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

National Bank Of Kuwait K.s.c — National Bank of Kuwait — Q1 2016 Earnings Presentation

29 slides from National Bank Of Kuwait K.s.c's earnings presentation, April 2016

  1. Slide 1: National Bank of Kuwait Investor Presentation

    National Bank of Kuwait Investor Presentation April 2016

  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 2016 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 2013 2014 2015 established in 1952 as the first local bank and the first shareholding 61,620 72,169 78,177 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 2015, the Bank was the largest region. bank in Kuwait in terms of total assets, loans

  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 good asset quality metrics, as w

  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 2016 Section 6 Appendix 6

  8. Slide 8: Overview of Kuwait

    Overview of Kuwait Snapshot Substantial Current Account Surpluses  The State of Kuwait (“Kuwait” or the “Sovereign”) is a sovereign Current Account Balance (USD bn, lhs) Current Account Balance / GDP (%, rhs) emirate on the coast of the Arabian Gulf, covering a total area of 80 45.28% 60% 43.60% 40

  9. Slide 9: Overview of Kuwait (Continued)

    Overview of Kuwait (Continued) Recent Developments Investment  Economic growth seen improving despite drop in oil prices, as Investments (KD Bn, lhs) Investments (% Non-oil GDP, rhs) project awards pick up. Fiscal and external buffers give Kuwait 10 50% 33.3% GDP ample capacity to sustain spending

  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 five  In June 2014, the Central Bank of Kuwait announced the implementation commercial banks, one specialised bank, five Shari’a-compliant local

  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 78,177 National Bank of Kuwait 39,951 Kuwait Finance House 54,751 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 2016 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 currently contributed to circa 28% of its bottom line with Established or Branches Legal structure the Bank aspiring to increase this contribution. acquired  The Bank generally aims to maintain a majority stake in it

  16. Slide 16: Boubyan Bank (58.4% owned subsidiary)

    Boubyan Bank (58.4% owned subsidiary) Market share of Total Assets(%) Key Highlights  Islamic banking has been gaining strong grounds in the Kuwaiti market in recent years, representing close to 40% of assets and deposits at year-end 2015.  After a series of gradual share acquisitions since 2009,

  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 2016 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 10.5% 10.5% 10.0% 2,414 2,190 2,075 867 935 789 1.3% 1.3% 1.2% 2013 2014 2015 2013 2014 2015 Operating Income Composition (USD m

  19. Slide 19: Balance Sheet Parameters

    Balance Sheet Parameters Assets & Loans and Advances (USD mn) Breakdown of Assets by Type (As at 31 December 2015) Loans, advances & Islamic financing Total Assets Goodwill and Other Cash and short other intangible 2% term funds 78,177 assets 15% 72,169 3% Investment 61,620 securities CBK Bonds and

  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 38.8% 37.1% 34.6% 34,713 37,302 39,951 21,335 27,973 29,011 2013 2014 2015 2013 2014 2015 (Total Liabilities) Funding Mix (USD mn) Overview of Investment Securities1 – USD 9

  21. Slide 21: Capitalization and Asset Quality

    Capitalization and Asset Quality Total Equity1 Breakdown (USD mn) Capital Adequacy2 (%) Share capital Statutory reserves Tier 1 Ratio Capital Adequacy Ratio Regulatory CAR Retained Earnings Other Reserves & Treasury Shares 9,130 8,790 8,312 17.3% 2,958 16.8% 3,033 2,945 16.8% 14.5% 14.7% 3,372 3,668

  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 2016 Section 6 Appendix 21

  23. Slide 23: 1Q 2016 Key Performance Extracts

    1Q 2016 Key Performance Extracts Interest Margins (%) Income Statement Key Highlights (USDmn) Net Interest Margin USD million 1Q 2015 1Q 2016 Net Interest Inc. & net inc. from Islamic financing 415 453 2.38% 2.39% Fees and Commissions 102 111 Net Operating Income 644 594 Total Operating Expenses 177

  24. Slide 24: 1Q 2016 Key Performance Extracts (Continued)

    1Q 2016 Key Performance Extracts (Continued) Net Loan Portfolio (USD bn) Loans to Assets (USD bn) Net Loans Net loan growth YoY (%) Total Assets Loans/Assets 13.8% 12.9% 9.6% 57.4% 55.0% 53.0% 41.0 44.9 44.9 77.3 78.2 81.7 Mar-15 Dec-15 Mar-16 Mar-15 Dec-15 Mar-16 Loan exposure by sector (%) Non-Per

  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 2016 Section 6 Appendix 24

  26. Slide 26: Kuwait Selected Mega Projects

    Kuwait Selected Mega Projects Project Sector Value (KD bn) Scope Status Bidding: The bid submission on contracts for package 1 was postponed to 24 29,000 residential units, schools and other South Al Mutlaa City Housing 0.30 April; the last date for bid submissions for the Future City Roads package

  27. Slide 27: Consolidated Financials 1Q 2016 (USD million)

    Consolidated Financials 1Q 2016 (USD million) Income Statement (USD million) 1Q-15 1Q-16 Balance sheet (USD million) 1Q-15 1Q-16 Interest Income 454 516 Cash and short term funds 13,005 14,280 Central Bank of Kuwait bonds 1,985 2,255 Interest Expense 101 139 Kuwait Government Treasury bonds 1,127 1,

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

    Consolidated Statement Of Income (USD million) USD million 2013 2014 2015 Interest Income 1,621 1,701 1,938 Interest Expense 337 378 462 Net Interest Income 1,284 1,323 1,476 Murabaha and other Islamic financing income 245 288 352 Distribution to depositors and Murabaha costs 33 57 72 Net Income fro

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

    Consolidated Statement Of Financial Position (USD million) USD million 2013 2014 2015 Cash and short term funds 7,991 10,376 11,533 Central Bank of Kuwait bonds 1,771 1,771 2,663 Kuwait Government treasury bonds 1,061 1,141 1,259 Deposits with banks 2,981 6,793 4,726 Loans, advances and Islamic fina

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