Burgan Bank · KSE:BURG

Burgan Bank — Q1 2019 Earnings Presentation

12 slides from Burgan Bank's earnings presentation, 2019

  1. Slide 1: Burgan Bank Group Investor Presentation 1st Quarter 2019 Financial Results

    BURGAN BANK GROUP INVESTOR PRESENTATION 1ST QUARTER 2019 FINANCIAL RESULTS

  2. Slide 2: Change in Financial Statements' Closing Process

    CHANGE IN FINANCIAL STATEMENTS’ CLOSING PROCESS  Beginning this year, Burgan has revised its financial statements’ closing process by changing the reporting date of its subsidiaries to one month earlier than the Group’s reporting date to ensure earliest possible release of the Group’s financial sta

  3. Slide 3: Q1'19 Performance Overview

    Q1’19 PERFORMANCE OVERVIEW Earnings Efficiency  Net Income of KD19.2mn  Further improvement in Cost- to-Income Ratio (CIR); down  Key drivers: to 41.8%  Continued strong Kuwait  Kuwait franchise remains franchise performance lean with CIR of 28.4%  Lower cost of credit at Group & Kuwait levels

  4. Slide 4: Revenue and Operating Profits

    REVENUE AND OPERATING PROFITS Revenue (KD mn) Operating Profit (KD mn) 2.9% 47.9% 2.8% 46.2% 2.4% 41.8% 2.3% 2.3% 2.0% 37.3% 36.8% 60.5 55.9 50.3 28.4% 28.3 18.1 27.4 29.2 32.5 29.2 9.4 13.0 10.5 35.5 39.9 31.7 28.5 19.9 22.4 Q1'17 Q1'18 Q1'19 Q1'17 Q1'18 Q1'19 BB Kuwait International Ops Revenues G

  5. Slide 5: Cost of Credit and Net Income

    COST OF CREDIT AND NET INCOME Cost of Credit^ (KD mn) Net Income (KD mn) 0.9% 0.7% 0.6% 0.5% 0.4% 0.4% 19.2 20.4 3.1 17.8 6.1 9.6 - 4.5 7.5 6.3 - - 24.3 5.9 3.2 4.4 15.9 18.0 3.2 3.8 3.0 Q1'17 Q1'18 Q1'19 Q1'17 Q1'18 Q1'19 BB Kuwait International Ops Group Expenses & Consol. Adj CoC - BB Kuwait BB K

  6. Slide 6: NPL Ratio and Coverage

    NPL RATIO AND COVERAGE NPL Ratios (%) NPLs (KD mn) & Coverage (%) 4.7% 308.7% 305.9% 3.8% 3.0% 141.9% 2.7% 164.9% 162.0% 1.8% 106.0% 1.7% 227.0 89.3 127.1 136.3 70.0 72.0 137.7 57.1 64.4 Q1'17 Q1'18 Q1'19 Q1'17 Q1'18 Q1'19 Group NPL Ratio Kuwait NPL Ratio BB Kuwait International Ops Group Coverage R

  7. Slide 7: Customer Loans and Deposits

    CUSTOMER LOANS AND DEPOSITS Customer Loans (KD bn) & Sector Concentration (%) Customer Deposits (KD bn) & Deposits by Type (%) Q1’19 (%) Q1’19 (%) 4.3 4.3 4.2 3.9 3.9 4.0 1.4 1.6 1.3 1.4 1.4 1.3 19% 3% 2% 7% 28% 30% 11% 2.9 2.7 2.9 2.7 62% 2.5 2.5 6% 10% 20% Q1'17 Q1'18 Q1'19 Personal Real estate Q1

  8. Slide 8: Capital and Liquidity

    CAPITAL AND LIQUIDITY Regulatory Capital (KD mn) Liquidity Metrics (%) 2,500.0 20.0% 154.9% 151.9% 16.6% 17.3% 16.5% 18.0% 144.1% 2,000.0 16.0% 118.1% 14.0% 14.0% 109.4% 11.2% 11.8% 1,500.0 11.1% 12.0% 100% 10.5% 10.0% 990.6 1,000.0 902.3 909.1 8.0% 169.6 151.5 151.2 145.6 6.0% 146.1 145.3 500.0 4.0

  9. Slide 9: Q1'19 Performance by Entities

    Q1’19 PERFORMANCE BY ENTITIES GROWTH CONTRIBUTION (1) KPIS YOY(2) LOANS REVENUES LOANS NIM(3) ∆% CI RATIO ∆% COC(4) ∆% Kuwait (840 (10 67% 56% +4% 2.3% 28.4% bps) 0.4% bps) Turkey +90 21% 19% (27%) 4.1% +40 bps 55.3% (11 pps)(5) 1.9% bps Algeria (650 10% 19% +8% 7.0% +40 bps 33.1% bps) 2.1% +70 bps

  10. Slide 10: In Summary

    IN SUMMARY  STABLE EARNINGS UNDERSCORE STRENGTH AND RESILIENCE OF BURGAN’S BUSINESS MODEL  HEALTHY CAPITAL LEVELS WILL ENABLE BURGAN TO PURSUE PRUDENT GROWTH IN ITS KEY MARKETS  KUWAIT WILL CONTINUE TO BE THE KEY MARKET FOR GROUP’S GROWTH 10

  11. Slide 11: Thank You

    11 (a i THANK YOU 2 ol Sp Say BURGAN BANK

  12. Slide 12: Disclaimers

    DISCLAIMERS IMPORTANT NOTICE This presentation has been prepared by Burgan Bank K.P.S.C. 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

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