Analyst Day November 2018

Transcription

1 Analyst Day November 2018

2 Vision and five year plan Joseph Abraham Group Chief Executive Officer Mr. Abraham has been the Chief Executive Officer of Commercial Bank since July 4th 2016 and has extensive banking experience across both developed and emerging markets. Mr. Abraham also serves as Board Vice-Chairman of Alternatif Bank and is a member of the Boards of the National Bank of Oman and United Arab Bank. Before joining Commercial Bank, Mr. Abraham was Chief Executive Officer of ANZ Indonesia (Australia and New Zealand Banking Group) based in Jakarta, a position he served in from 2008 to Mr. Abraham graduated with an MBA from Stanford Business School and has worked in Indonesia, Singapore, Hong Kong, Ghana, the UK and India in various country and regional banking roles with a successful track record covering general management, corporate banking, strategy, product management as well as acquisitions and integrations. Prior to joining ANZ Indonesia, Mr. Abraham was with Standard Chartered Bank, where he served in a number of roles including Chief of Staff to the Global Head of Client Relationship, Wholesale bank; Head of Strategy and Product Management, North East Asia; Managing Director and Chief Executive Officer Ghana; and Executive Director Corporate Banking. 1

3 Qatar in Perspective A Resilient and Well Diversified Economy Attractive Economic Growth High GDP per Capita (2017A GDP per Capita, US$ 000) Real GDP Growth 2018F Real GDP Growth 2017A 3,9% 3,2% 2,9% 2,7% 1,5% 1,6% 2,3% 2,2% 1,9% 0,0% 60,8 Constantly among world s top 3 economies in terms of GDP per capita since ,2 27,3 24,0 21,1 18,0 Bahrain UAE Qatar Kuwait KSA Oman -0,7% Deep Natural Resources Gas Reserves, 2017E, Trillion of Cubic Feet 858-2,9% Qatar gas reserves are forecasted to last for at least another 130 years. Qatar Gas Transport Company (Nakilat) LNG vessels represent a total investment of approximately US$11 bn and their combined carrying capacity equals 15% of world capacity (8.5 m cubic meters) Qatar UAE Kuwait Bahrain KSA Oman Well Diversified Economy, Set for Further Improvement Nominal Nonhydrocarbon Share of Overall GDP (%) 61% 70% 67% 64% 44% 48% Qatar KSA UAE Kuwait Oman Bahrain 2013A 2014A 2015A 2016A 2017E 2018F Source: International Monetary Fund, Qatar Country Report; International Monetary Fund, Middle East and Central Africa Regional Economic Outlook; EIA (US Energy Information Administration) 4

4 with a Stable Business Environment, Supportive of Foreign Investments Fiscal Breakeven Oil Price (US$) 2017 Current Account Balance (% of GDP) ,7 3,8 2,0 (3,9) (3,9) Iraq Iran (11,5) Kuwait Qatar UAE Saudi Oman Bahrain Kuwait UAE Qatar Kuwait Saudi Arabia Bahrain Oman General Government Fiscal Balance (% of GDP) 2017 Saudi Arabia Qatar UAE Highly Competitive Business-friendly Framework ( Global Competitiveness Report) 4,0 Yemen Oman #44 #52 #62 (1,8) (5,8) (9,0) (11,4) (15,1) #17 #25 #30 Kuwait UAE Qatar Saudi Arabia Oman Bahrain UAE Qatar KSA Bahrain Kuwait Oman Source: IMF, Middle East and Central Africa Regional Economic Outlook; International Monetary Fund, World Economic Outlook; World Economic Forum, The Global Competitiveness Report 5

5 Commercial Bank: A solid franchise built on more than 40 years of innovation and customer service Incorporated in 1974 as the first private bank in Qatar The first Bank in Qatar to introduce: ATM s Credit cards POS machines Personal & Vehicle Loans Internet Banking services 60 Second remittances Bank licensed brokerage on the Doha Securities Market A share listing (in the form of GDRs) on the London Stock Exchange A bond issue listing on the SIX Swiss Exchange 2

