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

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

34 slides from National Bank Of Kuwait K.s.c's investor presentation, March 2023

  1. Slide 1: National Bank of Kuwait Investor Presentation

    PUBLIC National Bank of Kuwait Investor Presentation March 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 banking group in Kuwait in terms of assets, customer deposits and 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 – 67 branches Iraq – 3 branches Lebanon – 2 branches Egypt – 53 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 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

  9. Slide 9: Kuwait Operations

    PUBLIC Kuwait Operations NBK Islamic Banking (Boubyan Bank 60.1% 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 Paris – 1 branch Geneva – 1 branch  NBK’s international operations have been traditionally contributing 25% of the Group’s bottom line. New York – 1 Branch  NBK’s international presence is a differentiating factor for the Group, enabling better ser

  11. Slide 11: Digital Transformation Strategy

    PUBLIC Digital Transformation Strategy We developed our digital agenda with strong ambitions With a solid digital transformation strategy, we are committed to our strong ambitions to be relevant to our customers’ needs in the era of new normal, to enhance efficiency and to Being and percieved as Bui

  12. Slide 12: NBK Group ESG Strategy Framework

    PUBLIC NBK Group ESG Strategy Framework Capitalizing on our Investing in our Governance for Strategy Responsible Banking Pillars Capabilities Communities Resilience To support the transition to a To drive sustainable business growth To deliver a positive impact on the To commit to the highest standa

  13. Slide 13: Building A Leading Journey In ESG

    PUBLIC Building A Leading Journey In ESG ESG Awards and Ratings Carbon Disclosure Project (CDP) Score 2022 Aligned with National and Global Frameworks National Bank of Kuwait 13

  14. Slide 14: 2022 Key ESG Achievements

    PUBLIC 2022 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 for 20

  15. Slide 15: NBK Sustainable Financing Framework

    PUBLIC NBK Sustainable Financing Framework Expanding our sustainable financing activities in line with industry leading practices and standards. NBK established a Sustainable Financing Framework to support and advance NBK’s goal to integrate critical ESG issues into the business, culture and operati

  16. Slide 16: 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 16

  17. Slide 17: Overview of Kuwait

    PUBLIC Overview of Kuwait Overview Fiscal breakeven oil price* 100 98 100  The State of Kuwait is a sovereign state on the coast of the Arabian Gulf with a population of 4.6 million 90 88 89 90  Kuwait is a constitutional monarchy, headed by His Highness the 80 74 80 80 72 Emir, Sheikh Nawaf Al-Ah

  18. Slide 18: Kuwait's Economy

    PUBLIC Kuwait’s Economy Recent Developments Real GDP (% y/y)  Oil sector output gains in 2022 (+7.8% y/y), coupled with consumer-led gains in Total Non-oil the non-oil sector (+3.1%), are expected to have propelled headline GDP 10 10 growth to a more than ten year high of 7.8%. 5 5  Looking ahead

  19. Slide 19: Kuwait's Banking Sector

    PUBLIC Kuwait’s Banking Sector Snapshot  The Kuwaiti banking sector comprises 22 banks, including 11 domestic banks (five conventional, five Shariah-compliant and one specialized), and branches of 11 international banks (10 conventional and one Islamic).  The sector is well regulated by the Centra

  20. Slide 20: 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 million) Customer Deposits (USD million) National Bank of Kuwait 109,939 National Bank of Kuwait 60,433 Kuwait Finance House 72,027 Kuwait Financ

  21. Slide 21: 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 21

  22. Slide 22: 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 2,739 2,938 2,739 25% 26% 24% 1,662 1,183 804 75% 76% 74% 2020 2021 2022 2020 2021 2022 Retu

  23. Slide 23: Operating Performance & Profitability (cont'd)

    PUBLIC Operating Performance & Profitability (cont’d) 2022 Op. income by type (%) 2022 Op. income by business line (%) Cost to income (%) Others, 2% Consumer FX, 5% Corporate, & Private 14% Banking, Fees, 18% 30% 39.2% 38.2% Inv Bkg & 36.7% AM, 4% Others, Islamic 5% Banking, Net Interest 21% Income,

  24. Slide 24: 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 68.6 118.6 64.4 108.6 57.1 97.0 12.7% 58.9% 59.3% 57.8% 6.5% 5.7% Dec-20 Dec-21 Dec-22 Dec-20 Dec-21 Dec-22 Loan exposure by sector (%) (as at 31 December

  25. Slide 25: Funding and Liquidity Positions

    PUBLIC Funding and Liquidity Positions Funding Mix (Total Liabilities) Customer and FI Deposits (USD bn) Customer deposits Deposits from other FIs Due to banks Other borrowed funds CDs Customer Deposits FI Deposits 12.2 12% 14% 13% 10.2 11% 9.6 11% 12% 65.9 55.8 59.7 67% 63% 64% Dec-20 Dec-21 Dec-22

  26. Slide 26: Capitalization and Asset Quality

    PUBLIC Capitalization and Asset Quality Total Equity1 Breakdown (USD mn) Prudent capitalization (%) Tier 1 Tier 2 Share capital Statutory reserves Retained Earnings Other Reserves & Treasury Shares 18.4% 18.1% 17.4% 11,556 11,828 2.4% 2.4% 10,806 2.4% 3,066 3,511 3,103 5,063 4,349 4,523 16.0% 15.7%

  27. Slide 27: Expected Credit Losses (ECL) 2022

    PUBLIC Expected Credit Losses (ECL) 2022 Financial Statements ECL Disclosure (USDm) Total Gross Loans (USDbn) Stage 1 Stage 2 Stage 3 31 December 2022 Stage1 Stage 2 Stage 3 Total 66.5 71.3 1% 1% Loans, advances and Islamic 8% 9% financing to customers 64,303 5,943 1,012 71,258 Contingent liabilitie

  28. Slide 28: 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 28

  29. Slide 29: Kuwait Selected Mega Projects

    PUBLIC Kuwait Selected Mega Projects Project Sector Budget (KD bn) Scope Status Underway: Bids have been received for Al Mutlaa Residential City Concrete UH Water Tanks. Public Building in South Al Mutlaa City Construction 6.0 30,000 residential units, schools and other facilities Mutlaa City (N6 &

  30. Slide 30: Consolidated financials 2022 (USD million)

    PUBLIC Consolidated financials 2022 (USD million) Income Statement (USD million) 2021 2022 YoY Growth (%) Balance sheet (USD million) Dec-2021 Dec-2022 YoY Growth (%) Interest Income 2,158 3,094 43% Cash and short term funds 16,592 17,380 5% Interest Expense 506 1,188 NM Central Bank of Kuwait bonds

  31. Slide 31: Consolidated Statement Of Income (USD million)

    PUBLIC Consolidated Statement Of Income (USD million) USD million 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

  32. Slide 32: Consolidated Statement Of Financial Position (USD million)

    PUBLIC Consolidated Statement Of Financial Position (USD million) USD million 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 Islami

  33. Slide 33: 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

  34. Slide 34: National Bank of Kuwait Investor Presentation

    PUBLIC National Bank of Kuwait Investor Presentation March 2023 National Bank of Kuwait 34

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