National Bank Of Kuwait K.s.c. · KSE:NBK

National Bank Of Kuwait K.s.c — National Bank of Kuwait — Investor Presentation (May 2022)

36 slides from National Bank Of Kuwait K.s.c's investor presentation, May 2022

  1. Slide 1: National Bank of Kuwait Investor Presentation

    PUBLIC National Bank of Kuwait Investor Presentation May 2022 National Bank of Kuwait 1

  2. 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

  3. Slide 3: Contents

    PUBLIC Contents Section 1 Overview of NBK Section 2 Strategy and Business Overview Section 3 Operating Environment Section 4 Financial Performance Highlights Section 5 Appendix National Bank of Kuwait 3

  4. Slide 4: NBK is Kuwait's Leading Banking Group

    PUBLIC NBK is Kuwait’s Leading Banking Group Snapshot Financial snapshot  Established in 1952 as the first local and home-grown GCC bank, and first USD million 2019 2020 2021 shareholding company in Kuwait  The leading banking group in Kuwait in terms of assets, customer deposits and customer loan

  5. Slide 5: Regional and International Geographic Presence

    PUBLIC Regional and International Geographic Presence Middle East Europe Location - Year established/acquired Legal Structure - Branches Location - Year established/acquired Legal Structure – Branches Kuwait – 1952 Parent – 68 London – 1983 Subsidiary – 1 Egypt – 2007 Subsidiary – 53 Geneva – 1984 S

  6. Slide 6: Key Strengths

    PUBLIC Key Strengths High credit ratings and among the Largest banking group in Kuwait with top brand values regionally dominant market position  As at 31 December 2021, the Bank was the largest bank in  NBK has one of the highest credit ratings in the MENA region Kuwait in terms of total assets,

  7. Slide 7: Contents

    PUBLIC Contents Section 1 Overview of NBK Section 2 Strategy and Business Overview Section 3 Operating Environment Section 4 Financial Performance Highlights Section 5 Appendix National Bank of Kuwait 7

  8. Slide 8: 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

  9. Slide 9: Kuwait Operations

    PUBLIC Kuwait Operations NBK is a universal bank and the industry leader in all key business segments in Kuwait with an average market share of 30% Overview and strategy Corporate Banking Consumer Banking Private Banking  Remain the primary banker for most of the local blue-chip  Maintain undisput

  10. Slide 10: International Operations

    PUBLIC International Operations  NBK’s international operations has been traditionally contributing to 25% of the Group’s bottom line Established or Branches Legal structure with the Bank aspiring to increase this contribution. acquired  The Bank generally aims to maintain a majority stake in its

  11. Slide 11: Boubyan Bank (59.9% owned subsidiary)

    PUBLIC Boubyan Bank (59.9% owned subsidiary) Market share of Total Assets (%) Highlights  Islamic banking has been gaining ground in the Kuwaiti market, representing more than 40% of assets and deposits at year-end 2020. 7.6% 8.2%  After a series of gradual share acquisitions since 2009, NBK’s sta

  12. Slide 12: Digital Transformation Strategy

    PUBLIC Digital Transformation Strategy We developed our digital agenda with strong ambitions With a solid digital transformation strategy, we are committed to our strong ambitions to be relevant to our customers’ needs in the era of new normal, to enhance efficiency and to Being and percieved as Bui

  13. Slide 13: Our Initiatives Evidently Address Our Strategy

    PUBLIC Our Initiatives Evidently Address Our Strategy • Apple Widgets • New Bill splitting • UEFA credit and • Qmatic booking on • Launched Tesla • Salary allowance • PACI signature on • Side menu re- feature prepaid card MOB campaign for credit transfer form on MOB arrangement • Update phone/ and p

  14. Slide 14: Achievements and Recognitions

    PUBLIC Achievements and Recognitions We launched Increased Digital Adoption Recognition from the First Digital Bank in Kuwait at a high rate International Awards Weyay Bank Existing Business Best Consumer Digital Bank Best Online Product Offerings Best Bill Payment & Presentment 2020 2021 Best Mobil