6 Commercial Bank: A solid franchise built on more than 40 years of innovation and customer service 3

7 Vision: To be the Best Bank in Qatar and world class in everything we do, recognized for our Five Cs Sustainable quality earnings, risk book re-shape, diversify revenue streams, cost control, subsidiary and associates contribution Good Governance - essential foundation for a bank, deferred executive remuneration People, Process, Technology Qatari Bank of Choice for our clients One Bank, Collaboration, No Bureaucracy, Empowerment, Teamwork, Realizing People Potential Digital Transformation, e2e, STP 6

8 Our 5-year plan, to be the Best Bank in Qatar recognized for our Five Cs Maintain a minimum CET1 range of 11.0% to 11.5% De-risk legacy assets, diversify the portfolio and proactively exit high risk names Reshape and diversify our loan book Costs broadly held flat until CB moves back into alignment with the market average Current CET1 of 9.7% vs 11.2% in our 2017 presentation impacted due to an IFRS9 one time charge Wholesale have exited QAR 3.7 billion of riskier names to date, up from QAR 2.8 bn in our last presentation with further exits planned Loan reshaping: real estate concentration decreased from 28% in 2016 to 26% in Sept Public sector concentration has increased in 2018 (net of one-off Government payment) CB Consolidated costs are down 12% year on year and the Cost/Income ratio has decreased from 38.1% to 33.5%. 7

9 Our 5-year plan, to be the Best Bank in Qatar recognized for our Five Cs Focus on client Experience as a key differentiator Deepen our digital leadership through end-to-end process automation Revamped Rısk culture Market leader for compliance and good governance Region-wide Alliance of banks with closer integration of risk protocols and business strategy for sustainable earnings Market leading mobile banking application, revamped existing branches, new Doha Metro branches and wealth management Robotics and straight through processing, 60 second online remittances, Trade Portal implementation. Remittance transactions up 258% Regular staff communications in place, Staff club and gym established, three new senior Qatari leaders to the Executive team Mandatory deferred executive remuneration linked to clear outcomes with Malus and Clawback Alternatif Bank new management proactively managing current situation. NBO net profit up 10% year on year. UAB is currently classified as asset held for sale 8

10 Our focus to dominate transaction banking is gaining momentum and contributing to revenue uplift while keeping Operating costs flat Example: International remittances market language (000) % +72% YTD Oct 2016 YTD Oct 2017 YTD Oct 2018 Transaction Banking Fee Income as a % of Total Income Transaction Banking fees 1 growth accelerating Off-Balance sheet fees Transaction Bank Fees FX (cards & remittance) % Sept YTD 2016 Sept YTD 2017 Sept YTD 2018 Operating costs reduce year on year 2 +16% ,8% 16,7% 19,2% 67-7% 62-15% 53 SEPT YTD 2016 SEPT YTD 2017 SEPT YTD 2018 Sept YTD 2016 Sept YTD 2017 Sept YTD FX Income (cards & remittance), Transaction Bank Fees, LC and guarantee fees, 2. TCS/CBIS cost over time 9

11 These measures are being recognized both by the market and commentators Annual change in Share price Commercial Bank Doha Bank QNB QIB 44% 40% 46% -9% -6% -2% -7% Cost of Risk (bps) -30% -20% -18% -25% -22% YTD Source: Qatar Stock Exchange 10

12 Capital and Financials Rehan Khan EGM, Chief Financial Officer Mr. Khan joined Commercial Bank as Chief Financial Officer in 2013 and has over 24 years banking experience, previously with HSBC working in London, India, Malaysia and Saudi Arabia. Mr. Khan graduated from the London School of Economics with a bachelor s degree in economics, trained with KPMG in London and is a member of the Institute of Chartered Accountants in England and Wales. Mr. Khan is also a Director of Orient 1 Limited and CBQ Finance Limited. 11

