48
Analyst Day 2018 12 November 2018
Analyst Day 201812 November 2018
Vision and five year plan
Joseph AbrahamGroup 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 2016. 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.
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Qatar in Perspective – A Resilient and Well Diversified Economy…
High GDP per Capita (2017A GDP per Capita, US$ ‘000)Attractive Economic Growth
3,2% 2,9% 2,7% 2,3% 2,2%
1,9%
3,9%
1,5% 1,6%
-2,9%
-0,7%
0,0%
Bahrain UAE Qatar Kuwait KSA Oman
Real GDP Growth 2018F
60,8
37,2 27,3 24,0 21,1 18,0
Qatar UAE Kuwait Bahrain KSA Oman
Well Diversified Economy, Set for Further Improvement
44% 48%
61% 70% 67% 64%
2013A 2014A 2015A 2016A 2017E 2018F
Nominal Nonhydrocarbon Share of Overall GDP (%)
Constantly among world’s top 3 economies in terms of GDP per capita since 2011
Deep Natural Resources
858
303215
64 23 3
Qatar KSA UAE Kuwait Oman Bahrain
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$11 bn and their combined carrying capacity equals 15% of world capacity (8.5 m cubic meters)
Source: International Monetary Fund, Qatar Country Report; International Monetary Fund, Middle East and Central Africa Regional Economic Outlook; EIA (US Energy Information Administration)
Gas Reserves, 2017E, Trillion of Cubic Feet
Real GDP Growth 2017A
4
…with a Stable Business Environment, Supportive of Foreign Investments
SaudiArabia
Yemen
Oman
UAEQatar
Iraq Iran
Fiscal Breakeven Oil Price (US$) – 2017 Current Account Balance (% of GDP) – 2017
Highly Competitive Business-friendly Framework (2017-2018 Global Competitiveness Report)General Government Fiscal Balance (% of GDP) – 2017
47 47
6873
84
99
Kuwait Qatar UAE Saudi… Oman Bahrain
4,0
(1,8)(5,8)
(9,0) (11,4)(15,1)
Kuwait UAE Qatar SaudiArabia
Oman Bahrain
4,7 3,82,0
(3,9) (3,9)
(11,5)
UAE Qatar Kuwait SaudiArabia
Bahrain Oman
#17#25
#30
#44#52
#62
UAE Qatar KSA Bahrain Kuwait Oman
Kuwait
Source: IMF, Middle East and Central Africa Regional Economic Outlook; International Monetary Fund, World Economic Outlook; World Economic Forum, The Global Competitiveness Report5
Commercial Bank:A solid franchise built on more than 40 years of innovation and customer service
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
Incorporated in 1974 as the first private bank in Qatar
3
Commercial Bank:A solid franchise built on more than 40 years of innovation and customer service
Sustainable quality earnings, risk book re-shape, diversify revenue streams, cost control, subsidiary and associates contribution
People, Process, Technology –‘Qatari Bank of Choice’ for our clients
Digital Transformation, e2e, STP
One Bank, Collaboration, No Bureaucracy, Empowerment, Teamwork, Realizing People Potential
Good Governance - essential foundation for a bank, deferred executive remuneration
Vision: To be the ‘Best Bank in Qatar’ and world class in everything we do, recognized for our Five Cs
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Our 5-year plan, to be the ‘Best Bank in Qatar’ recognized for our Five Cs
7
Costs broadly held flat until CB moves back into alignment
with the market average
Reshape and diversify our loan
book
De-risk legacy assets, diversify the
portfolio and proactively exit high
risk names
Maintain a minimum CET1
range of 11.0% to 11.5%
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
CB Consolidated costs are down 12% year on year and the Cost/Income ratio has decreased from 38.1% to 33.5%.
Loan reshaping: real estate concentration decreased from 28% in 2016 to 26% in Sept 2018. Public sector concentration has increased in 2018 (net of one-off Government payment)
Our 5-year plan, to be the ‘Best Bank in Qatar’ recognized for our Five Cs
Region-wide ‘Alliance of banks’ with closer
integration of risk protocols and
business strategy for sustainable earnings
Market leader for compliance and
good governance
Revamped Rıskculture
Deepen our digital leadership through end-to-end process
automation
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
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
Mandatory deferred executive remuneration linked to clear outcomes with Malus and Clawback
Market leading mobile banking application, revamped existing branches, new Doha Metro branches and wealth management
Focus on clientExperience as a key
differentiator
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133 142189
159 179
189126
121 133
Sept YTD 2016 Sept YTD 2017 Sept YTD 2018
210 365
1.235
YTD Oct 2016 YTD Oct 2017 YTD Oct 2018
Example: International remittances market language (000)
+72%
1. FX Income (cards & remittance), Transaction Bank Fees, LC and guarantee fees, 2. TCS/CBIS cost over time 9
Operating costs reduce year on year2Transaction Banking Fee Income as a % of Total Income
17,8%16,7%
19,2%
SEPT YTD 2016 SEPT YTD 2017 SEPT YTD 2018
Transaction Banking fees1 growth accelerating
+16% 511442
418Off-Balance sheet fees
Transaction Bank Fees
FX (cards & remittance)
+243%
+6%
67 6253
Sept YTD 2016 Sept YTD 2017 Sept YTD 2018
-7% -15%
Our focus to dominate transaction banking is gaining momentum and contributing to revenue uplift while keeping Operating costs flat
-30%
-20%
-6%-2%
-9%
-18%-22%
-7%
40%
-25%
44%46%
2016 2017 2018 YTD
Cost of Risk (bps)
These measures are being recognized both by the market and commentators
Source: Qatar Stock Exchange
Annual change in Share price
10
Commercial Bank Doha Bank QNB QIB
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Capital and Financials
Rehan KhanEGM, 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.
