[PPT] - Qatar Islamic Bank (Q.P.S.C.) Investor Presentation March 2020 PowerPoint Presentation

SLIDE 1

Qatar Islamic Bank (Q.P.S.C.)

Investor Presentation

March 2020

SLIDE 2

Qatar Islamic Bank Page | 2

1 Introduction

2 Operating Environment

3 QIB Business Review

5 Appendix

4 QIB Financial Overview

Agenda

SLIDE 3

Qatar Islamic Bank Page | 3

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 26 branches and offices and over 178 ATMs and CDMs as at

31 Mar 2020.

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

f

QIB’s shareholders comprise prominent Qatari individuals, families and institutions.

QAR million

Mar-20 Dec-19 Dec-2018

Total Assets 166,052 163,519 153,232 Total Financing Assets 113,987 113,754 102,210 Total Deposits(2) 110,241 111,621 100,598 Shareholders Equity(3) 16,270 17,133 15,420 Total Equity 21,277 22,159 20,739 Net Profit(3) 688 3,055 2,755 Non-Performing Financing (1) (%) 1.3% 1.3% 1.2% Financing to Total Deposits(2) (%) 103.4%

101.9% 101.6%

Capital Adequacy Ratio(4) (%) 18.9% 19.5% 18.8% Market Capitalisation 33,932 36,224 35,917

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

99% of Net Operating Income & 110% of Net Profit (3) Wholesale Banking Group Function Personal Banking Subsidiaries

Introduction

Note: As at 31 Mar 2020

SLIDE 4

Qatar Islamic Bank Page | 4 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

SLIDE 5

Qatar Islamic Bank Page | 5

1 Introduction

2 Operating Environment

3 QIB Business Review

5 Appendix

4 QIB Financial Overview

Agenda

SLIDE 6

Qatar Islamic Bank Page | 6

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 (2019): 2.9mn

Qatar’s Credit Highlights Strong Wealth Generation

44 102 98 150 25 266 298 151 93 58 11 38 23 155 52 35 212 197 100 200 300 400 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 66 58 61 71 4% 4% 2% 2% 3%

0% 5% 10% 15% 20% 2014 2015 2016 2017 2018 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

SLIDE 7

Qatar Islamic Bank Page | 7

3.4% 1.8% 2.7% 0.4% 0.2%

2014 2015 2016 2017 2018

(5%) (0%) 5%

206 162 152 167 192 51 57 71 90 93

2014 2015 2016 2017 2018

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

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 9 24.0% 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

SLIDE 8

Qatar Islamic Bank Page | 8

Qatari Banking Sector – Robust Operating Environment

(QAR bn) (%)

General Overview Total Assets (Mar’20) – 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 1,654 bn (listed banks regulated by QCB) as at 31

Mar 2020 with strong and sound regulatory environment

–

Minimum capital adequacy ratio of 14.5% including ICAAP charge and 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 2008 QIA announced plans to acquire equity ownership interests

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

March 2009 The Government proposed to purchase the domestic equity portfolios of seven of the nine domestic QE-listed banks June 2009 The Government purchased USD 2.7 bn worth of real estate financings and other exposures of Qatari banks 2010 & 2011 The 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 (Mar’20) – Listed Banks

(QAR bn) 964 166 146 109 106 56 60 45 10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% QNB QIB CBQ Masraf Al Rayan Doha Bank Al Khaliji Bank QIIB Ahli Bank 150 300 450 600 750 900 1,050 Total Assets Assets - Market Share 708 114 89 79 65 32 38 32 706 110 77 68 55 29 36 28 9.8% 9.9% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% QNB QIB CBQ Masraf Al Rayan Doha Bank Al Khaliji Bank QIIB Ahli Bank 100 200 300 400 500 600 Total Financing Total Deposits Market Share Financing Market Share Deposits

SLIDE 9

Qatar Islamic Bank Page | 9

Qatari Banking Sector – Continued Growth

912 1,001 1,016 1,120 1,158

2016 2017 2018 2019 Mar-20

200 400 600 800 1000 1200 1400

871 976 988 1,083 1,109

2016 2017 2018 2019 Mar-20

200 400 600 800 1000 1200

QAR bn Selected key bank regulations: QAR bn

1,313 1,445 1,485 1,623 1,654

2016 2017 2018 2019 Mar-20

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 Liquidity Reserve 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 Provisioning Risk 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