13 Progress against our 5-year plan : Continued progress on key indicators QAR Million Q Q Q Q CB Consolidated Q Q Q Q3 18 with Q2 18 equalized TL exchange rate Operating Income Costs Operating Profit Provision Associates Income Net Profit NIM 2.2% 2.2% 2.2% 2.3% 2.3% 2.3% 2.0% 2.2% C/I Ratio 40.1% 37.7% 36.6% 35.8% 33.9% 33.8% 32.7% 33.9% 12

14 Progress against our 5-year plan : Continued progress on key indicators QAR Million Q Q Q Q CB Consolidated Q Q Q Q3 18 with Q2 18 equalized TL exchange rate Lending Volume 82,029 83,610 84,534 89,123 92,728 87,195 84,783 86,959 Deposit Volume 71,879 74,391 73,282 77,633 79,300 75,116 74,894 77,018 NPL Ratio 5.0% 5.6% 5.6% 5.6% 5.3% 5.4% 5.5% 5.5% CET % 11.3% 11.3% 11.2% 9.3% 9.7% 9.7% 9.8% CAR 16.2% 16.1% 16.1% 16.1% 14.7% 14.5% 14.6% 14.7% 13

15 We continue to drive costs lower through increased efficiency while simultaneously investing in new technology Operating Expenses (QAR m) Cost income ratio Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 *Q3 18 at Q2 18 equalized TL exchange rate Cost to Income: Market Comparison * 48,2% 40,1% 35,8% 33,9% 33,8% 32,7% Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Sept 17 Sept 18 38,1% 33,5% 33,3% 28,8% 36,1% 36,5% Market Average 28.2% 29,4% 27,1% 28,6% 28,7% 27,4% 27,8% 25,7% 25,4% 24,3% 23,1% 22,1% 23,2% CB Con CB Dom Doha QNB Ahli Khaliji QIB QIIB Rayan 14

16 Necessary provisions have been taken on the legacy portfolio in line with our strategy. Enhanced Risk Culture to significantly reduce cost of risk moving forward Cost of Risk (%) Loan Coverage Ratio 74,3% 71,0% 78,9% 81,0% 83,5% 2,00% 1,64% Sept'18 1,13% Target Cost of Risk (%) Q Market Comparison 0,89% 0,95% 0,80% 1,19% 0,95% 0,71% Market Average 0.43% Sept ,37% 0.14% 0,47% 0.18% 0,00% Long term Cost of Risk target of 50bps CB Con Doha QNB Ahli Khaliji QIB QIIB Rayan 15

17 2019 Outlook: Key Financial Ratios Original 2018 guidance Revised 2018 guidance 2019 guidance Loan growth 7% - 9% Flat or 1% above Dec % NIMs Decrease by 10 to 15 bps Decrease by 10 to 15 bps Maintain NIMs but could be downside risk of 5 bps Cost of Risk 1% 1% 0.8% Cost Income ratio Reduction by 2% to 36% At Q3 levels 33.5% Reduction by 2% to 31.5% 16

18 Wholesale Banking Raju Buddhiraju EGM, Head Wholesale Banking Mr. Buddhiraju has been the EGM, Wholesale Banking of Commercial Bank for the last 4 years and has extensive banking experience in various countries including Middle East. Before this stint in Commercial Bank, Mr. Buddhiraju worked at Dubai Islamic Bank in Dubai and in Arab National Bank in Saudi Arabia. Prior to that, he has worked in Citibank in several senior roles in India, Singapore, Hungary & Poland for 13+ years. Mr. Buddhiraju graduated from the Indian School of Mines in Petroleum Engineering and has an MBA from the Indian Institute of Management, Calcutta, India. He completed the Executive Program in Marketing Strategy for Senior Managers in Kellogg School of Management, Northwestern University, USA. 17