Progress against our 5-year plan : Continued progress on key indicators
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QAR Million
CB Consolidated
Q12017
Q22017
Q32017
Q42017
Q12018
Q22018
Q32018
Q3 18 with Q2 18 equalized TL
exchange rate
Operating Income
885 882 887 875 919 914 831 862
Costs 355 332 325 313 311 309 272 292
Operating Profit 530 550 562 562 608 605 559 570
Provision 485 502 501 256 236 200 195 189
Associates Income
51 46 19 32 43 43 42 42
Net Profit 91 88 79 344 405 450 405 422
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%
Progress against our 5-year plan : Continued progress on key indicators
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QAR Million
CB Consolidated
Q12017
Q22017
Q32017
Q42017
Q12018
Q22018
Q32018
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 1 11.4% 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%
421410 403
413
355
332 325313 311 309
272
Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18
Operating Expenses (QAR m)
Cost to Income: Market Comparison
Cost income ratio
45,0% 45,2% 44,6%
48,2%
40,1%37,7% 36,6% 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
292
38,1%
33,3%36,1%
29,4% 28,6% 27,4%25,7% 24,3%
22,1%
33,5%
28,8%
36,5%
27,1%28,7% 27,8%
25,4%23,1% 23,2%
CB Con CB Dom Doha QNB Ahli Khaliji QIB QIIB Rayan
Sept 17 Sept 18
Market Average 28.2%
We continue to drive costs lower through increased efficiency while simultaneously investing in new technology
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*Q3 18 at Q2 18 equalized TL exchange rate
*
0,95%
1,19%
0,37% 0.14%0,71%
0,47% 0.18%0,00%
CB Con Doha QNB Ahli Khaliji QIB QIIB Rayan
Market Average 0.43%
74,3% 71,0%78,9% 81,0% 83,5%
2014 2015 2016 2017 Sept'18
Cost of Risk (%) Loan Coverage Ratio
Cost of Risk (%) Q3 2018 Market Comparison
0,89%
1,13%
1,64%
2,00%
0,95%0,80%
2014 2015 2016 2017 Sept 2018 2019
Target
Long term Cost of Risk target of 50bps
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
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Original 2018 guidance Revised 2018 guidance 2019 guidance
Loan growth 7% - 9% Flat or 1% above Dec 2017 5%
NIMs Decrease by 10 to 15 bps Decrease by 10 to 15 bpsMaintain 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%
2019 Outlook: Key Financial Ratios
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Wholesale Banking
Raju BuddhirajuEGM, 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.
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• 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)
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Priorities of Wholesale Banking
Expect 15% growth in 2019 in Public Sector for CB.Strong pipeline of approx. QAR 5 billion in Public Sector for CB.
Amount %
Govt.ShortTermBorrowing 5,649 1,753 (3,896) -69%
PublicSector 7,203 7,753 550 8%
TotalGov't&PS 12,852 9,506 (3,346) -26%
QARBillions Dec-17 Sep-18Growth
Government & Public Sector Companies in
Qatar
Market Opportunity
160+ companies
QAR 340 billion(Sep 2018 QCB Data)
CB Penetration:
2.4%Market share
Penetration 5%
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Increase Government & Public Sector Business
Penetration in 2018 increased from 2.8% to 5% in Govt. & PS.
Reshape the composition of the balance sheet to reflect the market(focus on Government & Public Sector and rationalise Real Estate)
Balance Sheet
*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%.
