Burgan Bank · KSE:BURG
Burgan Bank — Investor Presentation (March 2010)
35 slides from Burgan Bank's investor presentation, March 2010
Slide 1: Burgan Bank
B Burgan Bank B k March 2010 The information contained in this document has been provided on the basis of current knowledge, assumptions and expectations. In the event that any information is incorrect or any party misrepresented, Burgan Bank and its consultants cannot be held responsible for this.
Slide 2: Burgan Bank overview
BURGAN BANK driven by you ——— | 2 ol sy Sy overview United Arab Emirates Kingdom of Saudi Arabia . . . Aig F (i235 Su ala_s4 Gro pla awl ene AMuntiayitt |_| 2 BURGAN BANK GE Bank of Baghdad Gulf Bank Algeria ra =ORDAN KUWAIT Tunis International Bank Syria Gulf Bank United Gulf Bank ase Hi [ Other Ki
Slide 3: Overview – KIPCO group banks
Overview – KIPCO group banks KIPCO (Kuwait Projects Company) Financial Services Companies Organization Activity Subsidiary / Associate of; % ownership • Burgan Bank, Kuwait (BB) Commercial banking KIPCO 56.03% • Gulf Bank Algeria, Algeria (AGB) Commercial banking BB 60% TIB 30% JKB 10% • Bank of Bag
Slide 4: Overview - Kuwait: State of Kuwait Profile
Overview - Kuwait State of Kuwait Profile • Ruled by a hereditary monarchy of the Al Sabah family. • Parliament was established in 1962. Women enfranchised since 2006. • Growing role of National Assembly helps to create a responsive policy making process. • 5th largest proven world oil reserves; rec
Slide 5: State of Kuwait Profile: Macro Economic Data
Overview - Kuwait State of Kuwait Profile Macro Economic Data Kuwait 2006 20071 2008E1 2009F1 Real GDP growth (% Change y‐o‐y) 5.5 4.4 6 ‐1.9 GDP per capita (US$) 34,938 32,900 44,300 33,000 Population (MN) 3.18 3.4 3.44 3.41 Oil production (Mn b/d) 2.65 2.45 2.55 2.31 Oil Price (US$/b ave) 60.87 65
Slide 6: About Burgan Bank
About Burgan Bank 1977 1984 1997 2002 2003 - 04 Incorporated p as a public p Listed on the Kuwait Stock Privatized. Government of Restructured operations p Underwent major shareholding company. Exchange. Kuwait divested it’s 61.0% which laid emphasis on best management reshuffle, Named after first a
Slide 7: Overview (contd…) Mission and Vision
About Burgan Bank Overview (contd…) O Our Mi i & Vi Mission i Vision Our Vision Our Goals To be the best of class financial service provider in the MENA region through sustained t i d execution ti off b bestt practice, ti To maximize value for all our stakeholders, clients, personnel innovation and
Slide 8: Regulated by the CBK and Listed on the Kuwait Stock Exchange
About Burgan Bank Regulated by the CBK and Listed on the Kuwait Stock Exchange Burgan Bank Majority shareholder • KIPCO: 56.03% • Shareholder Equity at USD 1,135m, market capitalization USD 1,199m Other shareholders and total balance sheet size of • Wafra Int. Investment Company: 5.73% USD14,275m (a
Slide 9: Ratings
About Burgan Bank Overview… R Ratings ti ((as off 31stt D December b 2009) Burgan Bank Ratings Country ratings S & P: ST : A-2 ST : A-1+ LT : BBB+ LT : AA- Moody’s: ST : P-1 ST : P-1 LT : A2 (FSR: D+) LT : Aa2 C.I.: ST : A2 ST : A1+ LT : A- A (FSR: BBB+) LT : AA- AA 9
Slide 10: The Acquisition
About the region & Burgan Bank Th Acquisition The A i iti United Gulf Bank and Burgan Bank are subsidiaries of Kuwait Projects Company (Holding) or KIPCO. KIPCO is listed on the Kuwait Stock Exchange and is part of a large business house with varied interests across the MENA Region in a number of bu
Slide 11: Overview – Burgan Bank: awards
