National Bank Of Kuwait K.s.c. · KSE:NBK
National Bank Of Kuwait K.s.c — National Bank of Kuwait — H1 2024 Earnings Presentation
26 slides from National Bank Of Kuwait K.s.c's earnings presentation, 2024
Slide 1: National Bank of Kuwait Investor Presentation 2Q/1H 2024 Earnings Call
PUBLIC National Bank of Kuwait Investor Presentation 2Q/1H 2024 Earnings Call National Bank of Kuwait 1
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
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
Slide 4: Key Economic Highlights
PUBLIC Key Economic Highlights Daily ICE Brent Crude Oil Prices ($/bbl) Real GDP Growth1 (% y/y) 100 100 15 15 Oil sector Non-oil sector Estimates/forecast 95 95 10 10 Headline 90 90 5 5 85 85 0 0 80 80 -5 -5 75 75 -10 -10 70 70 -15 -15 Jul-23 Sep-23 Nov-23 Jan-24 Mar-24 May-24 Jul-24 2017 2018 2019
Slide 5: Operating Performance & Profitability
PUBLIC Operating Performance & Profitability Net Profit (KDm) Net Operating Income (KDm) 612.4 292.4 275.3 565.9 141.1 145.8 2Q 2023 2Q 2024 1H 2023 1H 2024 1H 2023 1H 2024 Return on Average Assets Return on Average Equity 1.55% 1.53% 15.2% 15.0% 1H 2023 1H 2024 1H 2023 1H 2024 National Bank of Kuwa
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
Slide 7: NBK ESG Strategy Framework
PUBLIC NBK ESG Strategy Framework National Bank of Kuwait 7
Slide 8: The Fundamental Guiding Forces of NBK's ESG Journey
PUBLIC The Fundamental Guiding Forces of NBK’s ESG Journey ESG Ratings* ESG Governance National and Global NBK’s score improved to ▪ A Board approved ESG Governance Structure and Frameworks 27.1 – Medium Risk, Framework that assigns ESG responsibility across from 27.4 previously members of the Execu
Slide 9: NBK's Debut Green Bond
PUBLIC NBK’s Debut Green Bond In June 2024, NBK successfully issued its debut 6NC5 green bond under its Sustainable Financing Framework, raising USD 500 million to support the financing of low-carbon initiatives. By issuing this green bond, NBK strengthens its dedication to environmental stewardship
Slide 10: 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 10
Slide 11: Operating Performance 1H 2024
PUBLIC Operating Performance 1H 2024 Net Profit (KDm) Operating Surplus (KDm) 292.4 385.8 275.3 359.2 +6.2% +7.4% 141.1 146.6 145.8 197.5 188.3 182.8 2Q 2023 1Q 2024 2Q 2024 1H 2023 1H 2024 2Q 2023 1Q 2024 2Q 2024 1H 2023 1H 2024 Net Operating Income (KDm) Net Operating Income Mix Net interest incom
Slide 12: Operating Performance 1H 2024
PUBLIC Operating Performance 1H 2024 Net Interest Income* (KDm) Average Interest Earning Assets (KDbn) 482.3 36.1 432.1 +11.6% 34.5 +4.5% 238.1 244.2 220.3 2Q 2023 1Q 2024 2Q 2024 1H 2023 1H 2024 1H 2023 1H 2024 Net Interest Margin* Net Interest Margin Drivers YTD NIM Qtrly NIM +0.04% +0.71% -0.58%
Slide 13: Operating Performance 1H 2024
PUBLIC Operating Performance 1H 2024 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 226.6 206.6 133.8 130.1 -2.8% +9.6% 17 11 103 17 18 92 67.7 70.9 111.5 115.1 105.2 7 59.2 10
Slide 14: Group Diversification
