Investor Presentation Q ahlibank.com.qa

Transcription

1 Investor Presentation Q ahlibank.com.qa

2 Overview ABQ Founded in 1983 Listed on the Qatar Exchange with a market cap of c.qar 6.6 billion 48% owned by Qatar Investment Authority (directly and through subsidiaries) Shareholding Structure Qatar Investment Authority (QIA) and whollyowned QIA subsidiaries 47.71% Others 52.29% Strong market position, focused in Qatar: World s one of the fastest growing economies Best regulated banking sector in the Middle East, according to the World Bank 15 branches and 68 ATMs, all in Qatar Moody s A2/Prime I deposit rating, Fitch A Long Term IDR IFRS and Basel III environment 16.7% Basel III Capital Adequacy Ratio (CAR) 88% of funding coming from stable sources of funding: Qualifying Deposits, CPs (71%) Longterm wholesale funding (17%) Liquid assets 22% of total assets, covering more than 2.3x shortterm funding needs Effective risk management and high quality loan book as proven by low nonearning assets Low NPL ratio (0.96%) and conservatively provisioned (including ECL provisions 214%, excluding ECL provisions 103%) 30.0% cost income ratio and a ROAE above industry average Key Indicators (QR million) Mar 2017 Mar 2018 Total Assets 37,866 39,644 Total Loans 26,647 30,308 Customer Deposits 22,086 24,115 Total Equity 4,841 5,031 Capital Adequacy Ratio (Basel III) 16.2% 16.7% Cost Income Ratio 30.1% 30.0% 2

3 ABQ has been at the heart of the community for over 30 years 1983 Incorporated as part of CITI Group 1987 ABQ starts operating as a standalone entity 2004 Ahli United Bank (AUB) acquires a 40% stake through issue of new shares with a ten year Management Agreement 2008 Qatar Investment Authority announces a 20% equity injection in listed Qatari banks based on December 2008 share capital 2011 Ahli Bank launched Ahli Brokerage Company as a fully owned Brokerage House licensed by Qatar Exchange % Rights issue to Qatari Shareholders raising the bank s capital by QAR 448m 2013 Qatar Foundation for Education, Science and Community Development acquired 29.4% stake in Ahlibank from AUB 2013 New Strategic Plan approved by the Board 2013 New Organization Structure in place to focus on business banking and to strengthen corporate governance 2014 New brand reflecting the identity of the bank: at the heart of the community 2014 Debut Syndicated 3 years terms facility of US$ 200m 2015 Completed redesigning of 6 branches, enhancing customer experience 2015 Strengthened stable funding profile through additional medium term loans US$ 200m 2016 Awarded debut Moody s Rating A2/Prime1 deposit ratings 2016 Debut Bond Issue of US$ 500m to the international debt capital market EMTN Tranche I 2016 New 3year USD 195 Million club loan facility 2017 Bond issue of US$ 500m to the international debt capital market EMTN Tranche II 2017 Increased 3year committed bank funding to USD 250 Million and extended maturity up to Qatar Investment Authority directly and through subsidiaries owns 47.71% of the Bank s share capital 3

4 At the heart of the community Corporate Social Responsibility Our brand identity is a modern interpretation of a potent symbol from Qatar s past, the oyster shell. The shell protects and nurtures its treasure, growing it over time, just as we seek to grow and protect our customers assets. We ask, we listen, and we act on what we learn. We respond by producing products that genuinely meet the needs of our community. We are who we are because of our community. And that s why we go further for our customers and our stakeholders. Inspired Considered We will always stay actively involved with our community. We aim to be a sensitive bank: knowledgeable, experienced, and insightful. We offer what our customers tell us they need most: reliable and effective products and advice they can trust. Engaged We are always straightforward, approachable, and responsive. We are an active part of the community. We never forget that our customers are also our neighbours. Corporate Social Responsibility The Qatar Society for Rehabilitation of Special Needs 4

5 Shareholding Structure Percentages Key Shareholders 52.29% of shareholders are Qatari firms and individuals QIA directly and through subsidiaries owns the remaining 47.71% of the shares Public and Institutions Qatar Investment Authority (QIA) and whollyowned QIA subsidiaries Name Number of Shares % Qatari firms & individuals and Others (No shareholder owns more than 3% of the Bank capital) 110,006, % Qatar Investment Authority (QIA) and whollyowned QIA subsidiaries 100,354, % Total March ,360, % 5

6 Business Lines Corporate SMEs Ahli Brokerage Corporate Cash Management Retail Proprietary Investment Treasury and Investments Retail Premium Private International Banking Financial Institutions 6

7 Business Line Contribution Total Average Assets Mar 2018 Total Average Liabilities Mar 2018 Treasury & Treasury & Investments Investments 20.4% 36.4% Corporate 30.6% Retail 16.4% Corporate 63.2% Retail 33.0% Net Profit Q Treasury & Investments 38.2% Corporate 45.5% Retail 16.3% 7

8 Strong Performance QR million QR million CAGR 7% CAGR CAGR 13% 8% Q112 Q113 Q114 Q115 Q116 Q117 Q118 Q112 Q113 Q114 Q115 Q116 Q117 Q118 Net Profit Operating Income 8

9 Noninterest Income QR million QR million CAGR 11% CAGR 7% Q112 Q113 Q114 Q115 Q116 Q117 Q118 Q112 Q113 Q114 Q115 Q116 Q117 Q118 Net Fee & Commissions Non Interest Income 9

