National Bank Of Kuwait K.s.c. · KSE:NBK
National Bank Of Kuwait K.s.c — National Bank of Kuwait — FY2023 Earnings Presentation
26 slides from National Bank Of Kuwait K.s.c's earnings presentation, 2024
Slide 1: National Bank of Kuwait Investor Presentation FY 2023 Earnings Call
PUBLIC National Bank of Kuwait Investor Presentation FY 2023 Earnings Call National Bank of Kuwait 1
Slide 2: Disclaimer
PUBLIC 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
Slide 3: Contents
PUBLIC Contents Section 1 Vice Chairman and Group CEO Opening Remarks Section 2 Financial Performance Section 3 Appendix Section 4 Questions National Bank of Kuwait 3
Slide 4: Key Economic Highlights
PUBLIC Key Economic Highlights Daily ICE Brent Crude Oil Prices ($/bbl) Real GDP Growth1 (% y/y) 100 100 15 15 Oil sector Non-oil sector Forecast 95 95 10 10 Headline 90 90 5 5 85 85 0 0 80 80 -5 -5 75 75 -10 -10 70 70 -15 -15 Jan-23 Mar-23 May-23 Jul-23 Sep-23 Nov-23 Jan-24 2017 2018 2019 2020 2021
Slide 5: Operating Performance & Profitability
PUBLIC Operating Performance & Profitability Net Profit Attributable (KDm) Operating Income (KDm) 10.1% 15.6% 560.6 1,167 1,010 509.1 2022 2023 2022 2023 Return on Average Assets (%) Return on Average Equity (%) 15.0% 1.53% 1.48% 14.3% 2022 2023 2022 2023 National Bank of Kuwait 5
Slide 6: NBK's Strategy
PUBLIC 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) ✓ Corporate remain the bank of choice for foreign companies and continuing to serve at least 75% of those companies and (iii) maintain i
Slide 7: NBK ESG Strategy Framework
PUBLIC NBK ESG Strategy Framework National Bank of Kuwait 7
Slide 8: Building A Leading Journey In ESG
PUBLIC Building A Leading Journey In ESG ESG Ratings ESG Awards National and Global Frameworks NBK is at 27.4 – Global Finance 2023 Medium Risk ▪ Best Innovation and Transformation – World ▪ Best SME Bank Award – Kuwait ▪ Best Private Bank for Sustainable Investing – MSCI upgraded NBK Middle East ES
Slide 9: 2023 Key ESG Achievements
PUBLIC 2023 Key ESG Achievements We measure our progress against well-defined metrics and targets to achieve the greatest positive impact. Strategy Pillars Key Highlights ▪ Committed to become carbon neutral by 2060 and set an interim target to reduce gross operational emissions by 25% by 2025. ▪ In
Slide 10: Contents
PUBLIC Contents Section 1 Vice Chairman and Group CEO Opening Remarks Section 2 Financial Performance Section 3 Appendix Section 4 Questions National Bank of Kuwait 10
Slide 11: Operating Performance
PUBLIC Operating Performance Net Profit (KDm) Operating Surplus (KDm) 560.6 +10.1% +18.7% 740.3 509.1 623.6 155.8 134.8 129.5 194.4 186.7 157.8 4Q 2022 3Q 2023 4Q 2023 2022 2023 4Q 2022 3Q 2023 4Q 2023 2022 2023 Net Operating Income (KDm) Net Operating Income Mix Net interest income & Net income fro
Slide 12: Operating Performance
PUBLIC Operating Performance Net Interest Income* (KDm) Average Interest Earning Assets (KDbn) 905.1 34.9 +19.8% +6.3% 755.8 32.8 209.2 233.8 239.3 4Q 2022 3Q 2023 4Q 2023 2022 2023 2022 2023 Net Interest Margin* Net Interest Margin Drivers YTD NIM Qtrly NIM +0.86% -1.78% 2.68% 2.68% +1.21% 2.56% 2.
