Qatar National Bank Qpsc · QSE:QNBK
Qatar National Bank Qpsc — QNB — Investor Presentation (June 2013)
34 slides from Qatar National Bank Qpsc's investor presentation, June 2013
Slide 1: Investor Relations Presentation June 2013
Investor Relations Presentation June 2013
Slide 2: Contents
Contents 1. QNB at a Glance 2. QNB Comparative Positioning – Qatar and MENA 3. Financial Highlights – June 2013 4. Economic Overview Note: These results include NSGB (unless stated), which was consolidated in 2Q13 under International Financial Reporting Standards 2
Slide 3: QNB at a Glance
QNB at a Glance
Slide 4: QNB at a Glance: Overview
QNB at a Glance: Overview Overview • Established in 1964 as the first Qatari owned bank June 2013 Financials (in US$) • Owned (50%) by the Government of Qatar via the 5yr Qatar Investment Authority (QIA) 2013 2012 CAGR • Largest bank in Qatar Total Assets 118.5 bn 90.9 bn 23% • Listed on Qatar Excha
Slide 5: Overview of QNB's International Network
Overview of QNB’s International Network Branches, Subsidiaries and Associates Type of Operation by Geography Subsidiaries and Associates Country Ownership QNB Capital Qatar 100% QNB Switzerland Switzerland 100% Subsidiaries and QNB Financial Services Qatar 100% Associates QNB Tunis Tunisia 99.96% NS
Slide 6: QNB Comparative Positioning – Qatar and MENA
QNB Comparative Positioning – Qatar and MENA
Slide 7: Top Domestic Banks
Top 5 Domestic Banks QNB continues to excel in the domestic market 100.8 68.7 Assets Loans 22.0 20.1 16.9 13.3 11.8 11.7 15.2 9.3 74.2 2.29 Net Profit Deposits 0.55 12.4 11.9 11.4 0.41 0.36 0.34 9.4 Note: All amounts are in USD billions as at 31st December 2012 7 Source: Companies’ annual reports
Slide 8: Top Regional Banks
Top 5 Regional Banks QNB strengthened its position as the leading bank in the region across all categories 100.8 68.7 92.1 83.9 81.8 59.4 71.2 45.8 44.8 43.6 Assets Loans 74.2 72.9 2.29 2.10 59.0 58.2 1.72 51.8 Net Profit Deposits 1.18 1.16 Note: All amounts are in USD billions as at 31st December 2
Slide 9: Financial Highlights – June 2013
Financial Highlights – June 2013 Note: Unless stated these results include NSGB which was consolidated in 2Q13 under International Financial Reporting Standards.
Slide 10: QNB continues to demonstrate sustainable profitable growth
QNB continues to demonstrate sustainable profitable growth June 2013 Highlights Growth vs. June 2012 (unless stated) • Net interest margin (NIM): 2.88% Profit • USD 1.30 Bn net profit +15% • Efficiency ratio: 20.5% • USD 118.5 Bn assets +30% since Jun-12 +13% since Mar-13 • NPL (% of gross loans): 1
Slide 11: Strong profitability growth
Strong profitability growth Income Statement Breakdown (USD Bn as at June) Net Profit Operating Income1 Net Interest Income % Efficiency Ratio % Net Interest Margin 5 yrs: 21% 1.30 2.00 5 yrs: 25% 1.55 1.13 5 yrs: 39% 1.55 0.97 1.23 1.26 0.74 0.95 0.97 0.57 0.70 0.75 0.49 2009 2010 2011 2012 2013 20
Slide 12: Robust quarterly growth has been consistently delivered
Robust quarterly growth has been consistently delivered Quarterly Income Statement Income Statement USD 000s Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 20131 • Net Interest Income 615,340 623,109 657,770 645,996 901,464 – FX Gain 41,709 37,854 39,972 47,355 73,406 – Fees and Commissions 88,646 84,663 92,472
Slide 13: Strong asset growth driven by lending activities mainly in QAR and USD
Strong asset growth driven by lending activities mainly in QAR and USD Assets Analysis (as at June) Total Assets Evolution 2013 Split of Assets (%) USD Bn By Type By Currency 118.5 Cash and Balances with 4.7 QAR 2 27.2 Central Bank 5 yrs: 23% 90.9 Due from USD 54.4 6.8 Banks 72.4 EGP 8.0 Loans and 6
