Boubyan Bank K.S.C. · KSE:BOUBYAN
Boubyan Bank K.S.C — Boubyan Bank — Q2 2018 Earnings Presentation
31 slides from Boubyan Bank K.S.C's earnings presentation, Jul 11, 2018
Slide 1: Letter to Boursa Kuwait
@~ Boubyan Bank Kuwait: 12/7/2018 Ref: 3216/2018 To: The General Manager Boursa Kuwait Company Dear Sir, Reference is made to the provisions of Article no. (8-4-2) of Boursa Kuwait Rulebook issued by virtue of Resolution no. 1 of 2018 concerning the continuing obligations of the listed companies cla
Slide 2: Q2 2018 Boubyan Bank KSCP – Earnings Call
Q2 2018 Boubyan Bank KSCP – Earnings Call Edited transcript of Boubyan Bank earnings conference call that took place on Wednesday 11 July 2018 at 15:00 Kuwait time Corporate participants: Mr. AbdulSalam Al-Saleh – Deputy Chief Executive Officer Mr. Mohamed Ibrahim – Chief Financial Officer Mr. Omar
Slide 3: Earnings call transcript: introduction
Janany Good afternoon everyone, and thank you for joining us today. This is Vamadeva: Janany Vamadeva and on behalf of Arqaam Capital I'm pleased to welcome you to Boubyan Bank’s second quarter 2018 earnings conference call. I have here with me today AbdulSalam Al Saleh, Deputy Executive Officer, Mo
Slide 4: Earnings call transcript: half-year performance overview
Overall, we have continued our strong performance and improved financial results into the first half of 2018 with substantial growth in our business and across all key performance indicators. Net profit for the half-year grew by 18% to reach KD 25.7 million and as you will see throughout the present
Slide 5: Earnings call transcript: operating environment
For operating environment, we believe that the economic indicators remained positive for Kuwait, supported by major government development projects in the pipeline and a rebounding consumer sector. Real estate market and prices also shows signs of stability. This is being reflected in the strong per
Slide 6: Earnings call transcript: operating income
We will now move to slide 8 and discuss the growth in operating income in more details. Operating income for the first half reached 70.7 million with an increase of 18%. This is mainly reflects the growth in net financing income by 14% to 59.5 million. This is driven by the growth in assets while ma
Slide 7: Earnings call transcript: deposits and financing
Customers’ deposits also increased by 12% Year on Year. This is in line with financing portfolio growth of 13%. This growth is mainly from retail and corporate deposits. The growth in core retail deposits which is well diversified and more stable was 30% and outperformed the total growth in customer
Slide 8: Q&A: net interest margin and IFRS9
Omar Bouhafs: The first question, we have three questions regarding Net Interest Margin, and we are going to combine these, the first is what is the outlook on the net interest margin and the explanation on the movement between quarter one and quarter two? Mohamed Ibrahim: For net interest margin, t
Slide 9: Q&A: yields, market share and RoE
Mohamed Ibrahim: The Boubyan portfolio is well positioned to eliminate any fluctuation due to the rate change. While the rate increase is improving out net financing income, but again this is a slight increase given the diversification and the allocation of our portfolio. Compared YoY our yield incr
Slide 10: Q&A: asset quality and fee income
Omar Bouhafs: Our next question is how you see asset quality ratio moving forward. Mohamed Ibrahim: Our objective is to maintain NPL ratio below 1%. Currently there is no specific sectors dominating the non-performing loans and corporate and consumer both of them are approximately at 0.8%. But our l
Slide 11: Boubyan Bank Investors Presentation Q2 2018 Results
Boubyan Bank Investors Presentation Q2 2018 Results – Analyst Call
Slide 12: 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 13: Outline
Outline 1 Boubyan’s Performance & Strategy – At a glance 2 Income statement analysis 3 Balance sheet analysis 4 Capitalisation and Leverage 3
Slide 14: Financial Highlights
Boubyan’s Performance & Strategy - At a Glance Financial Highlights Financial snapshot Market share KD million 6M 2018 6M 2017 Growth % Assets Deposits Financing Portfolio Net Profit to shareholders 25.7 21.9 18% 8.3% Operating Income 70.7 59.9 18% 7.9% 6.2% 6.5% Operating Profit 42.4 34.7 22% 5.1%
