Investor Presentation May 2019
Overview of Doha Bank Key highlights Strong international footprint • Incorporated in 1979, Doha Bank is the third largest local conventional bank by assets in Qatar with a market share of approximately 6.6% (1) and assets totaling QR96.3bn • Doha Bank has a strong domestic franchise with the 2 nd largest retail footprint with 27 local branches, 7 e-branches including pay offices, 1 1 Qatar active mobile unit and around 100 ATMs as at 31 st March 2019 2 Dubai - UAE 21 3 Abu Dhabi - UAE 4 Kuwait City - Kuwait • Doha Bank has one of the largest international networks of the Qatari 5 Mumbai - India 6 Kochi - India 7 Chennai - India banks through branches located in UAE (Dubai and Abu Dhabi), Kuwait 20 8 London - UK 9 Frankfurt - Germany 10 Istanbul - Turkey and India (Mumbai, Chennai & Kochi) and representative offices in 11 Singapore 12 Shanghai - China United Kingdom, Germany, Turkey, Singapore, China, South Korea, 13 Seoul - S. Korea 14 Tokyo - Japan 15 Hong Kong - China Japan, Hong Kong, Australia, South Africa, Canada, Sri Lanka, Nepal 16 Sydney - Australia 17 Toronto - Canada and Bangladesh 18 Johannesburg - South Africa 19 Dhaka - Bangladesh 20 Colombo - Sri Lanka 21 Kathmandu - Nepal • Doha Bank, leveraging its network, has a strong market presence in contract financing (29% market share), trade loans (13% market share) Diversifjed shareholder base and strong support and real estate (11% market share) and has been fast growing (7% net loans CAGR since 2009) Qatar Holding LLC (a subsidiary of QIA) • The bank operates principally through four business groups: Wholesale 16.7% Banking, Retail Banking, International Banking and Treasury & Other Investments Shareholders 83.3% • Doha Bank’s long-term local and foreign currency rating was assessed at A3 / BBB+ / A / A+ by Moody’s, S&P, Fitch and Capital Intelligence respectively Largest international Strong position in select business lines Second largest network of representative including contract fjnancing, trade Retail footprint offjces among Qatari banks fjnance, real estate and retail Source: Company information, Doha Bank estimates based on public information and QCB data Note: 1. Measured as a percentage of the aggregate assets of the banking sector in Qatar as at 31 March 2019 1
Banking sector Loan market size (QRbn) and Doha Bank market share (%) Qatari banking system – Total Loans Vs Deposits (QRbn) 967 940 911 343 844 164 753 847 653 823 810 0.8% 727 650 Government loans 5.4% 601 Services* 157 2014 2015 2016 2017 2018 Q1-19 Total Deposit Total Loans 967 Source: QCB banks’ monthly statements and annual reports 11.4% Real estate loans Comments:- Market Share 6.6% 127 Total loans • A leading franchise in real estate, contract financing and trade • Well diversified loan portfolio 6.5% • Worldwide network of representative offices in key locations 104 • Strong and prominent brand recognition in Qatar Retail loans 37 • First to introduce many innovative products and services in Qatar 13.5% • Many of the Board members belong to the ruling ‘Al Thani’ family 29.5% • Excels in providing the right products to the right customers Trade loans Contract financing * Includes Non-Banking Financial Institution Doha Bank market share as of 31 March 2019 Loan market size as of 31 March 2019 2
Qatar Economy Stable economic situation Government fjscal surplus/defjcit (% of GDP) Sovereign rating: AA- (Stable) by Fitch / AA- (Stable) by S&P / 13.7% 15.0% Aa3 (Stable) by Moody’s 5.1% 3.3% 5.0% Qatar has the 3 rd largest reserves of natural Gas reserves: gas in the world (2) -5.0% -1.9% -5.7% 25.2bn barrels of proven oil reserves (2) Oil reserves: -9.2% -15.0% 2014/15 2015 2016 2017 2018 2019 Surplus of 4.6% in 2019 (1) and 4.1% in Current account balance: 2020 (1) of nominal GDP Source: QCB annual reports & QCB Quarterly Statistic Bulletins Note: The above data until 2014/15 is for the fiscal year from 1 April – 31 March Forecasted real GDP growth: 2.6% in 2019 (1) and 3.2% in 2020 (1) 2.76 million as at 31 March 2019 (4) Population: With US$70,288 in 2019 Qatar is one of the Government revenues (QRbn) GDP per capita: wealthiest countries in the world (1) 400 