Slide 14: Strong loan growth fueled by domestic economic tailwinds
Strong loan growth fueled by domestic economic tailwinds Loans Analysis (as at June) Total Loans Evolution 2013 Split of Loans (%) USD Bn By Geography By Sector 81.4 Qatar 81.0 Government 12.7 Government 64.5 47.2 5 yrs: 29% Egypt 7.2 Agencies Services/ 16.1 Other GCC Commerce 2.6 41.3 Countries Rea
Slide 15: High quality lending portfolio is highlighted by low NPL ratios
High quality lending portfolio is highlighted by low NPL ratios Asset Quality Analysis (as at June) Non Performing Loans (NPL) by Segment • One of the lowest NPL ratios among MENA banks USD Mn x Total NPL’s 199 259 437 731 1,273 • QNB has continued to increase its provisions in SME 10 9 15 27 17 res
Slide 16: High quality investment portfolio with 60% of securities rated AA or better
High quality investment portfolio with 60% of securities rated AA or better Investments Analysis (USD Mn as at June 2013) Available for Sale Investment Securities Held to Maturity Financial Investments Quoted Fixed rate Unquoted Floating rate State of Qatar 1,495 Sovereign Debt 9,515 3 Qatar 28 Egyp
Slide 17: Robust growth in customer deposits and funding
Robust growth in customer deposits and funding Funding Analysis (as at June 2013) Total Customer Deposits Evolution 2013 Split of Deposits (%) USD Bn By Sector By Type 89.6 Government 4.7 Time 72.6 Deposits 5 yrs: 27% 67.5 Government 45.8 Agencies Saving 53.9 1.3 Accounts 38.2 Corporates 34.5 28.2 C
Slide 18: Solid liquidity profile with loans to deposit ratio consistently below 96%
Solid liquidity profile with loans to deposit ratio consistently below 96% Liquidity Analysis (as at June) Loans to Deposits Ratio Evolution 2013 Sources of Liquidity % % 95.4% 90.9% 80.6% 84.5% Due to 76.7% 5.4 Banks Customer 85.2 Deposits Debt 2009 2010 2011 2012 2013 4.3 Securities Liquid Assets
Slide 19: Strong capital adequacy ratio maintained above QCB and Basel II requirements
Strong capital adequacy ratio maintained that are above QCB’s and Basel II requirements Capital Analysis (as at December unless otherwise stated) Total Equity1 Evolution Capital Adequacy Ratio USD Bn x Gearing2 % x Eligible Capital (USD Bn) 12.9 22.0 21.0 USD ~3.5 Bn rights 11.7 issue in 2011; fully
Slide 20: Growing geographical diversification positively contributes to growth
Growing geographical diversification positively contributes to growth Geographical Contribution (as at June) Domestic International % Share of International Net Profit Loans Deposits USD Mn USD Bn USD Bn 1,301.3 81.4 89.6 1,130.7 64.5 965.8 67.5 53.9 59.0 936.9 66.0 41.3 947.4 46.9 786.9 57.8 38.6 3
Slide 21: Diversifying business mix will bolster sustainable growth
Diversifying business mix will bolster sustainable growth Business Mix Contribution (% share as at June 2013) Lines of Business Net Profit Loans Deposits 75 • Maintained market dominance 65 51 Corporate • Expanded into new markets • Reinforced existing positions International 34 28 19 • Maintained l
Slide 22: June 2013 Highlights (Excluding NSGB)
QNB continues to demonstrate sustainable profitable growth June 2013 Highlights (Excluding NSGB) Growth vs. June 2012 (unless stated) • Net interest margin (NIM): 2.71% Profit • USD 1.19 Bn net profit +5% • Efficiency ratio: 17.5% • USD 108.8 Bn assets +20% since Jun-12 +4% since Mar-13 • NPL (% of
Slide 23: QNB Group Financials
QNB Group Financials Key data (as at end June 2013) xxx Growth QNB QNB incl. NSGB Key Data 108.8 Financials (USD Bn) Total Assets 8.9% 118.5 Loans & 75.6 7.7% Advances 81.4 Highlights Customer 80.9 10.8% • QNB Group finalised incorporation of the Deposits 89.6 financial results of NSGB during the se