13%
37%
21%
25%
2021
17%
31%
Sep 2017 Actual
Government & Public Sector
Real Estate
21.5%
29.3%
Sep 2018 Actual*2016
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Strategic Re-shape
360° Cash Management & Trade
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Dominate Transaction Banking
- Cash Collection (Physical) - Inward Remittances - Remote Cheque Deposit- PDC Collection and Custody- Customized Receivable Collection - Direct Debit - Payment Gateway
- Maximizer High Yield Tiered interest rates- Sweep and Cash Concentration- Account Aggregation- Swift Advices Online- Cash pooling- Cheque Management
- 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
INFLOWS
OUTFLOWS
LIQUIDITY MANAGEMENT
TRADE
15%18.18%
CB Competitive Advantage
- Pre-implementation Support- Flexibility- Customization- Post-launch supportChange from Transactional to Turnkey
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Dominate Transaction Banking
28,9 31,3 45,5
10,4 15,3
12,9
59,6 57,9
67,6
-
20,0
40,0
60,0
80,0
100,0
120,0
140,0
160,0
Sept YTD 2016 Sept YTD 2017 Sept YTD 2018
Transaction Banking Fee Income - Wholesale
Off-Balance sheet Fees
Banking Service Fees
FX Income (remittances)
89.8104.5
126.0
6%
27%
21%
Transaction Banking fees growth accelerating
Transaction Banking Fees increase from 15% to 17% of the total Wholesale revenues.
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 2019
Recent Wins
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Dominate Transaction Banking
2018 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
Retail and Consumer Banking
Amit SahEGM, 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.
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A meaningful contribution to CB, with high ROE• 17% of assets, 33% of deposits • 44% of operating income, 30%+ ROE
Liquid Balance Sheet with high quality deposit base • Loan to Deposit Ratio 57% • 53% low cost funds
High quality & diversified income profile• Over 75% of income from deposits and fees• Providing stable & capital efficient earning
streams
Deeply embedded franchise in the community• A trusted brand, with loyal customer base• Well represented in key segments
Robust Retail loan book • 62% with tangible security, 37% against salary
Market leading position in Retail Banking• One of the largest franchises, matching the
biggest banks in the country
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A strong and diverse business
Wealth opportunity largely untapped• Est. 50k customers with +$1Mn investable assets• Investing in our proposition with goal to double
market share in 3-5 years
Salaried Customers• Transactional banking of 600k+ customers• Generating QR32 Bn annual flow
Enterprise SME• Controlled growth with income source evenly split • Loan Margin 26% : Deposit Margin 36% : Fee 38%
Market leading Private Banking and Sadara• Over 10,000 high value clients with well
established Relationship based banking
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Key Customer Segments
29,1
31,8
1 2
Growth in Salary Credit (QAR Bn)
9%
2016 2018
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• Launching Mobile Wallets, optimizing QR
Codes, use of biometric face recognition & voice commands
The No.1Financial App
in Qatar
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Leadership Position in Digital Banking
64
399
Q1-2017 Q3-2018
International Remittances (Volume 000s - All Currencies)
x6
Transforming the payment eco-system in Qatar,complementing Qatar’s payment systems vision
• 300k+ contactless transactions and 150k+ cards• Unique ability to lead change
Dominant Player in Acquiring Business in Qatar• 7,500 merchants, 11,000 POS• 50%+ Market Share (non government)
Market leader in Qatar for credit card proposition• 1 Million cards, total spend $2.75 Billion p.a.• Growing faster than market average
*Source: Lafferty, World Cards Intelligence – Qatar Country Report, Oct – 2017 28
Dominating Cards
8.900
81.000
April October
Growth in Contactless Transactions 2018
x9
Optimizing the branch network• Continue to relocate and right size in strategic
locations, using robust profitability models
Modular, modern, dynamic approach• Metro Stations, low cost, efficient space,
mixture of self service and assisted
Leveraging Self Service• With the 2nd largest ATM fleet in the country, we
continue to widen functionality and capability in key locations
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Transforming Physical Channels
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VISA AwardLeading
E-Commerce Growth
Asian Banker Best Remittance Service
in Middle East 2018
Asian Banker Best Retail Bank in
Qatar 2017 and 2018
Well positioned for a strong and sustainable growth trajectory
External endorsement always helps……..
International Banking
Fahad BadarEGM, 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.
