National Bank Of Kuwait K.s.c. · KSE:NBK
National Bank Of Kuwait K.s.c — National Bank of Kuwait — FY2019 Earnings Presentation
24 slides from National Bank Of Kuwait K.s.c's earnings presentation, 2020
Slide 1: National Bank of Kuwait Investor Presentation FY 2019 Earnings Call
National Bank of Kuwait Investor Presentation FY 2019 Earnings Call
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
Slide 3: Contents
Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance 2019 Section 3 Appendix Section 4 Questions 2
Slide 4: Resilient Profitability
Resilient Profitability Net Profits Attributable (KDm) Interim Net Profits Attributable (KDm) 401 371 98 99 322 84 2017 2018 2019 4Q 2017 4Q 2018 4Q 2019 Real GDP (% y/y) Key economic indicators Total Non-oil Key Indicators 2019F 2020F 6 4.8 6 4.2 4 2.6 2.5 2.5 4 1.6 2.3 Sovereign Ratings Aa2 / AA /
Slide 5: NBK's strategy
NBK’s strategy The Bank aims to (i) remain the primary banker for the leading local companies whilst continuing to be active in the mid-market sector;(ii) remain the bank of choice for foreign companies and continuing to serve at least 75% of those companies and (iii) Corporate Banking maintain
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 2019, the Bank was the largest region bank in Kuwait in terms of total assets, loans a
Slide 7: Contents
Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance 2019 Section 3 Appendix Section 4 Questions 6
Slide 8: Operating Performance 2019
Operating Performance 2019 Net Profit (KDm) Operating Surplus (KDm) 606.9 591.2 401.3 370.7 +8.2% -2.6% 98.3 93.1 99.1 147.2 144.9 140.3 4Q 2018 3Q 2019 4Q 2019 2018 2019 4Q 2018 3Q 2019 4Q 2019 2018 2019 Operating Income (KDm) Operating Income Net interest income & Net income from Islamic Financing
Slide 9: Operating Performance 2019
Operating Performance 2019 Net Interest Income (KDm) Average Interest Earning Assets (KDbn) 26.9 690.5 689.2 -0.2% 25.6 +5.0% 175.4 172.6 172.2 4Q 2018 3Q 2019 4Q 2019 2018 2019 2018 2019 Net Interest Margin* Net Interest Margin drivers YTD NIM Qtrly NIM 2.74% 2.71% +0.14% -0.36% 2.69% +0.08% 2.63%
Slide 10: Operating Performance 2019
Operating Performance 2019 Non-interest income (KDm) Operating Expenses (KDm) Net fees and commissions Staff expenses 206.3 Net gains from dealing in FX 276.3 304.3 192.8 Other non-interest income 10 Other operating expenses 4 +7.0% 129 39 +10.1% 39 116 76.0 82.5 150 157 74.3 46.0 48.3 50.5 176 160
Slide 11: Operating Performance 2019
Operating Performance 2019 Operating Income (KDm) - International Operating Income (KDm) Int'l Int'l 209.3 220.7 24% 25% +5.5% Dom. Dom. 76% 75% 2018 2019 2018 2019 Net profit (KDm) - International Net Profit (KDm) 112.7 112.2 Int'l Int'l 30% 28% -0.5% Dom. Dom. 70% 72% 2018 2019 2018 2019 Net profi
Slide 12: Operating Performance 2019
Operating Performance 2019 Total Assets (KDbn) Loans, Advances and Islamic Financing (KDbn) 29.3 27.4 16.6 15.5 +6.7% +6.8% Dec 18 Dec 19 Dec 18 Dec 19 Customer Deposits (KDbn) Funding Mix Due to banks and other FIs Customer Deposits 15.9 CD's / GMTN / T2 Bonds 14.4 +10.7% 62% 65% 35% 31% Dec 18 Dec
Slide 13: Performance and Asset Quality ratios 2019
Performance and Asset Quality ratios 2019 Return on Average Equity Return on Average Assets 1.38% 1.42% 12.0% 12.3% 2018 2019 2018 2019 Capital Adequacy Ratios Asset Quality Ratios CET 1 Ratio Tier 1 Ratio Capital Adequacy Ratio Loan Loss Coverage Ratio NPL Ratio 17.8% 1.75% 17.2% 15.9% 1.60% 15.3%
Slide 14: 2020 Guidance
2020 Guidance 2019 2020 Guidance Loan Growth +6.8% Mid to High Single Digit NIM 2.56% Tighter Cost to Income Ratio 34.0% Mid 30’s Cost of Risk 74bps Broadly Stable Earnings +8.2% yoy Mid to High Single Digit Capital Adequacy Ratio 17.8% Above 17% 13
Slide 15: Contents
Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance 2019 Section 3 Appendix Section 4 Questions 14
Slide 16: Consolidated Financials 2019 (KWD million)
Consolidated Financials 2019 (KWD million) YoY Growth YoY Growth Income Statement (KWD million) 2018 2019 Balance sheet (KWD million) Dec-18 Dec-19 (%) (%) Interest Income 897 987 10% Cash and short term funds 2,967 3,787 28% Interest Expense 331 422 27% Central Bank of Kuwait bonds 810 823 2% Net I
Slide 17: Performance Measures 2019
Performance Measures 2019 % 2018 2019 Return on average assets 1.38% 1.42% Return on average equity 12.0% 12.3% Net interest margin 2.69% 2.56% Cost to income 31.3% 34.0% NPLs to gross loans 1.38% 1.10% Loan loss reserves to NPLs 228.1% 272.2% Tier 1 capital 15.3% 15.9% Tier 2 capital 1.9% 1.9% Capi
Slide 18: Consolidated Statement Of Income (KWD million)
Consolidated Statement Of Income (KWD million) KWD million 2017 2018 2019 Interest Income 743 897 987 Interest Expense 224 331 422 Net Interest Income 519 566 565 Murabaha and other Islamic financing income 156 186 211 Finance cost and Distribution to depositors 46 62 87 Net Income from Islamic fina
Slide 19: Consolidated Statement Of Financial Position (KWD million)
Consolidated Statement Of Financial Position (KWD million) KWD million 2017 2018 2019 Cash and short term funds 2,744 2,967 3,787 Central Bank of Kuwait bonds 656 810 823 Kuwait Government treasury bonds 1,076 872 662 Deposits with banks 2,488 2,364 1,909 Loans, advances and Islamic financing to cus
Slide 20: Stable Credit Ratings
Stable Credit Ratings Long-term Standalone Rating Agency Outlook Key Rating Drivers Rating Rating • Dominant domestic position Aa3 a3 Stable • Resilient profitability and growth outlook • Robust asset quality, capitalization and liquidity • Leading position in Kuwait A+ a- Stable • More diversified
Slide 21: Contents
Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance 2019 Section 3 Appendix Section 4 Questions 20
Slide 22: Questions
Questions yiibagJl NBK ee
Slide 23: Thank You
Thank You yiibagJl NEE
Slide 24: National Bank of Kuwait Investor Presentation FY 2019 Earnings Call
National Bank of Kuwait Investor Presentation FY 2019 Earnings Call
National Bank of Kuwait — FY2019 Earnings Presentation on 6ix