Qatar Islamic Bank · QSE:QIBK
Qatar Islamic Bank — Investor Presentation (2016)
30 slides from Qatar Islamic Bank's investor presentation, Aug 9, 2016
Slide 1: Qatar Islamic Bank (Q.S.C.) Investor Presentation Financial Year 2015
Qatar Islamic Bank (Q.S.C.) Investor Presentation Financial Year 2015
Slide 2: Agenda
Agenda 1 Introduction 2 Operating Environment 3 QIB Business Review 4 QIB Financial Overview 5 Appendix Qatar Islamic Bank Page | 2
Slide 3: Introduction
Introduction Introduction Financial Snapshot Qatar Islamic Bank (“QIB” or the “Bank”) was incorporated in 1982 as the QAR mln 2015 2014 Growth % first Islamic financial institution in Qatar. Cash and balances with QCB 5,086 4,933 3.1% Largest Islamic bank (approximately 50% of total assets of li
Slide 4: Key Credit Strengths
Key Credit Strengths First and largest Islamic bank in Qatar by total assets(1) Strong Government Operates out of one of support with the QIA as the fastest growing its largest shareholder economies in the world Strong brand in Islamic Strong domestic & banking & innovative international growth prod
Slide 5: Rating Report Excerpts
Rating Report Excerpts “A+” with “Stable” outlook “QIB’s rating reflects the bank’s established franchise in Qatar, its sound and improved asset quality, and its solid funding franchise that is more diversified than that of most peers. The rating also takes into account the bank’s sound liquidity an
Slide 6: Agenda
Agenda 1 Introduction 2 Operating Environment 3 QIB Business Review 4 QIB Financial Overview 5 Appendix Qatar Islamic Bank Page | 6
Slide 7: State of Qatar – Sustainable and Robust Growth Story
State of Qatar – Sustainable and Robust Growth Story… Overview of the State of Qatar (“Qatar”) One of the Largest Hydrocarbon Reserves in the World Total oil & gas reserves (bn boe) Ratings Moody’s: Aa2/Stable 400 Oil Gas S&P: AA/Stable 35 300 52 Middle East 212 200 197 23 298 11 266 38 100 155 Nomi
Slide 8: … with Solid Economic Indicators
… with Solid Economic Indicators Strong Fiscal Position Current Account Balance Fiscal surplus / deficit (USD bn and % of GDP) Current account balance (USD bn and % of GDP) 49.0 24% 32.6% 30.9% 20.1% 63 30.7% 43.0 26.1% 31% 55 37.0 14.2% 14.7% 18% 47 19.1% 23% 31.0 10.2% 39 12% 31 15% 25.0 4.5% 6.0%
Slide 9: Qatari Banking Sector – Robust Operating Environment
Qatari Banking Sector – Robust Operating Environment General Overview The State of Qatar has been Supportive Throughout Crisis • Qatar Central Bank prohibits conventional banks from providing QIA announced plans to acquire equity ownership interests Shari’a-compliant financing – the Qatari banking s
Slide 10: Qatari Banking Sector – Continued Growth
Qatari Banking Sector – Continued Growth Assets Bank Financings and Advances USD bn USD bn 400 250 343 308 325 200 300 278 252 225 150 191 200 156 218 230 100 206 181 159 100 141 50 111 86 0 0 2010 2011 2012 2013 2014 2015 2016F 2017F 2010 2011 2012 2013 2014 2015 2016F 2017F Source: International M
Slide 11: Agenda
Agenda 1 Introduction 2 Operating Environment 3 QIB Business Review 4 QIB Financial Overview 5 Appendix Qatar Islamic Bank Page | 11
Slide 12: Overview of QIB
Overview of QIB Phase 1: Creation of the Bank Phase 2: Creation of a strong banking platform QIB established with Al Jazeera Finance QIB listed on Qatar Arab Finance House 2010: QIB launched USD750mn Sukuk paid up capital QR established (30% Stock Exchange established in Beirut 2011: Paid up capital
Slide 13: Business Units Overview – Revenue Diversification (Dec'15)
Business Units Overview – Revenue Diversification (Dec’15) Treasury • Sukuk and Local Equity Investment Portfolio Local Subsidiaries • Treasury Services and Sales • QInvest • Liquidity Management • Aqar Investments • Durat-Al-Doha • International Associates International Subsidiaries Asian Finance
Slide 14: Growth-Focused Strategy
Growth-Focused Strategy A leading, innovative and global Islamic bank adhering to the highest Sharia’a and ethical principles Strategic Intent – Build around the core Improve the Develop an performance & cross Become the international network selling opportunities benchmark Islamic of QIB-branded wi
Slide 15: QIB's Organizational Structure
QIB’s Organizational Structure Governing Bodies Shareholders Board of Directors Sharia’a Board Chairman of the Supervisory Secretariat Board Board Nomination & Policies & Zakat Board Executive Audit & Risk Sharia’a Remuneration Procedures Committee Committee Committee Executive Committee Committee C
Slide 16: Effective Board Oversight