19 Priorities of Wholesale Banking Growth of Balance Sheet with focused origination Robust risk culture Expect growth of 5% in line with the market Strategic Re-shape Public Sector Business (YTD Sep 2018 growth of 8%) Real Estate Exposure reduction (Target to reduce by 2% every year) De-risking Dominate Transaction Banking Dominate Cash Management and trade Enhance technology to world class levels Deliver superior client experience Scale up Cash Management (20+ large customers in 2019) New product launches (Supply Chain Finance) 18

20 Increase Government & Public Sector Business QAR Billions Dec-17 Sep-18 Growth Amount % Govt. Short Term Borrowing 5,649 1,753 (3,896) -69% Public Sector 7,203 7, % Total Gov't & PS 12,852 9,506 (3,346) -26% Expect 15% growth in 2019 in Public Sector for CB. Strong pipeline of approx. QAR 5 billion in Public Sector for CB. Government & Public Sector Companies in Qatar Market Opportunity 160+ companies QAR 340 billion (Sep 2018 QCB Data) CB Penetration: Market share 2.4% Penetration 5% Penetration in 2018 increased from 2.8% to 5% in Govt. & PS. 19

21 Strategic Re-shape Balance Sheet Reshape the composition of the balance sheet to reflect the market (focus on Government & Public Sector and rationalise Real Estate) Sep 2017 Actual Sep 2018 Actual* Government & Public Sector 13% 21% 17% 21.5% Real Estate 37% 25% 31% 29.3% *Approx QAR 2.5 Bn of Govt. Short Term borrowing got settled; with that settlement YTD Sep 2018 Govt & PS is 17.8% & Real Estate is 30.7%. 20

22 Dominate Transaction Banking 360 Cash Management & Trade INFLOWS - Cash Collection (Physical) - Inward Remittances - Remote Cheque Deposit - PDC Collection and Custody - Customized Receivable Collection - Direct Debit - Payment Gateway LIQUIDITY MANAGEMENT - Maximizer High Yield Tiered interest rates - Sweep and Cash Concentration - Account Aggregation - Swift Advices Online - Cash pooling - Cheque Management 15% 18.18% OUTFLOWS TRADE - Vendor Payments - Bulk Bill Payment - Corporate Credit Card - WPS Payroll and Pay Card Management -Outward Remittances - LC and LGs - LC and Non LC Refinance - Bill Discounting - Collections - Structured Trade CB Competitive Advantage - Pre-implementation Support - Flexibility - Customization - Post-launch support Change from Transactional to Turnkey 21

23 Dominate Transaction Banking Transaction Banking fees growth accelerating Transaction Banking Fee Income - Wholesale 160,0 140,0 120,0 100,0 80,0 60,0 40,0 20,0-27% 21% % ,6 59,6 57,9 12,9 10,4 15,3 28,9 31,3 45,5 Sept YTD 2016 Sept YTD 2017 Sept YTD 2018 Off-Balance sheet Fees Banking Service Fees FX Income (remittances) Transaction Banking Fees increase from 15% to 17% of the total Wholesale revenues. 22

24 Dominate Transaction Banking Recent Wins Sector Annual Business Mandate received Telecom 1 QAR 2.1 billion May 2018 Petrochemicals QAR 1.1 billion August 2018 Telecom 2 QAR 0.9 billion November 2018 Oil & Gas QAR 0.25 billion Going live on January Awards : Best Cash Management Bank in Qatar Best Transaction Bank in Qatar 2016 Best Cash Management Bank in Qatar 2017 Best Cash Management Bank in Qatar 23

25 Retail and Consumer Banking Amit Sah EGM, Head of Retail Banking Mr. Sah brings a wealth of banking experience to Commercial Bank, with over 25 years serving in various senior management roles. Before joining Commercial Bank in December 2016, Amit was with Citibank based in London as Regional Head of their retail and cards business covering Europe, the Middle East and Africa. Prior to that he was the Head of Citibank consumer banking in Thailand and in Russia. 24

