Burgan Bank · KSE:BURG
Burgan Bank — H1 2023 Earnings Presentation
19 slides from Burgan Bank's earnings presentation, Aug 2, 2023
Slide 1: Burgan Bank Group Investors Presentation H1'23 Financial Results
BURGAN BANK GROUP INVESTORS PRESENTATION H1’23 FINANCIAL RESULTS 2ND AUGUST 2023
Slide 2: Table of Contents
TABLE OF CONTENTS Contents Page Overview and Operating Strategy 4-6 Digital Progress Updates 8 Financial Review - Key P&L Metrics 10 Financial Review - Asset Quality 11 Financial Review - Balance Sheet Metrics & Liquidity 12 - 13 Financial Review – Capital Levels 14 KPIs Across Franchises – H1’23 15
Slide 3: Overview & Operating Strategy
Overview & Operating Strategy
Slide 4: Burgan at a Glance
BURGAN AT A GLANCE About Us Credit Ratings Rating(1) ▪ Established in 1977 as Joint Stock Company by the Government of A Kuwait and privatized in 1997. (Outlook: Stable) ▪ Listed on Boursa Kuwait in 1984 and grew to be one of the leading Baa1 (Outlook: Stable) conventional banks in Kuwait (in terms
Slide 5: Kuwait Focused Bank with Regional Diversification
KUWAIT FOCUSED BANK WITH REGIONAL DIVERSIFICATION Domestic Market % of Group Franchises Ownership(1) Business Model Position(1) Assets(1),(3) Burgan Bank Kuwait Corporate banking is the key One of the top three N/A conventional Banks(2) business; Retail Banking 79% growth is a focus area Burgan Bank
Slide 6: Burgan's Long-Term Strategic Priorities
BURGAN’S LONG-TERM STRATEGIC PRIORITIES A. Strengthen Kuwait B. Strategic Asset C. Digital Business Reallocation Transformation Revitalize key businesses Sale of non-core assets Delivering Superior in Kuwait such as Retail Customer Experience Pursue Cautious Growth in banking subsidiaries
Slide 7: Digital Progress Updates
BURGAN BANK y) glsy Su Digital Progress Updates
Slide 8: Digital Progress Updates
DIGITAL PROGRESS UPDATES Total Customers onboarded digitally ~90K; with Digital Active Users increasing to 65K in H1’23 from 60K as of H2’22 Digital Activities increased ~50% in H1’23 vs H1’22; ~94% of transaction being executed via Burgan Bank Kuwait mobile app Enabling higher CASA volumes; >
Slide 9: Financial Review
y) glsy Su BURGAN BANK Financial Review
Slide 10: P&L Metrics
P&L METRICS Revenue | KD mn Operating Profit | KD mn Net Income(1) | KD mn (11) (7) 112 110 108 10 10 67 61 27 18 24 1 6 7 54 0.4 102 100 61 54 24 26 H1'21 H1'22 H1'23 H1'21 H1'22 H1'23 H1'21 H1'22 H1'23 BB Group (excl BoB) BoB BB Group (excl BoB) BoB BB Group (excl BoB) BoB IAS 29 Impact Net Intere
Slide 11: Asset Quality Metrics
ASSET QUALITY METRICS Non-Performing Loans (NPLs) | KD mn NPL Ratio | % 4.5% 214 2.6% 119 2.0% 91 H1'21 H1'22 H1'23 H1'21 H1'22 H1'23 Provision Charge(1) | KD mn Provisions Coverage Ratio(2) | % 216% 39 5 153% 121% 18 35 11 5 6 H1'21 H1'22 H1'23 H1'21 H1'22 H1'23 BB Group (excl BoB) BoB Notes: (1) L
Slide 12: Assets & Loans
ASSETS & LOANS Total Assets | KD mn Customers Loan & Sector Concentration | KD mn, % 7,307 7,073 6,946 326 1% 4,040 5% 8% 280 8% 11% 41% 6,980 6,666 26% H1'21 H1'22 H1'23 Personal Real estate Manufacturing H1'23 Commerce Construction Oil & Gas BB Group (excl BoB) BoB^ Others Liquid Assets Ratio(1) |
Slide 13: Liquidity Profile
LIQUIDITY PROFILE Customer Deposits | KD mn Deposits by Type – H1’23 | % 4,350 4,345 3% 4,159 32% 65% CASA Time Other H1'21 H1'22 H1'23 Loan to Deposit Ratio (LDR) | % Regulatory Liquidity Metrics^ | % 100% 188% 95% 90% 84% 84% 133% 133% 120% 75% 108% 102% 100% 90% 80% H1'21 H1'22 H1'23 H1'21 H1'22
Slide 14: Capital Position
CAPITAL POSITION Regulatory Capital | KD mn, % 6,183 6,260 6,064^ 3,000 20.0% 17.8% 17.2% 16.5% 2,500 14.0% 15.0% 12.5% 11.5% 2,000 11.5% 11.1% 10.0% 10.4% 10.5% 1,500 9.0% 8.0% 1,078 1,080 5.0% 1,022 230 228 1,000 227 152 155 155 0.0% 500 643 693 697 - -5.0% H1'21 H1'22 H1'23 CET1 AT1 Tier II CET 1
Slide 15: KPIs Across Franchises
KPIS ACROSS FRANCHISES CONTRIBUTION (1) KPIS(2) ASSETS NIM ∆% CI RATIO ∆% COC(3) ∆% NPL RATIO ∆% Kuwait(5) (20 79% 1.6% 48.1% +730 bps 1.2% +70 bps 1.9% bps) ASSETS NIM ∆% CI RATIO ∆% COC(3) ∆% NPL RATIO ∆% Turkey 9% (100 (440 +20 (360 2.3% bps) +57 bps 33.6% Bps) (1.5)% bps 2.0% bps) ASSETS NIM ∆%
Slide 16: Summary
y) glsy Su BURGAN BANK Summary
Slide 17: Summary
SUMMARY Asset quality, Capital position & Liquidity levels continues to be Healthy Kuwait business remains robust while Turkey business continues to outperform; Outlook remains positive supported by July’23 rate hike in Kuwait and improving operating environment in Turkey 17
Slide 18: Thank You
BURGAN BANK Qa Thank You
Slide 19: 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