National Bank Of Kuwait K.s.c. · KSE:NBK
National Bank Of Kuwait K.s.c — National Bank of Kuwait — 9M 2022 Earnings Presentation
24 slides from National Bank Of Kuwait K.s.c's earnings presentation, 2022
Slide 1: National Bank of Kuwait Investor Presentation 3Q/9M 2022 Earnings Call
PUBLIC National Bank of Kuwait Investor Presentation 3Q/9M 2022 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 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 Kuwait Private credit (change, % y/y) Real GDP (% y/y) Total 12m avg Total Non-oil 12 12 10 10 7.8 5.7 10 10 3.8 5 3.1 2.4 2.5 3.4 5 1.5 8 8 1.1 -0.1 3.1 0.5 0.6 6 6 0 0 2.4 -0.6 3.5 1.1 4 4 -5 -5 -8.8 2 2 -5.3 -8.9 0 0 -10 -10 Aug-19 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22
Slide 5: NBK Profitability (KDm)
PUBLIC NBK Profitability (KDm) Net Profit Attributable 46.9% 374.2 254.8 45.0% 136.4 94.1 9M 2021 3Q 2021 3Q 2022 9M 2022 National Bank of Kuwait 5
Slide 6: NBK's Strategy
PUBLIC NBK’s Strategy The Group’s strategy, which is based on two main pillars, focuses on defending and growing its leadership position in Kuwait whilst also diversifying its business The Bank aims to (i) remain the primary banker for the leading local companies whilst continuing to be active in
Slide 7: Sustainability is Embedded in NBK's DNA and Strategy
PUBLIC Sustainability is Embedded in NBK’s DNA and Strategy NBK is deeply committed to our sustainability journey. We view our efforts at improving our sustainability as integral to improving our business performance, driving sustainable growth, and enhancing our positive impact in the world. Our ES
Slide 8: Contents
PUBLIC Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance Section 3 Appendix Section 4 Questions National Bank of Kuwait 8
Slide 9: Operating Performance 9M 2022
PUBLIC Operating Performance 9M 2022 Net Profit (KDm) Operating Surplus (KDm) 374.2 +46.9% 465.8 +12.3% 414.6 254.8 136.4 121.2 174.0 94.1 147.2 132.2 3Q 2021 2Q 2022 3Q 2022 9M 2021 9M 2022 3Q 2021 2Q 2022 3Q 2022 9M 2021 9M 2022 Net Operating Income (KDm) Net Operating Income 753.5 Net interest in
Slide 10: Operating Performance 9M 2022
PUBLIC Operating Performance 9M 2022 Net Interest Income* (KDm) Average Interest Earning Assets (KDbn) 546.6 502.1 32.4 +8.9% +8.4% 29.9 198.3 168.5 179.6 3Q 2021 2Q 2022 3Q 2022 9M 2021 9M 2022 9M 2021 9M 2022 Net Interest Margin* Net Interest Margin drivers YTD NIM Qtrly NIM +0.28% -0.45% 2.25% +0
Slide 11: Operating Performance 9M 2022
PUBLIC Operating Performance 9M 2022 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 287.7 206.9 266.4 179.0 14 +15.6% +8.0% 124 28 60 117 28 75.0 60.1 96.3 96.4 99.3 64.0 3 6 1
Slide 12: Operating Performance 9M 2022
PUBLIC Operating Performance 9M 2022 Net Operating Income (KDm) - International Net Operating Income (KDm) 192.0 168.1 Int'l Int'l 25% 25% +14.2% Dom. Dom. 75% 75% 9M 2021 9M 2022 9M 2021 9M 2022 Net profit (KDm) - International Net Profit (KDm) 100.7 Int'l Int'l 71.7 27% 28% +40.5% Dom. Dom. 72% 73
Slide 13: Operating Performance 9M 2022
PUBLIC Operating Performance 9M 2022 Total Assets (KDbn) Loans, Advances and Islamic Financing (KDbn) 34.7 32.5 33.3 20.6 19.0 19.7 +6.8% +8.7% Sep 21 Dec 21 Sep 22 Sep 21 Dec 21 Sep 22 Customer Deposits & FI Deposits* (KDbn) Funding Mix Customer Deposits FI Deposits Customer Deposits Due to banks D
Slide 14: Performance and Asset Quality Ratios 9M 2022
PUBLIC Performance and Asset Quality Ratios 9M 2022 Return on Average Equity Return on Average Assets 14.1% 1.47% 1.09% 1.15% 9.6% 10.2% 9M 2021 FY 2021 9M 2022 9M 2021 FY 2021 9M 2022 Capital Adequacy Ratios Asset Quality Ratios CET 1 Ratio Tier 1 Ratio Capital Adequacy Ratio Loan Loss Coverage Rat
Slide 15: Expected Credit Losses (ECL) 9M 2022
PUBLIC Expected Credit Losses (ECL) 9M 2022 Financial Statements ECL Disclosure (KDm) Total Gross Loans (KDbn) Stage 1 Stage 2 Stage 3 30 September 2022 Stage1 Stage 2 Stage 3 Total 19.6 20.4 21.4 1% 1% 1% Loans, advances and Islamic 8% 8% 8% financing to customers 19,466 1,692 267 21,424 Contingent
Slide 16: 2022 Guidance
PUBLIC 2022 Guidance 9M 2022 2022 Guidance Loan Growth +4.5% Mid to High Single Digit NIM 2.26% Broadly Stable Cost to Income ratio 38.2% Broadly Stable Cost of Risk 18bps Earnings +46.9% Capital Adequacy 16.3 % National Bank of Kuwait 16
Slide 17: Contents
PUBLIC Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance Section 3 Appendix Section 4 Questions National Bank of Kuwait 17
Slide 18: Consolidated Statement Of Income (KDm)
PUBLIC Consolidated Statement Of Income (KDm) KDm 9M-2021 9M-2022 YoY Growth (%) Interest Income 492 628 28% Interest Expense 113 213 88% Net Interest Income 378 416 10% Murabaha and other Islamic financing income 171 203 19% Finance cost and Distribution to depositors 47 72 53% Net Income from Isla
Slide 19: Consolidated Statement Of Financial Position (KDm)
PUBLIC Consolidated Statement Of Financial Position (KDm) KDm September-2021 September-2022 YoY Growth % Cash and short term funds 5,216 3,826 (27%) Central Bank of Kuwait bonds 831 1,038 25% Kuwait Government treasury bonds 447 213 (52%) Deposits with banks 829 1,749 NM Loans, advances and Islamic
Slide 20: Performance Measures 9M 2022
PUBLIC Performance Measures 9M 2022 September-2021 September-2022 Return on average assets 1.09% 1.47% Return on average equity 9.6% 14.1% Net interest margin 2.25% 2.26% Cost to income 39.1% 38.2% NPLs to gross loans 1.43% 1.24% Loan loss reserves to NPLs 230% 308% Tier 1 capital 15.6% 14.0% Tier 2
Slide 21: Contents
PUBLIC Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance Section 3 Appendix Section 4 Questions National Bank of Kuwait 21
Slide 22: Questions?
PUBLIC Questions? National Bank of Kuwait 22
Slide 23: Thank You
PUBLIC Thank You National Bank of Kuwait 23
Slide 24: National Bank of Kuwait Investor Presentation 3Q/9M 2022 Earnings Call
PUBLIC National Bank of Kuwait Investor Presentation 3Q/9M 2022 Earnings Call National Bank of Kuwait 24
National Bank of Kuwait — 9M 2022 Earnings Presentation on 6ix