National Bank Of Kuwait K.s.c. · KSE:NBK
National Bank Of Kuwait K.s.c — National Bank of Kuwait — H1 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 2Q/1H 2022 Earnings Call
PUBLIC National Bank of Kuwait Investor Presentation 2Q/1H 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 Deputy 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 Non-oil 16 16 10 8.5 10 Total Household Core business 14 14 5.7 3.8 12 12 3.1 2.4 5 2.5 3.4 5 1.5 10 10 3.7 1.1 -0.1 8 8 0.5 0.6 0 0 6 6 2.4 -0.6 3.5 1.1 4 4 -5 -5 2 2 -8.8 -5.3 0 0 -8.9 -2 -2 -10 -10 May-19
Slide 5: NBK Profitability (KDm)
PUBLIC NBK Profitability (KDm) Net Profit Attributable 47.9% 237.8 160.8 58.6% 121.2 76.5 1H 2021 2Q 2021 2Q 2022 1H 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 and enhancing our positive impact in the world Sustainability Respecting Pillars C
Slide 8: Contents
PUBLIC Contents Section 1 Deputy Group CEO Opening Remarks Section 2 Financial Performance Section 3 Appendix Section 4 Questions National Bank of Kuwait 8
Slide 9: Operating Performance 1H 2022
PUBLIC Operating Performance 1H 2022 Net Profit (KDm) Operating Surplus (KDm) 237.8 291.8 282.4 +47.9% +3.3% 160.8 116.6 121.2 143.0 144.5 147.2 76.5 2Q 2021 1Q 2022 2Q 2022 1H 2021 1H 2022 2Q 2021 1Q 2022 2Q 2022 1H 2021 1H 2022 Operating Income (KDm) Operating Income Net interest income & Net inco
Slide 10: Operating Performance 1H 2022
PUBLIC Operating Performance 1H 2022 Net Interest Income* (KDm) Average Interest Earning Assets (KDbn) 348.3 32.2 333.6 +4.4% +9.4% 29.5 171.2 168.7 179.6 2Q 2021 1Q 2022 2Q 2022 1H 2021 1H 2022 1H 2021 1H 2022 Net Interest Margin* Net Interest Margin drivers YTD NIM Qtrly NIM 2.28% 0.12% -0.23% 0.0
Slide 11: Operating Performance 1H 2022
PUBLIC Operating Performance 1H 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 188.4 131.9 170.1 118.9 +10.7% 11 +10.9% 81 22 30 76 67.8 16 96.4 59.8 64.0 88.0 92.0 13 10
Slide 12: Operating Performance 1H 2022
PUBLIC Operating Performance 1H 2022 Operating Income (KDm) - International Operating Income (KDm) 112.6 117.8 Int'l Int'l 25% 25% +4.6% Dom. Dom. 75% 75% 1H 2021 1H 2022 1H 2021 1H 2022 Net profit (KDm) - International Net Profit (KDm) 45.8 Int'l Int'l 32.6 20% 19% +40.8% Dom. Dom. 80% 81% 1H 2021
Slide 13: Operating Performance 1H 2022
PUBLIC Operating Performance 1H 2022 Total Assets (KDbn) Loans, Advances and Islamic Financing (KDbn) 33.3 34.3 31.6 19.7 20.1 +8.6% 18.5 +8.8% Jun 21 Dec 21 Jun 22 Jun 21 Dec 21 Jun 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 1H 2022
PUBLIC Performance and Asset Quality Ratios 1H 2022 Return on Average Equity Return on Average Assets 13.6% 1.42% 1.15% 10.2% 1.05% 9.2% 1H 2021 FY 2021 1H 2022 1H 2021 FY 2021 1H 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) 1H 2022
PUBLIC Expected Credit Losses (ECL) 1H 2022 Financial Statements ECL Disclosure (KDm) Total Gross Loans (KDbn) Stage 1 Stage 2 Stage 3 30 June 2022 Stage1 Stage 2 Stage 3 Total 19.2 20.4 20.9 3% 1% 1% Loans, advances and Islamic 8% 7% 9% financing to customers 19,228 1,457 259 20,943 Contingent liab
Slide 16: 2022 Guidance
PUBLIC 2022 Guidance 1H 2022 2022 Guidance Loan Growth +2.1% High Single Digit NIM 2.18% Broadly Stable Cost to Income ratio 39.2% Broadly Stable Cost of Risk 8bps Earnings +47.9% Capital Adequacy 17.3 % National Bank of Kuwait 16
Slide 17: Contents
PUBLIC Contents Section 1 Deputy 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 1H 2021 1H 2022 YoY Growth (%) Interest Income 326 373 14% Interest Expense 74 113 52% Net Interest Income 252 260 3% Murabaha and other Islamic financing income 113 129 14% Finance cost and Distribution to depositors 31 40 30% Net Income from Islami
Slide 19: Consolidated Statement Of Financial Position (KDm)
PUBLIC Consolidated Statement Of Financial Position (KDm) KDm June 2021 June 2022 YoY Growth % Cash and short term funds 4,358 5,087 17% Central Bank of Kuwait bonds 830 848 2% Kuwait Government treasury bonds 448 267 (40%) Deposits with banks 1,289 1,169 (9%) Loans, advances and Islamic financing t
Slide 20: Performance Measures 1H 2022
PUBLIC Performance Measures 1H 2022 June 2021 June 2022 Return on average assets 1.05% 1.42% Return on average equity 9.2% 13.6% Net interest margin 2.28% 2.18% Cost to income 37.6% 39.2% NPLs to gross loans 2.45% 1.24% Loan loss reserves to NPLs 152% 311% Tier 1 capital 15.7% 14.9% Tier 2 capital 2
Slide 21: Contents
PUBLIC Contents Section 1 Deputy 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 2Q/1H 2022 Earnings Call
PUBLIC National Bank of Kuwait Investor Presentation 2Q/1H 2022 Earnings Call National Bank of Kuwait 24
National Bank of Kuwait — H1 2022 Earnings Presentation on 6ix