Investor Presentation Q3 2017 V.1 [Read-Only]

Click to edit Master title styleInvestor PresentationQ3 2017 Results

September 2017

Click to edit Master title style

2

Overview

Financial Information

Business Information

Shareholder Information


3

OverviewIntroduction

Net Profit (QR Million)

Established in 2007 and headquartered in Doha, Qatar.

Major shareholders are Qatari Government entities with 47% ownership.

Present in Qatar, France and UAE.

Businesses: Wholesale, Treasury and Personal Banking.

Listed on the Qatar Exchange as of August 2007, 360 million listed shares, Market Cap. circa QR 4.4 billion.

Key Figures 2015 2016 Q3 2017Total Assets (QR Million) 56,634 60,597 57,988

Loans & Advances (QR Million) 33,447 35,180 35,947

Deposits (QR Million) 30,935 32,195 32,207

Total Equity (QR Million) 5,987 7,033 7,249

Operating Income (QR Million) 1,144 1,160 932

Profit (QR Million) 626 427 454

Earning Per Share (QR) 1.74 1.07 1.26

Non Performing Loans (%) 0.86 1.52 1.76

Capital Adequacy Ratio (%) 13.8 15.8 16.4

Rating Fitch A / NegativeMoody’s A3 / Negative

Key Figures Q3 2016 Q3 2017 GrowthTotal Assets (QR Million) 58,526 57,988 (0.9%)

Loans & Advances (QR Million) 36,281 35,947 (0.9%)

Deposits (QR Million) 29,836 32,207 7.9%

Total Equity (QR Million) 7,076 7,249 2.4%

Revenue (QR Million) 872 932 6.9%

Expenses (QR Million) 268 255 (4.9%)

Net Impairment Loss (QR Million) 183 220 20.2%

Profit (QR Million) 425 454 6.8%

Earnings Per Share (QR) 1.18 1.26 6.8%

Performance Analysis

512 551 563626

427 454

2012 2013 2014 2015 2016 Q3 17Source: al khaliji financial statements


4

Financial Performance ITotal Assets (QR Million)

Total Equity (QR Million)Total Deposits (QR Million)

Total Loans (QR Million)

17,346 19,919

27,44330,935 32,195 32,207

2012 2013 2014 2015 2016 Q3 2017

CAGR13%

33,67241,259

51,242 56,634 60,597 57,988

2012 2013 2014 2015 2016 Q3 2017

CAGR11%

5,671 5,637 5,782 5,9877,033 7,249

2012 2013 2014 2015 2016 Q3 2017

CAGR5%

Source: al khaliji financial statements

13,032

20,697

26,877

33,447 35,180 35,947

2012 2013 2014 2015 2016 Q3 2017

CAGR18%


5

Financial Performance II Tier I Capital ratio (%)Capital Adequacy Ratio (%)

19.416.7 15.3* 13.8*

15.8* 16.4*

2012 2013 2014 2015 2016 Q3 2017

21.418.4

15.3* 13.8*15.8* 16.4*

2012 2013 2014 2015 2016 Q3 2017

75104

98108 109 112

2012 2013 2014 2015 2016 Q3 2017Source: al khaliji financial statements

38.5 40.6 42.034.2 29.4 27.4

2012 2013 2014 2015 2016 Q3 2017

Loans to Deposits ratio (%) Cost to Income ratio (%)

* As per Basel III * As per Basel III


6

Financial Performance III

Return on Average Equity (%)

Return on Average Assets (%) Net Interest Income/Total Income (%)

Net Interest Margin (%)

1.791.70 1.74 1.78

1.571.71

2012 2013 2014 2015 2016 Q3 2017

9.3 9.7 9.9 10.6

7.1 7.4

2012 2013 2014 2015 2016 Q3 2017


1.71.5

1.2 1.20.7 0.8

2012 2013 2014 2015 2016 Q3 2017

5363

7481 79 81

2012 2013 2014 2015 2016 Q3 2017


7

Awards

7

2017- Fastest Growing Bank in the region by the Banker Middle East

- Best Premium Bank in Qatar by the Banker Middle East

- Best Commercial Bank in Qatar by the Banker Middle East

- Best Corporate Bank in Qatar by the Banker Middle East

2016Industry awards:

- Best Private Bank in Qatar by Global Finance

- Best Premium Banking in the Middle East by the Banker Middle East

- Best Corporate Banking in Qatar by the Banker Middle East

- Fastest Growing Bank in the region by the Banker Middle East

Country awards:

