Dukhan Bank Q.p.s.c. · QSE:DUBK
Dukhan Bank Q.p.s.c — Dukhan Bank — Investor Presentation (March 2023)
31 slides from Dukhan Bank Q.p.s.c's investor presentation, March 2023
Slide 1: Introduction to the Bank – Investor Relations
Introduction to the Bank – Investor Relations March 2023
Slide 2: Table of Contents
Table of Contents 1 Business Overview 2 Financial Performance Appendix 1
Slide 3: 1. Business Overview
OL_Aa cli4s > 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 2022 Net pro
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 Rating Issued US$ Barwa Bank •Ahmed Hashem was founded on obtains license First Finance Yusr I
Slide 6: Qatar's 1st Banking Merger Milestone
Qatar’s 1st Banking Merger Milestone Transformational transaction, elevating 1 competitive market position in Qatar Cost Synergies Combination of best-in-class corporate bank 2 with distinguished private banking platform ~QAR 80mn Dukhan Increased efficiency through cost and ~QAR 140mn Bank 3 revenu
Slide 7: Dukhan Bank – Overview
Dukhan Bank – Overview Overview of Dukhan Bank Financial summary The Bank was incorporated in 2008 under the name of Barwa Bank Q.P.S.C. Barwa Bank and International Bank of Qatar (ibq) successful merger became CAGR Balance sheet items, QAR’mn 2019 2020 2021 2022 effective on 21 April 2019 (FY19-2
Slide 8: Dukhan Bank – Four Principal Areas of Business
Dukhan Bank – Four Principal Areas of Business Wholesale banking Retail & Private Banking Treasury & Investments Subsidiaries Asset and liability management, trading Financing, deposits, trade finance, Financings, deposits, wealth management Three fully owned subsidiaries and and investment activiti
Slide 9: 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 10: 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 Mr. Abdulaziz Mohammed Hamad Al Mana Chairman and Managing Director Sheikh Khalid Bin Hassan Bin Khalid Al-Thani Vice Chairman Director Qatar Holding representative H.E. She
Slide 11: 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 12: 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 9 2 Attracting new talent and Build lead on Best-in-class retaining key personnel Private Banking pioneer position in Qatar 3 8 Effective capital
Slide 13: 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 14: 2. Financial Performance
OL_Aa cli4s > DUKHAN BANK 2. Financial Performance
Slide 15: Balance Sheet Composition
Balance Sheet Composition Resilient and primarily deposit-funded balance sheet with diversified client base Focus on core banking activities Pre-dominantly Qatar-focused balanced financing book Total assets vs. liabilities and equity - FY’22 (in QAR’bn) Breakdown of financing assets, 2022 Vs 2021 10
Slide 16: Financials – Dukhan has Consistently Outperformed the Market
Financials – Dukhan has Consistently Outperformed the Market Strong assets and income double digit continuous growth since merger Total assets Net financing assets Customer deposits (1) QAR QAR QAR bn bn bn 110.7 75.2 75.7 106.3 77.4 74.5 86.3 58.5 77.1 51.9 53.9 47.9 2019 2020 2021 2022 2019 2020 2
Slide 17: Profitability
Profitability Dukhan Bank is an efficient business with diversified income sources and robust net profit margins Growing revenue base across diverse income segments… …with a healthy & stable net profit margin… …attractive funding costs relative to market Total operating income breakdown (in QAR’mn)
Slide 18: Asset Quality
Asset Quality Strong risk-management culture and prudent provisioning policy Commentary Prudent risk management… Cost of risk (in bps) – impairment charge over average net financing assets Considering the global economic circumstances and COVID, Dukhan Bank has 168 shown resilience The Bank has
Slide 19: Asset Quality (continued)
Asset Quality (continued) Prudent overall coverage with staging aligned with the Qatari Banking Sector Portfolio Breakup As at 31 Dec 2022 Stage I Stage II Stage III Total Financing assets 80.0% 14.9% 5.1% 100.0% Investments 100.0% 0.0% 0.0% 100.0% Off balance sheet credit risk exposure 69.4% 29.7%
Slide 20: 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 (2022) Deposits breakdown by sector (2022) Depos
Slide 21: Dividend History
Dividend History Consistent and growing dividend distribution – being one of the highest Dividend Payout ratio and Yeild among Peer Group Dividend distribution (in QAR'mn) 68% 66% 63% 58% (1) 55% 51% 779 727 520 520 415 444 2017 2018 2019 2020 2021 2022 Dividends Dividend payout ratio Consistent a
Slide 22: Comparative Sizes of Qatari banks
Comparative Sizes of Qatari banks Dukhan Bank – 5th largest Qatar bank and 3rd largest Qatari Islamic bank by assets Total Assets (QAR bn, 2022) Net financing assets (QAR bn, 2022) Total Deposits (QAR bn, 2022) Qatar National Bank 1,189.2 (58.9%) Qatar National Bank 807.6 (60.0%) Qatar National Bank
Slide 23: Appendix
OL_Aa cli4s DUKHAN BANK Appendix
Slide 24: Ownership Structure
Ownership Structure - Free Float of 33.34% following the Listing Shares outstanding 5,234,100,000 Ownership structure General Retirement and General Retirement and Al Sanad Trading Co and Other small Broog Trading Co Social Insurance Social Insurance Qatar Holding related entities Shareholders Autho
Slide 25: Snapshot of the Consolidated Statement of Financial Position
Snapshot of the Consolidated Statement of Financial Position As at 31 December (in QAR‘000) 2019 2020 2021 2022 Cash and balances with Qatar Central Bank 2,378,257 3,367,553 7,245,842 6,425,410 Due from banks 4,343,485 5,891,788 5,558,980 1,499,934 Financing assets 51,924,104 58,536,992 75,221,707 7
Slide 26: Snapshot of the Consolidated Statement of Income
Snapshot of the Consolidated Statement of Income For the year (in QAR'mn) ended 31 December 2019 2020 2021 2022 Net income from financing activities 2,317 2,782 2,933 3,216 Net income from investing activities 635 683 682 756 Total net income from financing and investing activities 2,952 3,465 3,615
Slide 27: Dukhan Bank has an Award Winning Customer Service Proposition
Dukhan Bank has an Award Winning Customer Service Proposition Awards and Acclamations 2022 MENA Digital Bank of the Year MENA Most Innovative Bank of the Year Best Digital Bank Award Best Private Bank – Qatar Best Consumer Digital Bank in Qatar Best Multi-Channel Offering Best Integrated Con
Slide 28: Qatar Macro Overview
OL_Aa cli4s > DUKHAN BANK Qatar Macro Overview
Slide 29: 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 160 144 600 Qatar has plans to increase its LNG production by 64%, maintaining its K barrels of oil equivalent (boe) 140 position as the world’s largest exporter 484
Slide 30: 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 80.0% AAA Germany, Canada, Australia, Switzerland, Norway, Sweden, Denmark, 66.6% 67.3% 67.6% 67.2% Netherlands, Luxembourg, Singapore, Lichtenstein
Slide 31: 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