
Slide 10: Asset Quality
Financial Highlights and Performance Asset Quality Masraf Al Rayan’s non-performing financing ratio remains below 1% (one of the lowest globally and the lowest in Qatar) reflecting robust asset quality, prudent risk management policies and a conservative lending strategy Non-Performing Financing A
Slide 11: Capital Adequacy
Financial Highlights and 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 19.32% 19.23% 19.70% 18.85% 13,390 13,474 13,626 12,874 199 196
Slide 12: Funding & Liquidity
Financial Highlights and 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 100,000 89,559 91,423 80,000 83,820 67,017 90,000 78,657 1,905 5,793 62,531 70,000 6
Slide 13: Contents
Contents 1. Introduction to Masraf Al Rayan 2. Financial Highlights and Performance 3. Operating Segments 4. Historical Financial Statements 5. Overview of Qatar 13
Slide 14: Business Overview
Business Overview Business 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 and Corporate Banking Re
Slide 15: Contents
Contents 1. Introduction to Masraf Al Rayan 2. Financial Highlights and Performance 3. Operating Segments 4. Historical Financial Statements 5. Overview of Qatar 15
Slide 16: Historical Financials: Consolidated Income Statement
Historical Financials Consolidated Income Statement QAR mn FY 16 FY 17 FY 18 Q3 18 Q3 19 Net income from financing activities 2,620.6 3,100.7 3,538.6 2,650.7 2,771.9 Net income from investing activities 533.9 792.0 838.2 631.0 674.7 Total Net Income from Financing and Investing Activities 3,154.5 3,
Slide 17: Historical Financials: Consolidated Statement of Financial Position
Historical Financials Consolidated Statement of Financial Position QAR mn FY 16 FY 17 FY 18 Q3 18 Q3 19 Cash and Balances with Qatar Central Bank 3,126 2,800 3,027 2,964 3,463 Due from Banks 5,692 3,312 1,513 2,038 4,252 Financing Assets 67,635 72,097 72,515 74,422 75,563 Investment Securities 14,01
Slide 18: Contents
Contents 1. Introduction to Masraf Al Rayan 2. Financial Highlights and Performance 3. Operating Segments 4. Historical Financial Statements 5. Overview of Qatar 18
Slide 19: Operating Environment: Qatar at a Glance
Operating Environment Qatar at a Glance Snapshot of Qatar Fiscal Balance Fiscal Balance (USD bn) Fiscal Balance % of GDP Largest exporter of LNG with a global market share of 25%(1) Economic 15.00 8.00% Fundamentals 3rd largest gas reserves in the world (c.13% of world’s total) (2) Largest exp
Slide 20: 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, FY19F (USD / barrel) 3.8 3.2 3.3 97.0 2.9 2.8 94.9 2.5 2.6 2.1 2.2 2.2 2.1 85.4 2019 Avg 1.8 1.8 1.7 1.6 1.8 1.7 Brent 0.8 65.0 $67.5$/bl 48.8 48.7 -0.7 -3.5 Bahrain Kuwait
Slide 21: 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