Qatar Islamic Bank (Q.P.S.C.) QIB... · Al Khaliji Bank QIIB Ahli Bank 0 150 300 450 600 750 900 1,050 Total Assets Assets - Market Share 653 107 89 76 65 30 32 30 663 107 74 67 59

Qatar Islamic Bank (Q.P.S.C.)Investor PresentationDecember 2019

Qatar Islamic Bank Page | 2

1Introduction

2Operating Environment

3QIB Business Review

5Appendix

4QIB Financial Overview

Agenda


QH (QIA), 16.7%

Others, 83.3%

Introduction Financial Snapshot

QIB’s Business Units

Shareholder structure / Strong Government Linkage

Qatar Islamic Bank (“QIB” or the “Bank”) was incorporated in 1982 as the

first Islamic financial institution in Qatar.

Largest Islamic bank (approximately 51% 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 30 branches and offices and over 181 ATMs and CDMs as at

30 Dec 2019.

Leading domestic franchise supported by selective international

footprint, with investments in the UK, Sudan and Lebanon.

Strong financial profile with continued growth in recent years and

robust risk management framework.

Rated A1 by Moody’s, A by Fitch, A+ by Capital Intelligence and A- by

S&P.

• QIB’s shares are listed on the

Qatar Stock Exchange.

• The Qatar Holding LLC (“QIA”)

is the single largest

shareholder of QIB.

• The balance of QIB’s

shareholders comprise prominent

Qatari individuals, families and

institutions.

QAR million Dec-19 Dec-2018 Dec-2017

Total Assets 163,519 153,232 150,375

Total Financing Assets 113,754 102,210 102,613

Total Deposits(2) 111,621 100,598 101,815

Shareholders Equity(3) 17,133 15,420 15,289

Total Equity 22,159 20,739 20,880

Net Profit(3) 3,055 2,755 2,405

Non-Performing Financing (1) (%) 1.2% 1.2% 1.2%

Financing to Total Deposits(2) (%) 101.9% 101.6% 100.8%

Capital Adequacy Ratio(4) (%) 19.5% 18.8% 17.3%

Market Capitalisation 36,224 35,917 22,920

Source: QIB financial statements

(1) As percentage of Total Net Financing Assets

(2) Customers’ Accounts + Unrestricted Investment Accounts

(3) Attributable to shareholders

(4) Ratio calculated as per Basel III guidelines in accordance with QCB regulations

94% of Net Operating Income & 99% of Net Profit (3)

Wholesale Banking

Group Function

Personal Banking

Subsidiaries

Introduction

Note: As at 30 Dec 2019


First and largest

Islamic bank in Qatar

by total assets

Strong brand in Islamic

banking & innovative

product offering

Operates out of one of

the fastest growing

economies in the world

Second largest bank in

Qatar by total assets,

financing assets and

net profit

Higher operating

efficiencies

Ambitious

transformation

program

Qatar-centric with

selective international

presence

Strong Government

support with the QIA as

its largest shareholder

Strong capital position

& asset quality

Maintained consistent

profitability

Key Credit Strengths


1Introduction



5Appendix


Agenda


Overview of the State of Qatar (“Qatar”) One of the Largest Hydrocarbon Reserves in the World

Middle East

Ratings

Moody’s: Aa3/ Stable

S&P: AA-/ Stable

Fitch: AA-/ Stable

Nominal GDP (2018): QAR 685 bn

Per capita income (2018): QAR 246,859

Population (2018): 2.7mn

Qatar’s Credit Highlights Strong Wealth Generation

44102 98

150

25

266298

15193

58

11 38

23

155

5235

212

197

0

100

200

300

400

USA Kuwait UAE Iraq Qatar KSA Venezuela Iran Russia

Oil Gas

Total oil & gas reserves (bn boe)

