National Bank Of Kuwait K.s.c. · KSE:NBK

National Bank Of Kuwait K.s.c — National Bank of Kuwait — 9M 2023 Earnings Presentation

25 slides from National Bank Of Kuwait K.s.c's earnings presentation, 2023

  1. Slide 1: National Bank of Kuwait Investor Presentation 3Q/9M 2023 Earnings Call

    PUBLIC National Bank of Kuwait Investor Presentation 3Q/9M 2023 Earnings Call National Bank of Kuwait 1

  2. 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

  3. 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

  4. 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 Forecast 95 95 10 Headline 10 90 90 5 5 85 85 0 0 80 80 -5 -5 75 75 -10 -10 70 70 -15 -15 Oct-22 Dec-22 Feb-23 Apr-23 Jun-23 Aug-23 Oct-23 2017 2018 2019 2020 2021

  5. Slide 5: Operating Performance & Profitability

    PUBLIC Operating Performance & Profitability Net Profit Attributable (KDm) Operating Income (KDm) 15.2% 15.6% 431.1 863.8 374.2 747.4 14.2% 9.9% 155.8 297.9 136.4 271.1 3Q 2022 3Q 2023 9M 2022 9M 2023 3Q 2022 3Q 2023 9M 2022 9M 2023 Return on Average Assets Return on Average Equity 1.69% 1.57% 1.58%

  6. 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  Corporate sector;(ii) remain the bank of choice for foreign companies and continuing to serve at least 75% of those companies and (iii) Banking ma

  7. Slide 7: NBK ESG Strategy Framework

    PUBLIC NBK ESG Strategy Framework National Bank of Kuwait 7

  8. Slide 8: Building A Leading Journey In ESG

    PUBLIC Building A Leading Journey In ESG ESG Ratings ESG Awards National and Global Frameworks Global Finance NBK is at 27.5 –  Best SME Bank Award - Kuwait 2023 Medium Risk  Best Private Bank for Sustainable Investing- Middle East 2023 MSCI upgraded NBK  Best Financial Innovation Labs 2023 – NBK

  9. 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

  10. Slide 10: Operating Performance 9M 2023

    PUBLIC Operating Performance 9M 2023 Net Profit (KDm) Operating Surplus (KDm) 431.1 553.6 +15.2% +18.8% 374.2 465.8 155.8 194.4 136.4 141.1 174.0 182.8 3Q 2022 2Q 2023 3Q 2023 9M 2022 9M 2023 3Q 2022 2Q 2023 3Q 2023 9M 2022 9M 2023 Net Operating Income (KDm) Net Operating Income Mix 863.8 Net intere

  11. Slide 11: Operating Performance 9M 2023

    PUBLIC Operating Performance 9M 2023 Net Interest Income* (KDm) Average Interest Earning Assets (KDbn) 665.8 34.6 +21.8% +6.9% 546.6 32.4 220.3 233.8 198.3 3Q 2022 2Q 2023 3Q 2023 9M 2022 9M 2023 9M 2022 9M 2023 Net Interest Margin* Net Interest Margin Drivers YTD NIM Qtrly NIM +1.01% -1.97% 2.68% +

  12. Slide 12: Operating Performance 9M 2023

    PUBLIC Operating Performance 9M 2023 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 310.2 200.8 197.9 -1.4% 281.6 +10.1% 14 20 138 50 29 118 72.7 67.7 64.1 105.2 103.5 3 97.0 1

  13. Slide 13: Operating Performance 9M 2023

    PUBLIC Operating Performance 9M 2023 Net Operating Income (KDm) - International Net Operating Income 215.4 191.3 Int'l Int'l 26% 25% +12.6% Dom. Dom. 74% 75% 9M 2022 9M 2023 9M 2022 9M 2023 Net Profit (KDm) - International Net Profit 100.7 100.0 Int'l Int'l 23% 27% -0.7% Dom. Dom. 73% 77% 9M 2022 9M

  14. Slide 14: Operating Performance 9M 2023

    PUBLIC Operating Performance 9M 2023 Total Assets (KDbn) Loans, Advances and Islamic Financing (KDbn) 36.3 36.8 34.7 21.8 20.6 21.0 +6.1% +5.8% Sep 22 Dec 22 Sep 23 Sep 22 Dec 22 Sep 23 Customer Deposits & FI Deposits* (KDbn) Funding Mix Customer Deposits FI Deposits Customer Deposits Due to banks D

  15. Slide 15: Performance and Asset Quality Ratios 9M 2023

    PUBLIC Performance and Asset Quality Ratios 9M 2023 Return on Average Equity Return on Average Assets 15.5% 1.58% 1.47% 1.48% 14.3% 14.1% 9M 2022 FY 2022 9M 2023 9M 2022 FY 2022 9M 2023 Capital Adequacy Ratios Asset Quality Ratios CET 1 Ratio Tier 1 Ratio Capital Adequacy Ratio Loan Loss Coverage Ra

  16. Slide 16: Expected Credit Losses (ECL) 9M 2023

    PUBLIC Expected Credit Losses (ECL) 9M 2023 Financial Statements ECL Disclosure (KDm) Total Gross Loans (KDbn) Stage 1 Stage 2 Stage 3 30 September 2023 Stage 1 Stage 2 Stage 3 Total 21.4 21.8 22.7 1% 1% 2% Loans, advances and Islamic 8% 6% 8% financing to customers 20,865 1,405 394 22,664 Contingen

  17. Slide 17: 2023 Guidance

    PUBLIC 2023 Guidance 2023 Guidance 9M 2023 (v/s 2022) Loan Growth (ytd) +3.8% Mid Single Digit NIM 2.57% Expanding Cost to Income ratio 35.9% Mid – High 30s Cost of Risk 40bps 40 – 50 bps Earnings (yoy) +15.2% Capital Adequacy 16.1% National Bank of Kuwait 17

  18. 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

  19. Slide 19: Consolidated Statement Of Income (KDm)

    PUBLIC Consolidated Statement Of Income (KDm) KDm 9M 2022 9M 2023 YoY Growth (%) Interest Income 628 1,185 89% Interest Expense 213 652 NM Net Interest Income 416 533 28% Murabaha and other Islamic financing income 203 295 45% Finance cost and Distribution to depositors 72 162 NM Net Income from Isl

  20. Slide 20: Consolidated Statement Of Financial Position (KDm)

    PUBLIC Consolidated Statement Of Financial Position (KDm) KDm September 2022 September 2023 YoY Growth % Cash and short term funds 3,826 3,639 (5%) Central Bank of Kuwait bonds 1,038 862 (17%) Kuwait Government treasury bonds 213 191 (10%) Deposits with banks 1,749 2,080 19% Loans, advances and Isla

  21. Slide 21: Performance Measures 9M 2023

    PUBLIC Performance Measures 9M 2023 September 2022 September 2023 Return on Average Assets 1.47% 1.58% Return on Average Equity 14.1% 15.5% Net Interest Margin 2.26% 2.57% Cost to Income 37.7% 35.9% NPLs to Gross Loans 1.24% 1.74% Loan Loss Reserves to NPLs 308% 220% CET 1 Ratio 11.8% 11.8% Tier 1 R

  22. 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

  23. Slide 23: Questions?

    PUBLIC Questions? National Bank of Kuwait 23

  24. Slide 24: Thank You

    PUBLIC Thank You National Bank of Kuwait 24

  25. Slide 25: National Bank of Kuwait Investor Presentation 3Q/9M 2023 Earnings Call

    PUBLIC National Bank of Kuwait Investor Presentation 3Q/9M 2023 Earnings Call National Bank of Kuwait 25

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