Burgan Bank · KSE:BURG
Burgan Bank — Q1 2022 Earnings Presentation
13 slides from Burgan Bank's earnings presentation, Apr 27, 2022
Slide 1: Burgan Bank Group Investor Presentation Q1'22 Financial Results
BURGAN BANK GROUP INVESTOR PRESENTATION Q1’22 FINANCIAL RESULTS 27TH APRIL 2022
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: Q1'22 Results
KEY HIGHLIGHTS: Q1’22 RESULTS #1 Higher Loan & Deposit Volumes (Predominantly driven by Kuwait operations) #2 Improved Margins (Supported by lower CoF & recent rate hike in Kuwait) #3 Lower Cost of Credit (Driven by improving operating environment, especially in Turkey) #4 Maintaining strong
Slide 4: Revenue & Operating Expenses
REVENUE & OPERATING EXPENSES Revenue & Net Interest Margin(1) | KD mn, % Operating Exp. & Cost-to-Income Ratio(2) | KD mn, % Pre-Pandemic Pre-Pandemic 2.7% 2.1% 43.2% 42.6% 38.9% 1.7% 60 53 19 48 21 22 24 22 21 41 32 26 Q1'20 Q1'21 Q1'22 Q1'20 Q1'21 Q1'22 Net-Interest Income Non-Interest Income NIM
Slide 5: Operating Profit & Net Income
OPERATING PROFIT & NET INCOME Operating Profit | KD mn Net Income(1) | KD mn Pre-Pandemic Pre-Pandemic 37 30 27 17 12 5 Q1'20 Q1'21 Q1'22 Q1'20 Q1'21 Q1'22 (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) | % Pre-Pandemic Pre-Pandemic 20 1.8% 16 1.5% 14 1.3% 1.2% 0.5% 0.7% Q1'20 Q1'21 Q1'22 Q1'20 Q1'21 Q1'22 BB Kuwait -CoC BB Group -CoC NPLs & Coverage(3) | KD mn, % NPL Ratio | % Pre-Pandemic Pre-Pandemic 394% 6.0% 192% 284% 242% 236% 169% 2
Slide 7: Customer Loans & Sectoral Breakdown
CUSTOMER LOANS & SECTORAL BREAKDOWN Total Assets(1) | KD mn Asset Composition – Q1’22 | % Pre-Pandemic 7,083 7,383 7% 10% 6,900 293 301 253 9% 1,812 1,669 1,726 16% 5,580 5,437 5,919 59% (2) Loans Cash Investments Due from Banks & OFIs Others Q1'20 Q1'21 Q1'22 Kuwait International BoB Consol Adj Cus
Slide 8: Customer Deposits & Liquidity
CUSTOMER DEPOSITS & LIQUIDITY Customer Deposits | KD mn Deposits by Type – Q1’22 | % Pre-Pandemic 4,421 4,139 3% 3,918 1,116 1,070 1,088 33% 3,306 63% 2,831 3,069 Q1'20 Q1'21 Q1'22 CASA Time Other BB Kuwait International Ops (Excluding BoB) Cost of Funds(2) | % Regulatory Liquidity Metrics(3) | % Pr
Slide 9: Capital Levels
CAPITAL LEVELS Regulatory Capital | KD mn, % 2,500 16.7% 17.0% 15.7% 15.5% 2,000 12.5% 11.5% 10.5% 11.0% 10.5% 1,500 10.4% 9.0% 8.0% 1,083 988 1,027 5.5% 1,000 230 177 227 154 155 152 0.5% 500 657 648 700 - -4.5% Q1'20 Q1'21 Q1'22 CET1 AT1 Tier II CET 1 Ratio CAR Ratio Min. Required CAR Min. Require
Slide 10: 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) (-)52 (349 78% 57% 70% +4% 1.4% +32 37.6% +682 bps 0.7% bps 1.9% bps) bps ASSETS REVENUES NET INCOME LOANS NIM ∆% CI RATIO ∆% COC ∆% NPL RATIO ∆% Turkey (25
Slide 11: Conclusion
CONCLUSION 1 Strong start to the year with improvement across metrics & franchises 2 Interest income growth momentum to continue, given rate expectations 3 Credit costs expected to further normalize 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