National Bank Of Kuwait K.s.c. · KSE:NBK
National Bank Of Kuwait K.s.c — National Bank of Kuwait — FY2022 Earnings Presentation
28 slides from National Bank Of Kuwait K.s.c's earnings presentation, 2023
Slide 1: National Bank of Kuwait Investor Presentation FY 2022 Earnings Call
PUBLIC National Bank of Kuwait Investor Presentation FY 2022 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 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 Kuwait Private credit (change, % y/y) Real GDP (% y/y) 12 12 10 10 Total 12m avg Total Non-oil 10 10 5 5 8 8 1.1 6 6 0 0 4 4 -5 -5 2 2 0 0 -10 -10 Nov-19 May-20 Nov-20 May-21 Nov-21 May-22 Nov-22 2014 2015 2016 2017 2018 2019 2020e 2021e 2022f 2023f Development of the
Slide 5: NBK Profitability (KDm)
PUBLIC NBK Profitability (KDm) Net Profit Attributable 40.5% 509.1 362.2 136.4 134.8 116.6 121.2 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 2022 National Bank of Kuwait 5
Slide 6: NBK's Strategy
PUBLIC 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
Slide 7: NBK Group ESG Strategy Framework
PUBLIC NBK Group ESG Strategy Framework Strategy Capitalizing on our Investing in our Governance for Pillars Responsible Banking Capabilities Communities Resilience To support the transition to a To drive sustainable business growth To deliver a positive impact on the To commit to the highest standa
Slide 8: Building A Leading Journey In ESG
PUBLIC Building A Leading Journey In ESG ESG Awards and Ratings Carbon Disclosure Project (CDP) Score 2022 Aligned with National and Global Frameworks National Bank of Kuwait 8
Slide 9: 2022 Key ESG Achievements
PUBLIC 2022 Key ESG Achievements We measure our progress against well-defined metrics and targets to achieve the greatest impact. Strategy Pillars Key Highlights Launched NBK Sustainable Financing Framework and received SPO by S&P Global. Developed a roll-out plan for sustainable products for 20
Slide 10: Contents
PUBLIC Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance Section 3 Appendix Section 4 Questions National Bank of Kuwait 10
Slide 11: Operating Performance 2022
PUBLIC Operating Performance 2022 Net Profit (KDm) Operating Surplus (KDm) 509.1 623.6 +40.5% 547.4 +13.9% 362.2 136.4 134.8 174.0 107.4 157.8 132.7 4Q 2021 3Q 2022 4Q 2022 2021 2022 4Q 2021 3Q 2022 4Q 2022 2021 2022 Operating Income (KDm) Operating Income 1,009.7 Net interest income & Net income fr
Slide 12: Operating Performance 2022
PUBLIC Operating Performance 2022 Net Interest Income* (KDm) Average Interest Earning Assets (KDbn) 755.8 32.8 669.3 30.3 +8.4% +12.9% 198.3 209.2 167.2 0 4Q 2021 3Q 2022 4Q 2022 2021 2022 2021 2022 Net Interest Margin* Net Interest Margin drivers YTD NIM Qtrly NIM +0.32% -0.72% +0.49% 2.21% 2.30% 2
Slide 13: Operating Performance 2022
PUBLIC Operating Performance 2022 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 386.1 352.4 253.9 230.5 +9.6% 17 +10.1% 166 32 55 151 30 72.7 104.5 56.4 53.1 182 90.9 97.0 3 1
Slide 14: Operating Performance 2022
PUBLIC Operating Performance 2022 Operating Income (KDm) - International Operating Income (KDm) 266.6 223.4 +19.4% Int'l Int'l 25% 26% Dom. Dom. 75% 74% 2021 2022 2021 2022 Net profit (KDm) - International Net Profit (KDm) 137.1 Int'l Int'l +48.7% 25% 27% 92.2 Dom. Dom. 75% 73% 2021 2022 2021 2022 N
Slide 15: Operating Performance 2022