Sources: Bloomberg, BP, IMF, JODI, MDPS, MoF, QCB and QNB Group forecasts

93

6658 61

71

4% 4%2% 2%

3%

0%

5%

10%

15%

20%

2014 2015 2016 2017 2018

0

10

20

30

40

50

60

70

80

90

100

GDP per capita (PPP US$ thousands) Real GDP growth rate (%)

Source: International Monetary Fund (IMF)

State of Qatar – Sustainable and Robust Growth Story…

Source: International Monetary Fund (IMF)

• Third largest gas reserves in the world(1) (~13% of world’s total) and

largest exporter of LNG

• Among world’s wealthiest economies with robust growth prospects

• Historically large surpluses in both fiscal and external accounts that

moved to fiscal deficit at manageable levels with the fall in oil prices. The

State is expected to post a surplus in the upcoming two years on the

back of higher oil prices.

• Low level of sovereign indebtedness with no external liquidity pressure

• Track record of prudent budgetary and financial policymaking

• Sovereign's financial strength is also underpinned by investment

holdings by the Qatar Investment Authority

• Stable political and attractive operational environment


3.4%

1.8%2.7%

0.4% 0.2%

2014 2015 2016 2017 2018

(5%)

(0%)

5%

206162 152 167

192

51 57 71 90 93

2014 2015 2016 2017 2018

0

50

100

150

200

GDP Government debt

31.5

8.8

(7.2)(2.7)

6.8

15.3%

5.4%

-4.7%-1.6%

3.6%

(6%)

0%

6%

12%

18%

2014 2015 2016 2017 2018

-10

0

10

20

30

40

Surplus % of GDP

Fiscal Position Current Account Balance

Low Level of Indebtedness CPI Inflation (y-o-y)

Current account balance (USD bn and % of GDP)Fiscal surplus / deficit (USD bn and % of GDP)

49

14

-8

6 924.0%

8.5%

-5.5%3.8% 4.8%

(9%)

(1%)

7%

15%

23%

31%

2014 2015 2016 2017 2018-9

3

15

27

39

51

63

Surplus % of GDP

Nominal GDP vs. Government debt (USD bn)

Source: Qatar Central Bank annual report and International Monetary Fund (IMF)

Economic Indicators

Source: Qatar Central Bank annual report and International Monetary Fund (IMF)

Source: Qatar Central Bank annual report and International Monetary Fund (IMF) Source: Qatar Central Bank annual report


Qatari Banking Sector – Robust Operating Environment

(QAR bn) (%)

General Overview

Total Assets (Sep’19) – Listed Banks

• Qatar Central Bank prohibits conventional banks from providing

Shari’a-compliant financing – the Qatari banking sector consists of 18

banks:

– Four local (exclusively) Islamic banks

– Six local conventional commercial banks

– Seven foreign banks

– One development bank

• Total assets of QAR 1,570 bn (listed banks regulated by QCB) as at 30

Sep 2019 with strong and sound regulatory environment

– Minimum capital adequacy ratio of 13.5% including ICAAP charge

but excluding DSIB capital charge

– Maximum credit limit to single customer of 20% of a bank’s capital

and reserves

The State of Qatar has been Supportive Throughout Crisis

October 2008QIA announced plans to acquire equity ownership interests

of up to 20% in domestic banks listed on the QE

March 2009The Government proposed to purchase the domestic equity

portfolios of seven of the nine domestic QE-listed banks

June 2009The Government purchased USD 2.7 bn worth of real estate

financings and other exposures of Qatari banks

2010 & 2011The Government issued USD 16.4 bn worth of Sukuk and

bonds to absorb excess liquidity in the Qatari banking sector

June 2017

Funding provided to support the liquidity requirements in the

banking system which was impacted due to withdrawal of

funds by blockading countries

Total Financing and Deposits (Sep’19) – Listed Banks

(QAR bn)