10 Managing Efficiency 40% Cost Income Ratio Cost to Income Ratio (%) Q % 30% 25% 30% 25% 31% 27% 29% 31% 32% 30% 29% 31% 31% 30% Rayan QIIB Khaliji % 15% 10% 5% 0% Mar18 QIB QNB ABQ CBQ DB Asset per Employee QR million Profit per Employee QR Asset per employee Mar Headcount ,800 1,600 1,400 1,200 1, Profit per employee Mar , ,060 1,076 1,132 1,298 1,398 1,446 1,423 1,477 1,642 Headcount

11 Steady Balance Sheet Growth QR million Assets QR million Loans & Advances CAGR 13% CAGR 45,000 CAGR 35,000 39,883 16% 39,644 20% 40,000 38,165 30,308 35,000 31,380 32,299 30,000 28,936 26,861 24,045 25,000 30,000 26,177 21,308 25,000 20,606 20,000 17,312 20,000 15,000 14,014 15,000 10,000 10,000 5,000 5, Mar Mar18 QR million Deposits QR million Equity 30,000 25,000 20,000 CAGR 11% 18,891 19,893 20,384 25,011 23,569 24,115 6,000 5,000 4,000 3,442 3,563 4,171 CAGR 8% 4,540 4,860 5,294 5,031 15,000 13,953 3,000 10,000 2,000 5,000 1, Mar Mar18 11

12 Market Positioning Cost to Income Ratio (%) Q Rayan QIIB Khaliji QIB QNB ABQ CBQ DB Return on Assets (%) Q Rayan QIIB ABQ QNB QIB DB Khaliji CBQ Return on Equity (%) Q QNB QIIB Rayan QIB ABQ DB Khaliji CBQ NIM (%) Q QIIB QNB QIB Rayan DB ABQ CBQ Khaliji

13 QR million Asset Quality 32,000 30,000 28, , ,000 22, ,000 18, , ,000 12, ,000 8, , , , Mar18 NPL/Total Loans (%) Total Loans (Gross) 1,805 3,826 6,440 10,246 11,694 12,616 11,654 12,521 14,410 17,628 21,663 24,425 27,198 29,353 30,943 Standard Loans 1,402 3,467 6,276 10,092 11,535 12,382 11,312 12,152 13,953 17,376 21,404 24,123 26,974 29,061 30,647 Substandard Loans (NPL)

14 Loan Provision Coverage 250% 214.4% 200% 150% 150.6% 142.5% 136.9% 125.0% 126.0% 100% 89.5% 93.3% 89.0% 90.9% 92.4% 89.0% 92.2% 99.4% 86.7% 50% 0% Mar18 QR million Mar18 NPL Provisions Note: Provision coverage for Mar 2018 including stage 1 & 2 ECL provisions 14

15 QR million % Capital Adequacy Ratio 6, ,000 Tier I Tier II CAR (%) ,000 3, , , Mar18 Tier II Tier I 1,065 1,128 1,442 1,531 2,283 2,758 3,152 3,923 4,268 4,669 4,845 4,855 CAR (%) Note: 2017 CAR adjusted for IFRS 9 ECL provisions 15

16 Diversified Funding Mix Debut Syndicated Bank Facilities (Sep 2014) Lengthening Maturity Profile 3year US$ 200m Syndicated Term Loan Facility for general corporate funding purposes carrying a margin of 120 basis points over LIBOR Syndication was launched in an initial amount of US$ 100,000,000 and closed significantly oversubscribed Debut Fundraising in International Debt Capital Markets 5year US$ 500m EMTN tranche I was issued in Apr 2016 for general corporate funding purposes carrying a coupon rate of 3.625%. It was 2.4 times oversubscribed by more than 100 leading institutions against the backdrop of challenging and turbulent financial markets and volatile oil prices. 5 year US$ 500m EMTN tranche II was issued in Feb 2017 at a coupon rate of 3.50% and was 4 times oversubscribed despite challenging financial markets and increased market supply. Over 170 leading institutions from Middle East, Asia and Europe participated in the fundraising In October 2014 we raised additional longterm funding in a 5year QAR 750m Syndicated Term Loan Facility for general corporate funding purposes carrying a margin of 180 basis points over LIBOR With the new facilities, we have significantly improved our funding profile, positioning ourselves in line with most peers, and demonstrated our ability to access capital markets In 2015, we strengthened our stable funding with additional medium term loans In 2016, we successfully completed a US$ 500m debut fundraising in the international debt capital markets, which further improved the stability of our funding structure. In addition, we successfully raised a new 3 year US$ 195m club loan facility In February 2017, we successfully completed EMTN Tranche II of US$ 500m Description Principal (QR million) Maturity Tenor Term Loan Facility (US$) Oct years Term Loan Facility (US$) 91.0 Dec years Term Loan Facility (US$) Sep years Term Loan Facility (QAR) amortising Oct years Term Loan Facility (US$) Jun years EMTN Tranche I (US$) 1,820.0 Apr years EMTN Tranche II (US$) 1,820.0 Feb years Total 5, % 18% 15% 12% 9% 6% 3% 0% 18.6% Medium/Long Term Debt/Loan % to Total Liabilities March % 11.2% 7.7% 7.0% 5.5% CBQ ABQ Khaliji DB QNB QIB 16

17 Banking Partners Footprint Who do we principally work with? GCC Countries UAE Banks KSA Bahrain Oman Kuwait 17

18 ahlibank.com.qa Disclaimer: The description in this Investor Relations Presentation is provided for information purposes only and is not intended to advise any person to invest in the Bank or to induce or attempt to induce any person or entity to invest in any particular bank product. The information and opinions contained herein are provided for personal use and informational purposes only and are subject to change without notice.