National Bank Of Kuwait K.s.c. · KSE:NBK

National Bank Of Kuwait K.s.c — National Bank of Kuwait — Investor Presentation (October 2019)

28 slides from National Bank Of Kuwait K.s.c's investor presentation, October 2019

  1. Slide 1: National Bank of Kuwait Investor Presentation

    National Bank of Kuwait Investor Presentation October 2019

  2. 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

  3. Slide 3: Contents

    Contents Section 1 Overview of NBK Section 2 Strategy and Business Overview Section 3 Operating Environment Section 4 Financial Performance Highlights Section 5 Appendix 2

  4. Slide 4: NBK is Kuwait’s leading banking group

    NBK is Kuwait’s leading banking group Snapshot Financial snapshot  Established in1952 as the first local and home-grown GCC bank, and USD million 2016 2017 2018 first shareholding company in Kuwait  The leading banking group in Kuwait in terms of assets, customer deposits and customer loans and ad

  5. Slide 5: Regional and International Geographic Presence

    Regional and International Geographic Presence Middle East Europe Location - Year Legal Structure - Branches Location - Year Legal Structure – Branches established/acquired established/acquired Kuwait – 1952 Parent – 68 London – 1983 Subsidiary – 2 Turkey – 2007 Associate – 11 Geneva – 1984 Subsidia

  6. Slide 6: Key strengths

    Key strengths High credit ratings and among the Largest banking group in Kuwait with top brand values regionally dominant market position  NBK has one of the highest credit ratings in the MENA  As at 31 December 2018, the Bank was the largest region bank in Kuwait in terms of total assets, loans a

  7. Slide 7: Contents

    Contents Section 1 Overview of NBK Section 2 Strategy and Business Overview Section 3 Operating Environment Section 4 Financial Performance Highlights Section 5 Appendix 6

  8. Slide 8: NBK’s strategy

    NBK’s strategy The Group’s strategy, which is based on two main pillars, focuses on defending and growing its leadership position in Kuwait whilst also diversifying its business  The Bank aims to (i) remain the primary banker for the leading local companies whilst continuing to be active in the  C

  9. Slide 9: Kuwait Operations

    Kuwait Operations NBK is a universal bank and the industry leader in all key business segments in Kuwait with an average market share of 30% Overview and strategy Corporate Banking Consumer Banking Private Banking  Remain the primary banker for most of the local  Maintain undisputed leadership in

  10. Slide 10: International Operations

    International Operations International Operations  NBK’s international operations has been traditionally contributing up to circa 30% of the Established or Branches Legal structure Group’s bottom line with the Bank aspiring to increase this contribution. acquired  The Bank generally aims to mainta

  11. Slide 11: Boubyan Bank (59.9% owned subsidiary)

    Boubyan Bank (59.9% owned subsidiary) Market share of Total Assets(%) Highlights  Islamic banking has been gaining ground in the Kuwaiti market, representing close to 40% of assets and deposits at year-end 2018.  After a series of gradual share acquisitions since 2009, NBK’s 5.5% 5.7% stake in Bou

  12. Slide 12: Contents

    Contents Section 1 Overview of NBK Section 2 Strategy and Business Overview Section 3 Operating Environment Section 4 Financial Performance Highlights Section 5 Appendix 11

  13. Slide 13: Overview of Kuwait

    Overview of Kuwait Overview Fiscal breakeven oil price  The State of Kuwait is a sovereign state on the coast of the 80 80 Arabian Gulf with a population of 4.6 million Excl inv inc Incl inv inc 74 75 75 72  Kuwait is a constitutional monarchy, headed by His Highness 70 68 66 70 the Emir, Sheikh S

  14. Slide 14: Kuwait’s Economy

    Kuwait’s Economy Recent Developments Real GDP (% y/y) Total Non-oil  Real GDP is estimated to have expanded by 1.8% in 2018 but will 6 4.2 4.8 6 be noticeably softer in 2019 due to lower oil production as Kuwait 4 2.5 2.5 4 GDP 1.6 2.2 2.5 adheres to OPEC’s latest cuts. Growth 2 0.4 2 1.1 0.5 2.9 1

  15. Slide 15: Kuwait’s banking sector

    Kuwait’s banking sector Snapshot  The Kuwaiti banking sector comprises 23 banks, including 11 domestic banks (five conventional, five Shariah-compliant and one specialized), and branches of 12 international banks (11 conventional and one Islamic).  The sector is well regulated by the Central Bank

  16. Slide 16: The Dominant Kuwaiti Franchise

    The Dominant Kuwaiti Franchise NBK is the leading banking group in Kuwait with a market leading position across its business segments Total Assets (USD million) Customer Deposits (USD million) National Bank of Kuwait 90,432 National Bank of Kuwait 47,441 Kuwait Finance House 58,590 Kuwait Finance Ho