912

155 146 105 107

51 53 42

9.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

QNB QIB CBQ MasrafAl

Rayan

DohaBank

Al KhalijiBank

QIIB AhliBank

0

150

300

450

600

750

900

1,050

Total Assets Assets - Market Share

653

107 89 76 65 30 32 30

663

107 74 67 59 27 32 25

9.9%10.1%

0%

10%

20%

30%

40%

50%

60%

70%

QNB QIB CBQ Masraf AlRayan

DohaBank

Al KhalijiBank

QIIB Ahli Bank

0

100

200

300

400

500

600Total Financing

Total Deposits

Market Share Financing

Market Share Deposits


Qatari Banking Sector – Continued Growth

750912 1,001 1,016 1,081

2015 2016 2017 2018 Sep-19

0

200

400

600

800

1000

1200

650

871976 988 1,054

2015 2016 2017 2018 Sep-19

0

200

400

600

800

1000

1200

QAR bn

Selected key bank regulations:QAR bn

1,1201,313 1,445 1,485 1,570

2015 2016 2017 2018 Sep-19

0

300

600

900

1200

1500

1800

QAR bn

Assets (2) Bank Financings and Advances (2)

Deposits (2) Prudential Regulatory Framework for Banks

(1): As per the QCB’s calculation: (Total facilities – (Specific Provisions + Suspended Profit + Unearned Income) + Acceptances) / (Customer Deposits + Sukuk Issued)

2): Listed Qatari Banks – Qatar Exchange

Source: QCB, IMF

Capital

Minimum capital adequacy ratio requirement for 2019 under

Basel III is 13.5% including ICAAP charge but excluding

DSIB capital charge

LiquidityReserve requirement of 4.5% of a bank’s total deposits to be

kept with the QCB

Financing

Maximum financing to deposits (incl. LT debt) ratio of 90%(1)

and financing to real estate limited 150% of shareholder’s

equity

Ownership Permitted foreigner ownership of up to 49% in listed banks

ProvisioningRisk reserves of min. 2.5% of total credit facilities in addition

to NPL provisioning depending on classification of financing

Source : Financial statements of the banks from Qatar Exchange) Source : Financial statements of the banks from Qatar Exchange

Source : Financial statements of the banks from Qatar Exchange


1Introduction



5Appendix


Agenda


Overview of QIB

Domestic Holdings

QIB’s Product and Geographic Diversification

International Holdings

While Qatar-based banking operations contributed over 89.1% of the Group’s Net Operating Income, QIB has expanded its platform over recent years

Investment Banking Financing Insurance

QIB listed on Qatar

Stock Exchange

2010: QIB launched USD 750 mn Sukuk

2011: Paid up capital increased to QAR 2,362 mn (USD 649 mn)

2012: Sukuk program of USD 1.5 bn was established

2013: Set up QIB Sudan

2014: Increased holding in QInvest to 50.13%

2015/2016 : Issued QAR 4 bln (USD 1.1 bn) of AT1 Sukuk

2017: Sukuk program size increased to USD 4 bn

2018: Sold stake in AFB

Arab Finance House

established in Beirut

(37% owned by QIB)

Al Jazeera Finance

established (30%

owned by QIB)

QIB established with

paid up capital QR

25mn (equivalent to

USD 6.9mn)

1982 1983 1989 1996 1998 2000 2003 2005 - 2009 2010 - 2019

First branch opened

for customers in July

1983

Paid up capital

increased to QR

200mn (USD 54.9mn

equivalent)

Aqar established

(49% owned by QIB)

2005: QIB branches at 8; paid up capital increased to USD 182mn

2007: Asian Finance Bank established (21% owned by QIB)

2006: QIB changed its identity; paid up capital increased to USD 327mn

2007: QInvest established (25% owned by QIB)

2008: QIB-UK established (60% owned by QIB)

2009: BEEMA established (25% owned by QIB)

