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Click to edit Master title styleInvestor PresentationQ3 2017 Results
September 2017
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Overview
Financial Information
Business Information
Shareholder Information
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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
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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%
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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
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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
Source: al khaliji financial statements
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
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Awards
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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
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Overview
Financial Information
Business Information
Shareholder Information
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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%
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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
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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%
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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%
Source: al khaliji financial statements
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%
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Overview
Financial Information
Business information
Shareholder Information
Click to edit Master title style2016-18 Strategy Evolves Around Our Core Business
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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
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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
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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
Source: al khaliji financial statements
Contracting, 10%
Government, 23%
Insurance, 2%
Manufacturing, 8%
Real Estate, 12%
Services, 30%
Trading, 12%
Utilities and Energy, 3%
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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
Source: al khaliji financial statements
Treasury
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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%
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Overview
Financial Information
Business Information
Shareholder Information
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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
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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)
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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
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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
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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.