PUBLIC Group Diversification 1H24 Op. Income by Business Line (%) 1H24 Net Profit by Business Line (%) 1H24 Total Assets by Business Line (%) Corporate Corporate NBK Wealth Corporate NBK Wealth 13% NBK Wealth 19% 11% 14% 2% 9% Consumer 20% Consumer Consumer 16% 14% Islamic 24% Islamic 16% Islamic 21
Slide 15: Operating Performance 1H 2024
PUBLIC Operating Performance 1H 2024 Total Assets (KDbn) Loans, Advances and Islamic Financing (KDbn) 37.7 37.7 22.7 22.3 36.1 21.6 +4.4% +5.4% Jun 23 Dec 23 Jun 24 Jun 23 Dec 23 Jun 24 Customer Deposits & FI Deposits* (KDbn) Funding Mix Customer Deposits FI Deposits Customer Deposits Due to banks D
Slide 16: Performance and Asset Quality Ratios 1H 2024
PUBLIC Performance and Asset Quality Ratios 1H 2024 Return on Average Equity Return on Average Assets 15.2% 1.55% 15.0% 15.0% 1.53% 1.53% 1H 2023 FY 2023 1H 2024 1H 2023 FY 2023 1H 2024 Capital Adequacy Ratios Asset Quality Ratios CET 1 Ratio Tier 1 Ratio Capital Adequacy Ratio Loan Loss Coverage Ra
Slide 17: Expected Credit Losses (ECL) 1H 2024
PUBLIC Expected Credit Losses (ECL) 1H 2024 Financial Statements ECL Disclosure (KDm) Total Gross Loans (KDbn) Stage 1 Stage 2 Stage 3 30 June 2024 Stage 1 Stage 2 Stage 3 Total 22.4 23.1 23.6 Loans, advances and Islamic 1% 1% 1% financing to customers 21,465 1,796 358 23,619 7% 7% 8% Contingent lia
Slide 18: 2024 Guidance
PUBLIC 2024 Guidance 2024 Guidance FY 2023 1H 2024 (v/s 2023) Loan Growth (ytd) +6.1% +2.0% Mid Single Digit NIM 2.59% 2.69% Stable Cost to Income ratio 36.6% 37.0% High 30s Cost of Risk 36 bps 40 bps 40 – 50 bps Earnings (yoy) +10.1% +6.2% Capital Adequacy 17.3% 16.8% National Bank of Kuwait 18
Slide 19: 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 19
Slide 20: Consolidated Statement Of Income (KDm)
PUBLIC Consolidated Statement Of Income (KDm) KDm 1H 2023 1H 2024 YoY Growth (%) Interest Income 756 897 19% Interest Expense 410 514 26% Net Interest Income 346 383 11% Murabaha and other Islamic financing income 191 224 18% Finance cost and Distribution to depositors 105 125 19% Net Income from Is
Slide 21: Consolidated Statement Of Financial Position (KDm)
PUBLIC Consolidated Statement Of Financial Position (KDm) KDm June-2023 June-2024 YoY Growth % Cash and short term funds 3,819 3,596 (6%) Central Bank of Kuwait bonds 891 775 (13%) Kuwait Government treasury bonds 196 181 (8%) Deposits with banks 1,669 1,691 1% Loans, advances and Islamic financing
Slide 22: Performance Measures 1H 2024
PUBLIC Performance Measures 1H 2024 June-2023 June-2024 Return on Average Assets 1.53% 1.55% Return on Average Equity 15.2% 15.0% Net Interest Margin 2.52% 2.69% Cost to Income 36.5% 37.0% NPLs to Gross Loans 1.75% 1.52% Loan Loss Reserves to NPLs 218% 248% CET 1 Ratio 12.1% 12.5% Tier 1 Ratio 14.2%
Slide 23: 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 23
Slide 24: Questions?
PUBLIC Questions? National Bank of Kuwait 24
Slide 25: Thank You
PUBLIC Thank You National Bank of Kuwait 25
Slide 26: National Bank of Kuwait Investor Presentation 2Q/1H 2024 Earnings Call
PUBLIC National Bank of Kuwait Investor Presentation 2Q/1H 2024 Earnings Call National Bank of Kuwait 26
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