Slide 13: Operating Performance
PUBLIC Operating Performance Non-Interest Income (KDm) Operating Expenses (KDm) Net fees and commissions Net gains from dealing in FX Other non-interest income Staff expenses Other operating expenses 426.5 261.6 +3.0% 386.1 +10.4% 253.9 17 29 193 55 36 166 64.1 63.7 53.1 197 104.5 116.3 182 103.5 3
Slide 14: Group Diversification
PUBLIC Group Diversification 2023 Op. Income by Business Line (%) 2023 Net Profit by Business Line (%) 2023 Total Assets by Business Line (%) Corporate Corporate Corporate NBK Wealth 14% 25% 14% 3% NBK Wealth Consumer 10% 20% Consumer 18% Consumer 13% NBK Wealth 11% Islamic 22% Islamic 19% Islamic 1
Slide 15: Balance Sheet
PUBLIC Balance Sheet Total Assets (KDbn) Loans, Advances and Islamic Financing (KDbn) 37.7 36.3 22.3 +3.7% 21.0 +6.1% Dec 22 Dec 23 Dec 22 Dec 23 Customer Deposits & FI Deposits* (KDbn) Funding Mix Customer Deposits FI Deposits Customer Deposits Due to banks Deposits from other FIs CD's / Other borr
Slide 16: Performance and Asset Quality Ratios
PUBLIC Performance and Asset Quality Ratios Return on Average Equity Return on Average Assets 15.0% 1.53% 1.48% 14.3% 2022 2023 2022 2023 Capital Adequacy Ratios Asset Quality Ratios CET 1 Ratio Tier 1 Ratio Capital Adequacy Ratio Loan Loss Coverage Ratio NPL Ratio 17.4% 17.3% 267% 271% 15.0% 15.0%
Slide 17: Expected Credit Losses (ECL)
PUBLIC Expected Credit Losses (ECL) Financial Statements ECL Disclosure (KDm) Total Gross Loans (KDbn) Stage 1 Stage 2 Stage 3 31 December 2023 Stage 1 Stage 2 Stage 3 Total 21.8 23.1 1% 1% Loans, advances and Islamic 7% 8% financing to customers 21,340 1,486 318 23,144 Contingent liabilities 3,895
Slide 18: 2024 Guidance
PUBLIC 2024 Guidance 2023 2024 Guidance Loan Growth +6.1% Mid Single Digit NIM 2.59% Stable Cost to Income ratio 36.6% High 30s Cost of Risk 36 bps 40 – 50 bps Earnings +10.1% Capital Adequacy 17.3% National Bank of Kuwait 18
Slide 19: Contents
PUBLIC Contents Section 1 Vice Chairman and Group CEO Opening Remarks Section 2 Financial Performance Section 3 Appendix Section 4 Questions National Bank of Kuwait 19
Slide 20: Consolidated Statement Of Income (KDm)
PUBLIC Consolidated Statement Of Income (KDm) KDm 2022 2023 YoY Growth (%) Interest Income 948 1,633 72% Interest Expense 364 908 NM Net Interest Income 584 725 24% Murabaha and other Islamic financing income 288 402 40% Finance cost and Distribution to depositors 115 222 92% Net Income from Islamic
Slide 21: Consolidated Statement Of Financial Position (KDm)
PUBLIC Consolidated Statement Of Financial Position (KDm) KDm December-2022 December-2023 YoY Growth % Cash and short term funds 5,323 4,385 (18%) Central Bank of Kuwait bonds 881 857 (3%) Kuwait Government treasury bonds 212 194 (8%) Deposits with banks 1,490 1,318 (12%) Loans, advances and Islamic
Slide 22: Performance Measures 2023
PUBLIC Performance Measures 2023 December-2022 December-2023 Return on Average Assets 1.48% 1.53% Return on Average Equity 14.3% 15.0% Net Interest Margin 2.30% 2.59% Cost to Income 38.2% 36.6% NPLs to Gross Loans 1.42% 1.38% Loan Loss Reserves to NPLs 267% 271% CET 1 Ratio 12.9% 13.0% Tier 1 Ratio
Slide 23: Contents
PUBLIC Contents Section 1 Vice Chairman and Group CEO Opening Remarks Section 2 Financial Performance Section 3 Appendix Section 4 Questions National Bank of Kuwait 23
Slide 24: Questions?
PUBLIC Questions? National Bank of Kuwait 24
Slide 25: Thank You
PUBLIC Thank You National Bank of Kuwait 25
Slide 26: National Bank of Kuwait Investor Presentation FY 2023 Earnings Call
PUBLIC National Bank of Kuwait Investor Presentation FY 2023 Earnings Call National Bank of Kuwait 26
National Bank of Kuwait — FY2023 Earnings Presentation on 6ix