Investor Presentation October 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 7.2% (1) and assets totaling QR106.7bn • Doha Bank has a strong domestic franchise with the 2 nd largest conventional retail footprint with 24 local branches, 7 e-branches including pay offices, and around 90 ATMs as at 30 th September 2019 1 Qatar 2 Dubai - UAE 21 3 Abu Dhabi - UAE • Doha Bank has one of the largest international networks of the Qatari 4 Kuwait City - Kuwait 5 Mumbai - India banks through branches located in UAE (Dubai and Abu Dhabi), 6 Kochi - India 7 Chennai - India 20 8 London - UK Kuwait and India (Mumbai , Chennai & Kochi) and representative 9 Frankfurt - Germany 10 Istanbul - Turkey offices in Singapore, Turkey, Japan, China, United Kingdom, South 11 Singapore 12 Shanghai - China 13 Seoul - S. Korea Korea, Germany, Australia, Hong Kong, Canada, South Africa, 14 Tokyo - Japan 15 Hong Kong - China Bangladesh, Sri Lanka and Nepal 16 Sydney - Australia 17 Toronto - Canada 18 Johannesburg - South Africa 19 Dhaka - Bangladesh • Doha Bank, leveraging its network, has a strong market presence in 20 Colombo - Sri Lanka 21 Kathmandu - Nepal contract financing (29% market share), trade loans (11% market share) and real estate (12% market share) and has been fast growing (8% net Diversifjed shareholder base and strong support loans CAGR since 2009) Qatar Holding LLC • The bank operates principally through four business groups: (a subsidiary of QIA) Wholesale Banking, Retail Banking, International Banking and 16.7% Treasury & Investments Other • Doha Bank’s long-term local and foreign currency rating was assessed Shareholders at A3 / BBB+ / A / A by Moody’s, S&P, Fitch and Capital Intelligence 83.3% respectively Second largest Largest international Strong position in select business lines conventional Retail network of representative including contract fjnancing, trade 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 30 September 2019 1
Banking sector Loan market size (QRbn) and Doha Bank market share (%) Qatari banking system – Total Loans Vs Deposits (QRbn) 996 940 911 302 844 204 753 832 653 823 810 1.9% 727 4.9% 650 Government loans 601 Services* 154 2014 2015 2016 2017 2018 Q3-19 956 Total Deposit Total Loans Source: QCB banks’ monthly statements and annual reports 11.6% Real estate loans 6.7% Comments:- Market Share 133 Total loans • A leading franchise in real estate, contract financing and trade • Well diversified loan portfolio 11.3% • Worldwide network of representative offices in key locations • Strong and prominent brand recognition in Qatar 132 Trade loans 38 • First to introduce many innovative products and services in Qatar • Many of the Board members belong to the ruling ‘Al Thani’ family 6.6% 29.0% Retail loans Contract financing * Includes Non-Banking Financial Institution Doha Bank market share as of 30 September 2019 Loan market size as of 30 September 2019 2
Qatar Economy Stable economic situation Government fjscal surplus/defjcit (% of GDP) Sovereign rating: AA- (Stable) by Fitch / AA- (Stable) by S&P / 14.5% 15.0% Aa3 (Stable) by Moody’s 5.1% 2.2% 5.0% Qatar has the 3 rd largest reserves of natural Gas reserves: gas in the world (2) -5.0% -0.7% -6.6% 25.2bn barrels of proven oil reserves (2) Oil reserves: -9.2% -15.0% 2014/15 2015 2016 2017 2018 2019 Surplus of 6.0% 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: 2.0% in 2019 (1) and 2.8% in 2020 (1) 2.75 million as at 30 September 2019 (4) Population: With US$69,687 in 2019 Qatar is one of the Government revenues (QRbn) GDP per capita: wealthiest countries in the world (1) 400 Government fiscal position: Estimated surplus of 5.1% of GDP in 2019 (3) 250 27 Government gross debt: QR371.5bn (53.2% of GDP) in 2019 (1) 40 300 200 Significant investments in the run up to hosting 150 Significant future 200 35 the 2022 FIFA World Cup and achieving the 13 government & infrastructure 322 30 28 100 2030 Qatar National Vision (e.g. gas projects, 287 spending: 100 airport, rail, infrastructure, housing) 171 141 173 50 133 Currency: Pegged to the U.S. dollar since 1980 0 0 13/14 14/2015 2015* 2016 2017 2018 Oil & Gas revenues** Miscellaneous Transferables revenues WTI Crude Oil Price ($/brl) Source: 1. IMF World Economic Outlook Database (October 2019) Source: Government revenues: QCB annual reports & WTI Crude oil Price: Bloomberg report - September 2019 2. British Petroleum Statistical Review of World Energy (June 2019) 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 (September 2019) ** Oil & Gas Revenue includes investment revenue transferred from Qatar Petroleum. Qatar enjoys one of the highest GDP per capita at US$ 69,687 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 (2018) Export of natural gas in 2018 (cubic meters bn) Infrastructure projects in Qatar Russia • FIFA World Cup Football Stadiums (2020) 250 19.8% 248 Others • Msheireb Properties - Msheireb Downtown Doha (2020) 29.6% 200 #2 • Education City (2020) 150 Iran 125 • ASHGHAL - Expressway Programme (2021) 121 16.2% UAE 100 77 • QP - Bul Hanine Field Redevelopment Project (2021) 3.0% 32 Saudi Arabia 50 • UDC - Pearl Qatar (2022) Qatar 3.0% US 12.5% Turkmenistan #3 6.0% 0 • Qatargas - North Field Gas Expansion (2022) 9.9% 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 2019) • LREDC - Lusail Development (2025) • NPP - Hamad Port (2025) Development of GDP composition 2014–2018* • Barwa Real Estate - Barwa Al Khor Development (2025) • QFZA - Qatar Economic Zone (2025) 2014 2018* • QRAIL - Qatar Integrated Rail Project (2026) 6.3% 8.5% 5.4% • Kahramaa - Water Security Mega Reservoirs (2036) 6.8% 4.6% 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 – June 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 (QR Mn) Assets and Liabilities (QR Mn) Q3 2019 Q3 2018 YoY Q3 2019 Q4 2018 Q3 2018 YTD YoY Total Assets 106,746 96,132 90,367 11.0% 18.1% Interest income 3,148 2,934 7.3% Loans and Advances 65,003 59,844 59,215 8.6% 9.8% Interest Expense (1,652) (1,331) 24.2% Investments 27,765 20,727 20,286 34.0% 36.9% Net interest income 1,496 1,603 -6.7% Customer Deposits 58,897 55,785 52,165 5.6% 12.9% Fees and commission 307 286 7.5% Total Equity 13,455 12,733 13,050 5.7% 3.1% Foreign exchange gain 85 89 -4.2% Income from investment securities 191 (1) - Net income from insurance activities (58) 7 - Capital Other income 59 46 28.7% Q3 2019 Q4 2018 Q3 2018 Staff Cost (363) (389) -6.7% RWA (QR Mn) 79,068 77,173 76,058 Non Staff cost (306) (357) -14.4% CET 1 Ratio (%) 10.62% 10.66% 10.68% Provision (592) (547) 8.5% T1 Ratio (%) 15.68% 15.84% 15.94% Net Profit 819 737 11.0% Total Capital Ratio (%) 16.85% 17.01% 17.10% 5
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