Investor Presentation 31 March 2020 Contents 1. Introduction to - PowerPoint PPT Presentation

Investor Presentation 31 March 2020

Contents 1. Introduction to Masraf Al Rayan 2. Financial Highlights and Performance 3. Operating Segments 4. Historical Financial Statements 5. Overview of Qatar 2

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 2006 and licensed by the Qatar Central Bank 6 Profile branches  Classified as a DSIB (Domestic Systemically Important Bank) 17 branches 98 ATMs  Corporate Banking & SME  Retail & Private Banking Business Lines  Asset Management and Financial Advisory  International Operations (UK) 2 nd largest listed Islamic bank in Qatar by total assets  (28.7% market share)* Market Share 4 th largest listed Qatari banks by total assets (6.6% market  Subsidiaries share) Masraf Al Rayan  Ordinary shares listed on the Qatar Stock Exchange Public Listing 3 rd largest bank in Qatar by market capitalization (QAR 27.3 bn)*  Al Rayan Al Rayan Al Rayan (UK) Investment L.L.C Partners Limited 100% 100% 70%  MAR’s credit rating re-affirmed at A1 Rating  Stable outlook, baseline credit assessment and adjusted Asset Management Real Estate baseline credit assessment: baa2. and Financial Islamic banking* Consulting Advisory Source: Qatar Central Bank, Bloomberg *Via Al Rayan Bank Plc (formerly known as Islamic Bank of Britain Plc) * As of 31 st March 2020 *As of 31 Dec 2019 the Bank also owns 100% stake in Al Rayan Financial Brokerage (“ARFB”), MAR Sukuk Ltd. and Lusail Waterfront Investment Co. However, operations of ARFB ceased since 12-Jan-2017 3

Introduction to Masraf Al Rayan Ownership Structure & Financial Highlights Shareholding Structure Credit Rating  Government, GREs and Qatari institutional investors hold approx. 48.7% of MAR’s shares  Long-term and short-term foreign currency and local currency issuer ratings: A1/Prime-1  Considering both direct and indirect interest, significant shareholders comprised of QIA (15.7%) and QAF Investment Portfolio (9.4%)  Baseline credit assessment and adjusted baseline credit assessment: baa2 Shareholding by Investor Type  Counterparty Risk Assessment: Aa3(cr)/Stable(cr)  49.4% Stable outlook 50.6% Share Overview Govt, GREs & Qatari institutions Qatari retail and foreign investors Top Shareholders Shareholding by Country  MAR shares listed on the Qatar Stock Exchange 15.7% 12.8%  Symbol : MARK 5.1% 9.3%  ISIN : QA000A0M8VM3 5.3%  Foreign ownership limit : 48.7% 4.4% 65.3%  Market cap : QAR 27.3 bn 82.1% QIA QAF Investment Portfolio Watani Funds (3,4 & 5) Pension Fund  Valuation multiples : P/E – 12.45; P/B - 2.14 Qatari GCC Other Other Source: QCSD, QSE Trading Report – Ownership Summary 31-MAR-2020 4

1. Overview of Masraf Al Rayan Cont. 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 Members H.E. Ali Bin Ahmad Al Kuwari Mr. Turki Mohammed Al Khater Mr. Nasser Jaralla S. Jaralla Al Marri Board Member Other positions: Vice Chairman  Minister of Commerce and Industry.   Select other roles: Board Member - United Select other roles: Chairman - United  Chairman of Supreme Council of Economic Affairs and Development Company, Board Member - Development Company, Board Member - Investment. Vodafone Ooredoo (Qatar).  Chairman of Qatar Stock Exchange.  Chairman of Qatar Development bank.  Chairman of the Investment Promotion Agency of Qatar.  Sheikh Nasser Bin Hamad Al Deputy Chairman of Qatar Financial Centre QFC. Mr. Abdulla Ahmed Al Maleki Al Jahni  Board member – Qatar Investment Authority QIA. Thani  Board member – Qatar Petroleum QP. Board Member Board Member  Board member – Qatar University.  Board member – Milaha Company.   Select other roles: Board Member - Select other roles: Board Member - Qatar  Board member – Nakilat Company. Ooredoo (Oman). Business Council  Board member – National Tourism Council. Mr. Abdulrahman Mohammed Al Group CEO Sheikh Ali Bin Jassim M Al-Thani Khayareen Board Member Board Member Mr. Adel Mustafawi  Select other roles: Board Member - Champs Elysees 26, Board Member – Nuran Bank, Board Member - Happag Lloyd. Other positions :  Vice Chairman - Qatar Sports Investment Mr. Tami Ahmad Ali Al Binali Mr. Mohammed Ibrahim Al Abdulla  Vice Chairman - Paris Saint Germain F.C  Board Member Board Member - Al Rayan Bank PLC Board Member  Board Member – Msheireb Properties 5

