Burgan Bank · KSE:BURG
Burgan Bank — Q2 2021 Earnings Presentation
13 slides from Burgan Bank's earnings presentation, Aug 3, 2021
Slide 1: Burgan Bank Group Q2'21 Financial Results
BURGAN BANK GROUP INVESTOR PRESENTATION Q2’21 FINANCIAL RESULTS 3RD AUGUST 2021
Slide 2: Table of Contents
TABLE OF CONTENTS Contents Page Key Highlights 3 Key P&L Metrics 4-5 Asset Quality 6 Key Balance Sheet & Liquidity Metrics 7-8 Capital Levels 9 Performance Summary – Kuwait & International Operations 10 Conclusion 11 2
Slide 3: Key Highlights: Q2'21 Results
KEY HIGHLIGHTS: Q2’21 RESULTS Strong Topline Recovery Revenue: KD 64mn (vs Q1’21: KD 48mn) & Higher Margins Net Interest Margin(1): 2.4% (vs Q1’21: 1.7%) Robust Operating Profit: KD 40mn (vs Q1’21: KD 27mn) Earnings Net Income(2): KD 19mn (vs Q1’21: KD 5mn) NPL Ratio: Improved Asset Qualit
Slide 4: Revenue & Operating Expenses
REVENUE & OPERATING EXPENSES Revenue & Net Interest Margin(1) | KD mn, % Operating Exp. & Cost-to-Income Ratio(2) | KD mn, % 2.7% 58.7% 2.4% 49.2% 2.1% 2.2% 43.2% 2.0% 38.9% 39.0% 37.8% 1.7% 64 60 57 19 47 48 48 29 23 15 16 22 28 24 23 22 24 21 41 32 34 32 35 26 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q
Slide 5: Operating Profit & Net Income
OPERATING PROFIT & NET INCOME Operating Profit | KD mn Net Income(1) | KD mn 40 37 35 27 24 20 19 17 10 6 5 1 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 (1) Net Income attributed to equity holders of bank before AT1 cost. 5
Slide 6: Asset Quality
ASSET QUALITY Provisions(1) | KD mn Cost of Credit (CoC)(2) | % 22 23 20 1.9% 2.0% 19 1.8% 1.7% 16 15 1.5% 1.3% 1.4% 1.2% 0.9% 1.0% 0.5% 0.5% Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 BB Kuwait -CoC BB Group -CoC NPLs & Coverage(3) | KD mn, % NPL Ratio | % 394% 398% 436
Slide 7: Customer Loans & Sectoral Breakdown
CUSTOMER LOANS & SECTORAL BREAKDOWN Customer Loans & Sector Concentration | KD mn , % 4,412 4,373 4,345 4,311 36 4,256 4,239 37 1,142 1,170 1,093 1,142 1,028 1,095 2% 13% 5% 10% 31% 12% 3,179 3,216 3,258 3,212 3,232 3,151 27% Personal Real estate Manufacturing Commerce Construction Oil & Gas Q1'20 Q
Slide 8: Customer Deposits & Liquidity
CUSTOMER DEPOSITS & LIQUIDITY Customer Deposits | KD mn Deposits by Type – Q2’21 | % 4,514 4,350 4,263 4,139 3,918 222 4,091 4% 220 1,080 1,070 1,190 1,088 1,063 1,113 30% 2,831 2,980 3,212 2,979 3,069 3,160 66% Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 CASA Time Other BB Kuwait International Ops (Excludi
Slide 9: Capital Levels
CAPITAL LEVELS Regulatory Capital | KD mn, % 2,500 18.1% 16.7% 16.5% 16.2% 16.0% 15.7% 15.5% 2,000 11.5% 10.5% 1,500 10.8% 10.7% 10.5% 10.5% 10.4% 10.4% 8.0% 1,143 988 1,005 992 1,027 1,022 5.5% 329 1,000 177 176 176 227 227 155 155 155 153 152 152 0.5% 500 657 673 661 661 648 643 - -4.5% Q1'20 Q2'2
Slide 10: Performance Summary – Kuwait & International Operations
PERFORMANCE SUMMARY – KUWAIT & INTERNATIONAL OPERATIONS CONTRIBUTION NET KD million Q2’21 Q1’21 KPI % Q2’21 Q1’21 LOANS INCOME Revenue 38 25 NIM(4) 1.9% 1.1% 74% 77% Expenses 12 8 CIR 31.3% 30.8% Provisions(2) 8 11 CoC(4),(5) 1.0% 1.2% BB Kuwait(1) Net Income(3) 18 7 NPL Ratio 3.5% 5.4% CONTRIBUTION
Slide 11: Conclusion
CONCLUSION 1 Solid “all-round” performance amidst challenging operating environment 2 Asset Quality improved Q-o-Q 3 Burgan continues to achieve solid progress on the digital front 11
Slide 12: Thank You
Thank You =H ul Lo OL... 9 js Sms ‘79 BURGAN BANK
Slide 13: Disclaimers
DISCLAIMERS 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 without obtaining Burgan Bank