#1QIIB T لدولي الإسلامي#2Page 2. QIIB الدوا الإ E Investor Presentation - YE 2019 - QIIB الدولي الإسلامي#3Page 3. QIIB الإس 1. QIIB Overview & Strategy 2. Governance & Regulations 3. Financial Performance & Capital Adequacy 4. Equity & Funding Overview 5. Rating Overview QIIB الدولي الإسلامي#4Page 4. QIIB الـ الإسـ ي ـي Section 1 QIIB Overview & Strategy QIIB الدولي الإسلامي#5QIIB Snapshot Introduction (QIIB) Established in 1990 by an Amiri Decree, Qatar International Islamic Bank began operations on 1 January 1991. As at 31 December 2019 QIIB is the third largest Listed Islamic bank in Qatar by total assets and accounts for approximately 17.4% of Listed Qatar's Islamic banks' assets. As at 31 December 2019, QIIB has the third largest market capitalization on the Qatar Exchange of all Listed Islamic banks in Qatar with a market capitalization of US$ 4.02 Bn (at QAR 9.68 per share). The second largest Islamic banking network in Qatar with a network of 19 branches and 96 ATMs. Continued organic growth in assets, deposits and net operating income over recent years. 18% GCC & Foreign Nationals Shareholder Structure 17% QIA 65% Qatari Companies & Individuals The Qatar Investment Authority (QIA) is the largest shareholder (17%) of QIIB through its subsidiary, Qatar Holdings Company. Qatari Companies & Individuals own 65% of the bank's shares Financial Snapshot US $ mn Dec- Dec - 15 16 Dec- 17 Dec- 18 Dec- 19 Total Assets 11,133 11,685 12,802 13,802 15,607 Total Financing (1) 6,859 7,479 8,925 7,687 10,164 Non-Performing Financing Ratio 1.7% 1.7% 1.3% 2.0% 2.0% Customer Deposits 7,322 7,316 8,919 Corporate 8,549 8,576 Net Profit Banking 215.3 215.5 228.5 242.2 254.6 Capital Adequacy (B III) 16.7% 19.5% 17.9% 16.4% 18.5% Market Capitalization US$ 4.02 Bn (as at 31st Dec 2019) Ratings Page 5. Fitch A: (Stable) Moody's A2: (Stable) QIIB Business Segments Personal Banking W Treasury & Investments QIIB الدولي الإسلامي#6QIIB Business Overview Business Units Overview Page 6. REVENUE 20% 22% 32% ASSETS 35% Treasury & Investments ○ Equity participation, private equity, investment funds О ○ Sukuk investment book International finance and syndications ○ Islamic Treasury products and services Personal Banking Financing o Large personal banking franchise with 19 branches and 96 ATMs across Qatar ○ Strong brand Client segmentation to provide client-focused services ○ Maintain growth in distribution network 45% 2019 46% Focus on sales and service quality Corporate Financing 。 Major sectors served include Government, oil & gas, commercial and contracting 。 Key partner of the public sector and continue to attract and maintain strong deposit base o Key products include: Murabahah, Ijarah, Mudarabah, Istisna, foreign trade finance and commercial finance o Developing Small-to-Medium Enterprise (SME) sector in partnership with Government QIIB الدولي الإسلامي#7Page 7. QIIB الإس Section 2 Governance & Regulations QIIB الدولي الإسلامي#8QIIB Board of Directors Page 8. H.E. Sheikh Dr. Khalid Thani Abdullah Al-Thani Chairman & Managing Director (Executive Director) Date of Appointment: April 1996 Educational Qualifications: BA, MBA (USA), PhD (UK) Current Directorships: Ezdan Holding Group (Chairman) H.E. Sheikh Abdullah Thani A. Al-Thani (Executive Director) Date of Appointment: April 2002 Educational Qualifications: BComm Current Directorships: Medicare Group, Ezdan Holding Group, Qatar Islamic Insurance Company Mr. Hassan Abdulla Al-Thawadi (Non Executive Director - Independent Member) Date of Appointment: April 2015 Educational Qualifications: Bachelors of Law (UK) Current Directorships: Supreme Committee for Delivery and Legacy (Secretary-General) Dr. Yahya Hamad Al-Nuaimi (Non Executive Director - Independent Member) Date of Appointment: April 2017 Educational Qualifications: PhD in Islamic Banking & Economics (Jordan) Mr. Hesham Mustafa Al-Sehtery (Non-Executive Director) Date of Appointment: April 2008 Educational Qualifications: Bachelors of Architecture Current Directorships: Qatar Islamic Insurance Company, Ezdan Holdings Group Mr. Rashid Nasser Al-Kaabi Vice Chairman (Non Executive Director - Independent Member) Date of Appointment: April 2017 Educational Qualifications: Bachelor of Law Current Directorships: Qatar Islamic Insurance Company, Islamic Holding Group, Audi Bank H.E. Sheikh Turki Khalid Thani Al-Thani (Non Executive Director) Date of Appointment: March 2014 Educational Qualifications: Bachelor of Business Administration Current Directorships: Medicare Group, Qatar Islamic Insurance Company Mr. Ali Abdulrahman Al-Hashmi (Executive Director) Date of Appointment: Feb 2007 Educational Qualifications: MBA (UK) Current Directorships: Makeen Co, Islamic Holding Group Mr. Walid Ahmad Alsaadi (Non Executive Director) Date of Appointment: April 2017 Educational Qualifications: BSc. Accounting & Finance Current Directorships: Ezdan Holding Group, Medicare Group QIIB الدولي الإسلامي#9QIIB Board Committees Page 9. Audit Committee Executive Committee Remuneration & Compensation Committee Risk & Compliance Committee Board of Directors Nomination & Governance Committee QIIB الدولي الإسلامي#10Sharia Supervisory Committee (SSC) The SSC is appointed at QIIB's General Assembly and must consist of at least three members who are experts in Islamic jurisprudence. Members must at all times be independent and should not hold positions of responsibility in QIIB other than as part of the SSC. The SSC is the ultimate authority on Sharia compliance for QIIB. The primary function of the SSC is to review QIIB's proposed transactions and activities and issue resolutions and fatwas that approve or reject such proposed transactions. These are followed by on-going audits with the issuance of an annual compliance certificate (with annual report). The SSC provides advice to all of QIIB's departments with regards to all of its business activities. Members of the Sharia Supervisory Committee Chairman Sheikh Dr. Walid bin Hadi Member Sheikh Dr. Abdul Sattar Abu Ghudda Member Sheikh Dr. Mohammed Ohmain Page 10. QIIB الدولي الإسلامي#11Page 11. QIIB Section 3 Financial Performance & Capital Adequacy QIIB E الدوا الإ الدولي الإسلامي#12QIIB'S strong asset growth (US$ Mn) QIIB Assets & Financing Highlights QIIB's balance sheet sustained growth CAGR of 8.8% between FY2015 FY2019, notwithstanding slower economic environment. The growth has been driven by a strong increase in QIIB's Islamic Financing Facilities (IFFs) and Advances, and Financial investments. QIIB has a reasonably diversified financing book totaling US$ 10.2 Bn as of 31 December 2019, representing 65.1% of the bank's total assets. 15,000 10,000 5,000 Asset composition by type As at 31 December 2019 Page 12. 11% 3%4% Cash & Balances with QCB 17% Balances & Investments with Banks A Receivables & Balances from Financing Activities 41% Financial Investments 65% Others (CAGR: 8.8%) 15,607 13,802 12,802 11,133 11,685 0 2015 2016 2017 2018 2019 QIIB financing book split As at 31 December 2018 2% 8% 2% 12% 5% 2% 31% As at 31 December 2019 1% 25% 1% 15% 4% 29% 2% 20% ■ Government ■ Industry ■ Trade ■ Service ■Contracting ■Real Estate ■ Consumer Other QIIB الدولي الإسلامي#13Summary of 2019 Performance Sustained balance sheet growth Stable asset quality Stable deposit base Improving total income Healthy capitalization ratios Strong liquidity levels Page 13. 