26 A strong and diverse business Market leading position in Retail Banking A meaningful contribution to CB, with high ROE One of the largest franchises, matching the biggest banks in the country 17% of assets, 33% of deposits 44% of operating income, 30%+ ROE Deeply embedded franchise in the community High quality & diversified income profile A trusted brand, with loyal customer base Well represented in key segments Over 75% of income from deposits and fees Providing stable & capital efficient earning streams Robust Retail loan book 62% with tangible security, 37% against salary Liquid Balance Sheet with high quality deposit base Loan to Deposit Ratio 57% 53% low cost funds 25

27 Key Customer Segments Market leading Private Banking and Sadara Wealth opportunity largely untapped Salaried Customers Enterprise SME Over 10,000 high value clients with well established Relationship based banking Est. 50k customers with +$1Mn investable assets Investing in our proposition with goal to double market share in 3-5 years Transactional banking of 600k+ customers Generating QR32 Bn annual flow Controlled growth with income source evenly split Loan Margin 26% : Deposit Margin 36% : Fee 38% Growth in Salary Credit (QAR Bn) 29,1 9% 31,

28 Leadership Position in Digital Banking Launched a world class digital remittance service Over 1.2 million transactions completed through the 60 seconds value proposition Leading edge Mobile App Modern, fully functional and easy to use, with high use and high customer satisfaction 90%+ Leveraging new technology International Remittances (Volume 000s - All Currencies) x6 399 Launching Mobile Wallets, optimizing QR Codes, use of biometric face recognition & voice commands The No.1 Financial App in Qatar 64 Q Q

29 Dominating Cards Market leader in Qatar for credit card proposition 1 Million cards, total spend $2.75 Billion p.a. Growing faster than market average Dominant Player in Acquiring Business in Qatar 7,500 merchants, 11,000 POS 50%+ Market Share (non government) Transforming the payment eco-system in Qatar, complementing Qatar s payment systems vision 300k+ contactless transactions and 150k+ cards Unique ability to lead change Growth in Contactless Transactions x9 April October *Source: Lafferty, World Cards Intelligence Qatar Country Report, Oct

30 Transforming Physical Channels Optimizing the branch network Continue to relocate and right size in strategic locations, using robust profitability models Modular, modern, dynamic approach Leveraging Self Service Metro Stations, low cost, efficient space, mixture of self service and assisted With the 2 nd largest ATM fleet in the country, we continue to widen functionality and capability in key locations 29

31 External endorsement always helps.. Asian Banker Best Remittance Service in Middle East 2018 Asian Banker Best Retail Bank in Qatar 2017 and 2018 VISA Award Leading E-Commerce Growth Well positioned for a strong and sustainable growth trajectory 30

32 International Banking Fahad Badar EGM, International Banking Fahad Badar s career at The Commercial Bank (P.S.Q.C) spans over 18 years. He held a number of senior roles in Wholesale Banking, Government Sector and International Banking. In addition, he occupied other key positions in Retail Banking and Operations. Mr. Badar holds a Bachelor s degree in Banking & Finance from Bangor University and an MBA from Durham University, UK. He is the Director of United Arab Bank and National Bank of Oman. 31

33 International Banking: On Track for Diversification and Healthy Growth - Progress and Deliveries in 2018 International Banking Key Source of Diversification for the Bank Strategic Priority Actions Overview Progress in 2018 Greater geographic diversification for a healthier risk profile Decrease concentration in areas where the Bank holds also equity exposures (Turkey) Target geographies with high growth potential (Asia and Africa) Leverage the Qatar trade and investment flows with a number of selective geographies ( Europe and America) No additional asset bookings in high concentration areas in 2018 Focus on select transactions across Africa and Asia Qatar angle a key criteria for execution considerations Enhanced value proposition to accelerate growth Building up a distribution capability through Structured Finance dedicated resources Acquire origination capabilities across targeted geographies vs. plain syndication participation Increase cross-sell efforts especially for off B/S income Work in progress on the development of distribution and origination capabilities Significant cross sell income enhancement through major treasury cross sell trades Portfolio quality focus to ensure future sustainability Dedicated portfolio strategy detailing exhaustively risk governance parameters Prudent lending criteria Prudent country and ticket limits Maintain improved overall quality of the portfolio (higher by one notch equivalent vs and 2016) No major credit incidents so far Note : International corporates and financial institutions portfolio booked out from Qatar only 32

