Kuwait Finance House K.s.c. · KSE:KFH
Kuwait Finance House K.s.c — Kuwait Finance House — Q3 2022 Earnings Presentation
24 slides from Kuwait Finance House K.s.c's earnings presentation, Oct 24, 2022
Slide 1: Disclosure of Material Information letter to Boursa Kuwait
Ae goral Gaal urd pl Group Chief Executive Officer Date: 24 October 2022 Ref: 10/ 10/440 / 2022 To: Chief Executive Officer Boursa Kuwait Peace, Mercy and Blessings of Allah be upon you, Subject: Disclosure of Material Information KFH: Analysts Conference Presentation Q (3/2022) Kuwait Finance House
Slide 2: Appendix (10) Disclosure of Material Information Form
24 October 2022 Kuwait Finance House (KFH) Appendix (10) Disclosure of Material Information Form KFH: Analysts Conference Presentation Q (3/2022) 2022 js9iSi 24 (this) gags agai! uty (10) oy Gale duyagetl olaghll ye ¢ Laddll igi Caled pig h ea tall a yall set (2022/3) stl
Slide 3: Disclosure of Material Information
Disclosure of Material Information Sa pmged! Gleglall (© c asyl Listed Company 24 October 2022 Kuwait Finance House (KFH) "ahis" GagS5! Jo qoit! uy 2022 igi 24 == KFH: Analysts Conference Presentation Coble! poigh (oy rditl yall sels, Q (3/2022) (2022/3) ayll Material Information @ KFH has conducted
Slide 4: Q3-2022 Earnings Presentation
Q3-2022 Earnings Presentation 24 October 2022 This is a General Document and should not be shared with unauthorized users. © Kuwait Finance House, 2022
Slide 5: Disclaimer
Disclaimer • IMPORTANT NOTICE • This presentation has been prepared by Kuwait Finance House 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 Kuwait F
Slide 6: Kuwait's Operating Environment, Overview of KFH, KFH Strategy
1 Kuwait’s Operating Environment 2 Overview of KFH 3 KFH Strategy 4 Q3-2022 Financial Highlights 5 Appendix This is a General Document and should not be shared with unauthorized users. 3
Slide 7: Kuwait's Operating Environment
Kuwait Crude Inflation Y-o-Y% Boursa Market Capitalization GDP Constant Price % % Y-O-Y US 5 28-Sep-22 45,460 4.3 % 125 4.5 10 8.7 4 3.3% 120 109.1 3.4 30-Jun-22 44,005 8 3.5 115 MLN KWD 3 2.4 2.4 6 110 2.5 Boursa Trade Volume 105 2 4 2.6 2.6 96.1 1.5 100 Q3-22 13,277 2 1.3 1 95 -6.5% 0.5 0 90 Q2-22
Slide 8: Overview of KFH's Awards & Ratings
Overview of KFH’s Awards & Ratings Kuwait Regional Global Best Best Best Treasury and Cash Islamic Financial Institution Islamic Financial Institution Management Bank in the Middle in the World in Kuwait East Global Finance Global Finance Global Finance Long-Term Issuer Default Rating A LT FC Bank D
Slide 9: Overview of KFH
Overview of KFH New countries will be added in the next quarter 58 Branches Kuwait • Retail Banking • Wealth Management and Private Banking • Corporate Banking 6 Branches • Investment Services Germany • Real Estate Financing 1st Islamic bank • Retail Banking • Corporate Banking • Investment Services
Slide 10: Investment highlights
Leading Strategic Effective Risk Robust Financial Strong Government Professional Islamic Financial Distribution Management Performance Sponsorship Management Team Institution Channels Framework A consistent track Second largest Islamic 48% ownership by Well-rounded human Diversified KFH continuously
Slide 11: KFH Strategy
KFH Strategy KFH’s main focus is on core banking business activities Simplify experience Digitize operations Grow business Across all four main business sectors Retail Corporate Private Treasury This is a General Document and should not be shared with unauthorized users. 8
Slide 12: Q3-22 Financial Results