- Best Premium Banking Service by the Banker Middle East-Qatar

- Best Corporate Account by the Banker Middle East-Qatar

- Best Current Account by the Banker Middle East-Qatar

- Best Call Center by the Banker Middle East-Qatar


8

Overview





9

Breakdown of Total Assets

Breakdown of Total Loans

Q3 2017

Q3 2016Q3 2017

Q3 2016

Loans62%

Securities25%

Interbank8%

Cash & Central Bank

3%

Others2%

Balance Sheet

Government & GRE's

18%

Industry8%

Trading9%

Services24%

Contracting8%

Real Estate20%

Personal 13%

Source: al khaliji financial statements, Company data

Loans59%

Securities27%

Interbank5%

Cash & Central Bank

5%

Others2%

Government & GRE's

17%

Industry9%

Trading10%

Services25%

Contracting8%

Real Estate18%

Personal 13%


10

Asset Quality Analysis & Capitalization Overview

(QR Millions) 2012 2013 2014 2015 2016 Q3 2017

Performing Loans 13,213 20,854 26,690 33,416 35,234 36,105

Non Performing Loans 59 70 366 289 545 648

Total Gross Loans 13,272 20,924 27,056 33,705 35,779 36,753

Provisions 240 227 179 258 599 806

Net Loans 13,032 20,697 26,877 33,447 35,180 35,947

NPL’s/ Gross loans (%) 0.45 0.34 1.35 0.86 1.52% 1.76%

Yearly Provision Charge % of Gross Loans 0.46 (0.06) 0.02 0.24 1 0.56

Asset Quality Analysis


11

Funding MixQ3 2016 Funding Mix Q3 2017

Q3 2016 Customer Deposits Q3 2017

Customer Deposits, 56%

Due to Banks, 9%

Repos, 10%

Total Equity, 13%

Other Borrowings, 2%

Others, 3%Debt Securities

Issued, 7%

Government & GRE's42%

Corporate50%

Personal8%

Source: al khaliji financial statements, Company data

Customer Deposits, 51%

Due to Banks, 13%

Repos, 10%

Total Equity, 12%

Other Borrowings, 4%

Others, 3% Debt Securities Issued, 6%

Government & GRE's46%

Corporate40%

Personal14%


12

Q3 2016 Revenue Analysis by Businesses Q3 2017

Q3 2016 Revenue Analysis by Types Q3 2017

Net Interest, 81%

Treasury & Investments Income, 3%

Fee & Commission Income, 16%

Wholesale53%

Treasury 10%

Personal21%

Subsidiaries16%


Revenue Analysis

Subsidiaries (16%) includes: Wholesale (11%), Treasury (3%), Personal (2%)

Wholesale42%

Treasury 20%

Personal17%

Subsidiaries21%

Subsidiaries (21%) includes: Wholesale (14%), Treasury (5%), Personal (2%)

Net Interest, 77%

Treasury & Investments Income, 5%

Fee & Commission Income, 18%


13

Overview


Business information


Click to edit Master title style2016-18 Strategy Evolves Around Our Core Business

14

DOMINANT BANK REGIONALLY FOR QATARI CLIENTS

RAISE COMPETITIVENESS

No.1 Local Bank for Premium & HNWI Qatari Clients (Onshore Wealth)

A ‘Bank of Choice’ for Local Corporates

Increase Profitability and Competence in Core Business Areas

Enhance Group Operations Structure

Expand Customer Base

CORE BUSINESSPrivate Corporate International

International: Regional, Select Markets, al khaliji Overseas Footprint


15

al khaliji Businesses

• 1 Branch / Head Office• 32 Employees

• 4 Branches • 1 DIFC office• 4 ATMs• 78 Employees

• 5 Branches • 49 ATMs• 2 Service Centers• 24/7 Contact Center• 247 Employees

Geographic FootprintProduct Offering

al khaliji

Wholesale Banking

Corporate

Commercial

International

Treasury Personal Banking

Premium

Private

Doha

Abu Dhabi

Paris

UAE

FRANCE

QATAR

Source: al khaliji as of 31 March 2017


16

Wholesale Banking

Profit (QR Million)

343453

589665 669

604

2012 2013 2014 2015 2016 Q3 2017

207

399

496 482

259

432

2012 2013 2014 2015 2016 Q3 2017

Total Assets (QR Million)

Loan Portfolio Analysis (2017)

Operating Income (QR Million)

12,249

18,53022,992

26,976 25,56927,831

2012 2013 2014 2015 2016 Q3 2017


Contracting, 10%

Government, 23%

Insurance, 2%

Manufacturing, 8%

Real Estate, 12%

Services, 30%

Trading, 12%

Utilities and Energy, 3%


17

Total Assets (QR Million)

Operating Income (QR Million) Profit (QR Million)

576

396

278 276 263

121

2012 2013 2014 2015 2016 Q3 2017

19,224 18,86222,705 21,384

23,84520,374

2012 2013 2014 2015 2016 Q3 2017

537

344

228 228 203

92

2012 2013 2014 2015 2016 Q3 2017


Treasury


18

Personal BankingTotal Assets (QR Million)

Operating Income (QR Million)Consumer Loan Portfolio (2017)

5193

147

203228

142

2012 2013 2014 2015 2016 Q3 2017

1,0962,656

5,189

7,958

10,8179,280

2012 2013 2014 2015 2016 Q3 2017

• Personal Banking business offers our premium & privatebanking customers a range of products and services

• Ten branches: 5 Qatar, 4 UAE and 1 France• 53 ATM’s: 49 Qatar & 4 UAE• 2 Service Centers • Call center (24 hours)• Internet banking• Phone banking• SMS banking

Source: al khaliji financial statements*A one-off amount of QR 54 million was excluded from number above.