34 International Banking: 2019 Key Themes 5-Yr Strategic Priority 2019 Key Themes 2019 Expected Challenges Diversify geographically Continue deleveraging in areas of high concentration and build up on the momentum in under-represented areas (Asia, Africa, Europe) Possible liquidity and funding challenges Higher focus on domestic markets might impact international lending possibilities Grow and leverage the Alliance synergies Concentrate efforts on synergies with A-Bank in Turkey and NBO in Oman for cross sell and joint deals executions Challenging regional situation and market tensions across the emerging markets space may impact some of the Alliance geographies Focus on portfolio quality and reinforce track record Maintain high double digit RAROC while ensuring high quality overall rating of the book Regional situation and global economy headwinds impact to be monitored closely 33

35 International Banking: Key Principles and Guidelines Short Tenors Good Credit Quality Alliance Synergies Healthy Growth Geographic and Sector Diversification 34

36 Balance Sheet Management Parvez Khan EGM, Treasury, Investments & Strategy Mr. Khan has over 20 years of experience in Treasury Capital Markets and Investment Banking and joined Commercial Bank in 1994, being initially responsible for setting up the investment services business. Mr. Khan graduated from Aligarh Muslim University with a Bsc in Chemical Engineering and completed a Diploma in International Capital Markets from The New York Institute of Finance. In addition to his current role, Mr. Khan is also a Director of Commercial Bank Investment Services. 35

37 International markets remain confident of Qatar and Commercial Bank Current Liquidity Liquidity in the local banking system has improved over the past 5 months even as the majority of funding from the boycotting GCC countries has exited the market. Liquidity has been sustained through diversification of product and customer channels; A USD 500m Commercial Paper (CP) program has been renewed with Wells Fargo and issuance is active. CHF 435 million has been raised through debut and follow-upswiss public bond issuances USD 500 million REG S USD bond issuance Sufficient Liquidity buffers are maintained including > QAR 9bn Qatar Sovereign bonds available for repo with the Qatar Central Bank. Funding Outlook A range of capital market issuances are being considered : Syndicated loan Formosa bond issuance EMTN issuance Kangaroo/AUD bond issuance Tier II capital issuance Chinese Renminbi bond issuance Ninja Loan 36

38 Well Diversified Funding Mix Diversified Funding Mix Total Funding Mix 30 September 2018 Our strong customer franchise provides the bank with a healthy mix of current call and saving accounts. The Capital Market funding increases the duration of our funding profile and provides net stable funding. Debt maturities of Debt Securities & Other borrowings» Due to Banks and Financial Institutions 8% 18% 14% 5% 54% Customers Deposits approximately USD 2bn are scheduled for 2019 which we are confident of replacing with new issuance in Total Shareholder s Equity Qatari Banks Deposit by Sector 30 September 2018 Deposit by Customer Type 30 September 2018 Gov. & Semi- Gov. Agencies 36% Non Resident; 19% Corporate; 23% Individuals; 22% Corporate 26% Individuals 29% Non resident 16% Gov. & Semi- Gov. Agencies 29% 37

