Burgan Bank · KSE:BURG
Burgan Bank — Q1 2021 Earnings Presentation
12 slides from Burgan Bank's earnings presentation, May 5, 2021
Slide 1: Burgan Bank Group Investor Presentation Q1'21 Financial Results
BURGAN BANK GROUP INVESTOR PRESENTATION Q1’21 FINANCIAL RESULTS 5TH MAY 2021
Slide 2: Table of Contents
TABLE OF CONTENTS Contents Page Key P&L Metrics 3-4 Asset Quality 5 Key Balance Sheet & Liquidity Metrics 6-7 Capital Levels 8 Performance by Entity – Q1’21 9 Conclusion 10 2
Slide 3: Revenue & Operating Expenses
REVENUE & OPERATING EXPENSES Revenue & Net Interest Margin(1) | KD mn, % Operating Exp. & Cost-to-Income Ratio(2) | KD mn, % Pandemic Period Pandemic Period Impacted by new NPLs in Kuwait; expected to be largely resolved by Q2’21 2.7% 58.7% 2.2% 49.2% 2.1% 2.0% 43.2% 38.9% 39.0% 1.7% 60 57 19 47 48
Slide 4: Operating Profit & Net Income
OPERATING PROFIT & NET INCOME Operating Profit | KD mn Net Income(1) | KD mn Pandemic Period Pandemic Period 37 17 35 27 24 10 20 6 5 1 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 (1) Net Income attributed to equity holders of bank before perpetual cost 4
Slide 5: Asset Quality
ASSET QUALITY Provisions(1) | KD mn Cost of Credit (CoC)(2) | % Pandemic Period Pandemic Period 22 23 20 1.9% 2.0% 1.8% 16 15 1.5% 1.3% 1.4% 1.2% 0.9% 0.5% 0.5% Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 BB Kuwait -CoC BB Group -CoC NPLs (KD mn) & Coverage(3) (%) NPL Ratio (%) Pande
Slide 6: Customer Loans & Sectoral Breakdown
CUSTOMER LOANS & SECTORAL BREAKDOWN Customer Loans & Sector Concentration | KD mn , % Pandemic Period 4,412 4,373 4,345 4,311 36 4,256 37 1,142 1,170 1,093 1,142 1,028 2% 15% 5% 10% 31% 11% 3,179 3,216 3,258 3,212 3,232 27% Personal Real estate Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Manufacturing Commerce (1
Slide 7: Customer Deposits & Liquidity
CUSTOMER DEPOSITS & LIQUIDITY Customer Deposits | KD mn Deposits by Type – Q1’21 | % Pandemic Period 4,514 4,263 4,091 4,139 3,918 222 3% 220 1,080 1,113 1,070 1,088 1,063 34% 63% 2,831 2,980 3,212 2,979 3,069 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 CASA Time Other BB Kuwait International Ops (Excluding BoB)
Slide 8: Capital Levels
CAPITAL LEVELS Regulatory Capital | KD mn, % Pandemic Period 2,500 18.1% 16.7% 18.0% 15.7% 16.2% 16.0% 2,000 13.0% 11.5% 1,500 10.4% 10.8% 10.7% 10.5% 10.5% 8.0% 8.0% 1,143 988 1,005 992 1,027 329 1,000 177 176 176 227 3.0% 155 155 155 153 152 500 -2.0% 657 673 661 661 648 - -7.0% Q1'20 Q2'20 Q3'20
Slide 9: Performance by Entity – Q1'21
PERFORMANCE BY ENTITY – Q1’21 CONTRIBUTION NET KD million Q1’21 KPI % Q1’21 LOANS INCOME Revenue 25 NIM(4) 1.1% 76% 78% Expenses 8 CIR 30.8% Provisions(2) 11 CoC(4),(5) 1.2% BB Kuwait(1) Net Income(3) 7 NPL Ratio 5.4% CONTRIBUTION KD million Q1’21 KPI % Q1’21 LOANS NET INCOME Revenue 25 NIM(4) 3.9%
Slide 10: Conclusion
CONCLUSION Q1’21 Earnings impacted predominantly due to loss of interest income due to new NPLs in Kuwait Asset Quality deterioration in Kuwait is temporary; Actions to regularize already underway; Expect to reduce majority of these NPLs by Q2’21 Focus remains on Operating cost optimization &
Slide 11: Thank You
Thank You =H ul Lo OL... 9 js Sms ‘79 BURGAN BANK
Slide 12: 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