Ahli Bank Q.p.s.c. · QSE:ABQK
Ahli Bank Q.p.s.c — Q3 2022 Earnings Presentation
24 slides from Ahli Bank Q.p.s.c's earnings presentation, 2022
Slide 1: Investor Presentation Q3 2022
Investor Presentation Q3 2022 ahlibank.com.qa
Slide 2: Overview
Overview Overview Shareholding Structure Founded in 1983 and listed on the Qatar Stock Exchange, Market cap of QAR 10.26 bln (as of 30 Sep 2022) 47.71% QIA and its wholly Has a network of 14 branches and 86 ATMs throughout Qatar owned subsidiaries Others Best regulated banking sector in the
Slide 3: ABQ Has Been at the Heart of the Community for Over 35 Years
ABQ Has Been at the Heart of the Community for Over 35 Years 1983 Incorporated as Al-Ahli Bank of Qatar part of CitiBank operations 1987 ABQ began to operate as a standalone entity 2004 Ahli United Bank (AUB) acquires a 40% stake through issue of new shares with a ten year renewable management
Slide 4: "At the heart of the community" – Corporate Social Responsibility
“At the heart of the community” – Corporate Social Responsibility Our brand identity is a modern interpretation of a potent symbol from Qatar’s past, the oyster shell. The shell protects and nurtures its treasure, growing it over time, just as we seek to grow and protect our customers’ assets. We as
Slide 5: Ahli Bank of Qatar – Strategy
Ahli Bank of Qatar – Strategy
Slide 6: Concept: "Fortress Balance Sheet" Strategy
Concept : “ Fortress Balance Sheet” Strategy Introduced by JP Morgan Chase just prior to global financial crisis in 2007-08 Key objectives: Carry liquidity and capital that exceeds regulatory requirements and competitors Each line of business have enough capital to qualify for an ‘A’ credit rating Q
Slide 7: Four Basic 'Liquidity' Components of Fortress Balance Sheet Strategy
Four Basic ‘Liquidity’ Components of Fortress Balance Sheet Strategy 1 Large amounts of Capital 2 Term financing (to match assets with liabilities) 3 Stress testing to understand where improbable but very large losses could appear Liquidity reserves for assets that became illiquid 4 7 7
Slide 8: Fortress Balance Sheet Strategy- Summary
Fortress Balance Sheet Strategy- Summary Targets as per Strategy Capital Adequacy Liquidity Asset Quality Others Maintain CAR at a range of Comply with Basel III ratios NPL Ratio target of 1% to Cost to income target of 29%- 15% to 17.5% like NSFR 1.5% 32% Improve the maturity mismatch N
Slide 9: Business Lines
Business Lines Corporate SMEs Ahli Brokerage Corporate Retail Cash Management Premium Proprietary Investment Treasury and Retail Investments Private International Banking Financial Institutions 9
Slide 10: Executive Summary – Q3 2022
Executive Summary – Q3 2022 1) Steady Performance for the Nine Months ended September 2022 with YoY net profit growth of 8.1%; 2) Capital Adequacy Ratio of 20.3% 3) Tranche II of EMTN of USD 500mln was repaid in February 2022 4) NPL Ratio stood at 2.54% (2021 : 2.17%) with an improved coverage of 18
Slide 11: Key Highlights
Key Highlights QAR Million September 2022 September 2021 Growth Net Interest Income 892 827 8.0% Operating Income 1,088 1,030 5.6% Net Profit 567 525 8.1% September 2022 December 2021 Growth Total Assets 48,710 48,093 1.3% Loans & Advances 34,068 33,570 1.5% Customer Deposits 27,485 27,925 -1.6% EMT
Slide 12: P&L-YTD Sept 2022
P&L-YTD Sept 2022 Actuals YOY Variance QAR '000 Sep-22 Sep-21 Fav/(Adv) Interest income 1,399,418 1,303,468 7.4% Interest expense 507,069 476,838 -6.3% Net interest income 892,349 826,631 8.0% Fees and other income 177,815 172,466 3.1% Income on Investment securities 17,881 31,300 -42.9% Total opera