Phase 1: Creation of the Bank Phase 2: Creation of a strong banking platform

Real Estate

58.17% 30.0% 25.0%

39.9%

99.7%

99.99%

= Ownership

49.0%

http://www.rsgqatar.com/index.php


Product / Services

• Deposits

• Current Accounts

• Credit Facilities

• Trade Finance

• Cash Management

• WPS

Segments

• Government Related Entities

• Financial Institutions

• Contracting & Real Estate

• Commercial

• Individual RE & General coverage

• Small & Medium Enterprises

• Cross border and Oil & Gas

47.7%

36.9%

14.8%

0.5%

38.5%

34.3%

21.2%

6.1%

Net Profit(1) QAR 3,055 Mln

Net Operating Income(2) QAR 4,830 Mln

Business Units Overview – Revenue & Profit Diversification

Treasury

• Sukuk and Local Equity

Investment Portfolio

• Treasury Services and Sales

• Liquidity Management

Investments

• Associates

Al Jazeera Finance

Beema (Al Damaan Islamic

Insurance)

• Real Estate & International

Investments

Product / Services

• Deposits

• Current Accounts

• Consumer Finance

• Cards

• Remittances

• Takaful

Segments

• Individuals

• Affluent

• HNWIs

Local Subsidiaries

• QInvest

• Aqar

• Durat-Al-Doha

International Subsidiaries

• QIB-UK

• Arab Finance House

(1) Net Profit : Net Profit Attributable to Equity Shareholders

(2) Net Operating Income : total income net of profit to unrestricted investment account holders and share of Sukuk holders profit + income from discontinued operations

Group Function Local & International

Subsidiaries

Corporate BankingPersonal Banking


Board Committees

Director Designation

Mr. Abdullatif Bin Abdulla Al Mahmoud Vice Chairman

Sheikh Ali Bin Ghanim Bin Ali Al Thani Board Member

Mr. Mohamed Bin Issa Al Mohanadi Board Member

Mr. Abdul Rahman Abdulla Abdul Ghani Nasser Board Member

Mr. Mansour Mohamed A. Fattah Al Musleh Board Member

Sheikh Abdulla Bin Khaled Bin Thani Al Thani Board Member

Mr. Abdulla Bin Saeed Al Eidah Board Member

Mr. Nasser Rashid S. Al-Kaabi Board Member

Sheikh Jassim Bin Hamad Bin Jassim Bin Jaber Al Thani, Chairman of

the Board

Member of QIB Board of Directors since June 2004, and became

Chairman in April 2005. Graduated from Sandhurst Royal Military College

in the United Kingdom, and had a high level leadership training. He is

Chairman of QInvest - the first Islamic investment bank in Qatar,

Chairman of Milaha and Chairman of Beema (Daman Islamic insurance

company in Qatar). He is also a board member of Qatar Insurance

Company and other several financial and investment companies.

Board of Directors

Effective Board Oversight

QIB is committed to strong corporate governance practices, with its Board of Directors meeting at least six times a year

