Burgan Bank · KSE:BURG

Burgan Bank — FY2010 Earnings Presentation

15 slides from Burgan Bank's earnings presentation, Mar 15, 2011

  1. Slide 1: A Year of Intensity

    A Year of Intensity Investor Presentation March 2011 1

  2. Slide 2: Disclaimer

    Disclaimer The information contained in this document has been provided on the basis of current knowledge, assumptions and expectations. In the event that any information is incorrect or any party misrepresented, Burgan Bank and its consultants cannot be held responsible for this. Various factors co

  3. Slide 3: Summary: Moving beyond the financial crisis

    Summary: Moving beyond the financial crisis  Weathered third year of global crisis 2010  Achieved majority stakes in all subsidiaries  Built-up balance sheet  Growing again  Normalising profitability driven by lower credit costs 2011  Continuing diversification: products, businesses, geographi

  4. Slide 4: 2010: What we said and what we achieved

    2010: What we said and what we achieved 2010: Shafafiyah Assumptions & 2010: Actual Performance Outlook  Group operating income expected to  Operating income increased from grow further KD155mn to KD165mn  NPLs decreased from 10.0% to 6.1%; spillover of 2009 affected credit costs more than expect

  5. Slide 5: 2010: Trend lends support for promising 2011

    2010: Trend lends support for promising 2011 Revenue Trend (KD mn) Provision Charge (KD mn) 83 82 4 13 50 78 70 21 H1 2010 H2 2010 H1 2010 H2 2010 Normalized Revenue One Offs Net Profit (KD mn) 12 -7 H1 2010 H2 2010 5 March 15, 2011 Final

  6. Slide 6: Growing revenues with adequate provisioning

    Growing revenues with adequate provisioning KD mn CAGR: 17% 155 165 CAGR: 19% 121 106 88 102 107 53 51 68 2006 2007 2008 2009 2010 Total Revenue Net Interest Income KD mn 87% 157% 250 237 200 219 173 150 137 100 51 66 45 117 100 50 0 2006 2007 2008 2009 2010 NPLs Provisions Provision + Collateral Co

  7. Slide 7: High liquidity - building deposit base

    High liquidity - building deposit base 661 753 1,048 973 1,090 3,943 4,102 4,150 2,848 2,210 953 1,128 1,240 1,249 1,393 2006 2007 2008 2009 2010 Net Liquid Assets (KD mn) Total Assets (KD mn) Liquid Assets (KD mn) 2,416 2,425 2,565 1,649 1,237 2,133 2,247 2,136 946 1,421 2006 2007 2008 2009 2010 Cu

  8. Slide 8: Strengthened capital base to leverage growth

    Strengthened capital base to leverage growth Capital breakdown (KD mn) Breakdown of sub-debt order book by region US Offshore CAR: 21.0% 5% CAR: 16.9% 145 Asia 17% 125 Middle East 414 316 49% UK 24% 2009 2010 Europe 5% Tier I Tier II Rights issue – KD 100mn Subordinated debt – USD 400mn  360mn shar

  9. Slide 9: Subsidiaries: Profitable, well capitalized, poised for growth

    Subsidiaries: Profitable, well capitalized, poised for growth As of Dec 2010 Revenue (KD mn) 44 18 9 4 Net Profit (KD mn) 20 7 3 3 CAR (CBK rules) 25.6% 26.5% 20.3% 15.2% Assets (KD mn) 824 217 226 148 Loans (KD mn) 461 99 46 34 Deposits (KD mn) 565 145 190 71 NPL 3.3% 4.7% 13.4%* 0.7% Total Branche

  10. Slide 10: Outlook: Kuwait and the MENA region remain positive

    Outlook: Kuwait and the MENA region remain positive Kuwait Cumulative Budget Surplus FY2010/11 GDP Growth Rate (%) KD bn 11.5 7.8 11.0 7.0 5.3 5.4 5.6 6.1 4.2 4.1 4.7 3.84.3 3.4 3.24.0 3.2 3.4 3.1 2.6 2.4 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Kuwait Algeria Iraq Jordan Tunisia 2010 2011 2012 Sou

  11. Slide 11: Regional strategy focus on growth

    Regional strategy focus on growth 11 March 15, 2011 Final

  12. Slide 12: Supported by key initiatives

    Supported by key initiatives  Support clients on KDP  Grow Kuwait implementation operations – Expand  Enlarge product offering retail network Focus on Build  Accelerate growth in  Improve Sales short-term sustainable subsidiaries Effectiveness revenue &  Explore inorganic diversified opportuni

  13. Slide 13: Burgan Bank Group 2011: Optimistic trajectory

    Burgan Bank Group 2011: Optimistic trajectory 1  2009/2010 global financial crisis is behind us  Focus for 2011:  Foster growth in normalised 2  earnings Reducing credit losses Summary  Exploring inorganic opportunities 3  Supported by implementation of a more competitive profile Prudence in f

  14. Slide 14: Attractive trading multiple and share price performance

    Attractive trading multiple and share price performance Share Price Performance 200 180 160 140 120 100 80 60 Jan-10 Mar-10 May-10 Jul-10 Oct-10 Dec-10 Feb-11 Kuwait General Index Kuwait Banking Sector Burgan Bank Source: Bloomberg Prices and Index levels have been rebased to 100 as of 1 Jan 2010 P/

  15. Slide 15: Thank You

    Thank You 15 March 15, 2011 Final

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