Burgan Bank · KSE:BURG
Burgan Bank — 9M 2012 Earnings Presentation
32 slides from Burgan Bank's earnings presentation, December 2012
Slide 1: Investor Presentation 9 Months 2012
INVESTOR PRESENTATION 9 Months 2012 Members of Burgan Bank Group: Members of Burgan Bank Group: 1
Slide 2: Agenda
Agenda Economic Highlights Key Highlights Financial Trends Financial Performance Performance vs. Peers Inorganic Highlights Conclusion Appendix Members of Burgan Bank Group: 2
Slide 3: Economic Highlights
Economic Highlights Members of Burgan Bank Group: 3
Slide 4: Key Economy takeaways
Key Economy takeaways GCC: Growth supported by oil revenues and fiscal Kuwait: Political deadlock hinders implementation expansion of development plan Growth will decelerate from 4.6% (2012) to 3.8% (2013). Growth down from 4.5% (2012) to 3.0% (2013), as oil production and exports slow. Saudi Arabia
Slide 5: Key Highlights
Key Highlights Members of Burgan Bank Group: 5
Slide 6: Summary for the period
Summary for the period 9M REVENUE: KD138.9 MILLION, UP 11.1% YOY. Q3 REVENUE OF KD48.2 MILLION. Profitability 9M NET PROFITS: KD 46.4 MILLION, UP 12.0% YOY. ANNUALIZED ROE: 14.1% UP FROM 13.3% IN 2011. ROTE OF 23.1%. GROSS LOAN PORTFOLIO GREW 27.0% YOY. TOTAL ASSETS EXCEEDED KD 5.1 BILLION. Leading
Slide 7: Financial Trends
Financial Trends Members of Burgan Bank Group: 7
Slide 8: Financial Trends
Financial Trends Revenue (KD million)(1) Cost of Credit (KD million)(1) 2,783 ∆11.1% 138.9 2,252 125.0 2,194 22.4 2,136 16.2 15.9 8.0 ∆10.7% 8.9 43.5 48.2 4.4 8.2 6.5 2.5 Q3 11 Q3 12 9M 11 9M 12 Q3 11 Q3 12 FY 10 9M 11 FY 11 9M 12 Additional Provisions. Net Loans in KD million. Net Profit (KD millio
Slide 9: Financial Performance - Consolidated
Financial Performance - Consolidated Members of Burgan Bank Group: 9
Slide 10: Financial Performance – Income Statement
Financial Performance – Income Statement Revenue (KD million) 48.1 48.2 42.7 43.5 42.6 38.8 Q1 11 Q2 11 Q3 11 Q1 12 Q2 12 Q3 12 Operating Profit (KD million) 30.9 28.6 29.3 27.1 26.6 23.0 Q1 11 Q2 11 Q3 11 Q1 12 Q2 12 Q3 12 Q1 11 Q2 11 Q3 11 Q1 12 Q2 12 Q3 12 40.7% 36.5% 34.3% 37.7% 39.1% 35.8% Memb
Slide 11: Financial Performance – Income Statement
Financial Performance – Income Statement Cost of Credit (KD million) 9M 2012: KD 22.4 million 9M 2011: KD 16.2 million 5.0 8.5 8.9 7.4 5.0 4.5 6.4 4.4 3.9 4.4 4.6 4.0 3.5 2.5 Q1 11 Q2 11 Q3 11 Q1 12 Q2 12 Q3 12 Additional Provisions. Net Profit (KD million) Net Profit (KD million)(1) 17.6 17.5 17.5
Slide 12: Financial Performance - Balance Sheet
Financial Performance - Balance Sheet KD (million) Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Loans & Advances 2,194 2,252 2,405 2,592 2,783 Total Assets 4,290 4,552 4,773 4,971 5,171 Deposits 2,608 2,796 3,040 3,164 3,330 Total Liabilities 3,731 3,986 4,205 4,386 4,573 Shareholder's Equity 441 447 450 468 478 L
Slide 13: Financial Performance - NPL Trends
Financial Performance - NPL Trends Non Performing Loans (KD million) 154% 400 160% 145% 139% 330 140% 266.2 260 120% 190 254.5 100% 120 253.3 70.1 75.5 72.0 50 80% Q1 12 Q2 12 Q3 12 NPL NPL net of collateral Coverage net of collateral (RHS) NPLs net of collateral to Gross Loans (%) 6.1% 4.8% 3.6% 2.