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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)
No additional asset bookings in high concentration areas in 2018
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
Portfolio quality focus to ensure future sustainability
Dedicated portfolio strategy detailing exhaustively risk governance parameters
Prudent lending criteria Prudent country and ticket limits
Target geographies with high growth potential (Asia and Africa)
Focus on select transactions across Africa and Asia
Leverage the Qatar trade and investment flows with a number of selective geographies ( Europe and America)
Qatar angle a key criteria for execution considerations
Significant cross sell income enhancement through major treasury cross sell trades
Maintain improved overall quality of the portfolio (higher by one notch equivalent vs. 2017 and 2016)
No major credit incidents so far
Note : International corporates and financial institutions portfolio booked out from Qatar only
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International Banking: On Track for Diversification and Healthy Growth - Progress and Deliveries in 2018
5-Yr Strategic Priority
Diversify geographically
Grow and leverage the Alliance synergies
Focus on portfolio quality and reinforce track record
Continue deleveraging in areas of high concentration and build up on the momentum in under-represented areas (Asia, Africa, Europe)
Concentrate efforts on synergies with A-Bank in Turkey and NBO in Oman for cross sell and joint deals executions
Maintain high double digit RAROC while ensuring high quality overall rating of the book
2019 Key Themes
Possible liquidity and funding challenges Higher focus on domestic markets might impact
international lending possibilities
Challenging regional situation and market tensions across the emerging markets space may impact some of the Alliance geographies
Regional situation and global economy headwinds impact to be monitored closely
2019 Expected Challenges
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International Banking: 2019 Key Themes
Geographic and Sector
Diversification
Short Tenors
Good Credit
Quality
Alliance Synergies
Healthy Growth
International Banking: Key Principles and Guidelines
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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.
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• Liquidity in the local banking system has improved over thepast 5 months even as the majority of funding from theboycotting GCC countries has exited the market.
• Liquidity has been sustained through diversification of productand customer channels;
• A USD 500m Commercial Paper (CP) program has beenrenewed with Wells Fargo and issuance is active.
• CHF 435 million has been raised through debut andfollow-up Swiss 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.
Current Liquidity
• 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
Funding Outlook
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International markets remain confident of Qatar and Commercial Bank
54%
14%
8%
18%5%
Customers’ Deposits
• 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
approximately USD 2bn are scheduled for 2019 which we are
confident of replacing with new issuance in 2019.
Deposit by Customer Type – 30 September 2018Qatari Banks Deposit by Sector – 30 September 2018
Diversified Funding Mix Total Funding Mix – 30 September 2018
Corporate; 23%
Individuals; 22%
Non Resident;
19%
Non resident16%
Gov. & Semi-Gov. Agencies
29%Individuals29%
Corporate26%
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Well Diversified Funding Mix
Gov. & Semi-Gov.
Agencies 36%
Total Shareholder’sEquity
Due to Banks andFinancial Institutions
Debt Securities & Other borrowings»
Investment Portfolio – 30 September 2018
• 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.
Asset Quality
Rating Sept 18 Dec 16
AA- and above 89% 82%
A+ to A- 2% 9%
BBB+ to B- 4% 7%
Unrated 5% 2%
Equities0,7%
Government Bonds90,9%
Investment Funds0,4%
Other Debt Securities
8,1%
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High Quality Investment Portfolio
Operations
Dr. Leonie LethbridgeEGM, 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.
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40
Creation of CB Innovation Services – Competitive Advantage in Operations & Tech Delivery
2012 2014 2016 2017 2018 2020F
Operational Cost reduction post Captive in 2017
25M
48M
Rationale: goal is to dominate transaction banking
Created a scale agnostic model
Expanded the 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
• Leverage existing market position to deliver NFI and NIM benefits
• Implication: need is to enable exponential increases in transaction volumes, and togenerate new product and service offerings
• Requires a scale-agnostic cost model
• Previous model linked volume with cost
• 5 additional functions and 100+ additional roles migrated successfully to CBIS
• Established Centre of Excellence for advanced capabilities, including RPA
CBIS is the platform for strategic leadership in Transaction Banking
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Real time tracking of trade transactions
Automate for STP
Revamp End to End Operating model
Building leading edge capability
• Process re-engineering and automation for productivity
• Smart forms for Account opening and Funds transfers driving betterclient experience
• High-volume remittance business delivered with volume-agnostic expense
• 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 Enddigitization. (e.g. 95% digitized Payroll processing )
• Investing in key capabilities and infrastructure for faster innovation e.g. AI/ML & advancedanalytics
• Creating leading edge products and services such as CB Trade Tracker
Summary & Close
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Sustainable quality earnings, risk book re-shape, diversify revenue streams, cost control, subsidiary and associates contribution
People, Process, Technology –‘Qatari Bank of Choice’ for our clients
Digital Transformation, e2e, STP
One Bank, Collaboration, No Bureaucracy, Empowerment, Teamwork, Realizing People Potential
Good Governance - essential foundation for a bank, deferred executive remuneration
Vision: To be the ‘Best Bank in Qatar’ and world class in everything we do, recognized for our Five Cs
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Summary
Wholesale Banking
Liquidity
Capital and financials
Five Year Plan and StrategyWe 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
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
We have a well diversified funding mix, a high quality investment portfolio and sufficient liquidity buffers
We are reshaping our portfolio while driving forward with our strategy to dominate transaction banking
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Summary
Operations
Retail and Consumer Banking
International BankingWe continue to diversify and are on track for healthy growth
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
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Panel DiscussionQ & A
