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

National Bank Of Kuwait K.s.c — National Bank of Kuwait — FY2020 Earnings Presentation

23 slides from National Bank Of Kuwait K.s.c's earnings presentation, 2021

  1. Slide 1: National Bank of Kuwait Investor Presentation FY 2020 Earnings Call

    National Bank of Kuwait Investor Presentation FY 2020 Earnings Call National Bank of Kuwait 1

  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 Group CEO Opening Remarks Section 2 Financial Performance 2020 Section 3 Appendix Section 4 Questions National Bank of Kuwait 3

  4. Slide 4: NBK Profitability (KDm)

    NBK Profitability (KDm) Net Profit Attributable 401 246 78 77 58 33 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 2020 National Bank of Kuwait 4

  5. Slide 5: 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

  6. Slide 6: Key Strengths

    Key Strengths High credit ratings and among the Largest banking group in Kuwait with top brand values regionally dominant market position  As at 31 December 2020, the Bank was the largest bank in  NBK has one of the highest credit ratings in the MENA region Kuwait in terms of total assets, loans a

  7. Slide 7: Key Econ and Financial Highlights

    Key Econ and Financial Highlights Development of the Discount Rate (%) Real GDP (% y/y) Total Non-oil 3.5 3.5 8 8 6.5 4.9 4.2 6 6 3.0 3.0 2.7 3.0 4 1.5 1.7 4 1.0 2 2 2.5 2.5 0.5 2.9 2.0 0 1.1 1.2 0 -4.7 -0.7 -2 0.6 -4.0 -2 2.0 2.0 -4 -4 1.5 1.5 -6 -6 -6.3 -8 -8 2013 2014 2015 2016 2017 2018 2019f 20

  8. Slide 8: Contents

    Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance 2020 Section 3 Appendix Section 4 Questions National Bank of Kuwait 8

  9. Slide 9: Operating Performance 2020

    Operating Performance 2020 Net Profit (KDm) Operating Surplus (KDm) 591.2 401.3 530.9 -38.6% -10.2% 246.3 99.1 140.3 146.1 124.6 77.7 57.6 4Q 2019 3Q 2020 4Q 2020 2019 2020 4Q 2019 3Q 2020 4Q 2020 2019 2020 Operating Income (KDm) Operating Income 895.5 842.5 Net interest income & Net income from Isl

  10. Slide 10: Operating Performance 2020

    Operating Performance 2020 Net Interest Income* (KDm) Average Interest Earning Assets (KDbn) 689.2 28.6 633.5 26.9 -8.1% +6.3% 172.2 154.1 160.9 4Q 2019 3Q 2020 4Q 2020 2019 2020 2019 2020 Net Interest Margin* Net Interest Margin drivers YTD NIM Qtrly NIM 2.65% 2.56% 2.64% -0.47% 2.59% 2.56% +0.70%

  11. Slide 11: Operating Performance 2020

    Operating Performance 2020 Non-interest income (KDm) Operating Expenses (KDm) Net fees and commissions Staff expenses Net gains from dealing in FX 206.3 209.1 311.6 Other operating expenses 304.3 Other non-interest income 10 25 39 +2.4% 38 +1.3% 129 137 63.8 50.5 49.2 82.5 71.8 85.5 157 146 19 2 7 1

  12. Slide 12: Operating Performance 2020

    Operating Performance 2020 Operating Income (KDm) - International Operating Income (KDm) 220.7 Int'l Int'l 206.1 25% 24% -6.6% Dom. Dom. 75% 76% 2019 2020 2019 2020 Net profit (KDm) - International Net Profit (KDm) 112.2 Int'l Int'l 28% 20% 49.9 Dom. -55.5% Dom. 72% 80% 2019 2020 2019 2020 Net profi

  13. Slide 13: Operating Performance 2020

    Operating Performance 2020 Total Assets (KDbn) Loans, Advances and Islamic Financing (KDbn) 29.3 29.7 17.5 16.6 +1.5% +5.7% Dec 19 Dec 20 Dec 19 Dec 20 Customer Deposits (KDbn) Funding Mix Due to banks and other FIs Customer Deposits CD's / Other borrowed funds 17.1 15.9 4% 7% +7.4% 65% 69% 31% 24%

  14. Slide 14: Performance and Asset Quality Ratios 2020

    Performance and Asset Quality Ratios 2020 Return on Average Equity Return on Average Assets 1.42% 12.3% 0.82% 7.0% 2019 2020 2019 2020 Capital Adequacy Ratios Asset Quality Ratios CET 1 Ratio Tier 1 Ratio Capital Adequacy Ratio Loan Loss Coverage Ratio NPL Ratio 18.4% 1.85% 17.8% 1.72% 15.9% 16.0% 2

  15. Slide 15: 2021 Guidance

    2021 Guidance 2020 2021 Guidance Loan Growth +5.7% Mid To High Single Digit NIM 2.21% Broadly Stable Cost to Income ratio 37.0% High 30s Cost of Risk 121bps Earnings -38.6% yoy Capital Adequacy 18.4% National Bank of Kuwait 15

  16. Slide 16: Contents

    Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance 2020 Section 3 Appendix Section 4 Questions National Bank of Kuwait 16

  17. Slide 17: Consolidated Statement Of Income (KDm)

    Consolidated Statement Of Income (KDm) KDm 2019 2020 YoY Growth (%) Interest Income 987 757 (23%) Interest Expense 422 267 (37%) Net Interest Income 565 490 (13%) Murabaha and other Islamic financing income 211 225 7% Finance cost and Distribution to depositors 87 82 (6%) Net Income from Islamic fin

  18. Slide 18: Consolidated Statement Of Financial Position (KDm)

    Consolidated Statement Of Financial Position (KDm) KDm Dec-2019 Dec-2020 YoY Growth % Cash and short term funds 3,787 3,903 3% Central Bank of Kuwait bonds 823 830 1% Kuwait Government treasury bonds 662 463 (30%) Deposits with banks 1,909 1,027 (46%) Loans, advances and Islamic financing to custome

  19. Slide 19: Performance Measures 2020

    Performance Measures 2020 % 2019 2020 Return on average assets 1.42% 0.82% Return on average equity 12.3% 7.0% Net interest margin 2.56% 2.21% Cost to income 34.0% 37.0% NPLs to gross loans 1.10% 1.72% Loan loss reserves to NPLs 272.2% 220.0% Tier 1 capital 15.9% 16.0% Tier 2 capital 1.9% 2.4% Capit

  20. Slide 20: Contents

    Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance 2020 Section 3 Appendix Section 4 Questions National Bank of Kuwait 20

  21. Slide 21: Questions?

    Questions? Presentation Title National Bank of Kuwait 21

  22. Slide 22: Thank You

    Thank You Presentation Title National Bank of Kuwait 22

  23. Slide 23: National Bank of Kuwait Investor Presentation FY 2020 Earnings Call

    National Bank of Kuwait Investor Presentation FY 2020 Earnings Call National Bank of Kuwait 23

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