National Bank Of Kuwait K.s.c. · KSE:NBK
National Bank Of Kuwait K.s.c — National Bank of Kuwait — Investor Presentation (October 2021)
33 slides from National Bank Of Kuwait K.s.c's investor presentation, October 2021
Slide 1: National Bank of Kuwait Investor Presentation
National Bank of Kuwait Investor Presentation October 2021 National Bank of Kuwait 1
Slide 2: Disclaimer
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 DOES N
Slide 3: Contents
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
Slide 4: NBK is Kuwait's Leading Banking Group
NBK is Kuwait’s Leading Banking Group Snapshot Financial snapshot Established in1952 as the first local and home-grown GCC bank, and first USD million 2018 2019 2020 shareholding company in Kuwait The leading banking group in Kuwait in terms of assets, customer deposits and customer loans and ad
Slide 5: Regional and International Geographic Presence
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 – 52 Geneva – 1984 Subsidia
Slide 6: Key Strengths
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 2020, 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, loans a
Slide 7: Contents
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
Slide 8: NBK's Strategy
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 the C
Slide 9: Kuwait Operations
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 undisputed lead
Slide 10: International Operations
International Operations Established or NBK’s international operations has been traditionally contributing up to circa 30% of the Group’s Branches Legal structure acquired bottom line with the Bank aspiring to increase this contribution. The Bank generally aims to maintain a majority stake in it
Slide 11: Boubyan Bank (59.9% owned subsidiary)
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% After a series of gradual share acquisitions since 2009, NBK’s stake in Boubyan
Slide 12: NBK Sustainability Pillars
Maintaining Course with Our Sustainability Directions NBK Sustainability Pillars Respecting Contributing Giving Back Caring for Serving Leading in and to Economic to Our Our Customers Governance Developing Development Community Environment People National Bank of Kuwait 12
Slide 13: Close Alignment With International Frameworks and ESG Raters
Close Alignment With International Frameworks and ESG Raters National Bank of Kuwait 13
Slide 14: NBK's 2020 ESG Highlights
NBK’s 2020 ESG Highlights Environmental Social Governance With leadership in business and Caring for our environment is a Wellbeing of external and internal governance among our sustainability priority as we actively measure and stakeholders is of critical importance priorities, NBK continues to str
Slide 15: Contents
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 15
Slide 16: Overview of Kuwait
Overview of Kuwait Overview Fiscal breakeven oil price The State of Kuwait is a sovereign state on the coast of the 100 98 100 Arabian Gulf with a population of 4.6 million Exc. investment income Incl. investment income 90 90 Kuwait is a constitutional monarchy, headed by His Highness the 82 Emi
Slide 17: Kuwait's Economy
Kuwait’s Economy Recent Developments Real GDP (% y/y) GDP declined by 8.9% in 2020 due to sharply lower oil production as Kuwait Total Non-oil adhered to OPEC+ cuts and reduced non-oil activity resulting from the 10 10 coronavirus pandemic. Headline growth could rebound to 1.0% in 2021 as 5.7 3.8
Slide 18: Kuwait's Banking Sector
Kuwait’s Banking Sector Snapshot The Kuwaiti banking sector comprises 23 banks, including 11 domestic banks (five conventional, five Shariah-compliant and one specialized), and branches of 12 international banks (11 conventional and one Islamic). The sector is well regulated by the Central Bank
Slide 19: Dominant Kuwaiti Franchise
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 97,996 National Bank of Kuwait 56,403 Kuwait Finance House 70,906 Kuwait Finance House
