Burgan Bank · KSE:BURG
Burgan Bank — Q2 2018 Earnings Presentation
30 slides from Burgan Bank's earnings presentation, Jul 24, 2018
Slide 1: Letter to Boursa Kuwait on Financial Analyst Conference
11/2017 P.O, Box 5389, Al Safat 12170 IFIV. Slan IS] OPAD Wa = = < peaeey one Gd yl _=sp Sais Telephone: +965 2298 8000 +910 (POA A... ndila Fax: +965 2298 8419 +970 (FAA NEIF yu Ale @ BURGAN BANK Authorized Capital KD 250,000,000 ha PO Us aperoll loll uly KPS.C.| Ethos Issued and paid up capital KD
Slide 2: Burgan Bank Analyst Conference Q2 2018
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Slide 3: Conference minutes (Arabic)
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Slide 4: Conference minutes (Arabic)
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Slide 5: Conference minutes (Arabic)
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Slide 6: Conference minutes (Arabic)
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Slide 7: Conference minutes (Arabic)
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Slide 8: Conference minutes (Arabic)
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Slide 9: Conference minutes (Arabic)
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Slide 10: Conference minutes (Arabic)
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Slide 11: Conference minutes (Arabic)
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Slide 12: Conference minutes (Arabic)
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Slide 13: Conference minutes (Arabic)
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Slide 14: Burgan Bank Group 1st Half 2018
BURGAN BANK GROUP INVESTOR PRESENTATION 18T HALF 2018 2009 2009 2010 2010 ] gl 9p =u BURGAN BANK
Slide 15: Table of Contents
&H TABLE OF CONTENTS Be rere porn: Macro Environment Reading — _ Group Financial Performance Market Positioning Summary
Slide 16: Macro Environment Reading
MACRO ENVIRONMENT READING een es eee
Slide 17: Our Reading for 2018: Risks Continue Rising Moderately
OuR READING FOR 2018: RISKS CONTINUE RISING es MODERATELY, AS ANTICIPATED... 2 BURGAN BANK US: tax cuts significantly increase profit repatriation and investment; infrastructure spending plans implemented in full; continued Fed normalization. Likely reaction 1) Economy: higher growth, employment and
Slide 18: Group Financial Performance
GROUP FINANCIAL PERFORMANCE a a ee eee
Slide 19: Q2 2018 Financial Summary
be err BURGAN BANK a2'17 | 02/18 | Growth | 145 154 46% Balance Sheet Net Interest Income Net Interest Income Non Interest Income Non Interest Income 75 107 442% Operating Income | 418% | Operating Income Py) 261 Operating Expense 411% | Operating Expense (80) (90) +12% Operating Profit | 422% | | o
Slide 20: Half-Year Financial Summary
Net Interest Income nvi7 | wie | Grouch | 93 +12% Net Interest Income boo pre BURGAN BANK re oe 273 310 413% Non Interest Income 40 46 +16% Non Interest Income 130 258 +17% Operating Income Operating Income | 403 | 462 Operating Expense Operating Expense (168) (183) Operating Profit Operating Profit
Slide 21: Revenues, Margins and Net Income Trends
ol 3p <u BURGAN BANK WITH A CONTINUED MOMENTUM OF GROWTH. Revenues & Margins!) | USD mn,% 2.9% 2.9% 2.5% 2.6% 2.6% O-=<-0 : : oe er [ 260] ee a eee ee ~~ i if 55 273 310. 131 ~ o — a L_, Q1'i6 Q2'16 Q3'16 Q4'16 QL'17 Q2'17 Q3'17 Q4'17 Q1'1s Q2'18 H1'16 H1'17 H1L'13 mums Net Interest Income Non Inter
Slide 22: Supported by a Stable Balance Sheet
SUPPORTED BY A STABLE BALANCE SHEET WITH A WELL-MANAGED PORTFOLIO ... Asset Mix Stable asset mix driven by loans... ol Sy Sy BURGAN BANK Customers Loans | USD bn,% Customers Loans by Sector | Q2’18 With international operations loans growing at 2% | 23.8 | | 24.0 | 22.8 Agricult ure 12% Trade 11% Re
Slide 23: Improved Asset Quality and Comfortable Capital Levels
WITH IMPROVED ASSET QUALITY AND COMFORTABLE CAPITAL LEVELS... ol sp = BURGAN BANK NPL Ratios | % NPL Coverage Ratios | % 343% Ja a aae 4.3% u- a , ¢ - - z 163% 163%, 7 (hee eee ee ee ey 168% 121% 119% H1'16 H1'47 H1'18 H1'16 HL'47 Hu'18 —@=—e Group NPL Ratio — 0 — Kuwait NPL Ratio ==@=—= Group NPL C
Slide 24: Subsidiaries Collectively Driving Performance
ob Sys Sai WITH SUBSIDIARIES COLLECTIVELY DRIVING PERFORMANCE... D sinatt BANK - g& &F = Cost To Kuwait) Kdm Turkey | + Algeria " Iraq | /QDm Tunisia | “ Eee See Bes Eo me REVENUES a me — =m Cost OF CREDIT NET PROFIT MARGIN CAR (2 H1"18 Growth in Local Currency if H1’48 Contribution WI H118 Figures
Slide 25: Market Positioning
MARKET POSITIONING | a es OSes 12
Slide 26: Competitive Metrics Amongst Peers
BURGAN BANK STILL HAS COMPETITIVE METRICS AMONGST PEERS, WHICH HAS AMPLE CAPITAL. “ URGAN BANK 15% ; | GBK Q1’18 | ] ———n Target | s er 7.4%, 12.8% | bp teeth cere 1 tn Menem ‘ | Mra eccendRactnd pe ods endeceanecae | § jad. 1%, 10.3% NBK Q2/18 i 3 15.1%, 6.3% % gfNine@eniges | = 5% Conventional Ban
Slide 27: Summary
SUMMARY i as ee 14
Slide 28: In Summary: Key Takeaways
oY ] OL 79 Sis BURGAN BANK IN SUMMARY KEY TAKEAWAYS 15% 14.7% 2.8% 16.6% Revenue Growth” ROTE NPL Ratio CAR 18% 18.36 \ evenue + ; = Growth) - 5 ROTE > SOLID BUSINESS MODEL WITH FOCUS ON BUSINESS STRONG E DELIVERY ABOVE PIPELINE READY FOR NEXT WAVE OF GROWTH TRAJECTORY RETURNS (1) H1’18 vs H1’17 gro
Slide 29: Thank You
THANK You a en a Es ee 16
Slide 30: Disclaimers
ol sp SS DISCLAIMERS 7, BURGAN BANK IMPORTANT NOTICE This presentation has been prepared by Burgan Bank K.P.S.C. and is subject to the applicable laws and regulations in the State of Kuwait. It is for information purposes only and it shall not be reproduced or redistributed to any other person witho