National Bank Of Kuwait K.s.c. · KSE:NBK
National Bank Of Kuwait K.s.c — National Bank of Kuwait — FY2021 Earnings Presentation
25 slides from National Bank Of Kuwait K.s.c's earnings presentation, 2022
Slide 1: National Bank of Kuwait Investor Presentation FY 2021 Earnings Call
PUBLIC National Bank of Kuwait Investor Presentation FY 2021 Earnings Call National Bank of Kuwait 1
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
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
Slide 4: Key Economic Highlights
PUBLIC Key Economic Highlights COVID-19 Vaccine Doses Administered Real GDP (% y/y) Total Non-oil 8000000 10 10 7000000 5.7 6000000 3.8 5.1 5 3.1 2.4 2.5 3.2 5 5000000 1.5 4000000 1.1 -0.1 2.8 0.5 0.6 3000000 0 0 2000000 2.4 -0.6 3.5 1.0 1000000 -5 -8.8 -5 0 -5.3 12-Feb-21 22-Feb-21 14-Mar-21 24-Mar
Slide 5: NBK Profitability (KDm)
PUBLIC NBK Profitability (KDm) Net Profit Attributable 47.1% 362.2 246.3 107.4 94.1 84.3 76.5 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 2021 National Bank of Kuwait 5
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
Slide 7: NBK Sustainability Pillars
PUBLIC Maintaining Course with Our Sustainability Directions NBK Sustainability Pillars Respecting Contributing Giving Back Caring for Serving Leading in and to Economic to Our Our Customers Governance Developing Development Community Environment People National Bank of Kuwait 7
Slide 8: Close Alignment With International Frameworks and ESG Raters
PUBLIC Close Alignment With International Frameworks and ESG Raters National Bank of Kuwait 8
Slide 9: Contents
PUBLIC Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance Section 3 Appendix Section 4 Questions National Bank of Kuwait 9
Slide 10: Operating Performance 2021
PUBLIC Operating Performance 2021 Net Profit (KDm) Operating Surplus (KDm) 530.9 547.4 362.2 +47.1% +3.1% 246.3 107.4 94.1 132.2 132.7 77.7 124.6 4Q 2020 3Q 2021 4Q 2021 2020 2021 4Q 2020 3Q 2021 4Q 2021 2020 2021 Operating Income (KDm) Operating Income 906.3 Net interest income & Net income from Is
Slide 11: Operating Performance 2021
PUBLIC Operating Performance 2021 Net Interest Income* (KDm) Average Interest Earning Assets (KDbn) 30.3 669.3 633.5 28.6 +5.7% +5.7% 160.9 168.5 167.2 0 4Q 2020 3Q 2021 4Q 2021 2020 2021 2020 2021 Net Interest Margin* Net Interest Margin drivers YTD NIM Qtrly NIM 2.21% -0.22% +0.56% 2.21% -0.34% 2.
Slide 12: Operating Performance 2021
PUBLIC Operating Performance 2021 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 358.9 237.1 311.6 +15.2% 209.1 32 +13.4 % 25 158 40 38 137 60.1 58.0 96.3 49.2 165 92.5 146 85.
Slide 13: Operating Performance 2021
PUBLIC Operating Performance 2021 Operating Income (KDm) - International Operating Income (KDm) 206.1 224.0 +8.7% Int'l Int'l 24% 25% Dom. Dom. 76% 75% 2020 2021 2020 2021 Net profit (KDm) - International Net Profit (KDm) 92.2 Int'l Int'l +84.7% 20% 25% 49.9 Dom. Dom. 80% 75% 2020 2021 2020 2021 Net
Slide 14: Operating Performance 2021
PUBLIC Operating Performance 2021 Total Assets (KDbn) Loans, Advances and Islamic Financing (KDbn) 33.3 19.7 29.7 +11.9% 17.5 +12.7% Dec 20 Dec 21 Dec 20 Dec 21 Customer Deposits & FI Deposits* (KDbn) Funding Mix Customer Deposits FI Deposits Customer Deposits Due to banks Deposits from other FIs CD
Slide 15: Performance and Asset Quality Ratios 2021
PUBLIC Performance and Asset Quality Ratios 2021 Return on Average Equity Return on Average Assets 1.15% 10.2% 0.82% 7.0% 2020 2021 2020 2021 Capital Adequacy Ratios Asset Quality Ratios CET 1 Ratio Tier 1 Ratio Capital Adequacy Ratio Loan Loss Coverage Ratio NPL Ratio 18.4% 18.1% 300% 16.0% 15.7% 1
Slide 16: Expected Credit Losses (ECL) 2021
PUBLIC Expected Credit Losses (ECL) 2021 Financial Statements ECL Disclosure (KDm) Total Gross Loans (KDbn) Stage 1 Stage 2 Stage 3 31 Dec 2021 Stage1 Stage 2 Stage 3 Total 18.2 20.4 2% 1% Loans, advances and Islamic 10% 8% financing to customers 18,478 1,666 211 20,356 88% 91% Contingent liabilitie
Slide 17: 2022 Guidance
PUBLIC 2022 Guidance 2021 2022 Guidance Loan Growth +12.7% High Single Digit NIM 2.21% Broadly Stable Cost to Income ratio 39.6% Broadly Stable Cost of Risk 63bps Earnings +47.1% Capital Adequacy 18.1% National Bank of Kuwait 17
Slide 18: Contents
PUBLIC Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance Section 3 Appendix Section 4 Questions National Bank of Kuwait 18
Slide 19: Consolidated Statement Of Income (KDm)
PUBLIC Consolidated Statement Of Income (KDm) KDm 2020 2021 YoY Growth (%) Interest Income 757 661 (13%) Interest Expense 267 155 (42%) Net Interest Income 490 506 3% Murabaha and other Islamic financing income 225 228 1% Finance cost and Distribution to depositors 82 65 (21%) Net Income from Islami
Slide 20: Consolidated Statement Of Financial Position (KDm)
PUBLIC Consolidated Statement Of Financial Position (KDm) KDm December-2020 December-2021 YoY Growth % Cash and short term funds 3,903 5,082 30% Central Bank of Kuwait bonds 830 830 0% Kuwait Government treasury bonds 463 417 (10%) Deposits with banks 1,027 885 (14%) Loans, advances and Islamic fina
Slide 21: Performance Measures 2021
PUBLIC Performance Measures 2021 Decemberr-2020 December-2021 Return on average assets 0.82% 1.15% Return on average equity 7.0% 10.2% Net interest margin 2.21% 2.21% Cost to income 37.0% 39.6% NPLs to gross loans 1.72% 1.04% Loan loss reserves to NPLs 220% 300% Tier 1 capital 16.0% 15.7% Tier 2 cap
Slide 22: Contents
PUBLIC Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance Section 3 Appendix Section 4 Questions National Bank of Kuwait 22
Slide 23: Questions?
PUBLIC Questions? National Bank of Kuwait 23
Slide 24: Thank You
PUBLIC Thank You National Bank of Kuwait 24
Slide 25: National Bank of Kuwait Investor Presentation FY 2021 Earnings Call
PUBLIC National Bank of Kuwait Investor Presentation FY 2021 Earnings Call National Bank of Kuwait 25
National Bank of Kuwait — FY2021 Earnings Presentation on 6ix