31 December 2018 31 December 2019 % Change Total Assets (US$ mn) 13,802 15,607 13.1% Net Islamic Financing Facilities (US$ mn) Non-Performing Islamic Financing Facilities (%) Liquid Assets (US$ mn) 7,687 10,164 32.2% 1.98% 2.03% 2.5% 5,630 4,964 -11.8% Customers' Deposits (US$ mn) 1 8,549 8,576 0.3% 31 December 2018 31 December 2019 % Change Total Income Net Profit 570.5 242.2 653.7 14.6% 254.6 5.1% (1) Includes Customers' Current Accounts and Holders of Unrestricted Investment Accounts QIIB الدولي الإسلامي#14Asset Quality Asset quality highlights Non-performing financing ratio increased to 2.03% as at 31 December 2019, compared to December 2018. Bank's non-performing ratio remains within the industry average. Strong asset quality is a reflection of QIIB's prudent risk appetite, and therefore, prudent risk oversight of assets before bringing them on to its financing book. In addition, QIIB's strong asset quality is further reinforced by the availability of collateral that the bank receives on its financings. Asset quality ratios 2015 2016 2017 2018 2019 Non-performing financing ratio(1) 1.7% 1.7% 1.3% 2.0% 2.0% Non-performing coverage ratio(2) 59.7% 77.5% 63.1% 96.6% 88.6% (1) Non performing facilities as at period end divided by gross financing and receivables as at period end (2) Specific provision & suspended interest, as at period end divided by non performing facilities as at period end Non-performing receivables (US$ Mn) A Breakdown of IFFS, NPL by segment (US$ mn) 250.0 2.5% 250.0 2.0% 2.0% 200.0 1.7% 2.0% 1.7% 200.0 58.6 150.0 1.3% 1.5% 150.0 59.9 219.8 100.0 1.0% 100.0 37.0 85.4 71.5 164.3 161.3 140.0 125.4 124.4 50.0 104.4 50.0 0.5% 87.4 53.5 54.4 0.0 0.0 2015 2016 Non-Performing Facilities 2017 0.0% 2015 2016 2017 2018 2019 2018 % of Total Financing Receivables 2019 ■Personal Banking ■Corporate Banking *Real estate segment reclassified to personal banking from 2017 Page 14. QIIB الدولي الإسلامي#15ce AD Continued Profitability & Operating Efficiency Operating income breakdown (US$ mn) 800 600 Sustained profitability (US$ Mn) 50 260 35.4 140 6 250 8 32.8 101.7 254.6 5 32.3 400 34.8 83.8 85.4 84.3 240 242.2 200 311.9 346.5 389.7 435.6 475 230 220 228.5 0 -2 11 210 215.3 215.5 2015 2016 2017 2018 2019 -200 200 Financing Activities Income ■Commissions and Fees Income Investing Activities Income Other Income 190 2015 2016 2017 2018 2019 Sustained efficiency ratio (cost to income ratio %) Return on average equity and assets (%) 40.0% Return of Average Equity Return of Average Assets 35.0% 40.0% 3.0% 30.0% 26.7% 25.4% 25.3% 24.9% 35.0% 24.1% 2.5% 25.0% 30.0% 2.0% 1.9% 20.0% 25.0% 1.8% 1.8% 2.0% 1.7% 15.0% 20.0% 14.4% 13.6% 13.5% 14.2% 1.5% 10.0% 15.0% 14.7% 2015 2016 2017 2018 2019 10.0% 1.0% 2015 2016 2017 2018 2019 Page 15. QIIB الدولي الإسلامي#16Balance Sheet Highlights QAR '000 2015 2016 2017 2018 2019 Total Assets 40,540,045 42,550,960 46,618,980 50,259,955 56,831,439 Financing Portfolio Investing Portfolio 24,978,073 27,233,326 32,500,027 27,991,116 37,010,528 11,655,679 11,146,077 9,453,810 17,767,789 15.806,455 Other Investments 783,398 767,134 791,505 1,269,784 1,190,489 Customer Deposits Equity 26,602,638 26,539,096 32,478,648 31,129,927 31,228,545 5,529,112 6,677,030 6,816,565 6,830,087 8,160,159 Cash Dividends 40.00% 40.00% 40.00% 40.00% 42.50% Year