SLIDE 10

Qatar Islamic Bank Page | 10

1 Introduction

2 Operating Environment

3 QIB Business Review

5 Appendix

4 QIB Financial Overview

Agenda

SLIDE 11

Qatar Islamic Bank Page | 11

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%

wned 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% 48.99% 99.7% 99.99%

= Ownership

49.0%

SLIDE 12

Qatar Islamic Bank Page | 12

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

50.2% 42.8% 17.4%

10.4%

42.9% 34.1% 22.2% 0.8%

Net Profit(1) QAR 688 Mln Net Operating Income(2) QAR 1,193 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 Banking Personal Banking

SLIDE 13

Qatar Islamic Bank Page | 13

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 Committee

Four members

Study, prepare and

develop strategies,

bjectives, policies,

systems, plans, budgets and work procedures

Monitor practices and

performance versus approved business standards, strategy and budgets Nomination & Remuneration Committee Three members

Select and evaluate

applicants for senior executive posts and provide recommendations to Board

Determine senior staff

rewards and privileges Zakat Committee Three 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 Committee Six 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
verall portfolio while reviewing

effectiveness of system to monitor compliance with laws/regulations

Oversight of internal and external

(including financials) audit processes

SLIDE 14

Qatar Islamic Bank Page | 14

Gourang Hemani Chief Financial Officer

28 years experience
Indian
Banque Saudi Fransi
Standard Chartered
PWC

Khalefa Al Mesalam Human Capital Constantinos Constantinides Chief Strategy Officer

26 years experience
Greek Cypriot
Al Rajhi Bank
Accenture

Rakesh Sanghvi Chief Risk Officer

30 years experience
Indian
Ahli United Bank
E&Y

Bassel Gamal Group CEO Dorai Anand Personal Banking

26 years experience
Indian
Al Rajhi Bank
Citi Bank

Tarek Youssef Fawzi Wholesale Banking

37 years experience
Egyptian
Mashreq Bank
Burgan Bank
National Bank of Oman

Experienced Leadership

29 years experience
Egyptian
Ahli United Bank Group
Chase National Bank

Lav Kataria Chief Operating Officer

30 years experience
Indian
Citi Bank
Barclays Bank
19 years experience
Qatari
HSBC
Al Khaliji Bank

SLIDE 15

Qatar Islamic Bank Page | 15 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

SLIDE 16

Qatar Islamic Bank Page | 16

1 Introduction

2 Operating Environment

3 QIB Business Review

5 Appendix

4 QIB Financial Overview

Agenda

SLIDE 17

Qatar Islamic Bank Page | 17

Profitability

Stable balance sheet growth total assets reached

QAR 166.1 bn with a growth of 1.5% in 2020 and 6.7% in 2019.

Financing assets reached QAR 114 bn with a

growth of 0.2% in 2020 and 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 110.2 bn in 2020

with a growth of 11% in 2019.

Stable profitability with net profit at QAR 688 mn

with a growth of 0.3% in 2020 vs.13.5% in 2019.

Robust net operating income at QAR 1,193 mn

with a growth of 3.8% in 2020 vs. 7.3% in 2019.

Operating

efficiency: Cost to income ratio improved to 22.7% in Q1-20 vs. 23.2% in Q1-19.

Adequately

capitalized the Basel III capital adequacy ratio stands at 18.9% as of Mar-2020 compared to 19.5% in Dec-2019, comfortably above the minimum requirement of 14.5% including ICAAP and DSIB charge.

Financial Overview

Financial Position Key Highlights

Source: QIB financial statements (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

Mar-20 Dec-19 Growth- 2020 Dec-18 Growth- 2019

Total Assets

166,052 163,519 1.5% 153,232 6.7%

Total Financing

113,987 113,754 0.2% 102,210 11.3%

Total Deposits

110,241 111,621

1.2%

100,598 11.0%

Investments(3)

35,703 35,992

0.8%

33,273 8.2%

Shareholders Equity(1)

16,270 17,133

5.0%

15,420 11.1%

Total Equity

21,277 22,159

4.0%

20,739 6.8%

Financing to Deposit Ratio (%)

103% 102% 1.5% 102% 0.3%

Capital Adequacy Ratio (%)

18.9% 19.5%

0.6%

18.8% 0.7%

Provision Coverage Ratio (%)

100% 100% 0.0% 100% 0.0%

QAR million

Q1-2020 Q1-2019 Growth 2019 2018 Growth

Net Operating Income(2)

