Qatar Islamic Bank (Q.P.S.C.) Q2 2020 Results Presentation - PowerPoint PPT Presentation

Qatar Islamic Bank (Q.P.S.C.) Q2 2020 Results Presentation

Disclaimer Comparative figures have been reclassified where appropriate to conform to the presentation and accounting policies adopted in the condensed consolidated financial statements. The information contained herein has been prepared by Qatar Islamic Bank Q.P.S.C (“QIB”) . QIB relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness. This presentation has been prepared for information purposes only and is not and does not form part of any offer for sale or solicitation of any offer to subscribe for or purchase or sell any securities nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Some of the information in this presentation may contain projections or other forward-looking statements regarding future events or the future financial performance of QIB. These forward-looking statements include all matters that are not historical facts. The inclusion of such forward-looking information shall not be regarded as a representation by QIB or any other person that the objectives or plans of QIB will be achieved. QIB undertakes no obligation to publicly update or publicly revise any forward-looking statement, whether as a result of new information, future events or otherwise. Please note that rounding differences may appear throughout the presentation. Page | 2 Qatar Islamic Bank

Agenda 1 Introduction 2 QIB Financial Overview 3 Appendix Page | 3 Qatar Islamic Bank

Introduction  Qatar Islamic Bank (“QIB” or the “Bank”) was incorporated in 1982 as the first Islamic financial institution in Qatar .  Largest Islamic bank (approximately 50% of total assets of listed Islamic banks in Qatar) and second largest bank in Qatar by total assets, financing assets and net profit.  Network of 23 branches and offices and over 176 ATMs and CDMs in Qatar as at 30 Jun 2020.  Leading domestic franchise supported by selective international footprint in the United Kingdom, Sudan and Lebanon.  Strong financial profile with continued growth in recent years and robust risk management framework. Page | 4 Qatar Islamic Bank

Key Strengths First and largest Islamic bank in Qatar by total assets Second largest bank in Strong Government Qatar by total assets, support with the QIA as financing assets and its largest shareholder net profit Qatar-centric with Strong brand in Islamic selective international banking & innovative presence product offering Ambitious Operates out of one of transformation the fastest growing program economies in the world Higher operating Strong capital position efficiencies & asset quality Maintained consistent profitability Page | 5 Qatar Islamic Bank

Share Profile and Credit Ratings Share Overview Shareholding Structure  QIB shares listed on the Qatar Stock Exchange QH Foreign,  Symbol : QIBK, ISIN: QA0006929853 (QIA), 10.2% 16.7%  Foreign Ownership Limit : 49%  Market cap : QAR 37.2 bn Other Domestic, 73.1%  Valuation multiples: P/E – 13.13 ; P/B – 1.72 Index Weighting Stable Long Term Credit Rating Long Short Index Weight Rating Agency Outlook Term Term Qatar Exchange General Index 14.73% Moody’s A1 P-1 Stable Fitch A F1 Stable Qatar Exchange All Shares 10.52% S&P Global A- A-2 Stable MSCI Emerging Index 0.10% Capital A+ A1 Stable FTSE Emerging Index 0.09% Intelligence All the above data is as of 30 Jun 2020. The weightings are subject to changes Page | 6 Qatar Islamic Bank

Agenda 1 Introduction 2 QIB Financial Overview 3 Appendix Page | 7 Qatar Islamic Bank

Financial Overview Q2 2020 Financial Position Key Highlights • Stable balance sheet, total assets Variance Variance Jun-20 Jun-19 Mar-20 Dec-19 QAR million reached QAR 165.8 bn with a Vs Jun-19 Vs Dec-19 growth of 7.3% vs Jun-19 and 1.4% 165,802 154,590 7.3% 166,052 163,519 1.4% Total Assets vs Dec-19. 112,256 106,956 5.0% 113,987 113,754 -1.3% Total Financing • Financing reached QAR assets 106,609 107,564 -0.9% 110,241 111,621 -4.5% Total Deposits 112.3 bn with a growth of 5% vs Investments (3) 36,317 35,240 3.1% 35,703 35,992 0.9% Jun-19. Shareholders Equity (1) 16,806 15,621 7.6% 16,270 17,133 -1.9% • Strong asset quality and prudent 21,694 20,922 3.7% 21,277 22,159 -2.1% Total Equity risk management policy NPF ratio 105.3% 99.4% 5.9% 103% 102% 3.4% Financing to Deposit Ratio (%) at 1.4% and provision coverage ratio at 100% 18.6% 18.5% 0.1% 18.9% 19.5% -0.9% Capital Adequacy Ratio (%) • Customer deposits reached QAR 100.0% 100.0% 0.0% 100% 100% 0.0% Provision Coverage Ratio (%) 106.6 bn with a same levels of Jun- Profitability Year-to-date Quarterly 19. • Robust net operating income at Variance Variance QAR million Jun-20 Jun-19 Q2-20 Q2-19 Vs Jun-19 Vs Dec-18 QAR 2,607 mn, growth of 12.6% vs. Net Operating Income (2) 2,607 2,314 12.6% 1,414 1,165 21.4% Jun-19. (551) (545) 1.1% (279) (278) 0.7% Total expenses • Stable profitability with net profit (602) (298) 102.3% (383) (104) 267.8% Financing provisions at QAR 1,427 mn. Total provisions (665) (394) 68.7% (389) (192) 102.4% • Operating Net profit before tax & NCI 1,391 1,375 1.2% 746 695 7.3% Cost to efficiency: Net profit for the year (1) 1,427 1,425 0.1% 739 740 -0.1% income ratio improved to 21.1% vs. 23.5% in Jun-19 lowest in the Qatari 0.60 0.60 0.1% 0.31 0.31 -0.1% Earnings Per Share (QAR) Banking sector. 21.1% 23.5% -2.4% 19.8% 23.8% -4.1% Cost to income ratio • Adequately capitalized the Basel Return on average equity 15.9% 17.4% -1.5% 16.7% 16.9% -0.2% III capital adequacy ratio stands at Return on average assets 1.7% 1.8% -0.1% 2.6% 2.5% 0.1% 18.6% as of Jun-2020. Cost of Risk (Fin. assets) annualized 1.07% 0.56% 0.52% 1.37% 0.39% 0.98% (1) Attributable to shareholders of QIB Net Operating Income : Total income less profit paid to unrestricted investment account holders and share of Sukuk Holders’ P rofit (2) Source: QIB financial statements (3) Investments includes investments securities , investments in associates and investments properties Page | 8 Qatar Islamic Bank