1 Kuwait’s Operating Environment 2 Overview of KFH 3 KFH Strategy 4 Q3-22 Financial Results 5 Appendix This is a General Document and should not be shared with unauthorized users. 9
Slide 13: 9M-22 Financial Highlights
9M-22 Financial Highlights Net Profit for Shareholders Net Financing Net Operating Income Income KD 205.8 m KD 508.5 m KD 463.4 m 22 .4% 14.8% 27. 2% Cost to Income Ratio EPS (fils) 33.61% 21.90 (9M-21: 38.34%) (9M-21 : 18.26fils) This is a General Document and should not be shared with unauthorized
Slide 14: 9M-22 Operating Performance
9M-22 Operating Performance Net Profit Financing Net Financing Net Operating for Shareholders Income Operating Income Profile Income Income (KD mn) (KD mn) (KD mn) (KD mn) Investment Income (%) Non-Financing Income (%) 22.4% 19.3% 14.8% 27.2% Net Financing Income (%) 0.72% 4.35% 463.4 792.7 508.5 24
Slide 15: 9M-22 Operating Performance
9M-22 Operating Performance Non - Financing Total Operating Income (KD mn) Expenses (KD mn) Depreciation and Amortization Other Income Other Operating Expenses Net Gain from Foreign Currencies Staff Costs Investment Income Fees and Commission Income C/I Ratio 234.6 226.5 189.5 27.0 31.3 34.1 147.8 5
Slide 16: 9M-22 Operating Performance
9M-22 Operating Performance Average Profit Earning Assets (KD bn) Net Financing Margin Net Monetary Loss* (KD mn) 85.2 2.93% 2.92% 3.23% 0.8% 5.3% 17.1 18.1 17.0 2.9 9M-21 2021 9M-22 2.7 2.7 Provision and Impairment (KD mn) 118.2 0 5.0 9M-21 9M-22 14.3 14.4 15.2 59.6 113.2 * Hyper-inflation impact 5
Slide 17: 9M-22 Operating Performance
9M-22 Operating Performance Total Net Investment in Depositors’ Assets Financing Sukuk Accounts Funding Mix (KD bn) (KD bn) (KD bn) (KD bn) 12.7% (0.9)% Depositors Accounts 3.2% 9.9% (0.1)% Due to Banks & FI's 4.0% 9.8% 12.7% Sukuk Payable 21.97 22.67 12.5 3.1 16.0 15.9 15.9 21.79 11.3 11.4 2.1% 1.2
Slide 18: 9M-22 Operating Performance
9M-22 Operating Performance Return on Average Return on Average C/I (%) EPS (fils) Equity (%) Assets (%) 21.90 14.29% 1.49% 1.31% 11.82% 38.34% 33.61% 18.26 9M-21 9M-22 9M-21 9M-22 9M-21 9M-22 9M-21 9M-22 This is a General Document and should not be shared with unauthorized users. 15
Slide 19: Q&A
Q&A This is a General Document and should not be shared with unauthorized users. 16
Slide 20: Appendix
Appendix This is a General Document and should not be shared with unauthorized users. 17
Slide 21: Consolidated Financial Statements 9M-22 Vs. 9M-21
Consolidated Financial Statements 9M-22 Vs. 9M-21 Consolidated Statement of Financial Position (KD million) Sep-22 Sep-21 Consolidated Statement of Income (KD million) Sep-22 Sep-21 Cash and balances with banks and financial institutions 2,074 2,901 Financing income 793 664 Due from Banks 3,132 3,07
Slide 22: Consolidated Statement of Financial Position 2016 - 2021
Consolidated Statement of Financial Position 2016 - 2021 Consolidated Statement of Financial Position (KD million) 2016 2017 2018 2019 2020 2021 Cash and balances with banks 1,495 1,262 1,381 1,910 2,491 2,325 Due from Banks 2,877 2,982 3,444 3,646 3,365 3,350 Financing receivables 8,176 9,159 9,190
Slide 23: Consolidated Statement of Income 2016 - 2021
Consolidated Statement of Income 2016 - 2021 Consolidated Statement of Income (KD million) 2016 2017 2018 2019 2020 2021 Financing income 718 741 862 932 893 871 Financing cost and distribution to depositors 283 296 335 401 279 286 Net finance income 435 445 527 530 614 586 Investment income 79 107
Slide 24: Investor.relations@kfh.com
Investor.relations@kfh.com This is a General Document and should not be shared with unauthorized users. 21