National Bank Of Kuwait K.s.c. · KSE:NBK
National Bank Of Kuwait K.s.c — National Bank of Kuwait — Q1 2024 Earnings Presentation
25 slides from National Bank Of Kuwait K.s.c's earnings presentation, 2024
Slide 1: National Bank of Kuwait Investor Presentation 1Q 2024 Earnings Call
PUBLIC National Bank of Kuwait Investor Presentation 1Q 2024 Earnings Call National Bank of Kuwait 1
Slide 2: Disclaimer
PUBLIC Disclaimer THE INFORMATION SET OUT IN THIS PRESENTATION AND PROVIDED IN THE DISCUSSION SUBSEQUENT THERETO DOES NOT CONSTITUTE AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLELY FOR USE AT AN INVESTOR PRESENTATION AND IS PROVIDED AS INFORMATION ONLY. THIS PRESENTATION
Slide 3: Contents
PUBLIC Contents Section 1 Vice Chairman and Group CEO Opening Remarks Section 2 Financial Performance Section 3 Appendix Section 4 Questions National Bank of Kuwait 3
Slide 4: Key Economic Highlights
PUBLIC Key Economic Highlights Daily ICE Brent Crude Oil Prices ($/bbl) Real GDP Growth1 (% y/y) 100 100 15 15 Oil sector Non-oil sector Estimates/forecast 95 95 10 10 Headline 90 90 5 5 85 85 0 0 80 80 -5 -5 75 75 -10 -10 70 70 -15 -15 Apr-23 Jun-23 Aug-23 Oct-23 Dec-23 Feb-24 Apr-24 2017 2018 2019
Slide 5: Operating Performance & Profitability
PUBLIC Operating Performance & Profitability Net Profit (KDm) Net Operating Income (KDm) 146.6 309 134.2 278 1Q 2023 1Q 2024 1Q 2023 1Q 2024 Return on Average Assets Return on Average Equity 1.55% 15.2% 1.50% 15.0% 1Q 2023 1Q 2024 1Q 2023 1Q 2024 National Bank of Kuwait 5
Slide 6: NBK's Strategy
PUBLIC NBK’s Strategy ▪ The Bank aims to (i) remain the primary banker for the leading local companies whilst continuing to be active in the mid-market sector;(ii) ✓ Corporate remain the bank of choice for foreign companies and continuing to serve at least 75% of those companies and (iii) maintain i
Slide 7: Building A Leading Journey In ESG
PUBLIC Building A Leading Journey In ESG ESG Ratings ESG Governance National and Global NBK is at 27.4 – Medium Frameworks ▪ A Board approved ESG Governance Structure and Risk Framework that assigns ESG responsibility across members of the Executive Management. MSCI upgraded NBK ESG ratings to ‘BBB’
Slide 8: Key ESG Achievements
PUBLIC Key ESG Achievements We measure our progress against well-defined metrics and targets to achieve the greatest positive impact. Strategy Pillars Key Highlights ▪ Committed to become carbon neutral by 2060 and set an interim target to reduce gross operational emissions by 25% by 2025. ▪ Install
Slide 9: Contents
PUBLIC Contents Section 1 Vice Chairman and Group CEO Opening Remarks Section 2 Financial Performance Section 3 Appendix Section 4 Questions National Bank of Kuwait 9
Slide 10: Operating Performance 1Q 2024
PUBLIC Operating Performance 1Q 2024 Net Profit (KDm) Operating Surplus (KDm) 146.6 197.5 134.2 186.7 129.5 176.4 +9.2% +12.0% 1Q 2023 4Q 2023 1Q 2024 1Q 2023 4Q 2023 1Q 2024 Net Operating Income (KDm) Net Operating Income Mix Net interest income & Net income from Islamic Financing Non-interest inco
Slide 11: Operating Performance 1Q 2024
PUBLIC Operating Performance 1Q 2024 Net Interest Income* (KDm) Average Interest Earning Assets (KDbn) 36.2 239.3 238.1 34.7 211.8 +12.4% +4.5% 1Q 2023 4Q 2023 1Q 2024 1Q 2023 1Q 2024 Net Interest Margin* Net Interest Margin drivers YTD NIM Qtrly NIM 2.68% 2.68% 2.64% +0.17% 2.56% +0.79% 2.48% -0.80
Slide 12: Operating Performance 1Q 2024
PUBLIC Operating Performance 1Q 2024 Non-interest income (KDm) Operating Expenses (KDm) Net fees and commissions Net gains from dealing in FX Other non-interest income Staff expenses Other operating expenses 70.9 116.3 66.1 111.5 63.7 7 101.5 7 +7.2% +9.9% 9 10 8 7 55 53 47 51 53 48 55 61 59 1Q 2023
