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

National Bank Of Kuwait K.s.c — National Bank of Kuwait — Investor Presentation (January 2021)

29 slides from National Bank Of Kuwait K.s.c's investor presentation, January 2021

  1. Slide 1: National Bank of Kuwait Investor Presentation

    National Bank of Kuwait Investor Presentation January 2021 National Bank of Kuwait 1

  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 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

    NBK is Kuwait’s Leading Banking Group Snapshot Financial snapshot  Established in1952 as the first local and home-grown GCC bank, and first USD million 2018 2019 2020 shareholding company in Kuwait  The leading banking group in Kuwait in terms of assets, customer deposits and customer loans and ad

  5. Slide 5: Regional and International Geographic Presence

    Regional and International Geographic Presence Middle East Europe Location - Year established/acquired Legal Structure - Branches Location - Year established/acquired Legal Structure – Branches Kuwait – 1952 Parent – 68 London – 1983 Subsidiary – 2 Turkey – 2007 Associate – 10 Geneva – 1984 Subsidia

  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  As at 31 December 2020, the Bank was the largest bank in  NBK has one of the highest credit ratings in the MENA region Kuwait in terms of total assets, loans a

  7. Slide 7: Contents

    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

    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 the  C

  9. Slide 9: Kuwait Operations

    Kuwait Operations NBK is a universal bank and the industry leader in all key business segments in Kuwait with an average market share of 30% Overview and strategy Corporate Banking Consumer Banking Private Banking  Remain the primary banker for most of the local blue-chip  Maintain undisputed lead

  10. Slide 10: International Operations

    International Operations Established or  NBK’s international operations has been traditionally contributing up to circa 30% of the Group’s Branches Legal structure acquired bottom line with the Bank aspiring to increase this contribution.  The Bank generally aims to maintain a majority stake in it

  11. Slide 11: Boubyan Bank (59.9% owned subsidiary)

    Boubyan Bank (59.9% owned subsidiary) Market share of Total Assets(%) Highlights  Islamic banking has been gaining ground in the Kuwaiti market, representing close to 40% of assets and deposits at year-end 2019. 5.7% 6.5%  After a series of gradual share acquisitions since 2009, NBK’s stake in Bou

  12. Slide 12: Contents

    Contents Section 1 Overview of NBK Section 2 Strategy and Business Overview Section 3 Operating Environment Section 4 Financial Performance Highlights Section 5 Appendix Presentation Title National Bank of Kuwait 12

  13. Slide 13: Overview of Kuwait

    Overview of Kuwait Overview Fiscal breakeven oil price  The State of Kuwait is a sovereign state on the coast of the 80 80 Arabian Gulf with a population of 4.8 million 78 Excl inv inc Incl inv inc 75 73 75 72  Kuwait is a constitutional monarchy, headed by His Highness the 70 70 68 66 Emir, Sheik

  14. Slide 14: Kuwait's Economy

    Kuwait’s Economy Recent Developments Real GDP (% y/y)  GDP is estimated to have declined 6.3% in 2020 due to sharply lower oil Total Non-oil 8 6.5 8 production as Kuwait adhered to OPEC+ cuts. Growth could rebound to 2.0% 4.9 6 4.2 6 in 2021 as these cuts are partially reversed. 2.7 3.0 GDP Growth

  15. Slide 15: Kuwait's Banking Sector

    Kuwait’s Banking Sector Snapshot  The Kuwaiti banking sector comprises 23 banks, including 11 domestic banks (five conventional, five Shariah-compliant and one specialized), and branches of 12 international banks (11 conventional and one Islamic).  The sector is well regulated by the Central Bank

  16. Slide 16: Dominant Kuwaiti Franchise

    Dominant Kuwaiti Franchise NBK is the leading banking group in Kuwait with a market leading position across its business segments Total Assets (USD million) Customer Deposits (USD million) National Bank of Kuwait 96,587 National Bank of Kuwait 52,567 Kuwait Finance House 63,986 Kuwait Finance House

  17. Slide 17: Contents

    Contents Section 1 Overview of NBK Section 2 Strategy and Business Overview Section 3 Operating Environment Section 4 Financial Performance Highlights Section 5 Appendix Presentation Title National Bank of Kuwait 17