Overview – Burgan Bank Excellence is one of our 4 key values and we continually strive to maintain the highest standards in the industry. industry Listed below are some of our recognitions and awards that we have received; a ) Banking • Best Local Private Bank’ - Euromoney 2007. • Region’ss ‘Most Re
Slide 12: Board of Directors
Overview – Burgan Bank Board of Directors MR. TARIQ MOHAMMED ABDULSALAM CHAIRMAN OF THE BOARD MR. MAJED ESSA AL-AJEEL VICE CHAIRMAN MR MASAUD HAYAT MR. BOARD MEMBER MR. ABDUL SALAM MOHAMMED AL BAHAR BOARD MEMBER H.E. ABDUL KARIM KABARITI BOARD MEMBER MR. ANTONY STROVER BOARD MEMBER 12
Slide 13: Senior Management
Overview – Burgan Bank Senior Management MR. MASAUD HAYAT MANAGING DIRECTOR (Board Member) MR. RAED AL-HAQHAQ ACTING CHIEF GENERAL MANAGER / CHIEF BANKING OFFICER MS. MAY AL MUDHAF CHIEF INVESTMENT BANKING & TREASURY OFFICER MR. SIMON CLEMENTS CHIEF RETAIL BANKING OFFICER MR. MADHUSUDAN RAO CHIEF RI
Slide 14: About the region & Burgan Bank Group
About the region g & Burgan g Bank Burgan Bank Group 14
Slide 15: MENA Overview
MENA Overview Over the last decade or so, the MENA Region has developed itself to become today the key hub between the East and West. Within the Region, a number of countries have seen phenomenal growth as a result of higher oil prices and trade infrastructure. These countries also contributed to th
Slide 16: Algeria Overview
Algeria Overview Algeria has a population of 34.2 million and an area of 2,381,740 square kilometers. Algiers is the country’s country s capital capital. The hydrocarbons sector is the backbone of the economy, accounting for roughly 60% of budget revenues, 30% of GDP, and over 95% of export earnings
Slide 17: About Gulf Bank Algeria (AGB)
About Gulf Bank Algeria g (AGB) Gulf Bank Algeria was licensed in September 2002 as a commercial banking entity in Algeria. AGB commenced its operations in March 2004. Algeria is an SNAPSHOT 2009 important oil and gas growth economy with strong and improving economic fundamentals. AGB geared up to p
Slide 18: Iraq Overview
Iraq q Overview Iraq has a population of 29 million and an area of 438,317 square kilometers. Baghdad is Iraq’s capital. Iraq's economy is dominated by the oil sector, which provides over 90% of government revenue and foreign exchange earnings. Oil exports have rebounded to levels seen before Operat
Slide 19: About Bank of Baghdad (BOB)
About Bank of Baghdad g (BOB) Bank of Baghdad was the first licensed bank in Iraq, established in 1992 with a SNAPSHOT 2009 vision to support the needs of the national economy. Until September 25, 1998, Bank of Baghdad g onlyy practiced p commercial banking. g The Bank diversified its portfolio of s
Slide 20: Jordan Overview
Jordan Overview The Hashemite Kingdom of Jordan has a population of 6.27 6 27 million and an area of 89,342 89 342 square kilometer. kilometer Jordan’s capital is Amman. Jordan's economy is among the smallest in the Middle East, with insufficient supplies of water, oil, and other natural resources,
Slide 21: About Jordan Kuwait Bank (JKB)
About Jordan Kuwait Bank (JKB) Founded in 1976 jointly by Jordanians, Kuwaitis and other Arab investors, JKB is a publicly listed company with 51 branches including two in Palestine and an international banking unit (IBU) established in Cyprus. It is today SNAPSHOT 2009 the 3rd largest bank in Jorda
Slide 22: Entities snapshot 2009
About the region & Burgan Bank E titi snapshot Entities h t 2009 Equity: USD 164.4M Equity: USD 97.2M Equity: USD 393.2M Equity: USD 82.0M Assets: USD 622.4M Assets: USD 680.7M Assets: USD 3,011.1M Assets: USD 491.0M Revenue: USD 61.0M Revenue: USD 28.8M Revenue: USD 168.4M Revenue: USD 30.9M Net pr