Overview

Personal loans3%

Others42%

Overdraft10%

Mortgages45%


19

Overview





20

Shareholder Ownership

47%

22%5%

26%

Government

Retail

Banks & FinancialInstitutionsCorporations

Nationality Percent

Qatar 86%

Bahrain 7%

Kuwait 2%

Oman 1%

U.A.E 2%

Others 2%

Source: QCSD as of 30 September 2017

14,171 institutional and retail shareholders by end of September 2017

Major Shareholder Category Domicile Share

Qatar Investment Authority (QIA)* Government Qatar 39.99%

Al Faisal International Investment Co. Corporation Qatar 7.33%

Union Investment House S.P.C. * Corporation Bahrain 6.67%

Pension and Retirement General Authority Government Qatar 5.58%

* Indirectly through related subsidiaries


21

Board of DirectorsThe board that supports our vision to be truly next generation

H.E Sheikh Hamad Bin Faisal Bin Thani Al-Thani

Chairman and Managing Director, Re-appointed by Qatar Holding (Qatar)

Vice Chairman, Qatari Investors Group Board Member, Qatari Businessmen Association Board Member, Qatar Insurance Company (QIC)

Abdulla Bin NasserAl-Misnad

Vice-Chairman,Non Executive Member

(Qatar)

Abdul Salam Al-Murshidi

Independent and Non-Executive Member

(Oman)

Hisham Al-Saie

Non-Executive Member, representative of Union

Investment House

(Bahrain)

Sheikh Mohammed

Feisal Al Thani

Non-Executive Member, representative of Al Faisal Intl for Invest.

(Qatar)

Sheikh Mohammed

Mansoor Al Thani

Non-Executive Member, representative of

Qatar Holding

(Qatar)

Faisal Abdulla Al Mana

Independent andNon-Executive Member

(Qatar)


22

Dividend Distribution

Dividend Distribution Analysis 2010 2011 2012 2013 2014 2015 2016

Net profit (QR Million) 427 487 512 551 563 626 427

Cash Dividend QAR 1 QAR 1 QAR 1 QAR 1 QAR 1 QAR 1 QAR 0.75

Cash Dividend (% of Capital) 10% 10% 10% 10% 10% 10% 7.5%

Dividend Payout Ratio (% of Net

Profit)84% 74% 70% 65% 64% 58% 63%

Dividend yield* 6% 6% 6% 5% 5% 6% 6%

Focusing to increase value for our Shareholders

*As per closing price by the end of each year


23

al khaliji outlook

al khaliji is in strong position to continue its growth story

Positive economic outlook in the geography of presence

Stable shareholders’ base

Strong and professional Board of Directors

Prudent and experienced Group Executives and Management

Conservative risk management policies in place

Robust capital adequacy ratio


24

DisclaimerAl Khalij Commercial Bank (al khaliji) Q.S.C (“al khaliji”) has prepared the above report for general information purposes about its current financial situation and

business development. The report has been prepared to the best of al khaliji senior management knowledge and skills. This report is solely intended for the

benefit of the intended recipients, venue and occasion as stated on the cover page. al khaliji makes no representations and does not warrant or guarantee as to

the completeness of the facts and data mentioned in the report in all aspects relating to the situation of the Bank as of the date of this report, nor as to the

sequence, accuracy, completeness, or timeliness of the report. None of the information contained in the report constitutes a solicitation, offer, opinion, or

recommendation by al khaliji to buy or sell any al khaliji shares, or to provide legal, tax, accounting, or investment advice or services regarding the profitability or

suitability of any investment in al khaliji shares for a recipient’s particular purposes and the information provided in the report is not intended for use by, or

distribution to, any person or entity in any jurisdiction or country where such use or distribution would be contrary to law or regulation. al khaliji, its agents,

directors, officers, employees, representatives, successors, and assigns shall not, directly or indirectly, be liable, in any way, to you or any other person for any:

(a) inaccuracies or errors in or omissions from the report including, but not limited to, quotes and financial data or (b) loss or damage arising there from or

occasioned thereby, or by any reason of nonperformance.

Any person considering an investment in al khaliji shares should seek independent advice on the suitability, tax or otherwise of the particular investment. al khaliji

shares are not bank deposits or obligations or guaranteed by al khaliji or any of its affiliates or subsidiaries and any investments are not principal guaranteed by

al khaliji or any other person.

al khaliji has not sought approval by the Qatar Central Bank for the contents of this report or any information contained therein and does not represent to have

obtained or to procure such approval nor assumes any responsibility for procuring such approvals.

Any statement made or claimed to have been made by an al khaliji representative in contradiction of the foregoing is and has not been, nor may it be deemed,

authorized or ratified by an authorized al khaliji representative.

Investor Presentation Q3 2017 V.1 [Read-Only]

Documents

Transcript of Investor Presentation Q3 2017 V.1 [Read-Only]