PUBLIC Operating Performance 2022 Total Assets (KDbn) Loans, Advances and Islamic Financing (KDbn) 36.3 21.0 19.7 33.3 +9.3% +6.5% Dec 21 Dec 22 Dec 21 Dec 22 Customer Deposits & FI Deposits* (KDbn) Funding Mix Customer Deposits FI Deposits Customer Deposits Due to banks Deposits from other FIs CD's
Slide 16: Performance and Asset Quality Ratios 2022
PUBLIC Performance and Asset Quality Ratios 2022 Return on Average Equity Return on Average Assets 14.3% 1.48% 1.15% 10.2% 2021 2022 2021 2022 Capital Adequacy Ratios Asset Quality Ratios CET 1 Ratio Tier 1 Ratio Capital Adequacy Ratio Loan Loss Coverage Ratio NPL Ratio 18.1% 17.4% 300% 15.7% 267% 1
Slide 17: Expected Credit Losses (ECL) 2022
PUBLIC Expected Credit Losses (ECL) 2022 Financial Statements ECL Disclosure (KDm) Total Gross Loans (KDbn) Stage 1 Stage 2 Stage 3 31 December 2022 Stage1 Stage 2 Stage 3 Total 20.4 21.8 1% 1% Loans, advances and Islamic 8% 9% financing to customers 19,696 1,820 310 21,826 Contingent liabilities 3,
Slide 18: 2023 Guidance
PUBLIC 2023 Guidance 2022 2023 Guidance Loan Growth +6.5% Mid to High Single Digit NIM 2.30% Expanding Cost to Income ratio 38.2% Broadly Stable Cost of Risk 3bps Earnings +40.5% Capital Adequacy 17.4% National Bank of Kuwait 18
Slide 19: Contents
PUBLIC Contents Section 1 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 2021 2022 YoY Growth (%) Interest Income 661 948 43% Interest Expense 155 364 NM Net Interest Income 506 584 15% Murabaha and other Islamic financing income 228 288 26% Finance cost and Distribution to depositors 65 115 78% Net Income from Islamic fi
Slide 21: Restated Unaudited Consolidated Statement Of Income 2021* (KDm)
PUBLIC Restated Unaudited Consolidated Statement Of Income 2021* (KDm) KDm Q1’21 Q2’21 Q3’21 Q4’21 Interest Income 160 166 166 169 Interest Expense 38 37 39 42 Net Interest Income 122 129 127 128 Murabaha and other Islamic financing income 56 57 58 57 Finance cost and Distribution to depositors 16 1
Slide 22: Restated Unaudited Consolidated Statement Of Income 2022* (KDm)
PUBLIC Restated Unaudited Consolidated Statement Of Income 2022* (KDm) KDm Q1’22 Q2’22 Q3’22 Q4’22 Interest Income 172 201 256 319 Interest Expense 47 66 100 151 Net Interest Income 125 134 156 168 Murabaha and other Islamic financing income 61 68 74 85 Finance cost and Distribution to depositors 18
Slide 23: Consolidated Statement Of Financial Position (KDm)
PUBLIC Consolidated Statement Of Financial Position (KDm) KDm December-2021 December-2022 YoY Growth % Cash and short term funds 5,082 5,323 5% Central Bank of Kuwait bonds 830 881 6% Kuwait Government treasury bonds 417 212 (49%) Deposits with banks 885 1,490 68% Loans, advances and Islamic financi
Slide 24: Performance Measures 2022
PUBLIC Performance Measures 2022 December-2021 December-2022 Return on average assets 1.15% 1.48% Return on average equity 10.2% 14.3% Net interest margin 2.21% 2.30% Cost to income 39.2% 38.2% NPLs to gross loans 1.04% 1.42% Loan loss reserves to NPLs 300% 267% Tier 1 capital 15.7% 15.0% Tier 2 cap
Slide 25: Contents
PUBLIC Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance Section 3 Appendix Section 4 Questions National Bank of Kuwait 25
Slide 26: Questions?
PUBLIC Questions? National Bank of Kuwait 26
Slide 27: Thank You
PUBLIC Thank You National Bank of Kuwait 27
Slide 28: National Bank of Kuwait Investor Presentation FY 2022 Earnings Call
PUBLIC National Bank of Kuwait Investor Presentation FY 2022 Earnings Call National Bank of Kuwait 28
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