Government fiscal position: Estimated surplus of 5.1% of GDP in 2019 (3) 250 27 Government gross debt: QR371.5bn (52.7% of GDP) in 2019 (1) 40 300 200 Significant investments in the run up to hosting 150 Significant future 200 35 the 2022 FIFA World Cup and achieving the 13 government & infrastructure 322 30 28 100 2030 Qatar National Vision (e.g. gas projects, 287 spending: 100 airport, rail, infrastructure, housing) 171 141 173 50 133 Currency: Pegged to the U.S. dollar since 1980 0 0 13/14 14/2015 2015* 2016 2017 2018 Oil & Gas revenues** Miscellaneous Transferables revenues WTI Crude Oil Price ($/brl) Source: 1. IMF World Economic Outlook Database (April 2019) Source: Government revenues: QCB annual reports & WTI Crude oil Price: Bloomberg report - March 2019 2. British Petroleum Statistical Review of World Energy (June 2018) Note: * Preliminary data covers 9 months (1/4- 31/12/2015) where the period has been extended as 3. Qatar Economic Outlook December 2018 per Law No. (2) for the year 2015 for amending the fiscal year to a calendar year. 4. Qatar monthly statistics - Planning and Statistics Authority (April 2019) ** Oil & Gas Revenue includes investment revenue transferred from Qatar Petroleum. Qatar enjoys one of the highest GDP per capita at US$ 70,288 in 2019 (1) and has a strong historic economic growth 3
Qatar Economy Infrastructure projects & events to benefjt from the 3 rd largest reserves and 2 nd largest exporter of natural gas National Vision 2030 Natural gas reserves (2017) Export of natural gas in 2017 (cubic meters bn) Infrastructure projects in Qatar Russia • QF - Education City (2019) 250 18.1% 231.0 Others • ASHGHAL - Expressway Programme (2021) 29.9% 200 #2 • FIFA World Cup Football Stadiums (2020) 150 Iran 121.8 • UDC - Pearl Qatar (2022) 114.9 17.2% UAE 100 80.7 • Msheireb Properties - Msheireb Downtown Doha (2020) 3.1% 44.1 Saudi Arabia 50 • QP - Bul Hanine Field Redevelopment Project (2021) Qatar 4.2% US 12.9% Turkmenistan #3 4.5% 0 • LREDC - Lusail Development (2025) 10.1% Russia Qatar Norway Canada Netherlands • ASHGHAL - Local Roads & Drainage Program (2022) • QatarGas - Barzan Gas Development (2023) Source: British Petroleum Statistical Review of World Energy (June 2018) • NPP - Hamad Port (2025) • Barwa Real Estate - Barwa Al Khor Development (2025) Development of GDP composition 2014–2018* • Manateq - Qatar Economic Zone (2025) • QRAIL - Qatar Integrated Rail Project (2026) 2014 2018* • Kahramaa - Water Security Mega Reservoirs (2036) 6.3% 8.5% 5.4% • Kahramaa - Qatar Transmission (2020) 6.8% 4.6% • Qatargas - North Field Gas Expansion (2022) 6.0% 36.1% 5.9% 2.1% 7.4% 52.5% 2022 FIFA World Cup 6.4% 4.0% 6.7% 7.0% • ‘2022 FIFA World Cup’ is expected to draw around half a million visitors, 9.2% 10.1% circa 19% of Qatar’s current population 15.0% Mining and Quarrying Wholesale, Retail and other services Real Estate Manufacturing Transportation and storage Public administration Construction Financial and insurance activities Others Source: QCB Quarterly Statistical Bulletin – March 2019 Source: Business Monitor International, research reports Note: * Preliminary estimates Upcoming projects and economic development have attracted an infmux of expatriate labor and benefjted the economy 4
Financial Summary Profjtability Assets and Liabilities Q1 2019 Q1 2018 YoY Q1 2019 Q4 2018 Q1 2018 YTD YoY Interest income 1,016,538 978,571 3.9% Total Assets 96,330 96,132 93,620 0.2% 2.9% Interest Expense 523,856 418,485 25.2% Loans and Advances 58,685 59,844 59,931 -1.9% -2.1% Fees and commission 99,967 94,015 6.3% Investments 24,233 20,727 18,318 16.9% 32.3% Other Income 41,888 41,579 0.7% Customer Deposits 54,459 55,785 59,701 -2.4% -8.8% Staff Cost 115,123 132,100 -12.9% Total Equity 12,888 12,733 12,423 1.2% 3.7% Non Staff Cost 111,818 122,381 -8.6% Provision 131,310 60,508 117.0% Net Profit 307,494 381,353 -19.4% Ratios Capital Q1 2019 Q1 2018 Q1 2019 Q4 2018 Q1 2018 ROAE 11.40% 13.26% RWA 77,464 77,173 76,912 ROAA 1.28% 1.63% CET 1 Ratio 10.8% 10.7% 10.2% NIM 2.09% 2.44% T1 Ratio 15.9% 15.8% 15.4% CTIR 35.71% 37.34% Total Capital Ratio 17.1% 17.0% 16.6% 5
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