Slide 15: The Bank's strategy builds on robust domestic foundations
Boubyan’s Performance & Strategy - At a Glance The Bank’s strategy builds on robust domestic foundations Strategic objectives ▪ Clear focus on high net worth and affluent clients ▪ Expand branch footprint Retail banking ▪ Maintain leadership in customer experience ▪ Product and channel innovation ▪
Slide 16: Outline
Outline 1 Boubyan’s Performance & Strategy – At a glance 2 Income statement analysis 3 Balance sheet analysis 4 Capitalisation and Leverage 6
Slide 17: Profitability and performance ratio
Income statement analysis Profitability and performance ratio Net profit (KD Million) Operating profit (KD Million) Net profit YoY Growth % Operating profit YoY Growth % 18% 22% 16% 17% 25.7 42.4 21.9 34.7 6M 2017 6M 2018 6M 2017 6M 2018 * Return on Average Equity (%) Return on Average Assets (%) 12
Slide 18: Operating income components and Net Profit Margins
Income statement analysis Operating income components and Net Profit Margins Operating Income (KD Million) * Net Financing Income Operating income YoY Growth % Net Financing Income YoY Growth % 18% 18% 17% 14% 70.7 59.9 59.5 51.9 6M 2017 6M 2018 6M 2017 6M 2018 *Net Profit Margin % Composition on op
Slide 19: Operating costs and efficiency
Income statement analysis Operating costs and efficiency Operating costs (KD Million) Composition of Operating costs Operating costs YoY Growth % Staff costs General & Admin Depreciation 17% 12% 7% 7% 31% 32% 25.2 28.3 61% 60% 6M 2017 6M 2018 6M 2017 6M 2018 Operating efficiency (%) Operating costs
Slide 20: Provisions and related ratios
Income statement analysis Provisions and related ratios Provisions (KD Million) General Specific Investment/other YoY growth 29.1% 21.0% 15.4 11.8 7.4 7.7 5.2 1.3 2.8 2.8 6M 2017 6M 2018 Loss ratio % Provisions to Operating profit % 0.76% 36.2% 0.66% 34.3% 6M 2017 6M 2018 6M 2017 6M 2018 Source: Fin
Slide 21: Outline
Outline 1 Boubyan’s Performance & Strategy – At a glance 2 Income statement analysis 3 Balance sheet analysis 4 Capitalisation and Leverage 11
Slide 22: Assets and Sources of Funding
Balance sheet analysis Assets and Sources of Funding Total assets (KD Million) Composition of assets Total assets YoY Growth % 4% 1% 4% 2% 3% 2% 21% 22% 20% 14% 12% 10% 74% 72% 75% 3,733 3,970 4,167 Jun-17 Dec-17 Jun-18 Jun-17 Dec-17 Jun-18 Financing Portfolio *Liquid assets Investments PPE & Other
Slide 23: Financing Portfolio and asset quality
Balance sheet analysis Financing Portfolio and asset quality Financing Portfolio – KD Million Composition of Financing Portfolio Financing Portfolio YoY Growth % Corporate Retail 18% 14% 13% 43% 44% 43% 2,877 3,132 2,775 57% 56% 57% Jun-17 Dec-17 Jun-18 Jun-17 Dec-17 Jun-18 Non performing Financing
Slide 24: Outline
Outline 1 Boubyan’s Performance & Strategy – At a glance 2 Income statement analysis 3 Balance sheet analysis 4 Capitalisation and Leverage 14
Slide 25: Capital Adequacy
CAPITALISATION AND LEVERAGE Capital Adequacy Capital adequacy ratio of 18.2% Risk weighted assets CET 1 Total Tier 1 Total CAR RWA - KD Million YoY Growth 19.7% 19.4% 22% 21% 18.2% 20% 18.5% 18.3% 17.1% 2,460 2,290 14.9% 15.0% 14.0% 2,058 Jun-17 Dec-17 Jun-18 Jun-17 Dec-17 Jun-18 Composition of regu
Slide 26: Questions?
Questions ?
Slide 27: Appendix
Appendix
Slide 28: Consolidated Financial Statements – 6M 2018
Consolidated Financial Statements – 6M 2018 CONSOLIDATED STATEMENT OF INCOME 30-Jun 30-Jun CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30-Jun 30-Jun KD Million 2018 2017 KD Million 2018 2017 Assets Income Cash and balances with banks 69 38 Murabaha and other Islamic financing income 83.5 71.2 Depos
Slide 29: Consolidated Income Statement
Consolidated Income Statement KD Million 31-Dec 31-Dec 31-Dec 2017 2016 2015 Income Murabaha and other Islamic financing income 149.4 122.7 101.5 Distribution to depositors and Murabaha Cost (46.0) (34.2) (22.1) Net finance income 103.5 88.5 79.3 Net investment income 7.9 4.4 2.2 Net fees and commis
Slide 30: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position KD Million 31-De c 31-De c 31-De c 2017 2016 2015 Asse ts Cash and balances with banks 48.5 36.9 35.1 Deposits with Central Bank of Kuwait 310.4 292.7 133.1 Deposits with other banks 323.9 329.0 515.1 Islamic financing to customers 2,876.8 2,516.8 2,171.8
Slide 31: Thank you
Thank you