Slide 23: MENA region GDP growth
About the region & Burgan Bank MENA region i GDP growth th 23
Slide 24: Overview on country risk
About the region & Burgan Bank O Overview i on country t risk i k 24
Slide 25: Burgan Group - Financials & Challenges Ahead
Burgan Group - Financials & Challenges Ahead *USD 1 = KD 0.2868
Slide 26: Financial Balance Sheet: Loans & Advances, Customer Deposits
Financial Balance Sheet Review and strengths Loans & Advances Customer Deposits 9500 9,500 8,455 8500 8,500 7,835 8,424 7,437 7500 7,500 6 500 6,500 6500 5,748 , USD m USD m 5,500 5500 4,068 4,316 4,955 4500 4,500 3,655 3,500 2,619 2,789 3500 3,300 2500 2 500 2,500 2004 2005 2006 2007 2008 2009 2004
Slide 27: Financial Profit & Loss
Financial Profit & Loss Review and strengths Operating Profit Net Profit 400 387 6 387.6 300 260.9 350 305.5 250 300 271.3 194.3 222.7 200 250 147.8 200 170.9 150 129.2 127.4 103.2 150 100 100 50 21.7 50 USD' m USD m 0 0 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 27
Slide 28: Financial Strength: NPLs and Provision Coverage
Financial Financial Strength Review and strengths NPLs to Loans Provision Coverage 12% 280% 10.0% 240% 245% 10% 200% 8% 6.1% 160% 6% 109% 166% 120% 130% 4.1% 3.5% 4% 78% 80% 2% 1 7% 1.7% 57% 1.4% 40% 0% 0% 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 28
Slide 29: Financial Strength
Financial Financial Strength Review and strengths ¾ Capital Adequacy Ratio of 16.86%. ¾ Sound Liquidity with 10% of total assets in T Bills & Bonds. Bonds ¾ Investments account for only around 3% of total assets. ¾ Investment company exposure represents less than 4 % of total credit exposure. ¾ Peri
Slide 30: Financial Strength 2008 - 2009
Financial Financial Strength 2008 - 2009 Review and strengths Operating Expense and Cost-to-income Total Income ratio USD million 160 151.8 30% 116.3 28.1% 28% 120 26% 539.4 539 4 27.7% 27 7% 24% 422.2 80 22% USD m 40 20% 18% 0 16% 2008 2009 2008 2009 Operating Cost C:I Ratio Operating Profit before
Slide 31: Share Price Performance January 2009 to December 2009
Financial Share Price Performance Review and strengths Januaryy 2009 to December 2009 General Index : 3% up Banking Index : 3% up BB Share Price : 17% down* 10000 9,253 9,136 0.500 8,298 8,370 0.420 0.430 8,134 8,080 8000 7,817 0.400 0.370 0.380 6,987 0 350 0.350 6,765 6,745 0.300 KD Fils 6000 0.200
Slide 32: Meeting Challenges: 2010
Meeting the Meeting Challenges: 2010 Challenges • Government support to investment sector & fiscal actions will be key determinants of the dynamics of the banking sector in Kuwait. • Local economic developments dependent on State Budget and spending, along with international economic developments. •
Slide 33: Integration of Subsidiaries after Acquisition
Meeting the Integration of Subsidiaries after Acquisition Challenges ¾ Working closely with international & well known consultants consultants. ¾ Integration to be in three waves ¾ Wave 1: Risk Mgmt., Accounts / MIS, Treasury, Internal Audit & Corp. Communications: Completed. Completed ¾ Wave 2: IT,
Slide 34: BB Group Profile as on 31st December 09
Financial Review Financial Strength and strengths BB Group Profile as on 31st December 09 ¾ Loans & Advances USD 7,835m ¾ Total Assets USD 14,275m ¾ Customer Deposits USD 8,455m ¾ Equity USD 1,135m ¾ Net Interest Income USD 355m ¾ Operating Income USD 539m ¾ Operating Profit USD 388m ¾ Net Profit US
Slide 35: Q&A
Q Q&A Burgan Bank, P.O. Box 5389, Al Safat 12170, State of Kuwait – Kuwait. Telephone: +965 2298 8000 Fax +965 22988419 www.burgan.com