Burgan Bank · KSE:BURG
Burgan Bank — 9M 2022 Earnings Presentation
23 slides from Burgan Bank's earnings presentation, Oct 25, 2022
Slide 1: Burgan Bank Group Investor Presentation 9 Month 2022 Financial Results
BURGAN BANK GROUP INVESTOR PRESENTATION 9 MONTH 2022 FINANCIAL RESULTS 25TH OCTOBER 2022
Slide 2: Table of Contents
TABLE OF CONTENTS Contents Page At a Glance 4 Group Overview and Operating Strategy 5-6 CEO’s Update 8 - 11 Financial Review - Key P&L Metrics 13 - 14 Financial Review - Asset Quality 15 Financial Review - Key Balance Sheet Metrics & Liquidity 16 - 17 Financial Review – Capital Levels 18 9M’22 Perfo
Slide 3: At a Glance & Group Overview
Ata Glance & Group Overview =H ul Lo OL... 9 js Sms ‘79 BURGAN BANK
Slide 4: Burgan at a Glance
BURGAN AT A GLANCE About Us Credit Ratings Rating ▪ Established in 1977 as Joint Stock Company by the Government of Kuwait and was privatized in 1995. A (Outlook: Stable) ▪ Listed on Boursa Kuwait in 1984 and grew to become one of the largest conventional banks in Kuwait (in terms of total assets)(1
Slide 5: Kuwait Focused Bank with Regional Diversification
KUWAIT FOCUSED BANK WITH REGIONAL DIVERSIFICATION Domestic Market % of Group Franchises Ownership(1) Business Model Position(1) Assets(1),(3) Burgan Bank Corporate and Private Kuwait Top three Banking are key target N/A conventional Banks(2) segments; Retail Banking 72% focused on providing liquidit
Slide 6: Clear & Effective Operating Strategy
CLEAR & EFFECTIVE OPERATING STRATEGY Actively Managing Further International Strengthening Operations through Kuwait Business Proactive Portfolio Realignment Continue Strong Focus on Risk Driving Digital Strategic Management Transformation Practices & Across the Group Priorities Framework Across the
Slide 7: CEO's Update
CEO’s Update =H ul Lo OL... 9 js Sms ‘79 BURGAN BANK
Slide 8: Key Business Updates
KEY BUSINESS UPDATES Initiatives Description IMPACT ➢ Accepted Signed offer Letter CET 1 ratio: +70bps ➢ Regulatory approvals from Kuwait & Jordan in BOB Sale place NPL ratio protection: ➢ Expecting regulatory approval from Iraq shortly by 60bps Progress in ➢ Bank’s focus on retail franchise growth
Slide 9: Update on Digital Progress
UPDATE ON DIGITAL PROGRESS Number of Subscribed Customers | ‘000s Number of Activities | ‘000s 75 9,648 70 64 8,295 8,429 59 7,763 53 7,104 47 6,016 42 36 29 4,027 22 3,049 15 1,999 744 1,178 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21
Slide 10: A Bank That's Available Everywhere Including your Pocket
UPDATE ON DIGITAL PROGRESS A Bank That’s Available Everywhere Including your Pocket. Accounts Loans Credit Cards Start by selecting the on Burgan Online, fill in the necessary details, done. 10
Slide 11: Performance Highlights
PERFORMANCE HIGHLIGHTS Stable Revenue Levels - YTD 9M’22: KD 166mn (flat vs YTD 9M’21) - Q3’22: KD 56mn (+2% vs Q3’21) Improved Margins(1) - YTD 9M’22: 2.3% (+20bps vs YTD 9M’21) - Q3’22: 2.6% (+50bps vs Q3’21) Reduced Credit Costs(2) - YTD 9M’22: KD 13.3mn (-72% vs YTD 9M’21) - Q3’22: KD 2.4mn (-72