QIB – Quarterly Financial Highlights Financing (QAR Bn) Deposits (QAR Bn) Assets (QAR Bn) 7% -1% 5% 175 120 120 100 140 100 80 80 105 60 166 166 114 164 114 112 60 155 155 107 107 112 110 108 107 107 70 40 40 35 20 20 0 0 0 Jun'19 Sep'19 Dec'19 Mar'20 Jun'20 Jun'19 Sep'19 Dec'19 Mar'20 Jun'20 Jun'19 Sep'19 Dec'19 Mar'20 Jun'20 Quarterly Operating Income (QAR Mn) Quarterly Operating Expenses (QAR Mn) Quarterly Net Profit (QAR Mn) 21% 0% 1% 1200 240 1000 600 800 1,414 160 1,287 400 1,229 283 790 278 279 600 1,193 273 271 1,165 740 739 688 840 400 80 200 200 0 0 0 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Page | 9 Qatar Islamic Bank

Key Quarterly Ratios Yields (%) Financing Staging Ratio (%) Financing Coverage Ratio (%) Total Coverage Ratio* Stage 3 Coverage ratio Financing Yield Deposit Cost Stage 3 Stage 2 Stage 1 206.9% Net Margin 84.8% 84.7% 84.3% 194.2% 190.8% 188.1% 5.5% 182.5% 5.5% 5.4% 82.9% 5.3% 82.5% 4.9% 16.1% 15.8% 3.1% 14.1% 13.9% 3.1% 14.5% 3.0% 3.0% 3.0% 100.0% 100.0% 100.0% 100.0% 100.0% 1.4% 1.2% 1.2% 1.3% 1.3% 2.4% 2.4% 2.3% 2.3% 1.8% Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Jun'19 Sep'19 Dec'19 Mar'20 Jun'20 Jun'19 Sep'19 Dec'18 Mar'20 Jun'20 * Total coverage ratio = total financing ECL / stage 3 exposures Cost to Income Ratio (%) ROAE, ROAA, RORWA (%) CET1 & CAR (%) ROAE ROAA RORWA CET1 CAR 19.5% 18.9% 18.6% 18.5% 18.4% 19.0% 18.6% 18.1% 16.7% 14.7% 15.4% 23.8% 14.1% 13.9% 23.0% 13.6% 22.7% 13.5% 21.2% 19.8% 3.1% 2.9% 2.7% 2.6% 2.5% 2.0% 2.1% 1.9% 1.8% 1.7% Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Jun'19 Sep'19 Dec'19 Mar'20 Jun'20 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Page | 10 Qatar Islamic Bank

Asset Mix – 30 Jun 2020 Asset Composition by Type Asset Composition by Geography 2% 1% 2% 6% 1% 6%1% 3% Cash & Balances Due from Banks & 20% Qatar Financial Institutions GCC Financing Assets Europe Financial Investments North America Other Investments Others 90% Other Assets 68% Financing by Sector Financial Investments by Type 6% 3% 7% Govt & GREs 11% NBFIs 9% Industry 22% State of Qatar Sukuk Commercial 6% Other Sukuks Services Contracting Equity type investments 12% Real Estate 18% Personal 90% 12% Others 4% Source: QIB financial statements Page | 11 Qatar Islamic Bank

Liability Mix – 30 Jun 2020 Diverse Sources of Funding Deposits by Type 3% 10% 9% 15% 12% Current Accounts Call & Savings Accounts 20% 65% 10% 56% Fixed Deposits Call & Savings and Fixed Deposits constitutes Total URIA High Quality Domestic Deposits Sukuk Issuances and Maturities in 2019 New Issuances • 5yr USD 650 M @ 3 month USD Libor + 135 bps Foreign, 15.0% • 5yr USD 150 M @ 3 month USD Libor + 135 bps GCC, • 4yr USD 100 M @ 3.982% 3.1% Qatar GCC Maturities - none Foreign Qatar, 81.9% Page | 12 Qatar Islamic Bank