Contents 1. Introduction to Masraf Al Rayan 2. Financial Highlights and Performance 3. Operating Segments 4. Historical Financial Statements 5. Overview of Qatar 6

Financial Highlights and Performance Summary  Total assets reached QAR 109,058 million compared to QAR 100,314 million on 31 March 2019, an increase of 8.7% Balance Sheet  Financing activities increased to QAR 79,265 million compared to QAR 75,878 million on 31 March 2019, an increase of 4.5%  Investments increased to QAR 21,626 million compared to QAR 20,041 million on 31 March 2019, an increase of 7.9%  Customer deposits totaled QAR 67,730 million compared to QAR 64,444 million on 31 March 2019, an increase of 5.1%  Net profit totalled QAR 547 million for the quarter ended 31 March 2020, compared to QAR 544 million in Q1 Income 2019. statement  Operating income for the quarter ended 31 March 2020 increased by 4.1% totalling QAR 1,312 million as compared to QAR 1,260 million in Q1 2019.  Return on average assets of 2.03 %  Return on average shareholders' equity of 16.41 % Financial  Earnings per share for the quarter reached QAR 0.073 Ratios  Book value per share reached QAR 1.70  Operational Efficiency ratio is 22.71 %  Non-performing financing (NPF) ratio of 0.94% 7

Financial Highlights & Performance Balance Sheet  Financing assets have continued to grow in 2020. Investment securities continue to have high tilt towards high quality Government debt. Asset Mix – 2020 Assets 0.5% 3.0% 3.9% 5-yr CAGR : 5.5% 109,058 120,000 106,397 19.8% 102,949 97,294 91,531 8,167 100,000 9,654 6,908 5,031 21,626 9,375 21,906 23,944 19,748 80,000 14,521 60,000 40,000 79,265 74,837 72,097 72,515 72.7% 67,635 20,000 - 2016 2017 2018 2019 Q1 2020 Cash & balances with QCB Due from banks Financing assets Investments Other assets Financing assets Investments Other assets Total Assets (QAR mn ) Breakdown of Investment Securities – 2020 Gross Exposure - Funded & Unfunded – 2020 Investments by Asset Class Public vs. Private Debt Exposure* 0.6% 7.9% 0.3% 10.9% 25.6% 9.3% 16.8% 92.1% 99.4% 8.8% 1.1% 25.5% 0.2% 1.6% Public sector (Gov't of Qatar Sukuk) Debt type investments Equity type investments Government Government agencies Industry Commercial Private sector-Debt exposure Services Contracting Real estate Personal Others Contingent liabilities *% of total debt investments including impairments 8

Financial Highlights & Performance Profitability  Stable profitability with consistent strong efficiency and high return on assets and shareholders’ equity Profitability Income Composition 6,000 2,892 5,221 2,788 2,736 4,874 4,347 162 5,000 388 30 152 2,178 2,130 315 30 2,028 1.9% 3.7% 143 4,000 274 37 3,000 5.0% 2.3% 4,641 1,312 4,377 761 1,261 709 2,000 3,893 544 547 34 53 7.3% 70 96 17 18 1,000 0.5% 1,113 1,172 - 2017 2018 2019 Q1 2019 Q1 2020 2017 2018 2019 Q1 2019 Q1 2020 NI from financing & investing (QAR mn) Net fee & commission (QAR mn) Net Operating Profit (QAR mn) Net profit to equity holders (QAR mn) Net forex gain (QAR mn) Other (QAR mn) Total Income (QAR mn) Return on Assets & Shareholder’s Equity* Operating Efficiency 3,500 22.80% 24.06% 3,000 21.27% 17.00% 16.41% 16.10% 16.02% 15.66% 2,500 2,000 1,500 2,892 2,788 2,736 22.71% 22.78% 1,000 500 2.09% 2.13% 2.14% 2.20% 2.03% 761 709 671 659 582 161 173 - 2017 2018 2019 Q1 2019 Q1 2020 2017 2018 2019 Q1 2019 Q1 2020 Return on average equity (ROAE) Return on average assets (ROAA) Net Operating Profit (QAR mn) Operating costs Cost to income ratio *Attributable to equity holders 9