National Bank Of Kuwait K.s.c. · KSE:NBK
National Bank Of Kuwait K.s.c — National Bank of Kuwait — Q1 2022 Earnings Presentation
25 slides from National Bank Of Kuwait K.s.c's earnings presentation, 2022
Slide 1: National Bank of Kuwait Investor Presentation 1Q 2022 Earnings Call
PUBLIC National Bank of Kuwait Investor Presentation 1Q 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 Non-oil 10 10 10 8.7 10 Month end 12 month average 5.7 8 8 3.8 5 3.1 2.4 2.5 3.4 5 1.5 4.0 6 6 1.1 -0.1 0.5 0.6 0 0 4 4 2.4 -0.6 3.5 1.0 -5 -5 2 2 -8.8 -5.3 -8.9 0 0 -10 -10 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21
Slide 5: NBK Profitability (KDm)
PUBLIC NBK Profitability (KDm) Net Profit Attributable 38.3% 116.6 107.4 94.1 84.3 76.5 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 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: Close Alignment With International Frameworks and ESG Raters
PUBLIC Close Alignment With International Frameworks and ESG Raters National Bank of Kuwait 8
Slide 9: Contents
PUBLIC Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance Section 3 Appendix Section 4 Questions National Bank of Kuwait 9
Slide 10: Operating Performance 1Q 2022
PUBLIC Operating Performance 1Q 2022 Net Profit (KDm) Operating Surplus (KDm) 116.6 107.4 144.5 139.4 +38.3% 132.7 +3.7% 84.3 1Q 2021 4Q 2021 1Q 2022 1Q 2021 4Q 2021 1Q 2022 Operating Income (KDm) Operating Income Net interest income & Net income from Islamic Financing Non-interest income 236.5 221.
Slide 11: Operating Performance 1Q 2022
PUBLIC Operating Performance 1Q 2022 Net Interest Income* (KDm) Average Interest Earning Assets (KDbn) 167.2 168.7 162.4 32.0 +3.9% +10.0% 29.1 1Q 2021 4Q 2021 1Q 2022 1Q 2021 1Q 2022 Net Interest Margin* Net Interest Margin drivers YTD NIM Qtrly NIM 2.29% 2.26% 2.25% 2.21% 2.14% 2.26% 2.28% 2.18% 2
Slide 12: Operating Performance 1Q 2022
PUBLIC Operating Performance 1Q 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 67.8 58.0 92.5 92.0 59.1 82.1 13 4 +14.7% 12 +12.1% 12 13 41 40 8 36 39 41 42 46 51 52 1Q 20
Slide 13: Operating Performance 1Q 2022
PUBLIC Operating Performance 1Q 2022 Operating Income (KDm) - International Operating Income (KDm) Int'l Int'l 57.3 56.8 26% 24% -0.9% Dom. Dom. 74% 76% 1Q 2021 1Q 2022 1Q 2021 1Q 2022 Net profit (KDm) - International Net Profit (KDm) Int'l Int'l 20.2 11% 17% +109.4% 9.6 Dom. Dom. 89% 83% 1Q 2021 1Q
Slide 14: Operating Performance 1Q 2022
PUBLIC Operating Performance 1Q 2022 Total Assets (KDbn) Loans, Advances and Islamic Financing (KDbn) 33.3 33.7 31.0 19.7 20.1 +8.7% 17.9 +12.3% Mar 21 Dec 21 Mar 22 Mar 21 Dec 21 Mar 22 Customer Deposits & FI Deposits* (KDbn) Funding Mix Customer Deposits FI Deposits Customer Deposits Due to banks
Slide 15: Performance and Asset Quality Ratios 1Q 2022
PUBLIC Performance and Asset Quality Ratios 1Q 2022 Return on Average Equity Return on Average Assets 1.41% 13.4% 1.13% 1.15% 10.4% 10.2% 1Q 2021 FY 2021 1Q 2022 1Q 2021 FY 2021 1Q 2022 Capital Adequacy Ratios Asset Quality Ratios CET 1 Ratio Tier 1 Ratio Capital Adequacy Ratio Loan Loss Coverage Ra
Slide 16: Expected Credit Losses (ECL) 1Q 2022
PUBLIC Expected Credit Losses (ECL) 1Q 2022 Financial Statements ECL Disclosure (KDm) Total Gross Loans (KDbn) Stage 1 Stage 2 Stage 3 31 March 2022 Stage1 Stage 2 Stage 3 Total 18.6 20.8 20.4 Loans, advances and 1% 1% 1% Islamic financing to 11% 8% 6% customers 19,205 1,317 232 20,754 91% 88% 93% C
Slide 17: 2022 Guidance
PUBLIC 2022 Guidance 1Q 2022 2022 Guidance Loan Growth +1.7% High Single Digit NIM 2.14% Broadly Stable Cost to Income ratio 38.9% Broadly Stable Cost of Risk 24bps Earnings +38.3% Capital Adequacy 17.8% National Bank of Kuwait 17
Slide 18: Contents
PUBLIC Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance Section 3 Appendix Section 4 Questions National Bank of Kuwait 18
Slide 19: Consolidated Statement Of Income (KDm)
PUBLIC Consolidated Statement Of Income (KDm) KDm 1Q 2021 1Q 2022 YoY Growth (%) Interest Income 160 172 8% Interest Expense 38 47 24% Net Interest Income 122 125 3% Murabaha and other Islamic financing income 56 61 9% Finance cost and Distribution to depositors 16 18 11% Net Income from Islamic fin
Slide 20: Consolidated Statement Of Financial Position (KDm)
PUBLIC Consolidated Statement Of Financial Position (KDm) KDm March 2021 March 2022 YoY Growth % Cash and short term funds 4,705 4,918 5% Central Bank of Kuwait bonds 831 831 0% Kuwait Government treasury bonds 456 269 (41%) Deposits with banks 1,171 1,062 (9%) Loans, advances and Islamic financing
Slide 21: Performance Measures 1Q 2022
PUBLIC Performance Measures 1Q 2022 March 2021 March 2022 Return on average assets 1.13% 1.41% Return on average equity 10.4% 13.4% Net interest margin 2.26% 2.14% Cost to income 37.1% 38.9% NPLs to gross loans 1.68% 1.12% Loan loss reserves to NPLs 225% 302% Tier 1 capital 16.0% 15.4% Tier 2 capita
Slide 22: Contents
PUBLIC Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance Section 3 Appendix Section 4 Questions National Bank of Kuwait 22
Slide 23: Questions?
PUBLIC Questions? National Bank of Kuwait 23
Slide 24: Thank You
PUBLIC Thank You National Bank of Kuwait 24
Slide 25: National Bank of Kuwait Investor Presentation 1Q 2022 Earnings Call
PUBLIC National Bank of Kuwait Investor Presentation 1Q 2022 Earnings Call National Bank of Kuwait 25
National Bank of Kuwait — Q1 2022 Earnings Presentation on 6ix