Kuwait Finance House K.s.c. · KSE:KFH
Kuwait Finance House K.s.c — Kuwait Finance House — Q1 2024 Earnings Presentation
22 slides from Kuwait Finance House K.s.c's earnings presentation, Apr 30, 2024
Slide 1: Q1-2024 Earnings Presentation
Q1-2024 EarningsPresentation 30 April2024 © Kuwait Finance House, 2024
Slide 2: Disclaimer
Disclaimer • IMPORTANT NOTICE • This presentation has been prepared by Kuwait Finance House and is subject to the applicable laws and regulations in the State of Kuwait. It is for information purposes only and it shall not be reproduced or redistributed to any other person without obtaining Kuwait F
Slide 3: Agenda
1 Kuwait’s Operating Environment 2 Overview of KFH 3 KFH Strategy 4 Q1-24 Financial Results 5 Appendix 3
Slide 4: Kuwait's Operating Environment
Boursa Kuwait Market Capitalization Q1 2024 43.1 Kuwait Crude GDP Constant Price Inflation KWD Billion % Q1 2023 45.1 USD Y-O-Y Y-O-Y Y-O-Y% 140 4.5 Billion KWD 44 43.5 4.0 120 4 43 42.5 3.4 100 3.5 3.1 2.8 KFH Kuwait Market 80 42 3 2.4 Capitalization 40.8 2.5 60 41 39.6 2 40 40 39.4 1.5 20 39 Q1 20
Slide 5: Overview of KFH's Awards & Ratings
Overview of KFH’s Awards & Ratings Kuwait Regional Global Best Islamic Best Bank Bank Best Islamic Financial Institution Middle East in the World EMEA Finance EMEA Finance Global Finance Long-Term Issuer Default Rating A LT FC Bank Deposits Rating A2 Short-Term Issuer Default Rating F1 ST FC Bank De
Slide 6: Overview of KFH
Overview of KFH 446 Branches 6 Branches 10 Branches 1 Branch 76 Branches 42 Branches 30 Branches 9 Branches 6
Slide 7: Robust Financial Performance
Leading Strategic Effective Risk Robust Financial Strong Government Professional Islamic Financial Distribution Management Performance Sponsorship Management Team Institution Channels Framework A consistent track Second largest Islamic 38.4% ownership by Well-rounded human Diversified KFH continuous
Slide 8: KFH Strategy
KFH Strategy KFH’s main focus is on core banking business activities Simplify experience Digitize operations Grow business Across all four main business sectors Retail Corporate Private Treasury 8
Slide 9: Q1-24 Financial Results
1 Kuwait’s Operating Environment 2 Overview of KFH 3 KFH Strategy 4 Q1-24 Financial Results 5 Appendix This is a General Document and should not be shared with unauthorized users. 9
Slide 10: Q1-24 Financial Highlights
Q1-24 Financial Highlights Net Profit for Shareholders Net Financing Net Operating Income Income KD 162.8 mn KD 263.4 mn KD 247.6 mn 0.5% 16.6% -1.4% Cost to Income Ratio EPS (fils) 36.90% 10.24 (Q1-23: 33.75%) (Q1-23 : 10.15fils) This is a General Document and should not be shared with unauthorized
Slide 11: Q1-24 Financial Performance
Q1-24 Financial Performance Net Profit Financing Net Financing Net Operating for Shareholders Income Operating Income Profile Income Income (KD mn) (KD mn) (KD mn) (KD mn) Investment Income (%) Non-Financing Income (%) 0.5% 16.6% Net Financing Income (%) 36.8% 162.8 -1.4% 263.4 19.61% 162.1 251.2 24
Slide 12: Q1-24 Financial Performance
Q1-24 Financial Performance Non - Financing Total Operating Income (KD mn) Expenses (KD mn) Depreciation and Amortization Other Income Other Operating Expenses Net Gain from Foreign Currencies Fees and Commission Income Staff Costs Investment Income 144.8 C/I C/IRatio Ratio 153.1 127.9 20.4 11.9 18.
Slide 13: Q1-24 Financial Performance
Q1-24 Financial Performance Average Profit Earning Assets (KD bn) Net Financing Margin Net Monetary Loss* (KD mn) 2.68% 2.89% 2.56% 51.5 0.4% -2.1% Q1-23 2023 Q1-24 Provision and Impairment (KD mn) 29.0 29.1 28.5 23.7 6.1 6.5 6.7 9.1 55.9 (4.6) Q1-23 Q1-24 24.1 22.8 22.5 21.8 14.4 (4.1) * Hyper-infl
Slide 14: Q1-24 Financial Performance
Q1-24 Financial Performance Total Net Investment in debt Depositors’ Assets Financing securities Accounts Funding Mix (KD bn) (KD bn) (KD bn) (KD bn) 2.4% -8.4% Depositors Accounts 0.5% -1.4% -2.6% Due to Banks & FI's -2.8% -10.1% -8.3% 38.0 37.0 Sukuk Payable 36.9 7.0 21.9* 21.8* 19.4 6.3 20.0 2.3%
Slide 15: Q1-24 Key Financial Ratios
Q1-24 Key Financial Ratios Return on Average Return on Average Return on Average C/I (%) EPS (fils) Tangible Equity (%) Equity (%) Assets (%) 22.97% 22.43% 12.39% 12.37% 2.04% 10.15 10.24 1.80% 36.90% 33.75% Q1-23 Q1-24 Q1-23 Q1-24 Q1-23 Q1-24 Q1-23 Q1-24 Q1-23 Q1-24 This is a General Document and s
Slide 16: Q&A
Q&A This is a General Document and should not be shared with unauthorized users. 16
Slide 17: Appendix
Appendix This is a General Document and should not be shared with unauthorized users. 17
Slide 18: Q1-24 Capital & Asset Quality Ratios
Q1-24 Capital & Asset Quality Ratios Capital Adequacy CET1 (%) TIER 1 (%) NPF (%) NPF Coverage Ratio (%) Ratio (%) 1.77% 325% 1.49% 1.51% 308% 17.50% 18.18% 17.77% 273% 15.77% 16.43% 16.03% 13.33% 13.94% 13.56% Mar-23 2023 Mar-24 Mar-23 2023 Mar-24 Mar-23 2023 Mar-24 Mar-23 2023 Mar-24 Mar-23 2023 M
Slide 19: Consolidated Financial Statements Q1-24 Vs. Q1-23
Consolidated Financial Statements Q1-24 Vs. Q1-23 Consolidated Statement of Financial Position (KD million) Mar-24 Mar-23 Consolidated Statement of Income (KD million) Mar-24 Mar-23 Cash and balances with banks and financial institutions 3,283 2,782 Financing income 678 496 Due from Banks 2,360 3,85
Slide 20: Consolidated Statement of Financial Position 2019 - 2023
Consolidated Statement of Financial Position 2019 - 2023 Consolidated Statement of Financial Position (KD million) 2019 2020 2021 2022 2023 Cash and balances with banks and financial institutions 1,910 2,491 2,325 3,156 3,612 Due from Banks 3,646 3,365 3,350 3,870 2,971 Financing receivables 9,474 1
Slide 21: Consolidated Statement of Income 2019 - 2023
Consolidated Statement of Income 2019 - 2023 Consolidated Statement of Income (KD million) 2019 2020 2021 2022 2023 Financing income 932 893 871 1,322 2,194 Financing cost and distribution to depositors 401 279 286 522 1,228 Net finance income 530 614 586 801 966 Investment income 130 -6 16 44 184 F
Slide 22: Investor.relations@kfh.com
Investor.relations@kfh.com This is a General Document and should not be shared with unauthorized users. 22