Policies & Procedures

CommitteeFour members

• Study, prepare and

develop strategies,

objectives, policies,

systems, plans,

budgets and work

procedures

• Monitor practices and

performance versus

approved business

standards, strategy and

budgets

Nomination &

Remuneration CommitteeThree members

• Select and evaluate

applicants for senior

executive posts and

provide

recommendations to

Board

• Determine senior staff

rewards and privileges

Zakat CommitteeThree members

• Promote

interdependence and

integration among

members of the Muslim

community by

channeling

contributions of Zakat

• Develop good

relationships with

charitable,

humanitarian aid

groups and institutions

and oversee QIB’s

Zakat

collection/disbursement

Executive CommitteeSix members

• Provision of ongoing information to the

Board on business developments and

regular review of business segments

• Advise on strategic decisions and

coordinate activities of all divisions and

subsidiaries

• Approve credit facilities and limits that

fall within authorities

Audit, Risk & Compliance Committee

Three members

• Review financial control, internal

control and risk management

framework & systems

• Establish risk appetite and monitor

overall portfolio while reviewing

effectiveness of system to monitor

compliance with laws/regulations

• Oversight of internal and external

(including financials) audit processes


Gourang Hemani

Chief Financial Officer

• 27 years experience

• Indian

• Banque Saudi Fransi

• Standard Chartered

• PWC

Khalefa Al Mesalam

Human Capital

Constantinos Constantinides

Chief Strategy Officer


• Greek Cypriot

• Al Rajhi Bank

• Accenture

Rakesh Sanghvi

Chief Risk Officer


• Indian

• Ahli United Bank

• E&Y

Bassel Gamal

Group CEO

Dorai Anand

Personal Banking


• Indian

• Al Rajhi Bank

• Citi Bank

Tarek Youssef Fawzi

Wholesale Banking


• Egyptian

• Mashreq Bank

• Burgan Bank

• National Bank of Oman

Experienced Leadership


• Egyptian

• Ahli United Bank Group

• Chase National Bank

Lav Kataria

Chief Operating Officer


• Indian

• Citi Bank

• Barclays Bank


• Qatari

• HSBC

• Al Khaliji Bank


The Shari’a Supervisory Board is primarily responsible for monitoring the

Bank’s operations compliance with the Islamic Shari’a principles and review

the processes and products presented. It acts as an independent body of

specialist jurists in Fiqh-Al-Muamalat. The Board is responsible for the

following:

Provide Islamic advice and guidance based on QIB's management

request.

Review Auditors’ Reports in compliance with Shari'a and report to

members about that subject.

Determine whether contracts, transactions and dealings presented to the

board complies with Shari’a.

Approve QIB marketing materials that is presented to the board.

Ensure with possible means that all earnings realized from sources or by

means prohibited by Shari’a are disposed of to charitable causes

His Eminence Sheikh Walid Bin Hadi

Chairman of Executive Committee

Prof. Abdul Sattar Abou Ghodda

Member

Dr. Mohamad Ahmaine

Member

Sharia’s Supervisory Board Members

Sharia’a Supervisory Board

QIB enjoys a strong Islamic heritage and has based its success on sound Sharia’a-compliant principles, under the supervision of an expert Shari’a Supervisory Board


1Introduction



5Appendix


Agenda


Profitability

• Stable balance sheet growth total assets reached

QAR 163.5 bn with a growth of 6.7% in 2019 and

1.9% in 2018.

• Financing assets reached QAR 113.8 bn in 2019

with a growth of 11.3% in 2019.

• Strong asset quality and prudent risk

management policy NPF ratio at 1.3% and

provision coverage ratio at 100%

• Customer deposits reached QAR 111.6 bn in 2019

with a growth of 11% in 2019.

• Strong profitability with net profit at QAR 3,055

mn with a growth of 10.9% in 2019 vs.14.6% in

2018.

• Robust net operating income at QAR 4,830 mn

with a growth of 7.3% in 2019 vs. 8.2% in 2018.

• Operating efficiency: Cost to income ratio

improved to 22.8% in 2019 vs. 25.4% in 2018.

• Adequately capitalized the Basel III capital

adequacy ratio stands at 19.5% as of Dec-2019

compared to 18.8% in Dec-2018, comfortably above

the minimum requirement of 14.5% including ICAAP

and DSIB charge.

Financial Overview

Financial Position Key Highlights


(1) Attributable to shareholders of QIB

(2) Net Operating Income : total income net of profit to unrestricted investment account holders and share of Sukuk Holders’ Profit + income from discontinued operations

(3) Investments includes investments securities , investments in associates and investments properties

