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

National Bank Of Kuwait K.s.c — National Bank of Kuwait — FY2024 Earnings Presentation

24 slides from National Bank Of Kuwait K.s.c's earnings presentation, 2025

  1. Slide 1: National Bank of Kuwait Investor Presentation 4Q/FY 2024 Earnings Call

    PUBLIC National Bank of Kuwait Investor Presentation 4Q/FY 2024 Earnings Call National Bank of Kuwait 1

  2. Slide 2: Disclaimer

    PUBLIC 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

  3. Slide 3: Contents

    PUBLIC Contents Section 1 Vice Chairman and Group CEO Opening Remarks Section 2 Financial Performance Section 3 Appendix Section 4 Questions National Bank of Kuwait 3

  4. Slide 4: Key Economic Highlights

    PUBLIC Key Economic Highlights GCC Headline Growth (%) Real GDP Growth1 (% y/y) 2024f 2025f 14 14 12 Oil Non-oil Total 12 Bahrain 1.8 3.9 10 10 8 8 Kuwait -2.4 3.0 6 6 4 4 Oman 1.3 3.2 2 2 Qatar 1.8 2.4 0 0 -2 -2 KSA 1.1 5.0 -4 -4 -6 -6 UAE 3.3 5.1 -8 -8 -10 -10 GCC 1.4 4.5 2018 2019 2020 2021 2022

  5. Slide 5: Operating Performance & Profitability

    PUBLIC Operating Performance & Profitability Net Profit (KDm) Net Operating Income (KDm) 7.0% 7.2% 1,251 600.1 560.6 1,167 10.5% 129.5 143.1 4Q2023 4Q2024 2023 2024 2023 2024 Return on Average Assets Return on Average Equity 15.1% 15.0% 1.55% 1.53% 2023 2024 2023 2024 National Bank of Kuwait 5

  6. Slide 6: NBK's Strategy

    PUBLIC NBK’s Strategy ▪ The Bank aims to (i) remain the primary banker for the leading local companies whilst continuing to be active in the mid-market sector;(ii) ✓ Corporate remain the bank of choice for foreign companies and continuing to serve at least 75% of those companies and (iii) maintain i

  7. Slide 7: Key ESG Achievements

    PUBLIC Key ESG Achievements We measure our progress against well-defined metrics and targets to achieve the greatest positive impact. Strategy Pillars Key Highlights* ▪ In the process of developing an Environmental and Climate Change Policy, a fundamental part of NBK’s commitment to carbon neutralit

  8. Slide 8: Contents

    PUBLIC Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance Section 3 Appendix Section 4 Questions National Bank of Kuwait 8

  9. Slide 9: Operating Performance

    PUBLIC Operating Performance Net Profit (KDm) Operating Surplus (KDm) 600.1 +7.0% 783.2 +5.8% 560.6 740.3 164.6 202.7 194.7 129.5 143.1 186.7 4Q 2023 3Q 2024 4Q 2024 2023 2024 4Q 2023 3Q 2024 4Q 2024 2023 2024 Net Operating Income (KDm) Net Operating Income Mix Net interest income & Net income from

  10. Slide 10: Operating Performance

    PUBLIC Operating Performance Net Interest Income* (KDm) Average Interest Earning Assets (KDbn) 980.1 +8.3% 36.9 +5.6% 905.1 34.9 239.3 251.4 246.4 4Q 2023 3Q 2024 4Q 2024 2023 2024 2023 2024 Net Interest Margin* Net Interest Margin Drivers YTD NIM Qtrly NIM 2.68% 2.68% 2.71% 2.73% 2.64% 2.66% 2.56%

  11. Slide 11: Operating Performance

    PUBLIC Operating Performance Non-Interest Income (KDm) Operating Expenses (KDm) Net fees and commissions Net gains from dealing in FX Other non-interest income Staff expenses Other operating expenses 468.0 271.1 +3.6% 426.5 +9.7% 261.6 24 29 41 215 36 193 67.2 73.9 63.7 197 206 116.3 115.9 125.5 9 4