  15. Slide 15: Sustainability is Embedded in NBK's DNA and Strategy

    PUBLIC Sustainability is Embedded in NBK’s DNA and Strategy… NBK is deeply committed to our sustainability journey. We view our efforts at improving our sustainability as integral to improving our business performance and enhancing our positive impact in the world Sustainability Respecting Pillars C

  16. Slide 16: Close Alignment With International Frameworks and ESG Raters

    PUBLIC Close Alignment With International Frameworks and ESG Raters National Bank of Kuwait 16

  17. Slide 17: Having Long Engaged in Sustainability Initiatives and with Stakeholders

    PUBLIC ...Having Long Engaged in Sustainability Initiatives and with Stakeholders NBK has supported national efforts, adopted frameworks and aligned itself with global initiatives, following a stakeholder-focused and standards-aligned approach to promote sustainability Major ESG Initiatives, Commitm

  18. Slide 18: Contents

    PUBLIC Contents Section 1 Overview of NBK Section 2 Strategy and Business Overview Section 3 Operating Environment Section 4 Financial Performance Highlights Section 5 Appendix National Bank of Kuwait 18

  19. Slide 19: Overview of Kuwait

    PUBLIC Overview of Kuwait Overview Fiscal breakeven oil price  The State of Kuwait is a sovereign state on the coast of the 100 98 100 Exc. investment income Arabian Gulf with a population of 4.6 million 90 Incl. investment income 90 88  Kuwait is a constitutional monarchy, headed by His Highness

  20. Slide 20: Kuwait's Economy

    PUBLIC Kuwait’s Economy Recent Developments Real GDP (% y/y)  Following a decline of 8.9% in 2020 due to the twin shocks of Covid-19 and Total Non-oil 10 8.5 10 lower oil activity/prices, output is estimated to have rebounded by 1.1% in 5.7 2021, led by gains in private consumption and non-oil acti

  21. Slide 21: Kuwait's Banking Sector

    PUBLIC Kuwait’s Banking Sector Snapshot  The Kuwaiti banking sector comprises 22 banks, including 11 domestic banks (five conventional, five Shariah-compliant and one specialized), and branches of 11 international banks (10 conventional and one Islamic).  The sector is well regulated by the Centra

  22. Slide 22: Dominant Kuwaiti Franchise

    PUBLIC Dominant Kuwaiti Franchise NBK is the leading banking group in Kuwait with a market leading position across its business segments Total Assets (USD million) Customer Deposits (USD million) National Bank of Kuwait 109,939 National Bank of Kuwait 60,433 Kuwait Finance House 72,027 Kuwait Financ

  23. Slide 23: Contents

    PUBLIC Contents Section 1 Overview of NBK Section 2 Strategy and Business Overview Section 3 Operating Environment Section 4 Financial Performance Highlights Section 5 Appendix National Bank of Kuwait 23

  24. Slide 24: Operating Performance & Profitability

    PUBLIC Operating Performance & Profitability Profitability (USD mn) Operating Income Composition (USD mn) Net Operating Income Net Profit NII & NI from Islamic financing Non-interest income 2,996 2,996 2,785 2,785 26% 25% 1,198 814 729 778 75% 74% 778 729 384 27% 29% 277 73% 71% 2020 2021 1Q 2021 1Q

  25. Slide 25: Operating Performance & Profitability (cont'd)

    PUBLIC Operating Performance & Profitability (cont’d) 1Q 2022 Op. income by type (%) 1Q 2022 Op. income by business line (%) Cost to income (%) Others, 6% Consumer & Private Corporate, FX, 5% 14% Banking, 31% 39.6% 38.9% Fees, 18% Inv Bkg & 37.0% 37.1% AM, 4% Others, 5% Islamic Net Interest Banking,

  26. Slide 26: Balance Sheet Parameters

    PUBLIC Balance Sheet Parameters Net loan portfolio (USD bn) Loans to assets (USD bn) Net Loans Net loan growth YoY (%) Total Assets Loans/Assets 66.0 109.9 110.9 65.2 57.9 58.7 102.0 12.7% 12.3% 98.2 58.9% 59.3% 57.6% 59.5% 5.7% 0.8% Dec-20 Dec-21 Mar-21 Mar-22 Dec-20 Dec-21 Mar-21 Mar-22 Loan expos