on Year Growth Total Assets 5.6% 5.0% 9.6% 7.8% 13.1% Financing Portfolio 14.4% 9.0% 19.3% -13.9% 32.2% Investing Portfolio -11.1% -4.4% -15.2% 87.9% -11.0% Other Investments -6.9% -2.1% 3.2% 60.4% -6.2% Customer Deposits 0.0% -0.2% 22.4% -4.2% 0.3% Equity 3.0% 20.8% 2.1% 0.2% 19.5% Page 16. Commentary Sustained asset growth of 5.6%, 5.0%, 9.6%, 7.8% and 13.1% from FY2015 to FY2019 respectively. Strong balance sheet backed by quality credits; adequate provisioning Sustained deposit growth through customer loyalty Continued strong asset growth in FY 2019, with the support of the stability of oil prices above $ 55 a barrel Government commitment to continue development for World Cup 2022 and Qatar National Vision 2030 QIIB الدولي الإسلامي#17Page 17. QIIB E الدوا الإ Section 4 Equity & Funding Overview QIIB الدولي الإسلامي#18Funding Overview Highlights QIIB's funding is predominantly driven by customer deposits and unrestricted investment accounts (URIA) and is backed by the bank's own capital. QIIB has leveraged its expanding branch network and corporate relationships to steadily grow its deposits base - to be supported further with Corporate e-Banking services. QIIB is increasingly becoming a preferred banking partner for individuals as well as corporations and financial institutions looking for Sharia-compliant solutions. In the process of establishing an investor relations function to broaden investor base, develop investor relationships. QIIB's Funding Split As at 31 December 2019 As at 31 December 2018 14% 23% 48% 14% Due to banks Other liabilities 1% ☐ ☐ 14% 25% 5% 43% Customers' current account Unrestricted Investment Accounts Capital Sukuk 11% 2% e URIA breakdown by Sector Growth in total customer deposits (US$ Mn) As at 31 December 2019 10,000 As at 31 December 2018 1% 2% 8,000 5% 25% 6% 29% 6,000 7,026 6,651 6,812 5,514 5,608 4,000 2,000 63% 69% 1,809 1,708 1,893 1,898 1,764 0 2015 2016 2017 2018 2019 Current Accounts ■Unrestricted Investment Accounts Government & Semi Government Individuals Corporate Non-Banking Financial Institutions Page 18. QIIB الدولي الإسلامي#19Robust Capitalization Base Highlights QCB has implemented the Basel III framework (capital adequacy, liquidity ratios, leverage and domestic systematically important banks (DSIB) capital guidance) since 2014, and in 2015, requires only BIII basis for regulatory reporting. The counter-cyclical buffer framework implemented in 2016, but QCB has not announced any buffer ratio yet. Basel II, Pillar 2 (ICAAP) requirements were effective from 1 January 2014 with all ICAAP and BIII requirements subject to regular (external) audit. Guidelines were refined and updated in March 2016. To date, no audit qualification has been raised on QIIB's submissions. QCB's Basel III CAR is 10% plus a 2.5% capital buffer and minimum 1% ICAAP starting from year 2016, with additional DSIB capital between 0.5% to 3.5%. For QIIB, no additional capital is required under the DSIB model. As at 31 December 2019, total CAR stood at 18.5%, including the additional Tier 1 issuance (QAR 1 billion & USD 300 million) concluded in August 2016 & November 2019. Equity (US$ Mn) Capital Structure (US$ Mn) Tier 1 Tier 2 +24.6% +2.1% +21.5% +2.7% 2500 2000 1500 1000 1,985 1625 1659 1633 1304 500 0 2016 2017 2018 2019 2015 *Percentage change is calculated on total equity. *The box ratio is not proportional to the data. Capital adequacy ratios (%) % 21.0% 2,400 19.0% 2,000 19.5% 17.9% 17.0% 1,600 2,241 15.0% 18.5% 16.7% 16.4% 13.5% 13.5% 13.5% 1,200 12.5% 13.5% 800 1,834 1,872 1,876 