Slide 14: Financial Performance - By Country
Financial Performance - By Country Members of Burgan Bank Group: 14
Slide 15: Revenues Diversity
Revenues Diversity Revenue 9M 2012(1)(2) Operating Profit Margins 9M 2012(1)(2) Burgan Group at Burgan Group KD138.9m.(2) at 62.5%.(2) 68.9%(4) 71.1% 68.7%(3) 67.6%(4) Jordan, KD22.5m 25% 65.1% 66.8% 57.4% Kuwait, KD44.9m 49% Algeria, KD16.0m 17% 40.2% Tunisia, Iraq, KD1.8m KD6.1m 2% 7% Kuwait Jorda
Slide 16: Diversity Trends
Diversity Trends Revenue (KD million)(1) Net Profit (KD million)(1) 2,194 138.9 ∆11.1% ∆12.0% 125.0 2.5 46.4 3.0 9.5 41.4 2.4 8.9 24.5 1.1 2.3 9.5 16.6 4.6 4.0 33.9 6.5 32.2 35.1 68.8 30.0 64.3 -1.4 9M 11 9M 12 9M 11 9M 12 Tunisia Iraq Algeria Jordan Kuwait Tunisia Iraq Algeria Jordan Kuwait Members
Slide 17: Contribution Summary by Country
Contribution Summary by Country Contribution for 9M 2012(1) Total Assets 62.4% 15.4% 15.4% 2.4% 4.3% Customer Loans 65.3% 16.8% 16.8% 1.0% 0.2% Customer Deposits 66.4% 17.9% 7.3% 6.4% 2.0% Revenue 49.4% 24.4% 17.6% 6.8% 1.8% Operating Expense 50.2% 23.5% 14.8% 8.4% 3.1% Operating Profit 49.0% 24.8%
Slide 18: Performance vs. Peers
Performance vs. Peers Members of Burgan Bank Group: 18
Slide 19: 9M 2012 Vs. 9M 2011: Competitive landscape
9M 2012 Vs. 9M 2011: Competitive landscape Net Customers Loans (KD billion) Deposits (KD billion) 8.6 9.6 ∆6.7% ∆18.8% 7.7 ∆-3.0% 8.4 ∆0.9% ∆26.8% ∆27.7% 6.5 ∆-1.4% 7.9 ∆-3.8% 3.3 3.3 3.2 3.3 3.3 2.8 2.3 2.6 2.1 2.0 2.2 2.2 2.0 2.0 N/A N/A NBK ABK^ GBK CBK Burgan NBK ABK GBK CBK Burgan Revenues (KD
Slide 20: Inorganic Highlights
Inorganic Highlights Members of Burgan Bank Group: 20
Slide 21: Footprint Evolution
Footprint Evolution 2006 2008 2010 2012 Kuwait – Burgan Kuwait - Burgan Kuwait - Burgan Kuwait - Burgan Jordan – JKB Jordan – JKB Jordan – JKB Cyprus - JKB Algeria – AGB Algeria – AGB Iraq – BoB Iraq – BoB Tunis – TIB Tunis – TIB Cyprus - JKB Cyprus - JKB Lebanon – BoB Lebanon – BoB Malta – FIM Bank
Slide 22: Turkey
Turkey Breakdown by Segment (1) 3.4% Assets 59.4% 16.2% 13.6% 4.7% 2.7% 1.4% Loans 60.7% 18.8% 0.3% 13.1% 5.8% Key Updates Deposits 58.4% 19.0% 4.6% 10.2% Approval received from Kuwait 5.6% 2.2% Regulator on acquisition of ET. Pending Turkish Regulators Approvals. Burgan Bank Gulf Bank Target
Slide 23: Malta
Malta Relative numbers as of June 30th, 2012 (US$ million) Assets 17,656 1,076 Loans 1 9,213 713.0 Deposits 2 11,246 844.0 Key Updates Finalized Due Diligence . Equity 1,649 126.0 Approval received from Kuwait Regulator to acquire 25% stake. Revenues 3 322.5 18.7 Pending Maltese Regulators App
Slide 24: FIM Bank – key Financials
FIM Bank – key Financials Asset (US$ million) Capital Adequacy Ratio CAGR 19.1% 1,076 1,017 860 29.3% 124 696 124 107 253 245 20.6% 18.1% 123 223 19.3% 133 460 418 326 313 Regulatory Minimum 8% 204 230 239 127 2009 2010 2011 Jun-12 2009 2010 2011 Jun-12 Trading assets Loans to banks Loans to custome
Slide 25: Malta – FIM Bank
Malta – FIM Bank BUSINESS FOCUS SERVICE OFFERING A Boutique Bank in Trade Finance covering all related business. FORFAITING Having a growing global presence in the main Trade Finance centers. TRADE FINANCE Recognized by international partners and professionals in the industry as a quality part
Slide 26: Capital Adequacy Trends
Capital Adequacy Trends Working to issue a Subdebt for KD 100 million (within 60 days). CAR (2008A-2012F) 24% 2,250 Acquisition ET 22% 20.9% 19.3% 2,000 20% 18.0% 16.9% 17.0% 1,750 18% 16.6% 16% 1,500 Eligible Capital (KD Mn) 14.9% 14% 12.3% 1,250 12% Sub debt 10% KD100 mn 1,000 8% 550 750 547 588 6
Slide 27: Conclusion
Conclusion Members of Burgan Bank Group: 27
Slide 28: Conclusions
Conclusions SOLID QUARTER WITH STEADY, HEALTHY TRENDS. LEADING INDICATORS ARE POINTING NORTH. INORGANIC INITIATIVES ON TRACK. CAPITAL ADEQUACY RATIO REMAINING STRONG SUPPORTING ORGANIC AND INORGANIC GROWTH. Members of Burgan Bank Group: 28
Slide 29: Thank You
Thank You Members of Burgan Bank Group: 29
Slide 30: Appendix
Appendix Members of Burgan Bank Group: 30
Slide 31: External Recognitions - 2012
External Recognitions - 2012 Q1 2012 Q2 2012 Q3 2012 Best Corporate Best Banking Best Private Bank in Kuwait – Brand – Bank in Kuwait Global Banking & Banker Middle – Capital Finance Review East 2012 Finance 2012 International Best Banking Best Banking Deal of the Year Group in MENA – Group In “ET D
Slide 32: 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