  27. Slide 27: Funding and Liquidity Positions

    PUBLIC Funding and Liquidity Positions Funding Mix (Total Liabilities) Customer and FI Deposits (USD bn) Customer Deposits FI Deposits Customer deposits Deposits from other FIs Due to banks Other borrowed funds CDs 10.4 11.6 9.7 9.7 12% 14% 14% 14% 11% 11% 11% 12% 56.5 60.4 60.3 56.1 67% 63% 64% 62%

  28. Slide 28: Capitalization and Asset Quality

    PUBLIC Capitalization and Asset Quality Total Equity1 Breakdown (USD mn) Prudent capitalization (%) Share capital Statutory reserves Retained Earnings Other Reserves & Treasury Shares Tier 1 Tier 2 18.4% 18.1% 18.4% 17.8% 11,701 2.4% 2.4% 10,942 10,777 11,157 2.4% 2.4% 3,555 2,565 3,142 2,631 4,579

  29. Slide 29: Expected Credit Losses (ECL) 1Q 2022

    PUBLIC Expected Credit Losses (ECL) 1Q 2022 Financial Statements ECL Disclosure (USD m) Total Gross Loans (USD bn) Stage 1 Stage 2 Stage 3 31 March 2022 Stage1 Stage 2 Stage 3 Total 61.0 68.3 67.0 1% 1% 1% Loans, advances and Islamic 11% 8% 6% financing to customers 63,194 4,334 765 68,292 91% 88% 9

  30. Slide 30: Contents

    PUBLIC Contents Section 1 Overview of NBK Section 2 Strategy and Business Overview Section 3 Operating Environment Section 4 Financial Performance Highlights Section 5 Appendix National Bank of Kuwait 30

  31. Slide 31: Kuwait Selected Mega Projects

    PUBLIC Kuwait Selected Mega Projects Project Sector Value (KD bn) Scope Status Underway: Construction works are ongoing as per schedule. City Soil Works construction activities commenced South Al Mutlaa City Housing 2.33 30,000 residential units, schools and other facilities in December 2021. Housin

  32. Slide 32: Consolidated financials 1Q 2022 (USD million)

    PUBLIC Consolidated financials 1Q 2022 (USD million) Income Statement (USD million) 1Q 2021 1Q 2022 YoY Growth (%) Balance sheet (USD million) Mar- 21 Mar-22 YoY Growth (%) Interest Income 526 566 8% Cash and short term funds 15,481 16,184 5% Interest Expense 124 154 24% Central Bank of Kuwait bonds

  33. Slide 33: Consolidated Statement Of Income (USD million)

    PUBLIC Consolidated Statement Of Income (USD million) USD million 2019 2020 2021 Interest Income 3,261 2,502 2,185 Interest Expense 1,394 882 512 Net Interest Income 1,867 1,621 1,673 Murabaha and other Islamic financing income 699 744 753 Finance cost and Distribution to depositors 288 271 214 Net

  34. Slide 34: Consolidated Statement Of Financial Position (USD million)

    PUBLIC Consolidated Statement Of Financial Position (USD million) USD million 2019 2020 2021 Cash and short term funds 12,520 12,904 16,800 Central Bank of Kuwait bonds 2,721 2,745 2,744 Kuwait Government treasury bonds 2,189 1,530 1,379 Deposits with banks 6,311 3,396 2,927 Loans, advances and Isla

  35. Slide 35: Contact

    PUBLIC Contact Contact Investor Relations Useful information E: Investor-Relations@nbk.com Download copies of NBK’s: National Bank of Kuwait (NBK) PO Box 95, 13001 Safat Kuwait • Financial statements Al Shuhada Street, Block 7, Sharq • Earnings release State of Kuwait • Annual report National Bank o

  36. Slide 36: National Bank of Kuwait Investor Presentation

    PUBLIC National Bank of Kuwait Investor Presentation May 2022 National Bank of Kuwait 36

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