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

National Bank Of Kuwait K.s.c — National Bank of Kuwait — Investor Presentation (October 2023)

33 slides from National Bank Of Kuwait K.s.c's investor presentation, October 2023

  1. Slide 1: National Bank of Kuwait Investor Presentation

    PUBLIC National Bank of Kuwait Investor Presentation October 2023 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 Overview of NBK Section 2 Strategy and Business Overview Section 3 Operating Environment Section 4 Financial Performance Highlights Section 5 Appendix National Bank of Kuwait 3

  4. Slide 4: NBK is Kuwait's Leading Banking Group

    PUBLIC NBK is Kuwait’s Leading Banking Group Snapshot Financial snapshot  Established in 1952 as the first local and home-grown GCC bank, and first USD million 2020 2021 2022 shareholding company in Kuwait  The leading conventional banking group in Kuwait in terms of assets, customer Total Assets

  5. Slide 5: Regional and International Geographic Presence

    PUBLIC Regional and International Geographic Presence London – 1 branch Paris – 1 branch Geneva – 1 branch New York – 1 Branch Shanghai – 1 branch Kuwait – 72 branches Iraq – 3 branches Lebanon – 2 branches Egypt – 54 branches Bahrain – 2 branches Singapore – 1 branch UAE – 2 branches KSA – 3 branch

  6. Slide 6: Key Strengths

    PUBLIC Key Strengths High credit ratings and among the A Leading market position in Kuwait top brand values regionally  NBK enjoys a dominant market share across various business  NBK has one of the highest credit ratings in the MENA region segments in Kuwait  Named the most valuable banking bran

  7. Slide 7: Contents

    PUBLIC Contents Section 1 Overview of NBK Section 2 Strategy and Business Overview Section 3 Operating Environment Section 4 Financial Performance Highlights Section 5 Appendix National Bank of Kuwait 7

  8. Slide 8: NBK's Strategy

    PUBLIC NBK’s Strategy  The Bank aims to (i) remain the primary banker for the leading local companies whilst continuing to be active in the mid-market  Corporate sector;(ii) remain the bank of choice for foreign companies and continuing to serve at least 75% of those companies and (iii) Banking ma

  9. Slide 9: Kuwait Operations

    PUBLIC Kuwait Operations NBK Islamic Banking (Boubyan Bank 60.4% owned subsidiary)  After a series of gradual share acquisitions since 2009, NBK’s stake in Boubyan bank reached Corporate Banking Consumer Banking Private Banking 58.4% in 2012. Through Boubyan, NBK aims at diversifying its income str

  10. Slide 10: International Operations

    PUBLIC International Operations London – 1 branch  NBK’s international operations have been traditionally contributing 25% of the Group’s bottom line. Paris – 1 branch New York – 1 Branch Geneva – 1 branch  NBK’s international presence is a differentiating factor for the Group, enabling better ser

  11. Slide 11: Digital Transformation Underpinning the Strategy of the Group

    PUBLIC Digital Transformation Underpinning the Strategy of the Group We developed our digital agenda with strong ambitions NBK has embraced the changing business environment and evolving customer demands Being and percieved as Building “next Establishing a digital resulting from technological advanc

  12. Slide 12: NBK ESG Strategy Framework

    PUBLIC NBK ESG Strategy Framework National Bank of Kuwait 12

  13. Slide 13: Building A Leading Journey In ESG

    PUBLIC Building A Leading Journey In ESG ESG Ratings ESG Awards National and Global Frameworks Global Finance NBK is at 27.5 –  Best SME Bank Award - Kuwait 2023 Medium Risk  Best Private Bank for Sustainable Investing- Middle East 2023 MSCI upgraded NBK  Best Financial Innovation Labs 2023 – NBK

  14. Slide 14: 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

  15. Slide 15: Contents

    PUBLIC Contents Section 1 Overview of NBK Section 2 Strategy and Business Overview Section 3 Operating Environment Section 4 Financial Performance Highlights Section 5 Appendix National Bank of Kuwait 15

  16. Slide 16: Kuwait Overview

    PUBLIC Kuwait Overview Key Highlights Key Indicators  Kuwait is a constitutional monarchy, headed by H.E. the Emir, Sheikh Nawaf Al- Indicator 2021 2022 2023f 2024f Ahmad Al-Sabah, with a population of 4.7 million (2022). Nominal GDP (USD billion) 139.4 177.4 162.4 171.9  It is a founding member o

  17. Slide 17: Kuwait's Economy

    PUBLIC Kuwait’s Economy Real GDP Growth1 (% y/y) Project Awards2 (KD million) 15 15 800 800 Oil sector Non-oil sector Forecast 700 Construction Oil & Gas Transport Power & Water Industrial 700 10 Headline 10 600 600 5 5 500 500 0 0 400 400 300 300 -5 -5 200 200 -10 -10 100 100 -15 -15 0 0 2017 2018

  18. Slide 18: Kuwait's Banking Sector

    PUBLIC Kuwait’s Banking Sector Kuwait Discount Rate1 (%) Loans and Deposits2 6 6 49 110 Discount rate Domestic credit (KD bn, LHS) Fed target rate (upper limit) 48 Resident deposits (KD bn, LHS) 108 5 5 Loans to deposits ratio (%, RHS) 47 106 4 4 46 104 3 3 45 102 44 100 2 2 43 98 1 1 42 96 0 0 41 9

  19. Slide 19: Dominant Kuwaiti Franchise

    PUBLIC Dominant Kuwaiti Franchise NBK is the leading banking group in Kuwait with a market leading position across its business segments Total Assets (USD mn) Customer Deposits (USD mn) Kuwait Finance House 120,697 Kuwait Finance House 73,402 National Bank of Kuwait 118,637 National Bank of Kuwait 6