Effective Board Oversight QIB is committed to strong corporate governance practices, with its Board of Directors meeting at least six times a year Board Committees Board of Directors Audit, Risk & Compliance Sheikh Jassim Bin Hamad Bin Jassim Bin Jaber Al Thani, Chairman of Executive Committee the B
Slide 17: Experienced Leadership
Experienced Leadership Bassel Gamal Group CEO • 23 years experience • Egyptian • Ahli United Bank Group • Chase National Bank Tarek Youssef Fawzi Constantinos Constantinides Krishna Kumar Wholesale Banking Chief Strategy Officer Chief Operating Officer • 33 years experience • 25 years experience • 2
Slide 18: Sharia'a Supervisory Board
Sharia’a Supervisory Board QIB enjoys a strong Islamic heritage and has based its success on sound Sharia’a-compliant principles, under the supervision of an expert Shari’a Supervisory Board The Sharai’a Supervisory Board acts as an independent body of experts in Sharia’s Supervisory Board Members I
Slide 19: Agenda
Agenda 1 Introduction 2 Operating Environment 3 QIB Business Review 4 QIB Financial Overview 5 Appendix Qatar Islamic Bank Page | 19
Slide 20: Financial Overview
Financial Overview Financial Position Key Highlights QAR million 31-Dec-15 31-Dec-14 Growth % • QIB has experienced a strong growth in its balance sheet with its total Total Assets 127,031 96,106 32.2% assets reaching QAR 127 bn as at 31 December 2015, up by 32.2% from QAR 96 bn as at 31 December 20
Slide 21: Continued Balance Sheet Growth
Continued Balance Sheet Growth Strong balance sheet growth driven by growth in Qatar-focused financing Summary Steady Asset Growth (QAR bln) Continuous balance sheet growth 127.1 120.0 96.1 100.0 73.2 77.4 80.0 Growth driven by multiple products / asset classes 60.0 40.0 33.6 39.3 52.1 58.3 20.0
Slide 22: Strong Asset Quality and Provisioning
Strong Asset Quality and Provisioning Despite the strong growth, QIB has maintained very good asset quality and comfortable provisioning levels Summary Balanced Financing Book book Well-diversified & growing (QAR 87.2 bn) financing 7% Govt & GREs 28% 3% 7% NBFIs 6% Industry Commercial Strong ass
Slide 23: Sound Funding Base Driven by Strong Deposit Growth
Sound Funding Base Driven by Strong Deposit Growth QIB’s growth has been enabled by its ability to source funding, primarily in the form of deposits Summary Diverse Sources of Funding (as at 31 December 2015) 4.4% 1.3% Ability to obtain funding from diverse sources 9.1% 11.5% Current Accounts Unre
Slide 24: Asset and Liability Management
Asset and Liability Management QIB’s growth has been managed within a well-defined risk management framework Summary Range-bound Financing to Deposit Ratio(2) Financing to Deposit Ratio Financing to deposit ratio ranging between 90% 113.7% and 110% 111.3% 106.3% 97.0% 100.0% 95.3% 93.6% Strong l
Slide 25: Strong Capitalization & Continued Profitability
Strong Capitalization & Continued Profitability QIB boasts an ideal platform for future growth, including strong capitalization and supportive margins/returns Summary Capital Adequacy Ratio(1) 20% 18.6% Capital ratios well above regulatory requirements 17.0% 17.3% 17.4% 16.5% 15.4% 14.6% 14.1% 15%
Slide 26: Stable and Diversified Earnings Profile
Stable and Diversified Earnings Profile QIB has remained profitable even during the global financial crisis Summary Revenue(1) Breakdown (QAR mln) Recurring financing and investing revenues 392 478 233 289 691 300 417 649 259 585 801 1,071 289 670 Continued profitability during crisis 276 214 2,
Slide 27: Agenda
Agenda 1 Introduction 2 Operating Environment 3 QIB Business Review 4 QIB Financial Overview 5 Appendix Qatar Islamic Bank Page | 27
Slide 28: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position QAR million 31-Dec-2012 31-Dec-2013 31-Dec-2014 31-Dec-2015 Cash and balances with central banks 3,644 2,992 4,933 5,086 Due from banks 8,758 6,348 8,931 9,494 Financing assets 43,138 47,138 59,682 87,222 Investment Securities 13,355 14,851 15,954 18,840
Slide 29: Consolidated Statement of Income
Consolidated Statement of Income QAR million 31-Dec-2012 31-Dec-2013 31-Dec-2014 31-Dec-2015 Net income from financing activities 2,081 2,003 2,444 3,201 Net income from investing activities 585 801 649 691 Total income from financing and investing activities 2,666 2,804 3,093 3,893 Fee and commissi
Slide 30: QIB Award Winning Organization
QIB Award Winning Organization Islamic Bank Islamic Bank Bank of the of the Year in of the Year in Islamic Bank of Year - Qatar Middle East Qatar the Year Best Islamic Bank in Qatar 2015 2015 2015 2015 2015 “Best Islamic “Best Islamic Retail Bank Best Islamic Best Islamic Most Innovative Bank in Qat