  12. Slide 12: Group Diversification

    PUBLIC Group Diversification 2024 Op. Income by Business Line (%) 2024 Net Profit by Business Line (%) 2024 Total Assets by Business Line (%) Corporate Corporate Corporate 19% 13% NBK Wealth 13% NBK Wealth NBK Wealth 9% 11% Consumer 3% Consumer 21% Consumer 13% 17% Islamic Islamic 15% Others Islamic

  13. Slide 13: Balance Sheet

    PUBLIC Balance Sheet Total Assets (KDbn) Loans, Advances and Islamic Financing (KDbn) 40.3 23.7 37.7 +7.1% 22.3 +6.4% Dec 23 Dec 24 Dec 23 Dec 24 Customer Deposits & FI Deposits* (KDbn) Funding Mix Customer Deposits FI Deposits Customer Deposits Due to banks Deposits from other FIs CD's / Other borr

  14. Slide 14: Performance and Asset Quality Ratios

    PUBLIC Performance and Asset Quality Ratios Return on Average Equity Return on Average Assets 15.0% 15.1% 1.55% 1.53% 2023 2024 2023 2024 Capital Adequacy Ratios Asset Quality Ratios CET 1 Ratio Tier 1 Ratio Capital Adequacy Ratio Loan Loss Coverage Ratio NPL Ratio 17.3% 17.3% 271% 263% 15.0% 15.1%

  15. Slide 15: Expected Credit Losses (ECL)

    PUBLIC Expected Credit Losses (ECL) Financial Statements ECL Disclosure (KDm) Total Gross Loans (KDbn) Stage 1 Stage 2 Stage 3 31 December 2024 Stage 1 Stage 2 Stage 3 Total 23.1 24.6 1% 1% Loans, advances and Islamic 7% 6% financing to customers 22,714 1,529 329 24,572 Contingent liabilities 4,582

  16. Slide 16: 2025 Guidance

    PUBLIC 2025 Guidance 2024 2025 Guidance Loan Growth +6.4% Mid Single Digit NIM 2.66% Contracting Cost to Income ratio 37.4% High 30s Cost of Risk 37 bps c.40 bps Earnings +7.0% Capital Adequacy 17.3% National Bank of Kuwait 16

  17. Slide 17: Contents

    PUBLIC Contents Section 1 Vice Chairman and Group CEO Opening Remarks Section 2 Financial Performance Section 3 Appendix Section 4 Questions National Bank of Kuwait 17

  18. Slide 18: Consolidated Statement Of Income (KDm)

    PUBLIC Consolidated Statement Of Income (KDm) KDm 2023 2024 YoY Growth (%) Interest Income 1,633 1,799 10% Interest Expense 908 1,027 13% Net Interest Income 725 772 6% Murabaha and other Islamic financing income 402 465 15% Finance cost and Distribution to depositors 222 256 15% Net Income from Isl

  19. Slide 19: Consolidated Statement Of Financial Position (KDm)

    PUBLIC Consolidated Statement Of Financial Position (KDm) KDm December-2023 December-2024 YoY Growth % Cash and short term funds 4,385 5,323 21% Central Bank of Kuwait bonds 857 344 (60%) Kuwait Government treasury bonds 194 149 (23%) Deposits with banks 1,318 1,383 5% Loans, advances and Islamic fi

  20. Slide 20: Performance Measures 2024

    PUBLIC Performance Measures 2024 December-2023 December-2024 Return on Average Assets 1.53% 1.55% Return on Average Equity 15.0% 15.1% Net Interest Margin 2.59% 2.66% Cost to Income 36.6% 37.4% NPLs to Gross Loans 1.38% 1.34% Loan Loss Reserves to NPLs 271% 263% CET 1 Ratio 13.0% 13.2% Tier 1 Ratio

  21. Slide 21: Contents

    PUBLIC Contents Section 1 Vice Chairman and Group CEO Opening Remarks Section 2 Financial Performance Section 3 Appendix Section 4 Questions National Bank of Kuwait 21

  22. Slide 22: Questions?

    PUBLIC Questions? National Bank of Kuwait 22

  23. Slide 23: Thank You

    PUBLIC Thank You National Bank of Kuwait 23

  24. Slide 24: National Bank of Kuwait Investor Presentation 4Q/FY 2024 Earnings Call

    PUBLIC National Bank of Kuwait Investor Presentation 4Q/FY 2024 Earnings Call National Bank of Kuwait 24

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