13.0% 1,518 11.0% 400 9.0% 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Basel III Capital Ratio Regulatory Requirement Page 19. QIIB الدولي الإسلامي#20Page 20. QIIB Section 5 Rating Overview QIIB E الدوا الإ الدولي الإسلامي#21Credit Ratings Page 21. Fitch Ratings Longer-term IDR Short-term IDR Viability Rating Outlook Date A FI bb+ Stable October 2019 Moody's Issuer Rating ST Issuer Rating Baseline credit assessment Outlook Date A2 P-I baa3 Stable June 2019 Long Term Rating A Short Term Rating Capital Intelligence Standalone Rating (BSR) Outlook Date A1 bbb+ Stable May 2019 QIIB الدولي الإسلامي#22Key Investment Highlights Third largest Islamic Bank in Qatar Based in one of the fastest growing markets in the world Strong brand name since 1991 Second largest Islamic banking network in Qatar with 19 branches Page 22. Strong capital position & asset quality Strong government support with QIA as one of the bank's largest shareholders Strong organic growth Long-term issuer ratings of A (Fitch) and A2 (Moody's) QIIB الدولي الإسلامي#23Contacts Head Office: Qatar International Islamic Bank Doha, Qatar P.O. Box 664 Web: www.qiib.com.qa Email: [email protected] IR Mobile App Page 23. IR Contact: Mr. Hossam Khattab Chief Financial Officer Finance [email protected] (+974) 44840180 Dr. Mohammed Ghiyath Sheikhah Head of Treasury & Investment Treasury & Investment Mohammed [email protected] (+974) 44840251 QIIB الدولي الإسلامي#24Disclaimer Page 24. Acceptance by recipients of a copy of this document will be deemed to constitute an acknowledgement and agreement that: This document has been prepared by QIIB and accepts no liability, express or implied, to any other parties or recipients. The reliance which can be placed upon this document is a matter of commercial judgment and each recipient must make, and will be deemed to have made, such investigations as it considers necessary to form its own opinions on the subject of this document. This document has been based upon information which is believed to be reliable but has not been independently verified by QIIB, as such, QIIB accepts no liability or responsibility for the adequacy, accuracy, completeness or currency of, nor makes any representation or warranty, express or implied, with respect to the information contained in this document or on which this document is based or as to the reasonableness of any projections which this document contains. QIIB accepts no responsibility or liability for advising any recipient of any changes or additions to the information contained in this document; QIIB may, from time to time, trade in any securities, either as principal or as intermediary, underwrite an issue of securities, earn brokerage or commission or have a long or short term position in any securities or instruments which are the subject of this document. The law in certain jurisdictions may restrict the distribution of this document and recipients warrant that they are required to inform themselves about, and to observe, any such restrictions, and QIIB accepts no liability to any person in relation to the distribution of this document in any jurisdiction; and this document does not constitute, and may not be used in connection with an offer or solicitation in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. For the purposes of this disclaimer, QIIB refers to Qatar international Islamic bank, its subsidiaries and associated companies, together with their respective directors, officers, employees and agents, both collectively and individually. QIIB الدولي الإسلامي