QAR million Dec-19 Dec-18Growth-

2019Dec-17

Growth-

2018

Total Assets 163,519 153,232 6.7% 150,375 1.9%

Total Financing 113,754 102,210 11.3% 102,613 -0.4%

Total Deposits 111,621 100,598 11.0% 101,815 -1.2%

Investments(3) 35,992 33,273 8.2% 33,015 0.8%

Shareholders Equity(1) 17,133 15,420 11.1% 15,289 0.9%

Total Equity 22,159 20,739 6.8% 20,880 -0.7%

Financing to Deposit Ratio (%) 102% 102% 0.3% 101% 0.8%

Capital Adequacy Ratio (%) 19.5% 18.8% 0.7% 17.3% 1.5%

Provision Coverage Ratio (%) 100% 100% 0.0% 107% -7.0%

QAR million 2019 2018 Growth 2018 2017 Growth

Net Operating Income(2) 4,830 4,502 7.3% 4,502 4,160 8.2%

Total expenses (1,101) (1,144) -3.8% (1,144) (1,106) 3.4%

Total provisions (733) (720) 1.9% (720) (785) -8.3%

Net profit before tax & NCI 2,996 2,638 13.5% 2,638 2,269 16.3%

Net profit for the year(1) 3,055 2,755 10.9% 2,755 2,405 14.6%

Earnings Per Share (QAR) 1.21 1.08 11.8% 1.08 0.93 16.1%

Cost to income ratio 22.8% 25.4% -2.6% 25.4% 26.6% -1.2%

Cost of Risk 0.55% 0.49% 0.05% 0.49% 0.46% 0.03%


4%

2%

70%

20%

2% 2%

Cash & Balances

Due from Banks & FinancialInstitutions

Financing Assets

Financial Investments

Other Investments

Other Assets

Summary Steady Asset Growth (QAR bn)

Asset Composition by Type Asset Composition by Geography Type

127.3 139.8 150.4 153.2 163.5

2015 2016 2017 2018 2019

-

40

80

120

160


Continued Balance Sheet Growth

Strong balance sheet growth driven by growth in Qatar-focused financing

90%

1%6%

1% 2%

Qatar

GCC

Europe

North America

Others

Continuous balance sheet growth

Growth driven by multiple products / asset classes

Primarily Qatar-centric exposures


Summary

Balanced Financing Book

Financing – Key Growth Driver (QAR bn)

572

9961209 1261

1515

645864

1291 12611515

113%87%

107%

100% 100%

0.7%

1.0%

1.2%1.2%

1.3%

2015 2016 2017 2018 2019

Non-performing financing* Provisions + Suspended Profit***

Coverage Ratio Non-performing financing ratio**

Non-Performing Financing Assets (“NPF”, QAR mn)


* Includes all financing assets overdue past 90 days

** Total non-performing financing / Total financing assets

*** Provision does not include IFRS 9 provisions of QAR 1,250 M as of Dec-2019

Strong Asset Quality and Provisioning

15%

6%

5%

11%

11%4%

21%

22%

5% Govt & GREs

NBFIs

Industry

Commercial

Services

Contracting

Real Estate

Personal

Others

Despite the strong growth, QIB has maintained very good asset quality and comfortable provisioning levels

Well-diversified & growing financing book

Strong asset quality and conservative provisioning

Reflective of robust risk management framework

87.598.2 102.6 102.2

113.8

2015 2016 2017 2018 2019

-

20

40

60

80

100

120


High-Quality Deposits(1)

Summary Diverse Sources of Funding

14.2 14.1 16.6 15.4 15.0

77.3 81.3 85.2 85.2 96.6

91.5 95.4101.8 100.6

111.6

2015 2016 2017 2018 2019

Current accounts Unrestricted investment accounts

Strong Deposit(1) Growth (QAR bn)

Sound Funding Base Driven by Strong Deposit Growth

QIB’s growth has been enabled by its ability to source funding, primarily in the form of deposits

9%

61%

11%

9%

7%

3%

13%

15%

72%

Current Accounts

Call & Savings Accounts

Fixed Deposits

Ability to obtain funding from diverse sources

Loyal and diverse deposit base

Stable funding from sticky deposits


(1) Customer’s current accounts and unrestricted investment accounts

(2) Unrestricted investment accounts includes call & savings accounts and fixed deposits