Slide 12: Financial Review
Financial Review =H ul Lo OL... 9 js Sms ‘79 BURGAN BANK
Slide 13: Solid Revenue Levels with Stable Margins
SOLID REVENUE LEVELS WITH STABLE MARGINS Revenue | KD mn Net Interest Margins (NIMs)(1) | % 2.6% 165 167 166 2.3% 2.3% 2.2% 2.1% 2.1% 1.9% 81 71 83 1.6% 1.7% 1.6% 1.6% 1.5% 57 55 56 89 98 90 27 23 30 33 35 28 9M'20 9M'21 9M'22 Q3'20 Q3'21 Q3'22 9M'20 9M'21 9M'22 Q3'20 Q3'21 Q3'22 Kuwait Internationa
Slide 14: Strong Improvement in Credit Costs
STRONG IMPROVEMENT IN CREDIT COSTS Provisions(1) | KD mn Cost of Credit (CoC) (2) | % 54 1.9% 48 1.6% 1.4% 29 24 0.7% 22 0.4% 0.9% 0.9% 0.2% 0.9% 13 0.7% 25 15 9 0.4% 24 2 0.2% 1 2 9 7 6 1 2 9M'20 9M'21 9M'22 Q3'20 Q3'21 Q3'22 9M'20 9M'21 9M'22 Q3'20 Q3'21 Q3'22 Kuwait International Consol. Adj & Ot
Slide 15: Stable Asset Quality
STABLE ASSET QUALITY NPL Ratio(1) | % 4.2% 2.6% 1.7% 2.6% 2.2% 0.7% FY'20 FY'21 9M'22 NPL Ratio - Kuwait NPL Ratio - Group NPLs & Coverage Ratio (1),(2) | KD mn, % 350 532.9% 600.0% 300 400.0% 222.9% 226.6% 189.2% 200.0% 250 132.5% 201 152.6% 0.0% 200 -200.0% 150 101 119 -400.0% 100 81 40 -600.0% 50
Slide 16: Assets & Loans
ASSETS & LOANS Total Assets & composition | KD mn 7,106 7,075 6,903 244 300 21% 338 9% 1,839 1,741 1,739 4% 6% 5,569 5,548 5,328 59% Cash T. Bills & Bonds FY'20 FY'21 9M'22 Due from Banks Loans BB Kuwait International Ops (excluding BoB) BoB Others Customer Loans & Sector Concentration | KD mn , % 4
Slide 17: Access to Liquidity Remains Strong
ACCESS TO LIQUIDITY REMAINS STRONG Customer Deposits & Deposits by Type | KD mn, % 4,091 4,162 3,761 3% 1,113 1,149 1,120 33% 60% 2,979 3,012 2,641 5% FY'20 FY'21 9M'22 Demand Saving Time Other BB Kuwait International Ops (excluding BoB) BoB Loan to Deposit Ratio (LDR) | % Regulatory Liquidity Metri
Slide 18: Optimal Capital Levels
OPTIMAL CAPITAL LEVELS Regulatory Capital | KD mn, % 18.1% 3,000 17.5% 17.3% 17.0% 2,500 12.5% 12.0% 2,000 11.5% 11.4% 11.0% 10.5% 9.0% 1,500 8.0% 7.0% 1,143 1,092 1,075 329 228 1,000 231 153 153 157 2.0% 500 661 711 686 - -3.0% FY'20 FY'21 9M'22 CET1 AT1 Tier II CET 1 Ratio CAR Ratio Min. Required
Slide 19: KPIs Across International Operations – 9M'22
KPIS ACROSS INTERNATIONAL OPERATIONS – 9M’22 CONTRIBUTION (1) GROWTH(2) KPIS(3),(4) ASSETS REVENUES NET INCOME LOANS NIM ∆% CI RATIO ∆% COC ∆% NPL RATIO ∆% (21 (5 (520 Turkey pps) pps) bps) 13% +38% +228% (-)12% 3.9% +130 bps 34.9% -1.3% 5.2% ASSETS REVENUES NET INCOME LOANS NIM ∆% CI RATIO ∆% COC ∆
Slide 20: Summary
Summary
Slide 21: Summary
SUMMARY The core metrics of the business are trending in the right direction: ❖ Improving margins ❖ Reducing credit costs We are focused on restoring growth entering into the next financial growth We shall further drive the pace of digital progress to deliver customer value and organizational
Slide 22: Thank You
Thank You =H ul Lo OL... 9 js Sms ‘79 BURGAN BANK
Slide 23: 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