Burgan Bank · KSE:BURG
Burgan Bank — H1 2019 Earnings Presentation
13 slides from Burgan Bank's earnings presentation, July 2019
Slide 1: Burgan Bank Group Investor Presentation: First Half 2019 Financial Results
BURGAN BANK GROUP INVESTOR PRESENTATION FIRST HALF 2019 FINANCIAL RESULTS JULY 2019
Slide 2: Table of Contents
TABLE OF CONTENTS Contents Page H1’19 Performance Highlights 4 Key P&L Metrics 5 Asset Quality 7 Key Balance Sheet Metrics 8 Capital & Liquidity 9 H1’19 Performance by Entities 10 Summary 11 2
Slide 3: Change in Financial Statements' Closing Process
CHANGE IN FINANCIAL STATEMENTS’ CLOSING PROCESS Beginning this year, the Bank has revised its financial statements’ closing process by changing the reporting date of its subsidiaries to one month earlier than the Group’s reporting date. Accordingly, Burgan’s reported financial results of First H
Slide 4: H1'19 Performance Highlights
H1’19 PERFORMANCE HIGHLIGHTS Consistent Returns Stronger Asset Quality » Return on Equity of 10.7% » Kuwait NPL Ratio further improved to 1.5% » Consistent generation of double- digit returns due to: » Group NPL Ratio stable at 2.7% ❖ Stable Margins with NIM of 2.8% » Group NPL Coverage Ratio ❖ Lowe
Slide 5: Key P&L Metrics (1/2)
KEY P&L METRICS (1/2) Revenue & Margins(1) | KD mn, % Operating Profit & Efficiency(2) | KD mn, % 2.9% 2.8% 41.7% 42.1% 2.6% 39.5% 139.2 32.7% 27.8% 28.5% 122.7 18 116.3 6 4 58 48 84.2 52 71.6 67.3 18 4 6 21 29 27 70 71 76 49 44 50 H1'17 H1'18 H1'19 H1'17 H1'18 H1'19 Group Expenses and Consol. Adj O
Slide 6: Key P&L Metrics (2/2)
KEY P&L METRICS (2/2) Net Income(1) & Returns(2) | KD mn, % Cost of Credit(3) | KD mn, % Includes impact of 13.8% 1.3% Capital Increase in Q4’18 0.7% 0.8% 10.5% 1.0% 10.7% 0.6% 0.3% 50.5 44.8 38.9 8 4 10 27.5 9 13 15.6 13 15.8 38 38 44 6 15 12 (2) 10 4 H1'17 H1'18 H1'19 H1'17 H1'18 H1'19 Group Expen
Slide 7: Asset Quality
ASSET QUALITY NPL Ratios (%) NPLs (KD mn) & Coverage (%) 343% 374% 4.3% 168% 175% 163% 3.5% 119% 2.8% 2.7% 211.1 87 130.8 127.3 1.6% 1.5% 77 75 124 53 52 H1'17 H1'18 H1'19 H1'17 H1'18 H1'19 Kuwait International Ops Group NPL Ratio Kuwait NPL Ratio Group Coverage Ratio Kuwait Coverage Ratio Key Comme
Slide 8: Key Balance Sheet Metrics
KEY BALANCE SHEET METRICS Customer Loans (KD bn) & Sector Concentration (%) Customer Deposits (KD bn) & Deposits by Type (%) 4.4 4.2 4.2 4.2 3.9 3.9 1.5 1.3 1.3 1.6 19% 1.5 1.4 4% 2% 7% 26% 30% 11% 2.9 2.7 2.9 2.9 64% 2.5 2.5 6% 11% 21% H1'17 H1'18 H1'19 Personal Real estate H1'17 H1'18 H1'19 Demand
Slide 9: Capital and Liquidity
CAPITAL AND LIQUIDITY Regulatory Capital (KD mn) Regulatory Liquidity Metrics (%) 2,500 20.0% 16.6% 17.0% 179.0% 16.3% 18.0% +300 159.5% bps 2,000 16.0% 143.0% 14.0% 14.0% 11.6% 115.8% 1,500 10.9% 11.0% 12.0% 111.7% +110 10.5% bps 10.0% 917 983 100% 1,000 900 8.0% 167 170 152 146 145 146 6.0% 500 4.
Slide 10: H1'19 Performance by Entities
H1’19 PERFORMANCE BY ENTITIES CONTRIBUTION(1), (2) GROWTH(3) KPI’S(4),(5),(6) LOANS REVENUES NET INCOME LOANS NIM ∆% CI RATIO ∆% COC ∆% NPL RATIO ∆% Kuwait (16 (78 (15 67% 59% 81% +7% 2.2% bps) 32.7% +414 bps 0.3% bps) 1.5% bps) CONTRIBUTION GROWTH KPI’S(4),(5),(6) LOANS REVENUES NET INCOME LOANS NI
Slide 11: Summary
SUMMARY 1 Kuwait business continues to perform strongly Our international businesses are stable and we continue to adopt cautious 2 growth strategy Burgan’s asset quality continues to improve and we are focused on 3 continuing to drive further improvement Burgan’s optimal capital levels will allow t
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