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

National Bank Of Kuwait K.s.c — National Bank of Kuwait — Investor Presentation (April 2019)

30 slides from National Bank Of Kuwait K.s.c's investor presentation, April 2019

  1. Slide 1: National Bank of Kuwait Investor Presentation

    National Bank of Kuwait Investor Presentation April 2019

  2. 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

  3. Slide 3: Contents

    Contents Section 1 Overview of NBK Section 2 Overview of Operating Environment Section 3 Strategy and Business Overview Section 4 Financial Performance (Historical) Section 5 Performance Overview 1Q 2019 Section 6 Appendix 2

  4. Slide 4: NBK at a Glance

    NBK at a Glance Snapshot Financial Snapshot  National Bank of Kuwait S.A.K.P. (“NBK” or the “Bank”) was USD million 2016 2017 2018 established in 1952 as the first local bank and the first shareholding 79,917 85,838 90,432 Total Assets company in Kuwait and as the first indigenous bank in the GCC.

  5. Slide 5: Key strengths

    Key strengths High credit ratings and among the Largest banking group in Kuwait with top brand values regionally dominant market position  NBK has one of the highest credit ratings in the MENA  As at 31 December 2018, the Bank was the largest region bank in Kuwait in terms of total assets, loans a

  6. Slide 6: Rating Excerpts

    Rating Excerpts “ The standalone baseline credit assessment (BCA) of a3, reflects the bank's (1) dominant position in its domestic market, underpinning its resilient core profitability and growth prospects; and (2) robust financial fundamentals including consistently strong asset quality, as well as

  7. Slide 7: Contents

    Contents Section 1 Overview of NBK Section 2 Overview of Operating Environment Section 3 Strategy and Business Overview Section 4 Financial Performance (Historical) Section 5 Performance Overview 1Q 2019 Section 6 Appendix 6

  8. Slide 8: Overview of Kuwait

    Overview of Kuwait Snapshot High GDP per capita by EM standards  The State of Kuwait (“Kuwait” or the “Sovereign”) is a sovereign $000, 2018 80 80 state on the coast of the Arabian Gulf, covering a total area of 67.8 70 70 Overview 17,818 square kilometers. 60 60  Kuwait is a constitutional monarc

  9. Slide 9: Overview of Kuwait (Continued)

    Overview of Kuwait (Continued) Recent Developments Real GDP (% y/y) Total Non-oil  Real GDP is estimated to have expanded by 2.0% in 2018 and 4.2 4.8 6 6 range between 1.5-2.0% in 2019 and 2020, affected by lower oil 3.0 3.0 GDP production as Kuwait adheres to OPEC’s latest cuts. 4 2.2 2.8 4 1.6 Gr

  10. Slide 10: Overview of the Kuwaiti Banking Sector

    Overview of the Kuwaiti Banking Sector Snapshot Overview of Basel III Implementation in Kuwait  The Kuwaiti banking sector comprises 23 banks, including 11 domestic  In June 2014, the Central Bank of Kuwait announced the implementation banks (five conventional, five Shariah-compliant and one speci

  11. Slide 11: The Dominant Kuwaiti Franchise

    The 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 90,432 National Bank of Kuwait 47,441 Kuwait Finance House 58,590 Kuwait Finance Ho

  12. Slide 12: Contents

    Contents Section 1 Overview of NBK Section 2 Overview of Operating Environment Section 3 Strategy and Business Overview Section 4 Financial Performance (Historical) Section 5 Performance Overview 1Q 2019 Section 6 Appendix 11

  13. Slide 13: 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

  14. Slide 14: 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  Maintain undisputed leadership in

  15. Slide 15: International Operations

    International Operations International Operations  NBK’s international operations has been traditionally contributing up to circa 30% of the Established or Branches Legal structure Group’s bottom line with the Bank aspiring to increase this contribution. acquired  The Bank generally aims to mainta

  16. Slide 16: Boubyan Bank (59.5% owned subsidiary)

    Boubyan Bank (59.5% owned subsidiary) Market share of Total Assets(%) Highlights  Islamic banking has been gaining ground in the Kuwaiti market, representing close to 40% of assets and deposits at year-end 2018.  After a series of gradual share acquisitions since 2009, NBK’s stake in Boubyan bank

  17. Slide 17: Contents

    Contents Section 1 Overview of NBK Section 2 Overview of Operating Environment Section 3 Strategy and Business Overview Section 4 Financial Performance (Historical) Section 5 Performance Overview 1Q 2019 Section 6 Appendix 16

  18. Slide 18: Operating Performance & Profitability

    Operating Performance & Profitability Resilient Profitability (USD mn) Stable Returns (%) Net Operating Income Net Profit Return on Average Assets Return on Average Equity 12.0% 2,912 2,712 10.8% 10.2% 2,457 1,222 973 1,063 1.2% 1.3% 1.4% 2016 2017 2018 2016 2017 2018 Operating Income Composition (U

