Burgan Bank · KSE:BURG
Burgan Bank — H1 2018 Earnings Presentation
17 slides from Burgan Bank's earnings presentation, 2018
Slide 1: Burgan Bank Group Investor Presentation 1st Half 2018
BURGAN BANK GROUP INVESTOR PRESENTATION 1ST HALF 2018 1
Slide 2: Table of Contents
TABLE OF CONTENTS Contents Page Macro Environment Reading 3 Group Financial Performance 5 Market Positioning 12 Summary 14 2
Slide 3: Macro Environment Reading
MACRO ENVIRONMENT READING 3
Slide 4: Our Reading for 2018: Risks Continue Rising Moderately
OUR READING FOR 2018: RISKS CONTINUE RISING MODERATELY, AS ANTICIPATED… Market Risks Region Probability(%) impact Likely reaction US: tax cuts significantly increase profit 1) Economy: higher growth, employment and inflation supported by a) increased repatriation and investment; infrastructure BULL
Slide 5: Group Financial Performance
GROUP FINANCIAL PERFORMANCE 5
Slide 6: A Strong 2nd Quarter, Above Trajectory
A STRONG 2ND QUARTER, ABOVE TRAJECTORY… As Reported - KD’mn Q2’17 Q2’18 Growth As Reported - US$’mn Q2’17 Q2’18 Growth Net Interest Income 44 46 +6% Net Interest Income 145 154 +6% Non Interest Income 23 32 +42% Non Interest Income 75 107 +42% Operating Income 67 79 +18% Operating Income 220 261 +18
Slide 7: Delivering a Very Solid First Half
DELIVERING A VERY SOLID FIRST HALF… As Reported - KD’mn H1’17 H1’18 Growth As Reported - US$’mn H1’17 H1’18 Growth Net Interest Income 83 93 +12% Net Interest Income 273 310 +13% Non Interest Income 40 46 +16% Non Interest Income 130 153 +17% Operating Income 123 139 +13% Operating Income 403 462 +1
Slide 8: With a Continued Momentum of Growth
WITH A CONTINUED MOMENTUM OF GROWTH… Revenues & Margins(1) | USD mn,% 2.9% 2.9% 2.9% 2.5% 2.6% 2.6% 2.3% 2.4% 2.4% 2.3% 2.3% 2.2% 2.2% 462 260 403 216 220 375 199 202 153 189 186 184 183 188 107 130 75 117 91 50 46 55 62 53 55 45 273 310 134 145 142 149 156 154 258 124 131 125 128 Q1'16 Q2'16 Q3'16
Slide 9: Supported by a Stable Balance Sheet with a Well-Managed Portfolio
SUPPORTED BY A STABLE BALANCE SHEET WITH A WELL-MANAGED PORTFOLIO … Asset Mix Customers Loans | USD bn,% Customers Loans by Sector | Q2’18 Stable asset mix driven by loans… With international operations loans growing at 2% 23.8 24.0 22.8 17.4 18.2 18.9 18.2 Oil/gas 12% 12% 32% 35% 37% 2% 13% Trade S
Slide 10: With Improved Asset Quality and Comfortable Capital Levels
WITH IMPROVED ASSET QUALITY AND COMFORTABLE CAPITAL LEVELS… NPL Ratios | % NPL Coverage Ratios | % 343% 4.3% 4.1% 2.8% 3.5% 163% 163% 3.2% 168% 121% 119% 1.6% H1'16 H1'17 H1'18 H1'16 H1'17 H1'18 Group NPL Ratio Kuwait NPL Ratio Group NPL Coverage Ratio Kuwait Coverage Ratio Capitalization| % Managem
Slide 11: With Subsidiaries Collectively Driving Performance
WITH SUBSIDIARIES COLLECTIVELY DRIVING PERFORMANCE… H1 FIGURES Kuwait | KDm Turkey | TRYm Algeria | DZDm Iraq | IQDm Tunisia | USDm 2,686 (7%) 16,953 +29% 156,067 +25% 131,006 (23%) 24 +57% CUSTOMER LOANS 2,895 63% 13,165 26% 124,540 9% 169,742 1% 15 0.2% 89 +16% 418 +51% 7,713 +29% 19,142 (48%) 9 +
Slide 12: Market Positioning
MARKET POSITIONING 12
Slide 13: Burgan Bank Still Has Competitive Metrics Amongst Peers
BURGAN BANK STILL HAS COMPETITIVE METRICS AMONGST PEERS, WHICH HAS AMPLE CAPITAL… 15% GBK Q1’18 Target GBK Q2’18 7.4%, 12.8% Loans to Customers YoY Growth 10% 11.1%, 10.3% NBK Q2’18 15.1%, 6.3% NBK Q1’18 5% Conventional Banks Average Q1’18 11.6%, 1.3% 15.6%, 5.6% ABK Q1’18 9.6%, 3.1% 0% BBG Q1’18 0%
Slide 14: Summary
SUMMARY 14
Slide 15: In Summary: Key Takeaways
IN SUMMARY KEY TAKEAWAYS 15% 14.7% 2.8% 16.6% H1’18 Revenue ROTE NPL Ratio CAR Growth(1) 18% 18.3% Q2’18 Revenue ROTE Growth(2) 1 2 3 SOLID BUSINESS BUSINESS STRONG MODEL WITH PIPELINE READY DELIVERY ABOVE FOCUS ON FOR NEXT WAVE TRAJECTORY RETURNS OF GROWTH 15 (1) H1’18 vs H1’17 growth rate; (2) Q2’
Slide 16: Thank You
THANK YOU 16
Slide 17: 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