Burgan Bank · KSE:BURG
Burgan Bank — Q1 2018 Earnings Presentation
18 slides from Burgan Bank's earnings presentation, 2018
Slide 1: Burgan Bank Group Investor Presentation 1st Quarter 2018
BURGAN BANK GROUP INVESTOR PRESENTATION 1ST QUARTER 2018 1
Slide 2: Table of Contents
TABLE OF CONTENTS Contents Page Macro Environment Reading 3 Group Financial Performance 5 Market Positioning 13 Summary 15 2
Slide 3: Macro Environment Reading
MACRO ENVIRONMENT READING 3
Slide 4: Our Reading for 2018: Risk Rising Moderately, Prudence to Continue
OUR READING FOR 2018: RISK RISING MODERATELY, AND PRUDENCE TO CONTINUE WITH DISCIPLINED GROWTH… 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 investme
Slide 5: Group Financial Performance
GROUP FINANCIAL PERFORMANCE 5
Slide 6: Solid Quarter in All Key Indicators
SOLID QUARTER IN ALL KEY INDICATORS… As Reported - KD’mn Q1’17 Q1’18 Growth As Reported - US$’mn Q1’17 Q1’18 Growth Net Interest Income 39.1 46.7 +20% Net Interest Income 128.1 155.9 +22% Non Interest Income 16.9 13.7 (18%) Non Interest Income 55.2 45.8 (17%) Operating Income 55.9 60.5 +8% Operating
Slide 7: Capital Optimization Plan Achieved Objectives
CAPITAL OPTIMIZATION PLAN ACHIEVED OBJECTIVES… Capital Adequacy | US$’mn 7,000 0.2 16.5% 16.3% 16.4% 16.2% 16.6% 0.18 6,000 0.16 13.7% 13.5% 13.6% 13.5% 13.8% 5,000 0.14 11.1% 10.9% 10.9% 10.9% 11.2% 0.12 4,000 2,961 2,969 2,941 3,061 3,033 0.1 511 3,000 497 502 498 504 0.08 479 482 481 482 485 0.06
Slide 8: Stable Balance Sheet Growth While Reducing RWAs
WITH STABLE BALANCE SHEET GROWTH TRENDS, WHILE MANAGING TO REDUCE RWAS LEVELS… … Asset Mix Customers Loans | USD bn,% Customers Loans by Sector | Q1’18 Stable asset mix driven by loans… Loans grew 3% year on year supported by international operations 23.6 23.6 23.1 17.1 17.9 18.9 18.3 12% 12% 13% 32
Slide 9: Subsidiaries Growing Prudently with Exception to Iraq
THE 4 SUBSIDIARIES GROWING PRUDENTLY WITH EXCEPTION TO IRAQ… Kuwait | KDm Turkey | TRYm Algeria | DZDm Iraq | IQDm Tunisia | USDm 2,748 (6%) 15,593 +28% 143,414 +30% 133,893 (23%) 22 +64% CUSTOMER LOANS 2,911 63% 12,146 27% 110,524 9% 172,948 1% 13 0.1% 36 +12% 189 +31% 3,611 +33% 11,190 (56%) 4 +4%
Slide 10: Burgan Bank Kuwait Reporting Attractive Returns Despite Slow Market Growth
BURGAN BANK KUWAIT REPORTING ATTRACTIVE RETURNS DESPITE SLOW MARKET GROWTH… Revenues & Margins(1) | KD mn,% Operating Profit & Efficiencies Cost of Credit | KD mn,% Earnings | KD mn,% | KD mn,% 50.2% 50.7% 2.3% 1.9% 37.3% 36.8% 0.4% 0.6% 36 32 7 7 4 3 25 28 1 16 18 20 22 3 3 0 Q1'17 Q1'18 Q1'17 Q1'1
Slide 11: Burgan Bank Turkey on the Right Trajectory
BURGAN BANK TURKEY ON THE RIGHT TRAJECTORY WITH AMPLE GROWTH PROSPECTS AND CAPACITY… Revenues & Margins(1) | TRY mn,% Operating Profit & Efficiencies | Earnings(2) | TRY mn,% TRY mn,% 3.5% 3.3% 3.7% 68.4% 27.6% 60.4% 13.9% 7.3% 44.3% 189 144 24 115 22 15 165 52 122 105 100 57 20 36 8 Q1'16 Q1'17 Q1'
Slide 12: Gulf Bank Algeria Adjusted to New Regulations
GULF BANK ALGERIA ADJUSTED TO NEW REGULATIONS AND WELL POSITIONED TO UNLOCK GROWTH POTENTIAL… Revenues & Margins(1) | DZD mn,% Operating Profit & Efficiencies | Earnings(2) | DZD mn,% 4.8% DZD mn,% 4.7% 4.3% 28.9% 58.4% 25.9% 52.7% 19.9% 39.6% 3,611 2,721 1,067 2,384 2,181 550 949 1,045 1,287 704 2,
Slide 13: Market Positioning
MARKET POSITIONING 13
Slide 14: Burgan Bank Still Has Competitive Metrics Amongst Peers
BURGAN BANK STILL HAS COMPETITIVE METRICS AMONGST PEERS, WHICH HAS AMPLE CAPITAL… Total Assets Customer Loans Shareholders Equity Revenues Operating Profits Net Income(1) Q1’18 US$ mn US$ mn US$ mn US$ mn US$ mn US$ mn 23,100 14,479 2,225 202 109 59 Rankings #2 #2 #3 #2 #2 #2 89,355 49,500 9,717 712
Slide 15: Summary
SUMMARY 15
Slide 16: In Summary
IN SUMMARY SOLID QUARTER PERFORMANCE 1 AND RESILIENT BUSINESS MODEL CAPITAL OPTIMIZATION PLAN ACHIEVED 2 OBJECTIVES AND MAINTAINED DELIVERY OF DOUBLE DIGIT RETURNS BURGAN BANK IS READY TO NEXT WAVE OF 3 GROWTH 16
Slide 17: Thank You
THANK YOU 17
Slide 18: Disclaimers
DISCLAIMERS IMPORTANT NOTICE This presentation has been prepared by Burgan Bank 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’s prior