Inside Qatar, 83%

Outside Qatar, 17%

Inside Qatar

Outside Qatar


33.3%

45.9%

43.2%45.2%

49.5%

2015 2016 2017 2018 2019

Summary Financing to Deposit Ratio(2)

Supportive Liquid Assets Ratio(1)

50.7

30.722.9

59.1

87.4

35.2

12.26.6

(36.6) (4.5)10.7

52.5

Up to 3 Months 3 Months - 1 Year 1-3 Years Over 3 Years

Assets Total Liabilities and Unrestricted Investments Maturity Gap

95.6%

102.9% 100.8% 101.6% 101.9%

2015 2016 2017 2018 2019

Financing to Deposit Ratio

Source: QIB financial statements, Management Accounts

(1) Liquid Assets : (Cash and Balances with Central Bank + Due from Banks + Financing Assets + Investments Securities ) all less than 1 year

(2) Total Deposits : Customer Current Accounts + Equity of Unrestricted Investment Account Holders

Asset Liability Management

Asset and Liability Management

QIB’s growth has been managed within a well-defined risk management framework

Financing to deposit ratio within agreeable regulatory

limits

Strong liquidity position to manage market stress

Overall conservative approach to risk management


Summary

Net financing margin(2) Robust Returns (%)

15.1% 15.0% 15.3%17.4% 18.1%

1.7% 1.6% 1.6%1.8%

2.0%

2015 2016 2017 2018 2019

ROAE ROAA

Capital Adequacy Ratio(1)

3.1%2.6%

3.1% 3.2% 3.0%

2015 2016 2017 2018 2019


(1) From 2014 onwards capital adequacy is as per Basel III guidelines. Previous years are as per Basel II

(2) Net financing margin = (Income from financing activities, net – Unrestricted investment account holders’ share of profit ) / (Net Average Financing Assets)

Strong Capitalization & Continued Profitability

QIB boasts an ideal platform for future growth, including strong capitalization and supportive margins/returns

Capital ratios well above regulatory requirements

Stable return on equity

Healthy return on assets

14.1%

16.7% 17.3%18.8% 19.5%

14.50%

11.7% 12.4% 13.2% 13.9%14.7%

9.50%

2015 2016 2017 2018 2019

Total Min CAR CET 1 Min CET 1

ROAE calculated after reducing the dividend for Sukuk Eligible as Additional Tier 1 Capital


Summary

Overview of Profitability (QAR mn) Operating Efficiency (Cost to Income Ratio, %)

Revenue(1) Breakdown (QAR mn)

2,372 2,569

3,054 3,358

3,729

1,954 2,155

2,405 2,755

3,055

2015 2016 2017 2018 2019

Pre-impairment Operating Profit² Net Profit³

2,087 2,1802,850 2,948 2,959

691 741

575 673 1,063478 519

518 576693

2015 2016 2017 2018 2019

Income from Commission and Fees (net) Income from Investment Activities (net)Income from Financing Activities (net)

30.6%29.8%

26.6%25.4%

22.8%

2015 2016 2017 2018 2019


(1) Income from Financing Activities (net) : Net of profit to unrestricted investment account holders and share of Sukuk Holders’ profit

(2) Pre-Impairment Operating Profit : Total Income + Income from discontinued operations – Sukuk Holders’ Share of Profit - Unrestricted investment account holders’ share of profit – General and administrative