Slide 13: Group Diversification
PUBLIC Group Diversification 1Q24 Op. Income by Business Line (%) 1Q24 Net Profit by Business Line (%) 1Q24 Total Assets by Business Line (%) Corporate Corporate Corporate NBK Wealth 13% NBK Wealth 21% 14% 2% 9% NBK Wealth Consumer Consumer 11% 20% Consumer 17% 13% Islamic 23% Islamic Islamic 16% 21
Slide 14: Operating Performance 1Q 2024
PUBLIC Operating Performance 1Q 2024 Total Assets (KDbn) Loans, Advances and Islamic Financing (KDbn) 37.7 38.3 36.5 22.3 22.4 21.2 +5.1% +5.7% Mar 23 Dec 23 Mar 24 Mar 23 Dec 23 Mar 24 Customer Deposits & FI Deposits* (KDbn) Funding Mix Customer Deposits FI Deposits Customer Deposits Due to banks D
Slide 15: Performance and Asset Quality Ratios 1Q 2024
PUBLIC Performance and Asset Quality Ratios 1Q 2024 Return on Average Equity Return on Average Assets 1.50% 1.53% 1.55% 15.0% 15.0% 15.2% 1Q 2023 FY 2023 1Q 2024 1Q 2023 FY 2023 1Q 2024 Capital Adequacy Ratios Asset Quality Ratios CET 1 Ratio Tier 1 Ratio Capital Adequacy Ratio Loan Loss Coverage Ra
Slide 16: Expected Credit Losses (ECL) 1Q 2024
PUBLIC Expected Credit Losses (ECL) 1Q 2024 Financial Statements ECL Disclosure (KDm) Total Gross Loans (KDbn) Stage 1 Stage 2 Stage 3 31 March 2024 Stage1 Stage 2 Stage 3 Total 23.1 23.3 22.0 Loans, advances and Islamic 2% 1% 1% financing to customers 21,178 1,731 351 23,261 6% 7% 8% Contingent lia
Slide 17: 2024 Guidance
PUBLIC 2024 Guidance 2024 Guidance FY 2023 1Q 2024 (v/s 2023) Loan Growth +6.1% +0.5% Mid Single Digit NIM 2.59% 2.64% Stable Cost to Income ratio 36.6% 36.1% High 30s Cost of Risk 36bps 44bps 40 – 50 bps Earnings (yoy) +10.1% +9.2% Capital Adequacy 17.3% 17.2% National Bank of Kuwait 17
Slide 18: Contents
PUBLIC Contents Section 1 Vice Chairman and Group CEO Opening Remarks Section 2 Financial Performance Section 3 Appendix Section 4 Questions National Bank of Kuwait 18
Slide 19: Consolidated Statement Of Income (KDm)
PUBLIC Consolidated Statement Of Income (KDm) KDm 1Q 2023 1Q 2024 YoY Growth (%) Interest Income 361 452 25% Interest Expense 191 263 38% Net Interest Income 171 189 11% Murabaha and other Islamic financing income 92 111 20% Finance cost and Distribution to depositors 51 62 21% Net Income from Islam
Slide 20: Consolidated Statement Of Financial Position (KDm)
PUBLIC Consolidated Statement Of Financial Position (KDm) KDm March-2023 March-2024 YoY Growth % Cash and short term funds 5,108 4,271 (16%) Central Bank of Kuwait bonds 894 860 (4%) Kuwait Government treasury bonds 198 193 (3%) Deposits with banks 1,427 1,918 34% Loans, advances and Islamic financi
Slide 21: Performance Measures 1Q 2024
PUBLIC Performance Measures 1Q 2024 March-2023 March-2024 Return on Average Assets 1.50% 1.55% Return on Average Equity 15.0% 15.2% Net Interest Margin 2.48% 2.64% Cost to Income 36.5% 36.1% NPLs to Gross Loans 1.55% 1.51% Loan Loss Reserves to NPLs 245% 248% CET 1 Ratio 12.6% 12.9% Tier 1 Ratio 14.
Slide 22: Contents
PUBLIC Contents Section 1 Vice Chairman and Group CEO Opening Remarks Section 2 Financial Performance Section 3 Appendix Section 4 Questions National Bank of Kuwait 22
Slide 23: Questions?
PUBLIC Questions? National Bank of Kuwait 23
Slide 24: Thank You
PUBLIC Thank You National Bank of Kuwait 24
Slide 25: National Bank of Kuwait Investor Presentation 1Q 2024 Earnings Call
PUBLIC National Bank of Kuwait Investor Presentation 1Q 2024 Earnings Call National Bank of Kuwait 25
National Bank of Kuwait — Q1 2024 Earnings Presentation on 6ix