1,193 1,149 3.8% 4,830 4,502 7.3%

Total expenses

(271) (267) 1.5% (1,101) (1,144)

3.8%

Total provisions

(276) (202) 36.6% (733) (720) 1.9%

Net profit before tax & NCI

645 680

5.1%

2,996 2,638 13.5%

Net profit for the year(1)

688 685 0.3% 3,055 2,755 10.9%

Earnings Per Share (QAR)

0.29 0.29 0.3% 1.21 1.08 11.8%

Cost to income ratio

22.7% 23.2%

0.5%

22.8% 25.4%

2.6%

Cost of Risk

0.77% 0.73% 0.04% 0.55% 0.49% 0.05%

SLIDE 18

Qatar Islamic Bank Page | 18

7% 1% 69% 20% 1% 2% Cash & Balances Due from Banks & Financial Institutions Financing Assets Financial Investments Other Investments Other Assets

Summary Steady Asset Growth (QAR bn) Asset Composition by Type Asset Composition by Geography Type

139.8 150.4 153.2 163.5 166.1

2016 2017 2018 2019 Mar-20

40

80 120 160

Source: QIB financial statements

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



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Qatar Islamic Bank Page | 19

Summary Balanced Financing Book Financing – Key Growth Driver (QAR bn)

996 1209 1261 1515 1576 864 1291 1261 1515 1576 87% 107% 100% 100% 100% 1.0% 1.2% 1.2% 1.3% 1.3% 2016 2017 2018 2019 Mar-20 Non-performing financing* Provisions + Suspended Profit*** Coverage Ratio Non-performing financing ratio**

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

Source: QIB financial statements * Includes all financing assets overdue past 90 days ** Total non-performing financing / Total financing assets *** Provision does not include IFRS 9 provisions of QAR 1,388 M as of Mar-2020

Strong Asset Quality and Provisioning

14% 9% 5% 12% 11% 4% 18% 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



98.2 102.6 102.2 113.8 114.0

2016 2017 2018 2019 Mar-20

85 95 105 115

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Qatar Islamic Bank Page | 20

High-Quality Deposits(1) Summary Diverse Sources of Funding

14.1 16.6 15.4 15.0 15.4 81.3 85.2 85.2 96.6 94.8 95.4 101.8 100.6 111.6 110.2

2016 2017 2018 2019 Mar-20 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% 59% 10% 11% 9% 2%

14% 18% 68%

Current Accounts Call & Savings Accounts Fixed Deposits

Ability to obtain funding from diverse sources



Loyal and diverse deposit base



Stable funding from sticky deposits



Source: QIB financial statements (1) Customer’s current accounts and unrestricted investment accounts (2) Unrestricted investment accounts includes call & savings accounts and fixed deposits Inside Qatar, 82% Outside Qatar, 18% Inside Qatar Outside Qatar

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Qatar Islamic Bank Page | 21

45.9% 43.2% 45.2% 49.5% 48.3%

2016 2017 2018 2019 Mar-20

Summary Financing to Deposit Ratio(2) Supportive Liquid Assets Ratio(1)

53.9 26.3 24.2 61.6 78.5 43.1 14.1 9.1 (24.6) (16.8) 10.1 52.6 Up to 3 Months 3 Months - 1 Year 1-3 Years Over 3 Years Assets Total Liabilities and Unrestricted Investments Maturity Gap 102.9% 100.8% 101.6% 101.9% 103.4%

2016 2017 2018 2019 Mar-20

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



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Qatar Islamic Bank Page | 22

Summary Net financing margin(2) Robust Returns (%)

15.0% 15.3% 17.4% 18.1% 15.4% 1.6% 1.6% 1.8% 2.0% 1.7% 2016 2017 2018 2019 Mar-20

ROAE ROAA

Capital Adequacy Ratio(1)

2.6% 3.1% 3.2% 3.0% 3.0% 2016 2017 2018 2019 Mar-20

Source: QIB financial statements (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



16.7% 17.3% 18.8% 19.5% 18.9%

14.50% 12.4% 13.2% 13.9% 14.7% 14.1%

9.50%

2016 2017 2018 2019 Mar-20 Total Min CAR CET 1 Min CET 1

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

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Qatar Islamic Bank Page | 23

Summary Overview of Profitability (QAR mn) Operating Efficiency (Cost to Income Ratio, %) Revenue(1) Breakdown (QAR mn)