expenses – Depreciation and amortization

(3) Net Profit for the year attributable to shareholders

Stable and Diversified Earnings Profile

QIB has remained profitable even during the global financial crisis

Recurring financing and investing revenues

Continued profitability during crisis

Cost base effectively managed


1Introduction



5Appendix


Agenda


Consolidated Statement of Financial Position


Cash and balances with central banks 7,403 7,299 5,546

Due from banks 3,552 6,424 4,876

Financing assets 113,754 102,210 102,613

Investment Securities 33,272 31,473 30,402

Investment in associates 545 568 669

Investment properties 2,175 1,231 1,944

Assets of a subsidiary held for sale - - 246

Fixed assets 452 479 511

Intangible assets 400 386 411

Other assets 1,966 3,161 3,156

Total Assets 163,519 153,232 150,375

Due to banks 14,355 17,234 17,191

Customers’ current accounts 14,979 15,421 16,600

Sukuk financing 10,934 9,189 7,057

Other Liabilities 4,450 5,472 3,432

Total Liabilities 44,718 47,316 44,280

Equity of unrestricted investment account holders 96,641 85,177 85,214

Share capital 2,363 2,363 2,363

Legal reserve 6,370 6,370 6,370

Risk reserve 2,380 2,319 2,264

General reserve 82 82 82

Fair value reserve 242 154 170

Foreign currency translation reserve (316) (348) (137)

Other reserves 217 217 217

Share-based payment reserve - - 11

Retained earnings 5,795 4,263 3,949

Total equity attributable to shareholders of the bank 17,133 15,420 15,289

Sukuk eligible as additional capital 4,000 4,000 4,000

Non-controlling interests 1,026 1,319 1,591

Total Equity 22,159 20,739 20,880

Total liabilities, URIA and Equity 163,519 153,232 150,375


Consolidated Statement of Income


Net income from financing activities 5,867 5,329 4,887

Net income from investing activities 1,063 673 575

Total income from financing and investing activities 6,930 6,001 5,462

Fee and commission income 869 732 658

Fee and commission expense (176) (156) (141)

Net fee and commission income 693 576 518

Net foreign exchange gain 59 259 139

Share of results of associates (1) (1) 36

Other income 58 47 44

Total Income 7,738 6,883 6,199

Staff costs (640) (653) (622)

Depreciation and amortization (83) (89) (91)

Sukuk holders’ share of profit (376) (255) (218)

Other expenses (377) (402) (392)

Total Expenses (1,477) (1,400) (1,324)

Net impairment losses on investment securities and properties(94) (238) (306)

Net impairment losses on financing assets (624) (505) (475)

Other impairment losses (15) 23 (5)

Net profit for the period before tax and URIA 5,528 4,764 4,090

Net return to unrestricted investment account holders (2,532) (2,125) (1,819)

Profit from a subsidiary held for sale - - (2)

Net profit before tax 2,996 2,638 2,269

Tax expense (11) 2 (18)

Non-controlling interest 71 115 155

Profit Attributable to: Shareholder of the Bank 3,055 2,755 2,405


QIB Award Winning Organization

2019

“Qatar's Best Bank”

2019

“Best Islamic Bank – Middle East”

2019

“Best Islamic Bank – UK”

2019

“CEO Leadership Achievement

Award”By Asian Banker

2019

“Best Managed Bank in Qatar”

By Asian Banker

2019

“Best Islamic Bank – Qatar”

2019

“Islamic Bank of the Year, Qatar”

By Asset Magazine

2019

“Best Islamic Retail Bank, Qatar”

By Asset Magazine

2019

“Best Retail Mobile Banking

Experience”

2019

“Best Digital Bank”

20192019

2019

“Best Islamic Finance

innovator”2019

“Best Islamic Financial Institution -

Sudan”

2019

“Best Project Islamic Finance

Provider”

2019

“Best Islamic Financial

Institution - Qatar”

2019

“ Best Digital Bank Award 2019”

2019

Best Social Media Marketing and

Services

“Best Islamic Bank in Qatar”By WUAB

“Best Islamic Bank”

Documents

Qatar Islamic Bank (Q.P.S.C.) QIB... · Al Khaliji Bank QIIB Ahli Bank 0 150 300 450 600 750 900 1,050 Total Assets Assets - Market Share 653 107 89 76 65 30 32 30 663 107 74 67 59