Slide 13: Balance Sheet – 30 Sept 2022
Balance Sheet – 30 Sept 2022 QR 'Mln Sep-22 Dec-21 Variance Amount % Cash and Balances with central bank (includes Statutory reserve: QR 1.20 bln) 2,922 2,443 479 20% Due from Banks 2,685 3,001 (316) -11% Loans and Advances 34,068 33,570 498 1% SOQ 200 526 (326) -62% Special Loans @1.5% 269 2,231 (1
Slide 14: Steady Operating Income
Steady Operating Income QAR mln QAR mln CAGR 3.6% CAGR 600 567 1,200 13% 538 545 518 525 506 503 501 CAGR 1,088 500 1,100 6.3% 458 1,030 414 400 1,000 300 900 878 821 796 200 800 778 753 724 692 100 700 628 - 600 Q3-13 Q3-14 Q3-15 Q3-16 Q3-17 Q3-18 Q3-19 Q3-20 Q3-21 Q3-22 Q3-13 Q3-14 Q3-15 Q3-16 Q3-
Slide 15: Diversified Revenues
Diversified Revenues ABQ benefits from diversified revenues with non-interest income representing 18% of net operating income till Q3-2022 Net Fee & Commissions Total Non-Interest Income QAR mln QAR mln As % NOI(1) 17% 18% 15% 13% 12% 22% 26% 20% 20% 18% 150 250 147 213 145 204 196 200 140 171 172 1
Slide 16: Total Assets – Trend
Total Assets – Trend QAR mln 60,000 CAGR 20% CAGR 4.3% 47,555 48,093 48,710 50,000 43,915 39,883 40,403 40,000 30,000 20,000 10,000 - 2017 2018 2019 2020 2021 Sep-22 16
Slide 17: Net Loans & Advances / Customer Deposits – Trend
Net Loans & Advances / Customer Deposits – Trend QAR mln 40000 Loans CAGR: 3.5% Deposits CAGR: 3.3% 33,513 33,570 34,068 31,591 30000 28,936 27,515 27,925 27,485 26,941 25,500 23,569 21,765 20000 10000 2017 2018 2019 2020 2021 Sep-22 Net Loans & Advances Customer Deposits 17
Slide 18: Proprietary Investments – Trend
Proprietary Investments – Trend QAR mln 10000 CAGR 9000 7.0% 8,613 8,406 8000 7,521 7,074 7000 6,100 5,917 6000 5000 4000 3000 2000 1000 2017 2018 2019 2020 2021 Sep-22 18
Slide 19: Shareholder's Funds – Trend
Shareholder’s Funds – Trend QAR mln 8,000 CAGR 7,500 5.1% 7,000 6,694 6,593 6,500 6,275 5,959 6,000 5,501 5,500 5,294 5,000 4,500 4,000 3,500 3,000 2017 2018 2019 2020 2021 Sep-22 19
Slide 20: Asset Quality
Asset Quality NPL ratio of 2.54% and a coverage of 187% as at 30 Sept 2022 Gross Loans and NPL Ratio(1) NPL Provision Coverage(2) 230% Provisions (QAR Mln) Gross Loans (LHS) NPL Ratio (RHS) 40000 QAR Mln 4.50% 35,546 210% 416 628 816 1,108 1,388 1,686 34,357 34,730 35000 32,135 4.00% 190% 187% 27,92
Slide 21: Capital Adequacy Ratio
Capital Adequacy Ratio 10,000 25% 20.3% 9,000 20.6% 18.0% 20% 16.9% 17.7% 8,000 442 449 18.2% 7,000 15% 417 1,092 1,092 285 6,000 324 - 10% 355 - - 5,000 - 6,206 6,127 5,290 5,611 5,911 5% 4,000 4,845 3,000 2017 2018 2019 2020 2021 Sep-22 0% Tier II 355 324 285 417 442 449 AT-1 - - - - 1,092 1,092 T
Slide 22: Diversified Funding Mix
Diversified Funding Mix Debut Syndicated Bank Facilities (Sep 2014) Maturity Profile 3-year US$ 200 mln Syndicated Term Loan Facility for general corporate funding purposes carrying a margin of 120 basis points over LIBOR With the new facilities, we have significantly improved our funding profil
Slide 23: Market Positioning
Market Positioning Cost to Income (%) Return on Assets (%) 2019 2020 2021 9M-2022 2019 2020 2021 9M-2022 QIB 23.8 20.9 18.9 18.0 QIIB 1.62 1.40 1.46 1.90 QIIB 24.2 21.2 19.8 19.7 QIB 1.82 1.70 1.83 1.90 QNB 27.7 25.7 23.6 20.5 ABQ 1.66 1.50 1.49 1.61 ABQ 27.4 25.6 25.0 23.3 CBQ 1.25 0.73 1.26 1.55 R
Slide 24: Disclaimer
Disclaimer: The description in this Investor Relations Presentation is provided for information purposes only and is not intended to advise any person to invest in the Bank or to induce or attempt to induce any person or entity to invest in any particular bank product. The information and opinions c