Slide 24: Economic Overview
Economic Overview
Slide 25: Qatar has the world's highest hydrocarbon wealth per national
Qatar has the world’s highest hydrocarbon wealth per national GCC oil & gas wealth (2012) Hydrocarbon revenue Hydrocarbon reserves (USD K / national) (k boe / national) 231 Qatar 724 102 UAE 137 90 Kuwait 95 11 Saudi 16 13 Oman 6 11 Bahrain 4 • Most of Qatar’s hydrocarbons reserves are held in the •
Slide 26: Qatar was the world's fastest growing economy during 2008-12
Qatar was the world’s fastest growing economy during 2008-12 Real GDP: Countries with fastest growth (2008-12) % annual growth 12.0% • Qatar’s annual real growth of 12.0% during 11.5% 10.7% 10.2% 9.2% 2008-12 was the world’s fastest, reflecting the expansion in LNG production • Growth eased to 6.6%
Slide 27: Growth has been driven by a dramatic expansion in gas production
Growth has been driven by a dramatic expansion in gas production Gas production and usage (m tonnes/year) Oil-related production (m barrels/day) 142 6% GTL production Condensates and NGLs production 2.0 Pipeline exports Crude oil production 1.8 Production for other domestic use 109 17% LNG productio
Slide 28: Expansion has driven population growth and created significant wealth
Expansion has driven population growth and created significant wealth Population GDP per Capita Millions Nationals US$ k Expatriates 5.0% 4.9% 102 2.8% 96 16.2% 1.91 1.64 1.73 14% 76 14% 15% 1.21 18% 85% 86% 86% 82% 2007 2009 2011 2013f 2007 2011 2013 • Population growth was the highest in the world
Slide 29: Increased non-hydrocarbon contribution to GDP growth
Increased non-hydrocarbon contribution to GDP growth Qatar Real GDP growth (2008-14) % annual growth Overall Hydrocarbon • Expansion plans in the oil and gas sector are now Non-Hydrocarbon limited and real hydrocarbon growth is expected 17.7 16.7 13.0 to slow to around 1% in 2013-14 12.0 6.2 6.5 6.8
Slide 30: Inflation remains moderate notwithstanding a recovery in rents
Inflation remains moderate notwithstanding a recovery in rents CPI Inflation including and excluding rent (2008-13) % change in consumer prices 20 Overall Index (100%) Rent (32%) 15.2 Transport and Communications (21%) • Inflation picked up to 3.5% YoY in May 2013 Food (13%) 10 Other (34%) • Rents a
Slide 31: Hydrocarbon receipts ensure fiscal and current account surpluses
Hydrocarbon receipts ensure fiscal and current account surpluses Fiscal Surplus (2008-13) Current Account (2008-13) % of GDP 15.2 % of GDP Trade surplus Current surplus 14.0 Non-physical deficit 53 55 51 43 10.0 37 35 30 32 8.7 23 26 7.1 19 7 3.0 -14 -20 -24 -21 -21 -21 2008/ 2009 2009/ 2010 2010/ 2
Slide 32: International reserves are rising and provide ample import cover
International reserves are rising and provide ample import cover International Reserves (2008-13) USD Bn 40 41 International Reserves (US$bn) Months of Import Cover 31 33 19 18 17 16 13 10 10 7 5 Jan- Dec- Dec- Dec- Dec- Dec- May- 08 08 09 10 11 12 13 • International reserves have risen since Decemb
Slide 33: The business environment remains very strong
The business environment remains very strong Business Environment Rankings Contributing factors • Strong economic fundamentals 1st in MENA - Strong growth and successful focus on diversification World Economic Forum - High levels of government spending and personal Global Competitiveness 111h in Wor
Slide 34: Disclaimer
Disclaimer This presentation may contain certain forward-looking statements with respect to the financial condition, results of operations and business of QNB. These forward-looking statements represent QNB’s expectations or beliefs concerning future events and involve known and unknown risks and un