  20. Slide 20: Contents

    PUBLIC Contents Section 1 Overview of NBK Section 2 Strategy and Business Overview Section 3 Operating Environment Section 4 Financial Performance Highlights Section 5 Appendix National Bank of Kuwait 20

  21. Slide 21: Operating Performance & Profitability

    PUBLIC Operating Performance & Profitability Profitability (USD mn) Operating Income Composition (USD mn) Net Operating Income Net Profit NII & NI from Islamic financing Non-Interest income 3,297 3,297 2,938 2,795 2,938 2,795 2,419 25% 2,419 26% 23% 1,662 27% 1,395 1,183 1,211 75% 74% 77% 73% 2021 2

  22. Slide 22: Operating Performance & Profitability (cont'd)

    PUBLIC Operating Performance & Profitability (cont’d) 9M 2023 Op. Income by Type (%) 9M 2023 Op. Income by Business Line (%) Cost to Income (%) Others, 2% Corporate, FX, 4% Consumer 14% & Private Fees, 17% Banking, Inv Bkg & 27% AM, 4% 39.2% 38.2% 37.7% 35.9% Islamic Banking, 19% Others, Net Interes

  23. Slide 23: Balance Sheet Parameters

    PUBLIC Balance Sheet Parameters Net Loan Portfolio (USD bn) Loans to Assets (USD bn) Net Loans Net loan growth YoY (%) Total Assets Loans/Assets 70.5 68.6 100.0% 66.7 118.6 119.2 64.4 112.3 108.6 80.0% 12.7% 60.0% 59.3% 57.8% 59.4% 59.2% 8.7% 40.0% 6.5% 5.8% 20.0% 0.0% Dec-21 Dec-22 Sep-22 Sep-23 De

  24. Slide 24: Funding and Liquidity Positions

    PUBLIC Funding and Liquidity Positions Funding Mix (Total Liabilities) Customer and FI Deposits (USD bn) Customer Deposits FI Deposits Customer deposits Deposits from other FIs Due to banks Other borrowed funds CDs 12.2 11.5 12.9 10.2 14% 13% 12% 11% 11% 12% 13% 11% 65.9 67.7 59.7 62.4 63% 64% 64% 6

  25. Slide 25: Capitalization and Asset Quality

    PUBLIC Capitalization and Asset Quality Total Equity1 Breakdown (USD mn) Prudent Capitalization (%) Share capital Statutory reserves Retained Earnings Other Reserves & Treasury Shares CET 1 Ratio Tier 1 Ratio Capital Adequacy Ratio 11,827 12,138 11,556 11,301 18.1% 2,256 3,066 17.4% 3,511 2,305 16.3

  26. Slide 26: Expected Credit Losses (ECL) 9M 2023

    PUBLIC Expected Credit Losses (ECL) 9M 2023 Financial Statements ECL Disclosure (USDm) Total Gross Loans (USDbn) Stage 1 Stage 2 Stage 3 30 September 2023 Stage 1 Stage 2 Stage 3 Total 69.3 70.6 73.3 1% 1% 2% Loans, advances and Islamic 67,524 4,547 1,276 73,347 8% 8% 6% financing to customers Conti

  27. Slide 27: Contents

    PUBLIC Contents Section 1 Overview of NBK Section 2 Strategy and Business Overview Section 3 Operating Environment Section 4 Financial Performance Highlights Section 5 Appendix National Bank of Kuwait 27

  28. Slide 28: Kuwait Selected Mega Projects

    PUBLIC Kuwait Selected Mega Projects Project Sector Budget (KD bn) Scope Status Underway: The main contract bid submission deadline has been extended from September 17, 2023, to early South Al Mutlaa City Construction 6.0 30,000 residential units, schools and other facilities October for Public Buil

  29. Slide 29: Consolidated Financials 9M 2023 (USD mn)

    PUBLIC Consolidated Financials 9M 2023 (USD mn) Income Statement (USD mn) 9M 2022 9M 2023 YoY Growth (%) Balance Sheet (USD mn) Sep- 22 Sep-23 YoY Growth (%) Interest Income 2,034 3,835 89% Cash and short term funds 12,383 11,778 (5%) Central Bank of Kuwait bonds 3,358 2,790 (17%) Interest Expense 6

  30. Slide 30: Consolidated Statement Of Income (USD mn)

    PUBLIC Consolidated Statement Of Income (USD mn) USD mn 2020 2021 2022 Interest Income 2,471 2,158 3,094 Interest Expense 871 506 1,188 Net Interest Income 1,600 1,653 1,906 Murabaha and other Islamic financing income 735 744 939 Finance cost and Distribution to depositors 267 211 377 Net Income fro

  31. Slide 31: Consolidated Statement Of Financial Position (USD mn)

    PUBLIC Consolidated Statement Of Financial Position (USD mn) USD mn 2020 2021 2022 Cash and short term funds 12,744 16,592 17,380 Central Bank of Kuwait bonds 2,711 2,710 2,877 Kuwait Government treasury bonds 1,511 1,361 691 Deposits with banks 3,354 2,890 4,865 Loans, advances and Islamic financin

  32. Slide 32: Contact

    PUBLIC Contact Contact Investor Relations Useful information E: Investor-Relations@nbk.com Download copies of NBK’s: National Bank of Kuwait (NBK) PO Box 95, 13001 Safat Kuwait • Financial statements Al Shuhada Street, Block 7, Sharq • Earnings release State of Kuwait • Annual report National Bank o

  33. Slide 33: National Bank of Kuwait Investor Presentation

    PUBLIC National Bank of Kuwait Investor Presentation October 2023 National Bank of Kuwait 33

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