  19. Slide 19: Balance Sheet Parameters

    Balance Sheet Parameters Assets & Loans and Advances (USD mn) Breakdown of Assets by Type (As at 31 December 2018) Loans, advances & Islamic financing Total Assets Goodwill and Other other intangible 2% Cash and short 90,432 term funds 85,838 assets 79,917 2% 11% CBK Bonds and Investment Kuwait Tbil

  20. Slide 20: Funding and Liquidity Positions

    Funding and Liquidity Positions Customer Deposits (USD mn) Strong Liquidity Position (USD mn) Liquid Assets Liquid Asset Ratio 39.0% 39.1% 38.6% 41,570 45,432 47,441 30,809 33,545 35,249 2016 2017 2018 2016 2017 2018 (Total Liabilities) Funding Mix (USD mn) Overview of Investment Securities1 – USD 1

  21. Slide 21: Capitalization and Asset Quality

    Capitalization and Asset Quality Total Equity1 Breakdown (USD mn) Capital Adequacy (%) Share capital Statutory reserves Retained Earnings Other Reserves & Treasury Shares Tier 1 Ratio Capital Adequacy Ratio Regulatory CAR 9,988 10,429 9,511 17.7% 17.8% 3,020 17.2% 2,934 2,888 15.8% 15.3% 4,336 15.7%

  22. Slide 22: Contents

    Contents Section 1 Overview of NBK Section 2 Overview of Operating Environment Section 3 Strategy and Business Overview Section 4 Financial Performance (Historical) Section 5 Performance Overview 1Q 2019 Section 6 Appendix 21

  23. Slide 23: 1Q 2019 Key Performance Extracts

    1Q 2019 Key Performance Extracts Interest Margins (%) Income Statement Key Highlights (USD mn) Net Interest Margin USD million 1Q 2018 1Q 2019 2.63% 2.65% Net Interest Inc. & net inc. from Islamic financing 538 563 Fees and Commissions 122 123 Net Operating Income 702 742 Total Operating Expenses 21

  24. Slide 24: 1Q 2019 Key Performance Extracts (Continued)

    1Q 2019 Key Performance Extracts (Continued) Net Loan Portfolio (USD bn) Loans to Assets (USD bn) Net Loans Net loan growth YoY (%) Total Assets Loans/Assets 8.1% 6.9% 58.5% 55.4% 56.5% 5.6% 48.8 51.1 52.7 88.0 90.4 90.1 Mar-18 Dec-18 Mar-19 Mar-18 Dec-18 Mar-19 Loan exposure by sector (%) Non-Perfo

  25. Slide 25: Contents

    Contents Section 1 Overview of NBK Section 2 Overview of Operating Environment Section 3 Strategy and Business Overview Section 4 Financial Performance (Historical) Section 5 Performance Overview 1Q 2019 Section 6 Appendix 24

  26. Slide 26: Kuwait Selected Mega Projects

    Kuwait Selected Mega Projects Project Sector Value (KD bn) Scope Status Underway: Overall progress 19%. Major infrastructure works contract 1 is 57% complete, contract 2 is 29% complete. P- South Al Mutlaa City Housing 2.33 30,000 residential units, schools and other facilities 1 and P-3 completion

  27. Slide 27: Consolidated financials 1Q 2019 (USD million)

    Consolidated financials 1Q 2019 (USD million) YoY Growth YoY Growth Income Statement (USD million) Mar-18 Mar-19 Balance sheet (USD million) Mar-18 Mar-19 (%) (%) Interest Income 671 806 20% Cash and short term funds 10,572 9,117 (14%) Interest Expense 229 341 48% Central Bank of Kuwait bonds 2,364

  28. Slide 28: Consolidated Statement Of Income (USD million)

    Consolidated Statement Of Income (USD million) USD million 2016 2017 2018 Interest Income 2,193 2,448 2,958 Interest Expense 625 738 1,091 Net Interest Income 1,568 1,711 1,867 Murabaha and other Islamic financing income 422 514 614 Finance cost and Distribution to depositors 112 151 204 Net Income

  29. Slide 29: Consolidated Statement Of Financial Position (USD million)

    Consolidated Statement Of Financial Position (USD million) USD million 2016 2017 2018 Cash and short term funds 8,859 9,046 9,781 Central Bank of Kuwait bonds 2,469 2,162 2,670 Kuwait Government treasury bonds 1,626 3,548 2,875 Deposits with banks 7,939 8,204 7,795 Loans, advances and Islamic financ

  30. Slide 30: 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 Abdullah Al Ahmad Street, Sharq • Earnings release State of Kuwait. • Annual report 2018 29

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