Slide 20: Contents
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 20
Slide 21: Operating Performance & Profitability
Operating Performance & Profitability Profitability (USD mn) Operating Income Composition (USD mn) Net Operating Income Net Profit NII & NI from Islamic financing Non-interest income 2,953 2,778 2,953 2,778 2,258 23% 2,097 25% 2,258 2,097 26% 25% 1,323 812 845 77% 75% 559 75% 74% 2019 2020 9M 2020 9
Slide 22: Operating Performance & Profitability (cont'd)
Operating Performance & Profitability (cont’d) 9M 2021 Op. income by type (%) 9M 2021 Op. income by business line (%) Cost to income (%) Others, 4% Consumer FX, 4% & Private Banking, Corporate, 33% 15% Fees, 18% 39.1% 37.0% 35.8% Inv Bkg & 34.0% AM, 4% Others, 2% Net Interest Islamic Income, Banking
Slide 23: Balance Sheet Parameters
Balance Sheet Parameters Net loan portfolio (USD bn) Loans to assets (USD bn) Net Loans Net loan growth YoY (%) Total Assets Loans/Assets 62.9 107.8 57.7 58.5 100.7 54.6 98.0 96.5 56.5% 58.9% 58.0% 58.3% 7.8% 7.5% 6.8% 5.7% Dec-19 Dec-20 Sep-20 Sep-21 Dec-19 Dec-20 Sep-20 Sep-21 Loan exposure by sec
Slide 24: Funding and Liquidity Positions
Funding and Liquidity Positions Customer Deposits (USD bn) Funding Mix (Total Liabilities) Due to banks and other Fis Customer Deposits Certificates of deposit Other borrowed funds 56.4 58.0 57.6 52.5 64% 62% 67% 66% 30% 23% 25% 27% Dec-19 Dec-20 Sep-20 Sep-21 Dec-19 Dec-20 Sep-20 Sep-21 Overview of
Slide 25: Capitalization and Asset Quality
Capitalization and Asset Quality Total Equity1 Breakdown (USD mn) Prudent capitalization (%) Share capital Statutory reserves Tier 1 Tier 2 Retained Earnings Other Reserves & Treasury Shares 18.4% 18.1% 17.8% 17.0% 11,323 11,403 1.9% 2.4% 2.5% 10,915 10,512 1.9% 3,382 2,733 3,134 2,337 4,823 5,150 4
Slide 26: Expected Credit Losses (ECL) 9M 2021
Expected Credit Losses (ECL) 9M 2021 Financial Statements ECL Disclosure (USD mn) Total Gross Loans (USD bn) Stage 1 Stage 2 Stage 3 30 September 2021 Stage1 Stage 2 Stage 3 Total 65.0 60.7 60.0 2% 2% 2% Loans, advances and Islamic 7% 7% 59,069 4,913 1,006 64,988 10% financing to customers Contingen
Slide 27: Contents
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 27
Slide 28: Kuwait Selected Mega Projects
Kuwait Selected Mega Projects Project Sector Value (KD bn) Scope Status Underway: Construction works are ongoing as per schedule and are expected to be completed by February 2022 on Public Building South Al Mutlaa City Housing 2.33 30,000 residential units, schools and other facilities in Mutlaa Cit
Slide 29: Consolidated financials 9M 2021 (USD million)
Consolidated financials 9M 2021 (USD million) YoY Growth September- September- YoY Growth Income Statement (USD million) 9M-2020 9M-2021 Balance sheet (USD million) (%) 2020 2021 (%) Interest Income 1,956 1,630 (17%) Cash and short term funds 14,603 17,291 18% Interest Expense 736 375 (49%) Central
Slide 30: Consolidated Statement Of Income (USD million)
Consolidated Statement Of Income (USD million) USD million 2018 2019 2020 Interest Income 2,959 3,253 2,496 Interest Expense 1,091 1,390 880 Net Interest Income 1,868 1,863 1,617 Murabaha and other Islamic financing income 614 697 742 Finance cost and Distribution to depositors 204 287 270 Net Incom
Slide 31: Consolidated Statement Of Financial Position (USD million)
Consolidated Statement Of Financial Position (USD million) USD million 2018 2019 2020 Cash and short term funds 9,783 12,489 12,782 Central Bank of Kuwait bonds 2,671 2,715 2,738 Kuwait Government treasury bonds 2,876 2,184 1,527 Deposits with banks 7,796 6,295 3,388 Loans, advances and Islamic fina
Slide 32: Contact
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 of Kuwai
Slide 33: National Bank of Kuwait Investor Presentation
National Bank of Kuwait Investor Presentation October 2021 National Bank of Kuwait 33
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