Burgan Bank · KSE:BURG
Burgan Bank — Q1 2012 Earnings Presentation
27 slides from Burgan Bank's earnings presentation, Nov 16, 2012
Slide 1: Investor Presentation Q1 2012
INVESTOR PRESENTATION Q1 2012 Members of Burgan Bank Group: Members of Burgan Bank Group: 1
Slide 2: Disclaimer
Disclaimer 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. Various factors co
Slide 3: Agenda
Agenda Economic Highlights Key Highlights Financial Trends Financial Performance - Consolidated Financial Performance - By Country Inorganic Highlights Performance vs. Peers Conclusion Appendix Members of Burgan Bank Group: 3
Slide 4: Economic Highlights
Economic Highlights Members of Burgan Bank Group: 4
Slide 5: Key Economy takeaways
Key Economy takeaways No Major Changes: Economy in 2012 remains slow with declining demand and limited Investment levels. In Kuwait, Non-oil GDP growth is expected at 1.5 - 2% and Banking Assets projected to grow no more than 3%. Jordan , insinuates a modest pick up after the slow down shown i
Slide 6: Key Highlights
Key Highlights Members of Burgan Bank Group: 6
Slide 7: Key Highlights
Key Highlights Net Profit: KD17.5m (4.9% QoQ Growth Normalized). Revenues: KD42.6m (9.0% QoQ Growth Normalized). Operating Profit: KD26.6m (10.9% QoQ Growth Normalized). Accelerating leading indicators, despite sluggish markets conditions. Continuing focus on Balance Sheet growth: Loans
Slide 8: Financial Trends
Financial Trends Members of Burgan Bank Group: 8
Slide 9: Financial Trends – Q-o-Q
Financial Trends – Q-o-Q Revenue (KD million) Cost of Credit (KD million) 9.0% 42.6 Normalized Growth 12.9 38.4 5.0 Q4 11 Q1 12 Q4 11 Q1 12 Additional General Provisions KD7.5m. Net Profit (KD million) Key Indicators Burgan Bank Group Q4 11 Q1 12 4.9% Revenue Growth (QoQ) -11.7% 10.9% Normalized Ope
Slide 10: Financial Performance - Consolidated
Financial Performance - Consolidated Members of Burgan Bank Group: 10
Slide 11: Financial Performance - Income Statement
Financial Performance - Income Statement KD (million) Q1 11 Q4 11 Q1 12 Revenues 38.8 38.4 42.6 Operating Expense (15.8) (15.2) (16.1) Operating Profit 23.0 23.3 26.5 Regular Provisions 0.2 (5.5) (5.0) Net Profit Before Additional General Provisions 16.3 16.7 17.5 Additional General Provisions (4.4)
Slide 12: Financial Performance - Balance Sheet
Financial Performance - Balance Sheet KD (million) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Loans & Advances 2,147 2,152 2,194 2,252 2,405 Total Assets 4,075 4,152 4,290 4,552 4,773 Deposits 2,559 2,500 2,608 2,796 3,039 Total Liabilities 3,529 3,602 3,731 3,986 4,205 Shareholder's Equity 428 434 441 447 450 L
Slide 13: Financial Performance - NPL Trends
Financial Performance - NPL Trends Non Performing Loans (KD million) 400 200% 144.8% 300 150% 99.6% 266 200 100% 219 143 100 50% 70 0 0% Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 NPL NPL net of collateral Coverage net of collateral (RHS) NPLs net of collateral to Gross Loans (%) 6.1% 4.8
Slide 14: Financial Performance - By Country
Financial Performance - By Country Members of Burgan Bank Group: 14
Slide 15: Revenues – By Country
Revenues – By Country KD (million) Kuwait Revenue 21.6 19.5 Jordan Revenue Algeria Revenue Q4 11 Q1 12 7.8 10.9 10.0 6.9 Q4 11 Q1 12 Q1 12 Q4 11 Q1 12 vs. Iraq Revenue Tunisia Revenue Q4 11 10.9% 2.8 2.5 1.0 0.9 Q4 11 Q1 12 Q4 11 Q1 12 Members of Burgan Bank Group: * Reported Figures excludes consol
Slide 16: Operating Profit - By Country
Operating Profit - By Country KD (million) Kuwait Operating Profit 13.8 11.2 Jordan Operating Profit Algeria Operating Profit Q4 11 Q1 12 8.0 5.6 6.6 4.6 Q4 11 Q1 12 Q1 12 Q4 11 Q1 12 vs. Iraq Operating Profit Tunisia Operating Profit Q4 11 14.2% 1.7 1.3 0.5 0.4 Q4 11 Q1 12 Q4 11 Q1 12 Members of Bu
Slide 17: Inorganic Highlights
Inorganic Highlights Members of Burgan Bank Group: 17
Slide 18: Turkey
Turkey Breakdown by Segment 3% Assets 58% 16% 5% 15% 4% 0.3% Loans 61% 18% 5% 13% 2% 3% Deposits 57% 19% 6% 11% 5% Key Updates April 9th 2012; SPA Signed. 2% Net Profit 65% 14% 10% 5% 3% Business Risk Review initiated. Integration Committee formed. Requirements for regulators under Burgan Ba
Slide 19: Performance vs. Peers
Performance vs. Peers Members of Burgan Bank Group: 19
Slide 20: Returns of Conventional Banks
Returns of Conventional Banks Net Profit Upside / Downside Q-o-Q (KD million) 8.4 4.2 4.2 1.0 -# NBK ABK CBK GBK BB Net Profit Upside / Downside Y-o-Y (KD million) 5.7 0.2 -# NBK ABK CBK GBK BB (2.4) (4.9) # Commercial Bank of Kuwait not yet reported. Members of Burgan Bank Group: 20
Slide 21: Returns of Conventional Banks
Returns of Conventional Banks RoE 16.6% 13.6% 14.7% 12.0% 10.7% 9.6% 7.5% 7.0% 0.2% -# NBK ABK Q4 11 CBK Q1 12 GBK BB RoNAV 28.1% 21.1% 15.2% 16.3% 10.7% 9.6% 7.5% 7.0% 0.2% -# NBK ABK CBK GBK BB Q4 11 Q1 12 # Commercial Bank of Kuwait not yet reported. Members of Burgan Bank Group: 21
Slide 22: Conclusion
Conclusion Members of Burgan Bank Group: 22
Slide 23: Conclusion
Conclusion Good quarter performance with key indicators moving in the right direction Inorganics moving as per plan High focus on BAU and Building on Group's cross sell. Strategy, Business Model and Execution proven resilient despite weak economic conditions. Members of Burgan Bank Group: 23
Slide 24: Thank You
Thank You Members of Burgan Bank Group: 24
Slide 25: Appendix
Appendix Members of Burgan Bank Group: 25
Slide 26: Burgan Bank - AA (Positive) Brand Valuation
Burgan Bank - AA (Positive) Brand Valuation Brand in Kuwait 2nd 397th 19th Brand GLOBALLY in TOP 500 Brand in GCC Members of Burgan Bank Group: 26
Slide 27: Global Banking Finance Review (GBFR Awards)
Global Banking Finance Review (GBFR AWARDS) “Superior performance and commitment of maintaining exceptional growth levels” Best Corporate Banking in Kuwait 2012 “Acknowledgements of turnaround performance and delivery of sound results” Best Banking Group in MENA 2012 Members of Burgan Bank Group: 27