39 High Quality Investment Portfolio Investment Portfolio dominated by high quality government bonds 91% of portfolio with 89% of securities within the portfolio in AA rated securities, (increasing from 82% Dec 2016) High quality securities improve liquidity as the majority are acceptable as collateral under Repurchase arrangements During 2018 we have reduced exposure to equities from 2% to less than 1% as part of a conscious strategy to exit equities and alternate investments. Investment Portfolio 30 September 2018 Asset Quality Investment Funds 0,4% Other Debt Securities 8,1% Equities 0,7% Rating Sept 18 Dec 16 AA- and above 89% 82% A+ to A- 2% 9% Government Bonds 90,9% BBB+ to B- 4% 7% Unrated 5% 2% 38

40 Operations Dr. Leonie Lethbridge EGM, Chief Operating Officer Dr. Lethbridge joined Commercial Bank in July 2017 from the ANZ Banking Group, where she was CEO of ANZ Royal Cambodia. In her fifteen years at ANZ, Leonie held a number of senior roles including Regional Chief Operating Officer Asia; Chief Operating Officer Indonesia; Head of Integration and Enablement Indonesia; Acting Head of Risk Asia Pacific; and Head of Risk International Partnerships. Dr. Lethbridge has a PhD from the Swinburne University of Technology, a Master of Applied Science (Innovation and service management) from RMIT University, and a Bachelor of Applied Science (Hons) from the University of New South Wales. 39

41 Creation of CB Innovation Services Competitive Advantage in Operations & Tech Delivery Rationale: goal is to dominate transaction banking Operational Cost reduction post Captive in 2017 Leverage existing market position to deliver NFI and NIM benefits Implication: need is to enable exponential increases in transaction volumes, and to generate new product and service offerings Requires a scale-agnostic cost model Previous model linked volume with cost Created a scale agnostic model Created a company in Qatar Financial Centre: CBIS Completely different remuneration set and approach Operational, technology and client capabilities all under one roof Delivers control of operating model Expanded the model 5 additional functions and 100+ additional roles migrated successfully to CBIS Established Centre of Excellence for advanced capabilities, including RPA 48M 25M F 40

42 CBIS is the platform for strategic leadership in Transaction Banking Automate for STP Process re-engineering and automation for productivity Smart forms for Account opening and Funds transfers driving better client experience High-volume remittance business delivered with volume-agnostic expense Revamp End to End Operating model Leveraging market leader in Robotics Process Automation to automate high volume, value and risk process Use acquired process flexibility and control of operating model to drive End-to End digitization. (e.g. 95% digitized Payroll processing ) Real time tracking of trade transactions Building leading edge capability Investing in key capabilities and infrastructure for faster innovation e.g. AI/ML & advanced analytics Creating leading edge products and services such as CB Trade Tracker 41

43 Summary & Close 42

44 Vision: To be the Best Bank in Qatar and world class in everything we do, recognized for our Five Cs Sustainable quality earnings, risk book re-shape, diversify revenue streams, cost control, subsidiary and associates contribution Good Governance - essential foundation for a bank, deferred executive remuneration People, Process, Technology Qatari Bank of Choice for our clients One Bank, Collaboration, No Bureaucracy, Empowerment, Teamwork, Realizing People Potential Digital Transformation, e2e, STP 43

45 Summary Five Year Plan and Strategy We are on track to deliver on our Five Year Plan. An important element of which, is to dominate transaction banking in Qatar where we have made tremendous progress Liquidity We have a well diversified funding mix, a high quality investment portfolio and sufficient liquidity buffers Capital and financials Our loan growth outperforms the market and the loan portfolio reshape is starting to take effect. Legacy provisions have been taken and we have driven significant operational efficiencies Wholesale Banking We are reshaping our portfolio while driving forward with our strategy to dominate transaction banking 44

46 Summary International Banking We continue to diversify and are on track for healthy growth Operations Retail and Consumer Banking We have a strong and diverse business and are accelerating our digital initiatives We have insourced our core capability to deliver scale agnostic growth in support of our strategy to dominate transaction banking 45

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48 Panel Discussion Q & A 47