National Bank Of Kuwait K.s.c. · KSE:NBK
National Bank Of Kuwait K.s.c — National Bank of Kuwait — 9M 2021 Earnings Presentation
25 slides from National Bank Of Kuwait K.s.c's earnings presentation, 2021
Slide 1: National Bank of Kuwait Investor Presentation 3Q/9M 2021 Earnings Call
National Bank of Kuwait Investor Presentation 3Q/9M 2021 Earnings Call National Bank of Kuwait 1
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
Slide 3: Contents
Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance 3Q/9M 2021 Section 3 Appendix Section 4 Questions National Bank of Kuwait 3
Slide 4: Key Economic Highlights
Key Economic Highlights COVID-19 Vaccine Doses Administered Real GDP (% y/y) Total Non-oil 10 10 4,000,000 5.7 3,500,000 3.8 3,000,000 5 3.1 2.4 5 2.5 3.2 2,500,000 1.5 1.1 -0.1 2,000,000 0.5 0.6 0 0 1,500,000 2.4 -0.6 1,000,000 1.0 2.9 500,000 -5 -5 -4.7 - -8.8 2-Feb-21 12-Feb-21 22-Feb-21 14-Mar-2
Slide 5: NBK Profitability (KDm)
NBK Profitability (KDm) Net Profit Attributable 51.1% 254.8 63.3% 168.7 94.1 57.6 9M 2020 3Q 2020 3Q 2021 9M 2021 National Bank of Kuwait 5
Slide 6: 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
Slide 7: NBK Sustainability Pillars
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
Close Alignment With International Frameworks and ESG Raters National Bank of Kuwait 8
Slide 9: Contents
Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance 3Q/9M 2021 Section 3 Appendix Section 4 Questions National Bank of Kuwait 9
Slide 10: Operating Performance 9M 2021
Operating Performance 9M 2021 Net Profit (KDm) Operating Surplus (KDm) 254.8 +51.1% 406.3 414.6 +2.0% 168.7 94.1 76.5 146.1 143.0 57.6 132.2 3Q 2020 2Q 2021 3Q 2021 9M 2020 9M 2021 3Q 2020 2Q 2021 3Q 2021 9M 2020 9M 2021 Operating Income (KDm) Operating Income 681.1 Net interest income & Net income
Slide 11: Operating Performance 9M 2021
Operating Performance 9M 2021 Net Interest Income* (KDm) Average Interest Earning Assets (KDbn) 29.9 28.7 502.1 +4.2% 472.6 +6.2% 154.1 171.2 168.5 0 3Q 2020 2Q 2021 3Q 2021 9M 2020 9M 2021 9M 2020 9M 2021 Net Interest Margin* Net Interest Margin drivers YTD NIM Qtrly NIM -0.27% +0.66% 2.20% 2.25% -
Slide 12: Operating Performance 9M 2021
Operating Performance 9M 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 266.4 179.0 159.8 226.1 28 +12.0% +17.8% 18 117 28 32 102 63.8 96.3 59.8 60.1 88.0 71.8 19 10 6 124
Slide 13: Operating Performance 9M 2021
Operating Performance 9M 2021 Operating Income (KDm) - International Operating Income (KDm) 156.8 168.1 Int'l Int'l +7.2% 25% 25% Dom. Dom. 75% 75% 9M 2020 9M 2021 9M 2020 9M 2021 Net profit (KDm) - International Net Profit (KDm) 71.7 Int'l >100% 15% Int'l 28% 25.9 Dom. Dom. 72% 85% 9M 2020 9M 2021
Slide 14: Operating Performance 9M 2021
Operating Performance 9M 2021 Total Assets (KDbn) Loans, Advances and Islamic Financing (KDbn) 32.5 30.4 19.0 29.7 17.6 17.5 +7.0% yoy +7.5% yoy +9.4% ytd +8.3% ytd Sep 20 Dec 20 Sep 21 Sep 20 Dec 20 Sep 21 Customer Deposits (KDbn) Funding Mix 17.5 17.4 Due to banks and other FIs Customer Deposits C
Slide 15: Performance and Asset Quality Ratios 9M 2021
Performance and Asset Quality Ratios 9M 2021 Return on Average Equity Return on Average Assets 1.09% 9.6% 0.82% 7.0% 0.75% 6.6% 9M 2020 FY 2020 9M 2021 9M 2020 FY 2020 9M 2021 Capital Adequacy Ratios Asset Quality Ratios CET 1 Ratio Tier 1 Ratio Capital Adequacy Ratio Loan Loss Coverage Ratio NPL Ra
Slide 16: Expected Credit Losses (ECL) 9M 2021
Expected Credit Losses (ECL) 9M 2021 Financial Statements ECL Disclosure (KDm) Total Gross Loans (KDbn) Stage 1 Stage 2 Stage 3 30 Sep 2021 Stage1 Stage 2 Stage 3 Total 18.3 19.6 18.2 2% 2% 2% Loans, advances and Islamic 7% 10% 7% financing to customers 17,818 1,482 303 19,604 91% 88% 91% Contingent
Slide 17: 2021 Guidance
2021 Guidance 9M 2021 2021 Guidance Loan Growth +8.3% ytd High Single Digit NIM 2.25% Broadly Stable Cost to Income ratio 39.1% High 30s Cost of Risk 81bps Earnings +51.1% yoy Capital Adequacy 18.1% National Bank of Kuwait 17
Slide 18: Contents
Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance 3Q/9M 2021 Section 3 Appendix Section 4 Questions National Bank of Kuwait 18
Slide 19: Consolidated Statement Of Income (KDm)
Consolidated Statement Of Income (KDm) KDm 9M-2020 9M-2021 YoY Growth (%) Interest Income 590 492 (17%) Interest Expense 222 113 (49%) Net Interest Income 368 378 3% Murabaha and other Islamic financing income 169 171 1% Finance cost and Distribution to depositors 65 47 (27%) Net Income from Islamic
Slide 20: Consolidated Statement Of Financial Position (KDm)
Consolidated Statement Of Financial Position (KDm) KDm September-2020 September-2021 YoY Growth % Cash and short term funds 4,405 5,216 18% Central Bank of Kuwait bonds 831 831 0% Kuwait Government treasury bonds 477 447 (6%) Deposits with banks 1,110 829 (25)% Loans, advances and Islamic financing
Slide 21: Performance Measures 9M 2021
Performance Measures 9M 2021 September-2020 September-2021 Return on average assets 0.75% 1.09% Return on average equity 6.6% 9.6% Net interest margin 2.20% 2.25% Cost to income 35.8% 39.1% NPLs to gross loans 1.89% 1.43% Loan loss reserves to NPLs 191% 230% Tier 1 capital 15.1% 15.6% Tier 2 capital
Slide 22: Contents
Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance 3Q/9M 2021 Section 3 Appendix Section 4 Questions National Bank of Kuwait 22
Slide 23: Questions?
Questions? National Bank of Kuwait 23
Slide 24: Thank You
Thank You National Bank of Kuwait 24
Slide 25: National Bank of Kuwait Investor Presentation 3Q/9M 2021 Earnings Call
National Bank of Kuwait Investor Presentation 3Q/9M 2021 Earnings Call National Bank of Kuwait 25
National Bank of Kuwait — 9M 2021 Earnings Presentation on 6ix