  17. Slide 17: Contents

    Contents Section 1 Overview of NBK Section 2 Strategy and Business Overview Section 3 Operating Environment Section 4 Financial Performance Highlights Section 5 Appendix 16

  18. Slide 18: Operating Performance & Profitability

    Operating Performance & Profitability Resilient Profitability (USD mn) Operating Income Composition (USD mn) Net Operating Income Net Profit NII & NI from Islamic financing Non-interest income 2,912 2,712 2,912 2,712 2,177 2,213 22% 24% 2,177 2,213 22% 23% 1,222 1,063 994 896 76% 78% 78% 77% 2017 20

  19. Slide 19: Operating Performance & Profitability (Cont’d)

    Operating Performance & Profitability (Cont’d) 9M 2019 Op. income by type (%) 9M 2019 Op. income by business line (%) Cost to income (%) Other, FX, 5% 1% Consumer & 33.0% Private Corporate 32.3% Fees, 31.3% Banking, 18% 30.5% 17% 32% Inv Bkg & Net AM, 3% Interest Others, Income, 6% 77% Islamic Banki

  20. Slide 20: Balance Sheet Parameters

    Balance Sheet Parameters Net loan portfolio (USD bn) Loans to assets (USD bn) Net Loans Net loan growth YoY (%) Total Assets Loans/Assets 6.9% 6.5% 55.7% 56.5% 56.8% 56.6% 6.5% 6.2% 47.8 51.1 50.7 53.8 85.8 90.4 89.2 95.1 Dec-17 Dec-18 Sep-18 Sep-19 Dec-17 Dec-18 Sep-18 Sep-19 Loan exposure by secto

  21. Slide 21: Funding and liquidity positions

    Funding and liquidity positions Customer Deposits (USD bn) (Total Liabilities) Funding Mix (USD mn) Other liabilities Certificates of deposit Customer Deposits Due to banks and other financial institutions 61% 60% 63% 61% 51.9 45.4 47.4 46.3 33% 34% 34% 30% Dec-17 Dec-18 Sep-18 Sep-19 Dec-17 Dec-18

  22. Slide 22: Capitalization and asset quality

    Capitalization and asset quality Total Equity1 Breakdown (USD mn) Prudent capitalization (%) Share capital Statutory reserves Retained Earnings Other Reserves & Treasury Shares Tier 1 Tier 2 10,215 10,907 10,429 17.8% 17.2% 17.2% 9,988 2.0% 15.8% 2,443 1.9% 2.0% 3,020 2,315 1.9% 2,934 4,883 5,296 4,

  23. Slide 23: Contents

    Contents Section 1 Overview of NBK Section 2 Strategy and Business Overview Section 3 Operating Environment Section 4 Financial Performance Highlights Section 5 Appendix 22

  24. Slide 24: Kuwait Selected Mega Projects

    Kuwait Selected Mega Projects Project Sector Value (KD bn) Scope Status Underway: Overall progress 22%. Major infrastructure works contract 1 is 75% complete, contract 2 is 73% South Al Mutlaa City Housing 2.33 30,000 residential units, schools and other facilities complete. P-1 to P-3 completion ex

  25. Slide 25: Consolidated financials 9M 2019 (USD million)

    Consolidated financials 9M 2019 (USD million) YoY Growth YoY Growth Income Statement (USD million) 9M-18 9M-19 Balance sheet (USD million) Sep-18 Sep-19 (%) (%) Interest Income 2,163 2,436 13% Cash and short term funds 9,683 11,774 22% Interest Expense 775 1,036 34% Central Bank of Kuwait bonds 2,62

  26. Slide 26: Consolidated Statement Of Income (USD million)

    Consolidated Statement Of Income (USD million) USD million 2016 2017 2018 Interest Income 2,193 2,448 2,958 Interest Expense 625 738 1,091 Net Interest Income 1,568 1,711 1,867 Murabaha and other Islamic financing income 422 514 614 Finance cost and Distribution to depositors 112 151 204 Net Income

  27. Slide 27: Consolidated Statement Of Financial Position (USD million)

    Consolidated Statement Of Financial Position (USD million) USD million 2016 2017 2018 Cash and short term funds 8,859 9,046 9,781 Central Bank of Kuwait bonds 2,469 2,162 2,670 Kuwait Government treasury bonds 1,626 3,548 2,875 Deposits with banks 7,939 8,204 7,795 Loans, advances and Islamic financ

  28. Slide 28: Contact

    Contact Contact Investor Relations Useful information E: Investor-Relations@nbk.com Download copies of NBK’s: National Bank of Kuwait (NBK) PO Box 95, 13001 Safat Kuwait • Financial statements Abdullah Al Ahmad Street, Sharq • Earnings release State of Kuwait. • Annual report 2018 27

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