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

National Bank Of Kuwait K.s.c — National Bank of Kuwait — 9M 2020 Earnings Presentation

24 slides from National Bank Of Kuwait K.s.c's earnings presentation, 2020

  1. Slide 1: National Bank of Kuwait Investor Presentation 3Q/9M 2020 Earnings Call

    National Bank of Kuwait Investor Presentation 3Q/9M 2020 Earnings Call

  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 3Q / 9M 2020 Section 3 Appendix Section 4 Questions 2

  4. Slide 4: NBK Profitability (KWD mn)

    NBK Profitability (KWD mn) 302 -44.2% 169 93 -38.1% 58 3Q 2019 3Q 2020 9M 2019 9M 2020 3

  5. Slide 5: Key Economic and Financial Highlights

    Key Economic and Financial Highlights Development of the Discount rate (%, end year2) Real GDP (% y/y) 3.5 3.5 8 6.5 8 Total Non-oil 6 4.9 4.2 6 3.0 3.0 2.7 3.0 4 1.5 1.7 4 1.0 2.5 2.5 2 2 0.5 2.9 1.9 0 1.1 1.2 0 2.0 2.0 -4.7 -… -2 0.6 -4.0 -2 -4 -4 1.5 1.5 -6 -6.2 -6 1.0 1.0 -8 -8 2010 2011 2012 20

  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  NBK has one of the highest credit ratings in the MENA  As at 31 December 2019, the Bank was the largest region bank in Kuwait in terms of total assets, loans a

  7. Slide 7: Contents

    Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance 3Q / 9M 2020 Section 3 Appendix Section 4 Questions 6

  8. Slide 8: Operating Performance 9M 2020

    Operating Performance 9M 2020 Net Profit (KDm) Operating Surplus (KDm) 302.2 451.0 406.3 -44.2% -9.9% 168.7 93.1 144.9 146.1 117.9 57.6 33.4 3Q 2019 2Q 2020 3Q 2020 9M 2019 9M 2020 3Q 2019 2Q 2020 3Q 2020 9M 2019 9M 2020 Operating Income (KDm) Operating Income 672.8 632.4 Non-interest income Net int

  9. Slide 9: Operating Performance 9M 2020

    Operating Performance 9M 2020 Net Interest Income (KDm) Average Interest Earning Assets (KDbn) 517.0 28.7 472.6 26.7 -8.6% +7.5% 172.6 154.1 149.3 3Q 2019 2Q 2020 3Q 2020 9M 2019 9M 2020 9M 2019 9M 2020 Net Interest Margin* Net Interest Margin drivers YTD NIM Qtrly NIM 2.65% 2.64% 2.59% 2.59% -0.43%

  10. Slide 10: Operating Performance 9M 2020

    Operating Performance 9M 2020 Non-interest income (KDm) Operating Expenses (KDm) Net fees and commissions Staff expenses 155.8 159.8 Net gains from dealing in FX 221.8 226.1 Other operating expenses Other non-interest income 18 31 +1.9% 32 2.6% 92 102 63.8 48.3 76.0 40.4 117 71.9 71.8 19 110 12 1 6

  11. Slide 11: Operating Performance 9M 2020

    Operating Performance 9M 2020 Operating Income (KDm) - International Operating Income (KDm) Int'l Int'l 164.4 156.8 24% 25% -4.7% Dom. Dom. 76% 75% 9M 2019 9M 2020 9M 2019 9M 2020 Net profit (KDm) - International Net Profit (KDm) 83.7 Int'l Int'l 15% 28% Dom. 25.9 -69.1% 72% Dom. 85% 9M 2019 9M 2020

  12. Slide 12: Operating Performance 9M 2020

    Operating Performance 9M 2020 Total Assets (KDbn) Loans, Advances and Islamic Financing (KDbn) 30.4 28.9 29.3 17.6 16.4 16.6 +3.8% +6.5% +5.1% +7.8% Sep 19 Dec 19 Sep 20 Sep 19 Dec 19 Sep 20 Customer Deposits (KDbn) Funding Mix 17.5 Due to banks and other FIs Customer Deposits CD's / GMTN / T2 Bonds

  13. Slide 13: Performance and Asset Quality ratios 9M 2020

    Performance and Asset Quality ratios 9M 2020 Return on Average Equity Return on Average Assets 1.45% 1.42% 12.6% 12.3% 0.75% 6.6% 9M 2019 FY 2019 9M 2020 9M 2019 FY 2019 9M 2020 Capital Adequacy Ratios Asset Quality Ratios CET 1 Ratio Tier 1 Ratio Capital Adequacy Ratio Loan Loss Coverage Ratio NPL

  14. Slide 14: 2020 Guidance

    2020 Guidance 9M 2020 2020 Guidance Loan Growth +6.5% ytd Mid To High Single Digit NIM 2.20% Tighter Cost to Income ratio 35.8% Broadly Stable Cost of Risk 133bps Earnings -44.2% yoy Capital Adequacy 17.0% 13

  15. Slide 15: Contents

    Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance 3Q / 9M 2020 Section 3 Appendix Section 4 Questions 14

  16. Slide 16: Consolidated Financials 9M 2020 (KWD million)

    Consolidated Financials 9M 2020 (KWD million) YoY Growth Balance sheet (KWD million) YoY Growth Income Statement (KWD million) 9M-2019 9M-2020 Sep-2019 Sep-2020 (%) (%) Interest Income 741 590 (20%) Cash and short term funds 3,580 4,405 23% Central Bank of Kuwait bonds 825 831 1% Interest Expense 31

  17. Slide 17: Performance Measures 9M 2020

    Performance Measures 9M 2020 % 9M 2019 9M 2020 Return on average assets 1.45% 0.75% Return on average equity 12.6% 6.6% Net interest margin 2.59% 2.20% Cost to income 33.0% 35.8% NPLs to gross loans 1.37% 1.89% Loan loss reserves to NPLs 227.4% 191.0% Tier 1 capital 13.9% 15.1% Tier 2 capital 1.9% 1

  18. Slide 18: Consolidated Statement Of Income (KWD million)

    Consolidated Statement Of Income (KWD million) KWD million 2017 2018 2019 Interest Income 743 897 987 Interest Expense 224 331 422 Net Interest Income 519 566 565 Murabaha and other Islamic financing income 156 186 211 Finance cost and Distribution to depositors 46 62 87 Net Income from Islamic fina

  19. Slide 19: Consolidated Statement Of Financial Position (KWD million)

    Consolidated Statement Of Financial Position (KWD million) KWD million 2017 2018 2019 Cash and short term funds 2,744 2,967 3,787 Central Bank of Kuwait bonds 656 810 823 Kuwait Government treasury bonds 1,076 872 662 Deposits with banks 2,488 2,364 1,909 Loans, advances and Islamic financing to cus

  20. Slide 20: Stable Credit Ratings

    Stable Credit Ratings Long-term Standalone Rating Agency Outlook Key Rating Drivers Rating Rating • Dominant domestic market position • Resilient profitability and growth prospects A1 a3 Stable • Robust asset quality, adequate capitalization and ample liquidity • Leading position in Kuwait A a- Stab

  21. Slide 21: Contents

    Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance 3Q / 9M 2020 Section 3 Appendix Section 4 Questions 20

  22. Slide 22: Questions

    Questions yiibagJl NBK ee

  23. Slide 23: Thank You

    Thank You yiibagJl NEE

  24. Slide 24: National Bank of Kuwait Investor Presentation 3Q / 9M 2020 Earnings Call

    National Bank of Kuwait Investor Presentation 3Q / 9M 2020 Earnings Call

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