Kuwait Finance House K.s.c. · KSE:KFH
Kuwait Finance House K.s.c — Kuwait Finance House — H1 2023 Earnings Presentation
21 slides from Kuwait Finance House K.s.c's earnings presentation, Jul 26, 2023
Slide 1: H1-2023 Earnings Presentation
H1-2023 Earnings Presentation Date: 26 July 2023 © Kuwait Finance House, 2023
Slide 2: Disclaimer
Disclaimer • IMPORTANT NOTICE • This presentation has been prepared by Kuwait Finance House and is subject to the applicable laws and regulations in the State of Kuwait. It is for information purposes only and it shall not be reproduced or redistributed to any other person without obtaining Kuwait F
Slide 3: Agenda
1 Kuwait’s Operating Environment 2 Overview of KFH 3 KFH Strategy 4 H1-23 Financial Results 5 Appendix 3
Slide 4: Kuwait's Operating Environment
Boursa Kuwait’s Market Capitalization GDP Constant Price Kuwait Crude % Inflation Y-o-Y% % % Y-O-Y USD Y-o-Y 4.5 1H-2023 41,514 3.9 -5.7% 10 120 4 3.5 8.2 3.5 3.3 30-6-2023 1H-2022 44,005 8 110 3 2.6 MLN KWD 77.82 2.5 2.0 6 100 Boursa Kuwait’s Traded Volume 2 4 2.7 2.6 90 1.5 1 1H-2023 17,077 2 1.3
Slide 5: Overview of KFH's Awards & Ratings
Overview of KFH’s Awards & Ratings Kuwait Regional Global Best Best Best Islamic Financial Institution Islamic Bank Islamic Bank in Kuwait in the Middle East in the World euromoney Global Finance Global Finance Long-Term Issuer Default Rating A LT FC Bank Deposits Rating A2 Short-Term Issuer Default
Slide 6: Overview of KFH Branches
Overview of KFH 90 Branches Kuwait 6 Branches Germany 10 Branches Iraq UK Turkey 440 Branches 1 Branches Egypt 40 Branches 9 Branches Saudi Arabia 30 Branches Malaysia Bahrain 1 Branches 6
Slide 7: Robust Financial Performance Leading
Leading Strategic Effective Risk Robust Financial Strong Government Professional Islamic Financial Distribution Management Performance Sponsorship Management Team Institution Channels Framework A consistent track Second largest Islamic 38.4% ownership by Well-rounded human Diversified KFH continuous
Slide 8: KFH Strategy
KFH Strategy KFH’s main focus is on core banking business activities Simplify experience Digitize operations Grow business Across all four main business sectors Retail Corporate Private Treasury 8
Slide 9: Agenda: H1-23 Financial Results
1 Kuwait’s Operating Environment 2 Overview of KFH 3 KFH Strategy 4 H1-23 Financial Results 5 Appendix 9
Slide 10: H1-23 Financial Highlights
H1-23 Financial Highlights Net Profit for Shareholders Net Financing Net Operating Income Income KD 333.4 m KD 458.5 m KD 489.1 m 141.4% 43 .2% 58.6% Cost to Income Ratio EPS (fils) 33.40% 22.03 (H1-22: 32.64%) (H1-22 : 12.71fils) 10
Slide 11: H1-23 Financial Performance
H1-23 Financial Performance Net Profit Financing Net Financing Net Operating for Shareholders Income Operating Income Profile Income Income (KD mn) (KD mn) (KD mn) (KD mn) Non-Financing Income (%) Net Financing Income (%) 141.4% 43.2% Investment Income (%) 105.5% 458.5 58.6% 333.4 990.7 489.1 27.79%
Slide 12: H1-23 Financial Performance
H1-23 Financial Performance Non - Financing Total Operating Income (KD mn) Expenses (KD mn) Other Income Depreciation and Amortization Net Gain from Foreign Currencies Other Operating Expenses Fees and Commission Income Staff Costs Investment Income C/I Ratio 275.9 245.3 34.0 36.3 H1-23, 33.40% H1-2
Slide 13: H1-23 Financial Performance
H1-23 Financial Performance Average Profit Earning Assets (KD bn) Net Financing Margin Net Monetary Loss* (KD mn) 3.08% 3.36% 2.62% 46.1 28.6% 25.5% H1-22 2022 H1-23 Provision and Impairment (KD mn) 29.0 25.9 23.1 6.1 17.3 45.2 9.2 4.4 29.7 18.0 61.6 2.8 29.5 H1-22 H1-23 (0.9) 7.8 22.9 (13.1) 18.7 *
Slide 14: H1-23 Financial Performance
H1-23 Financial Performance Total Net Investment in debt Depositors’ Assets Financing securities Accounts Funding Mix (KD bn) (KD bn) (KD bn) (KD bn) 109.5% 43.4% Depositors Accounts 62.4% 56.5% 2.0% Due to Banks & FI's 0.1% 1.4% 1.2% Sukuk Payable 37.0 37.0 22.5 22.9 6.1 6.2 0.8% 2.7% 2.1% 18.8 19.
Slide 15: H1-23 Key Financial Ratios
H1-23 Key Financial Ratios Return on Average Return on Average Return on Average C/I (%) EPS (fils) Tangible Equity (%) Equity (%) Assets (%) 23.62% 22.03 2.15% 14.64% 12.72% 1.61% 14.90% 12.71 32.64% 33.40% H1-22 H1-23 H1-22 H1-23 H1-22 H1-23 H1-22 H1-23 H1-22 H1-23 15
Slide 16: Q&A
Q&A 16
Slide 17: Appendix
Appendix 17
Slide 18: Consolidated Financial Statements H1-23 Vs. H1-22
Consolidated Financial Statements H1-23 Vs. H1-22 Consolidated Statement of Financial Position (KD million) Jun-23 Jun-22 Consolidated Statement of Income (KD million) Jun-23 Jun-22 Cash and balances with banks and financial institutions 2,568 2,293 Financing income 991 482 Due from Banks 3,966 3,36
Slide 19: Consolidated Statement of Financial Position 2018 - 2022
Consolidated Statement of Financial Position 2018 - 2022 Consolidated Statement of Financial Position (KD million) 2018 2019 2020 2021 2022 Cash and balances with banks and financial institutions 1,381 1,910 2,491 2,325 3,156 Due from Banks 3,444 3,646 3,365 3,350 3,870 Financing receivables 9,190 9
Slide 20: Consolidated Statement of Income 2018 - 2022
Consolidated Statement of Income 2018 - 2022 Consolidated Statement of Income (KD million) 2018 2019 2020 2021 2022 Financing income 862 932 893 871 1,322 Financing cost and distribution to depositors 335 401 279 286 522 Net finance income 527 530 614 586 801 Investment income 63 130 -6 16 44 Fees a
Slide 21: Investor.relations@kfh.com
Investor.relations@kfh.com 21