2,569 3,054 3,358 3,729 882 922 2,155 2,405 2,755 3,055 685 688 2016 2017 2018 2019 Mar-19 Mar-20 Pre-impairment Operating Profit² Net Profit³ 2,180 2,850 2,948 2,959 749 757 741 575 673 1,063 226 219 519 518 576 693 140 163 2016 2017 2018 2019 Mar-19 Mar-20 Income from Commission and Fees (net) Income from Investment Activities (net) Income from Financing Activities (net) 29.8% 26.6% 25.4% 22.8% 23.2% 22.7% 2016 2017 2018 2019 Mar-19 Mar-20

Source: QIB financial statements (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



SLIDE 24

Qatar Islamic Bank Page | 24

1 Introduction

2 Operating Environment

3 QIB Business Review

5 Appendix

4 QIB Financial Overview

Agenda

SLIDE 25

Qatar Islamic Bank Page | 25

Consolidated Statement of Financial Position

QAR million Mar-2020 Dec-2019 Dec-2018 Cash and balances with central banks 11,544 7,403 7,299 Due from banks 1,983 3,552 6,424 Financing assets 113,987 113,754 102,210 Investment Securities 33,012 33,272 31,473 Investment in associates 532 545 568 Investment properties 2,158 2,175 1,231 Fixed assets 441 452 479 Intangible assets 379 400 386 Other assets 2,016 1,966 3,161 Total Assets 166,052 163,519 153,232 Due to banks 17,282 14,355 17,234 Customers’ current accounts 15,439 14,979 15,421 Sukuk financing 13,870 10,934 9,189 Other Liabilities 3,383 4,450 5,472 Total Liabilities 49,973 44,718 47,316 Equity of unrestricted investment account holders 94,802 96,641 85,177 Share capital 2,363 2,363 2,363 Legal reserve 6,370 6,370 6,370 Risk reserve 2,380 2,380 2,319 General reserve 82 82 82 Fair value reserve (26) 242 154 Foreign currency translation reserve (358) (316) (348) Other reserves 217 217 217 Retained earnings 5,242 5,795 4,263 Total equity attributable to shareholders of the bank 16,270 17,133 15,420 Sukuk eligible as additional capital 4000 4,000 4,000 Non-controlling interests 1,007 1,026 1,319 Total Equity 21,277 22,159 20,739 Total liabilities, URIA and Equity 166,052 163,519 153,232

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Qatar Islamic Bank Page | 26

Consolidated Statement of Income

QAR million Mar-2020 Mar-2019 Dec-2019 Dec-2018

Net income from financing activities

1,509 1,449

5,867 5,329 Net income from investing activities

219 226

1,063 673 Total income from financing and investing activities

1,727 1,675

6,930 6,001 Fee and commission income

211 180

869 732 Fee and commission expense

(48) (41)

(176) (156) Net fee and commission income

163 140

693 576 Net foreign exchange gain

27 23

59 259 Share of results of associates

2 2

(1) (1) Other income

25 10

58 47 Total Income

1,944 1,849

7,738 6,883 Staff costs

(161) (150)

(640) (653) Depreciation and amortization

(22) (20)

(83) (89) Sukuk holders’ share of profit

(110) (78)

(376) (255) Other expenses

(88) (97)

(377) (402) Total Expenses

(382) (345)

(1,477) (1,400) Net impairment losses on investment securities and properties

(22) (15)

(94) (238) Net impairment losses on financing assets

(219) (193)

(624) (505) Goodwill Impairment

(22)

Other impairment losses

(13) 6

(15) 23 Net profit for the period before tax and URIA

1,286 1,302

5,528 4,764 Net return to unrestricted investment account holders

(641) (623)

(2,532) (2,125) Net profit before tax

645 680

2,996 2,638 Tax expense

(2) (6)

(11) 2 Non-controlling interest

44 11

71 115 Profit Attributable to: Shareholder of the Bank

688

685 3,055 2,755

SLIDE 27

Qatar Islamic Bank Page | 27

QIB AWARD WINNING ORGANIZATION

Islamic Bank

f the year

Islamic Bank

f the year

Islamic Bank

f the year

CEO Leadership and best managed bank 2019

Best Islamic Bank in Middle East 2020 World’s Best Islamic SME Bank 2020 Qatar's Best Bank 2019 Best Islamic Bank in Qatar 2020 Best Islamic Bank in Qatar 2020 Best Islamic Bank in Qatar 2020 Qatar’s Best Digital Bank 2020 Best Digital Bank in Qatar, 2019