  18. Slide 18: Operating Performance & Profitability

    Operating Performance & Profitability Profitability (USD mn) Operating Income Composition (USD mn) Net Operating Income Net Profit NII & NI from Islamic financing Non-interest income 2,913 2,953 2,778 2,913 2,953 2,778 22% 23% 25% 1,222 1,323 812 78% 77% 75% 2018 2019 2020 2018 2019 2020 Return on a

  19. Slide 19: Operating Performance & Profitability (cont'd)

    Operating Performance & Profitability (cont’d) 2020 Op. income by type (%) 2020 Op. income by business line (%) Cost to income (%) FX, 5% Other, 4% 37.0% Consumer & Private 34.0% Banking, 33% Fees, 17% 31.3% Corporate 15% Inv Bkg & AM, 3% Net Interest Others, Income, 4% 75% Islamic Banking, 20% Inte

  20. Slide 20: Balance Sheet Parameters

    Balance Sheet Parameters Net loan portfolio (USD bn) Loans to assets (USD bn) Net Loans Net loan growth YoY (%) Total Assets Loans/Assets 6.8% 58.9% 6.9% 56.5% 56.5% 5.7% 51.1 54.6 57.7 90.4 96.5 98.0 Dec-18 Dec-19 Dec-20 Dec-18 Dec-19 Dec-20 Loan exposure by sector (%) (as at 31 Dec. 2020) Low loan

  21. Slide 21: Funding and Liquidity Positions

    Funding and Liquidity Positions Customer Deposits (USD bn) (Total Liabilities) Funding Mix (USD mn) Due to banks and other financial institutions Customer Deposits Certificates of deposit Other borrowed funds 61% 64% 56.4 67% 52.5 47.4 34% 30% 23% Dec-18 Dec-19 Dec-20 Dec-18 Dec-19 Dec-20 Overview o

  22. Slide 22: Capitalization and Asset Quality

    Capitalization and Asset Quality Total Equity1 Breakdown (USD mn) Prudent capitalization (%) Share capital Statutory reserves Retained Earnings Other Reserves & Treasury Shares Tier 1 Tier 2 17.8% 18.4% 11,323 17.2% 10,915 2.4% 10,431 1.9% 1.9% 3,382 3,134 3,021 4,337 4,715 4,392 15.9% 16.0% 15.3% 1

  23. Slide 23: Contents

    Contents Section 1 Overview of NBK Section 2 Strategy and Business Overview Section 3 Operating Environment Section 4 Financial Performance Highlights Section 5 Appendix Presentation Title National Bank of Kuwait 23

  24. Slide 24: Kuwait Selected Mega Projects

    Kuwait Selected Mega Projects Project Sector Value (KD bn) Scope Status Underway: The infrastructure works have progressed up to 93% on Plots N2 & N3 and up to 67% on Plots N1 & N4. Construction South Al Mutlaa City Housing 2.33 30,000 residential units, schools and other facilities works have comme

  25. Slide 25: Consolidated financials 2020 (USD million)

    Consolidated financials 2020 (USD million) YoY Growth YoY Growth Income Statement (USD million) 2019 2020 Balance sheet (USD million) Dec-2019 Dec-2020 (%) (%) Interest Income 3,253 2,496 (23%) Cash and short term funds 12,489 12,872 3% Interest Expense 1,390 880 (37%) Central Bank of Kuwait bonds 2

  26. Slide 26: Consolidated Statement Of Income (USD million)

    Consolidated Statement Of Income (USD million) USD million 2018 2019 2020 Interest Income 2,959 3,253 2,496 Interest Expense 1,091 1,390 880 Net Interest Income 1,868 1,863 1,617 Murabaha and other Islamic financing income 614 697 742 Finance cost and Distribution to depositors 204 287 270 Net Incom

  27. Slide 27: Consolidated Statement Of Financial Position (USD million)

    Consolidated Statement Of Financial Position (USD million) USD million 2018 2019 2020 Cash and short term funds 9,783 12,489 12,782 Central Bank of Kuwait bonds 2,671 2,715 2,738 Kuwait Government treasury bonds 2,876 2,184 1,527 Deposits with banks 7,796 6,295 3,388 Loans, advances and Islamic fina

  28. Slide 28: Contact

    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 Presentation Title Nat

  29. Slide 29: National Bank of Kuwait Investor Presentation

    National Bank of Kuwait Investor Presentation January 2021 National Bank of Kuwait 29

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