Burgan Bank · KSE:BURG
Burgan Bank — FY2021 Earnings Presentation
14 slides from Burgan Bank's earnings presentation, February 2022
Slide 1: Burgan Bank Group FY'21 Financial Results
BURGAN BANK GROUP INVESTOR PRESENTATION FY’21 FINANCIAL RESULTS FEBRUARY 2022
Slide 2: Table of Contents
TABLE OF CONTENTS Contents Page FY’21 Performance Highlights 3 Key Messages 4 Key P&L Metrics 5-6 Asset Quality 7 Key Balance Sheet & Liquidity Metrics 8-9 Capital Levels 10 KPIs Across Franchises 11 Looking Ahead 12 2
Slide 3: FY'21 Performance Highlights: Strong Rebound
FY’21 PERFORMANCE HIGHLIGHTS KEY PERFORMANCE INDICATORS 1 Revenue Net Income* STRONG KD 235MN KD 45MN REBOUND +10.3% y-o-y +34.8% y-o-y 2 SIGNIFICANT NPL Ratio NPL Coverage Ratio IMPROVEMENT IN 1.7% 227% ASSET (-)244bps y-o-y +94.2% y-o-y QUALITY 3 Cost to Income JAWs Ratio POSITIVE EFFICIENCY 40.4%
Slide 4: Key Messages
KEY MESSAGES ✓ Raised KD 71.25mn to support long term growth of the bank ✓ Key highlights of the transactions: Successful Execution of Rights Issue ➢ Oversubscription of 2.25x ➢ High % of Rights Subscribed: 93.09% ✓ Impact on regulatory capital (CET1) : +123bps ✓ Transactions executed through digi
Slide 5: Revenue & Operating Expenses
REVENUE & OPERATING EXPENSES Revenue & Margins | KD mn, % Operating Exp. & Cost-to-Income Ratio* | KD mn, % 2.7% 45.7% 41.2% 40.4% 2.3% 2.1% 248 235 213 102 81 97 95 73 107 167 140 128 FY'19 FY'20 FY'21 FY'19 FY'20 FY'21 Operating Expenses Cost-to-Income Ratio Net-Interest Income Non-Interest Income
Slide 6: Operating Profit & Net Income
OPERATING PROFIT & NET INCOME Operating Profit | KD mn Net Income* | KD mn 146 140 116 85 45 34 FY'19 FY'20 FY'21 FY'19 FY'20 FY'21 * Net Income attributed to equity holders of bank before perpetual cost 6
Slide 7: Asset Quality
ASSET QUALITY NPLs | KD mn NPL Ratio | % 4.2% 201 2.5% 119 101 1.7% 2.6% 81 59 53 1.6% 100 0.7% 60 27 FY'19 FY'20 FY'21 FY'19 FY'20 FY'21 Kuwait International^ NPL Ratio - Kuwait NPL Ratio - Group NPL Coverage Ratio(1) | % Provision Charge(2) | KD mn 532.9% 85 76 330.7% 49 222.9% 199.8% 226.6% 132.5
Slide 8: Assets & Loans
ASSETS & LOANS Total Assets(1) | KD mn Asset Composition – FY’21 | % 7,081 7,106 9% 5% 7,075 287 244 300 11% 1,876 1,839 1,741 15% 5,528 5,569 5,548 60% (2) Loans Cash Others Investments Due from Banks & OFIs FY'19 FY'20 FY'21 Kuwait International BoB Consol Adj Customer Loans(1) | KD mn Customer Lo
Slide 9: Deposits & Liquidity Metrics
DEPOSITS & LIQUIDITY METRICS Customer Deposits (1) | KD mn Deposits by Type – FY’21 | % 3,991 4,091 4,162 3% 1,141 1,113 1,149 32% 64% 2,850 2,979 3,012 CASA Time Other FY'19 FY'20 FY'21 Kuwait International Cost of Funds(2) | % Regulatory Liquidity Metrics(3) | % 175.5% 207.7% 3.3% 2.3% 2.2% 125.3%
Slide 10: Capital Levels
CAPITAL LEVELS Regulatory Capital | KD mn, % 2,500 16.8% 18.1% 17.5% 16.0% 2,000 14.0% 11.5% 11.5% 10.5% 11.4% 11.0% 10.5% 1,500 8.0% 6.0% 1,143 1,092 1,033 1,000 175 329 228 1.0% 153 153 153 500 -4.0% 705 661 711 - -9.0% FY'19 FY'20 FY'21 6,134 6,306 6,251 CET1 AT1 Tier II CET 1 Ratio CAR Ratio Min
Slide 11: KPIs Across Franchises
KPIS ACROSS FRANCHISES CONTRIBUTION(1) GROWTH(2) KPIS(3),(4) ASSETS REVENUES NET INCOME LOANS NIM ∆% CI RATIO ∆% COC ∆% NPL RATIO ∆% Kuwait(5) (254 (188 76% 66% 94% +2% 1.6% 32.8% bps) 1.3% +47 pps 0.7% bps) ASSETS REVENUES NET INCOME LOANS NIM ∆% CI RATIO ∆% COC ∆% NPL RATIO ∆% Turkey (81 (6 (550 1
Slide 12: Looking Ahead
LOOKING AHEAD Strong Capital levels to support Burgan’s growth Credit Costs expected to normalize Expected rate hikes should support margin expansion 12
Slide 13: Thank You
Thank You =H ul Lo OL... 9 js Sms ‘79 BURGAN BANK
Slide 14: 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