National Bank Of Kuwait K.s.c. · KSE:NBK
National Bank Of Kuwait K.s.c — National Bank of Kuwait — Q3 2019 Earnings Presentation
20 slides from National Bank Of Kuwait K.s.c's earnings presentation, October 2019
Slide 1: National Bank of Kuwait Investor Presentation 3Q 2019 Earnings Call
National Bank of Kuwait Investor Presentation 3Q 2019 Earnings Call
Slide 2: Disclaimer
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 DOES N
Slide 3: Contents
Contents Section 1 Financial Performance 9M 2019 / 3Q 2019 Section 2 Appendix Section 3 Questions 2
Slide 4: Operating Performance 9M 2019
Operating Performance 9M 2019 Net Profit (KDm) Operating Surplus (KDm) 459.7 451.0 302.2 272.4 -1.9% +10.9% 101.4 152.6 151.7 144.9 86.5 93.1 3Q 2018 2Q 2019 3Q 2019 9M 2018 9M 2019 3Q 2018 2Q 2019 3Q 2019 9M 2018 9M 2019 Operating Income (KDm) Operating Income 672.8 Net interest income & Net income
Slide 5: Operating Performance 9M 2019 - Net Interest Income and Margin
Operating Performance 9M 2019 Net Interest Income (KDm) Average Interest Earning Assets (KDbn) 517.0 26.7 515.0 +0.4% 25.5 +4.6% 178.2 173.2 172.6 3Q 2018 2Q 2019 3Q 2019 9M 2018 9M 2019 9M 2018 9M 2019 Net Interest Margin* Net Interest Margin drivers YTD NIM Qtrly NIM +0.15% -0.44% +0.18% 2.74% 2.7
Slide 6: Operating Performance 9M 2019 - Non-interest Income and Expenses
Operating Performance 9M 2019 Non-interest income (KDm) Operating Expenses (KDm) Net fees and commissions 155.8 Staff expenses 146.8 221.8 Net gains from dealing in FX Other operating expenses 202.1 Other non-interest income 8 3 +6.1% +9.8% 29 31 92 82 53.1 76.0 48.3 74.6 41.4 67.0 114 117 3 10 9 12
Slide 7: Operating Performance 9M 2019 - International and Boubyan
Operating Performance 9M 2019 Operating Income (KDm) - International Operating Income (KDm) Int'l Int'l 155.4 164.4 23% 24% +5.8% Dom. Dom. 77% 76% 9M 2018 9M 2019 9M 2018 9M 2019 Net profit (KDm) - International Net Profit (KDm) 86.6 83.7 Int'l Int'l 32% 28% -3.3% Dom. Dom. 68% 72% 9M 2018 9M 2019
Slide 8: Operating Performance 9M 2019 - Assets, Loans, Deposits
Operating Performance 9M 2019 Total Assets (KDbn) Loans, Advances and Islamic Financing (KDbn) 28.9 27.1 27.4 16.4 15.4 15.5 +5.4% +5.5% +6.6% +6.2% Sep-18 Dec-18 Sep-19 Sep-18 Dec-18 Sep-19 Customer Deposits (KDbn) Funding Mix 15.8 Due to banks and other FIs Customer Deposits CD's / GMTN / T2 Bonds
Slide 9: Performance and Asset Quality ratios 9M 2019
Performance and Asset Quality ratios 9M 2019 Return on Average Equity Return on Average Assets 1.45% 1.36% 1.38% 12.6% 11.9% 12.0% 9M 2018 FY 2018 9M 2019 9M 2018 FY 2018 9M 2019 Capital Adequacy Ratios Asset Quality Ratios CET 1 Ratio Tier 1 Ratio Capital Adequacy Ratio Loan Loss Coverage Ratio NPL
Slide 10: 2019 Guidance
2019 Guidance 9M 2019 2019 Guidance MID HIGH TO HIGH Loan Growth +5.5% ytd SINGLE DIGIT NIM 2.59% TIGHTENING Cost to Income ratio 33.0% BROADLY STABLE Cost of Risk 82bps BROADLY STABLE Earnings +10.9% yoy MAINTAIN TREND 9
Slide 11: Contents
Contents Section 1 Financial Performance 9M 2019 / 3Q 2019 Section 2 Appendix Section 3 Questions 10
Slide 12: Consolidated Financials 9M 2019 (KWD million)
Consolidated Financials 9M 2019 (KWD million) YoY Growth YoY Growth Income Statement (KWD million) 9M-18 9M-19 Balance sheet (KWD million) Sep-18 Sep-19 (%) (%) Interest Income 658 741 13% Cash and short term funds 2,944 3,580 22% Interest Expense 236 315 34% Central Bank of Kuwait bonds 798 825 3%
Slide 13: Performance Measures 9M 2019
Performance Measures 9M 2019 % 9M 2018 9M 2019 Return on average assets 1.36% 1.45% Return on average equity 11.9% 12.6% Net interest margin 2.70% 2.59% Cost to income 30.5% 33.0% NPLs to gross loans 1.37% 1.37% Loan loss reserves to NPLs 237.4% 227.4% Tier 1 capital 15.2% 13.9% Tier 2 capital 2.0%
Slide 14: Consolidated Statement Of Income (KWD million)
Consolidated Statement Of Income (KWD million) KWD million 2016 2017 2018 Interest Income 665 743 897 Interest Expense 190 224 331 Net Interest Income 476 519 566 Murabaha and other Islamic financing income 128 156 186 Finance cost and Distribution to depositors 34 46 62 Net Income from Islamic fina
Slide 15: Consolidated Statement Of Financial Position (KWD million)
Consolidated Statement Of Financial Position (KWD million) KWD million 2016 2017 2018 Cash and short term funds 2,687 2,744 2,967 Central Bank of Kuwait bonds 749 656 810 Kuwait Government treasury bonds 493 1,076 872 Deposits with banks 2,408 2,488 2,364 Loans, advances and Islamic financing to cus
Slide 16: Stable Credit Ratings
Stable Credit Ratings Long-term Standalone Rating Agency Outlook Key Rating Drivers Rating Rating • Dominant domestic position Aa3 a3 Stable • Resilient profitability and growth outlook • Robust asset quality, capitalization and liquidity • Leading position in Kuwait A+ a- Stable • More diversified
Slide 17: Contents
Contents Section 1 Financial Performance 9M 2019 / 3Q 2019 Section 2 Appendix Section 3 Questions 16
Slide 18: Questions
Questions yiibagJl NBK ee
Slide 19: Thank You
Thank You yiibagJl NEE
Slide 20: National Bank of Kuwait Investor Presentation 3Q 2019 Earnings Call
National Bank of Kuwait Investor Presentation 3Q 2019 Earnings Call
National Bank of Kuwait — Q3 2019 Earnings Presentation on 6ix