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

National Bank Of Kuwait K.s.c — National Bank of Kuwait — Q1 2023 Earnings Presentation

26 slides from National Bank Of Kuwait K.s.c's earnings presentation, 2023

  1. Slide 1: National Bank of Kuwait Investor Presentation 1Q 2023 Earnings Call

    PUBLIC National Bank of Kuwait Investor Presentation 1Q 2023 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 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 Kuwait Private credit (change, % y/y) Real GDP (% y/y) 12 12 10 10 Total 12m avg Total Non-oil 10 10 5 5 8 8 1.2 6 6 0 0 4 4 -5 -5 2 2 -10 -10 0 0 2014 2015 2016 2017 2018 2019 2020e 2021e 2022e 2023f Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 Feb-23 Development of the

  5. Slide 5: NBK Profitability (KDm)

    PUBLIC NBK Profitability (KDm) Net Profit Attributable 15.1% 136.4 134.8 134.2 121.2 116.6 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 National Bank of Kuwait 5

  6. Slide 6: NBK's Strategy

    PUBLIC 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

  7. Slide 7: NBK ESG Strategy Framework

    PUBLIC NBK ESG Strategy Framework National Bank of Kuwait 7

  8. Slide 8: Building A Leading Journey In ESG

    PUBLIC Building A Leading Journey In ESG ESG Awards and Ratings Carbon Disclosure Project (CDP) Score 2022 Aligned with National and Global Frameworks National Bank of Kuwait 8

  9. Slide 9: 2022-2023 Key ESG Achievements

    PUBLIC 2022-2023 Key ESG Achievements We measure our progress against well-defined metrics and targets to achieve the greatest impact. Strategy Pillars Key Highlights  Launched NBK Sustainable Financing Framework and received SPO by S&P Global.  Developed a roll-out plan for sustainable products f

  10. Slide 10: Contents

    PUBLIC Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance Section 3 Appendix Section 4 Questions National Bank of Kuwait 10

  11. Slide 11: Operating Performance 1Q 2023

    PUBLIC Operating Performance 1Q 2023 Net Profit (KDm) Operating Surplus (KDm) 134.8 134.2 176.4 116.6 +15.1% 157.8 144.5 +22.0% 1Q 2022 4Q 2022 1Q 2023 1Q 2022 4Q 2022 1Q 2023 Operating Income (KDm) Operating Income Net interest income & Net income from Islamic Financing Non-interest income 277.9 26

  12. Slide 12: Operating Performance 1Q 2023

    PUBLIC Operating Performance 1Q 2023 Net Interest Income* (KDm) Average Interest Earning Assets (KDbn) 209.2 211.8 34.7 32.0 +8.3% 168.7 +25.5% 1Q 2022 4Q 2022 1Q 2023 1Q 2022 1Q 2023 Net Interest Margin* Net Interest Margin drivers YTD NIM Qtrly NIM +1.12% -2.01% 2.46% +1.23% 2.40% 2.48% 2.22% 2.48

  13. Slide 13: Operating Performance 1Q 2023

    PUBLIC Operating Performance 1Q 2023 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 65.9 66.1 104.5 101.5 7 90.1 53.1 13 +0.3% 3 8 +12.6% 48 47 10 5 38 51 43 45 52 56 55 1Q 202

  14. Slide 14: Operating Performance 1Q 2023

    PUBLIC Operating Performance 1Q 2023 Operating Income (KDm) - International Operating Income (KDm) 72.8 Int'l Int'l 56.6 24% 26% +28.7% Dom. Dom. 76% 74% 1Q 2022 1Q 2023 1Q 2022 1Q 2023 Net profit (KDm) - International Net Profit (KDm) 43.0 Int'l 17% Int'l 32% 20.2 +112.9% Dom. Dom. 68% 83% 1Q 2022

  15. Slide 15: Operating Performance 1Q 2023

    PUBLIC Operating Performance 1Q 2023 Total Assets (KDbn) Loans, Advances and Islamic Financing (KDbn) 36.3 36.5 33.7 21.0 21.2 20.1 +8.2% +5.7% Mar 22 Dec 22 Mar 23 Mar 22 Dec 22 Mar 23 Customer Deposits & FI Deposits* (KDbn) Funding Mix Customer Deposits FI Deposits Customer Deposits Due to banks D

  16. Slide 16: Performance and Asset Quality Ratios 1Q 2023

    PUBLIC Performance and Asset Quality Ratios 1Q 2023 Return on Average Equity Return on Average Assets 15.0% 1.48% 1.50% 14.3% 1.41% 13.4% 1Q 2022 FY 2022 1Q 2023 1Q 2022 FY 2022 1Q 2023 Capital Adequacy Ratios Asset Quality Ratios CET 1 Ratio Tier 1 Ratio Capital Adequacy Ratio Loan Loss Coverage Ra

  17. Slide 17: Expected Credit Losses (ECL) 1Q 2023

    PUBLIC Expected Credit Losses (ECL) 1Q 2023 Financial Statements ECL Disclosure (KDm) Total Gross Loans (KDbn) Stage 1 Stage 2 Stage 3 31 March 2023 Stage1 Stage 2 Stage 3 Total 20.8 22.0 21.8 1% 2% 1% Loans, advances and Islamic 6% 8% 6% financing to customers 20,384 1,300 341 22,025 Contingent lia

  18. Slide 18: 2023 Guidance

    PUBLIC 2023 Guidance 1Q 2023 2023 Guidance Loan Growth +0.9% Mid Single Digit NIM 2.48% Broadly Stable Cost to Income ratio 36.5% High 30’s Cost of Risk 53bps Earnings +15.1% Capital Adequacy 17.1% National Bank of Kuwait 18

  19. Slide 19: Contents

    PUBLIC Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance Section 3 Appendix Section 4 Questions National Bank of Kuwait 19

  20. Slide 20: Consolidated Statement Of Income (KDm)

    PUBLIC Consolidated Statement Of Income (KDm) KDm 1Q 2022 1Q 2023 YoY Growth (%) Interest Income 172 361 NM Interest Expense 47 191 NM Net Interest Income 125 171 36% Murabaha and other Islamic financing income 61 92 51% Finance cost and Distribution to depositors 18 51 NM Net Income from Islamic fi

  21. Slide 21: Consolidated Statement Of Financial Position (KDm)

    PUBLIC Consolidated Statement Of Financial Position (KDm) KDm March 2022 March 2023 YoY Growth % Cash and short term funds 4,918 5,108 4% Central Bank of Kuwait bonds 831 894 8% Kuwait Government treasury bonds 269 198 (26%) Deposits with banks 1,062 1,427 34% Loans, advances and Islamic financing t

  22. Slide 22: Performance Measures 1Q 2023

    PUBLIC Performance Measures 1Q 2023 March- 2022 March - 2023 Return on average assets 1.41% 1.50% Return on average equity 13.4% 15.0% Net interest margin 2.14% 2.48% Cost to income 38.4% 36.5% NPLs to gross loans 1.12% 1.55% Loan loss reserves to NPLs 302% 245% Tier 1 capital 15.4% 14.8% Tier 2 cap

  23. Slide 23: Contents

    PUBLIC Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance Section 3 Appendix Section 4 Questions National Bank of Kuwait 23

  24. Slide 24: Questions?

    PUBLIC Questions? National Bank of Kuwait 24

  25. Slide 25: Thank You

    PUBLIC Thank You National Bank of Kuwait 25

  26. Slide 26: National Bank of Kuwait Investor Presentation 1Q 2023 Earnings Call

    PUBLIC National Bank of Kuwait Investor Presentation 1Q 2023 Earnings Call National Bank of Kuwait 26

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