National Bank Of Kuwait K.s.c. · KSE:NBK
National Bank Of Kuwait K.s.c — National Bank of Kuwait — Investor Presentation (February 2016)
28 slides from National Bank Of Kuwait K.s.c's investor presentation, February 2016
Slide 1: National Bank of Kuwait Investor Presentation
National Bank of Kuwait Investor Presentation February 2016
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 Overview of NBK Section 2 Overview of Operating Environment Section 3 Strategy and Business Overview Section 4 Financial Performance (Historical) Section 5 Performance Overview FY 2015 Section 6 Appendix 2
Slide 4: NBK at a Glance
NBK at a Glance Snapshot Financial Snapshot National Bank of Kuwait S.A.K.P. (“NBK” or the “Bank”) was USD million 2013 2014 2015 established in 1952 as the first local bank and the first shareholding Total Assets 61,285 71,776 77,752 company in Kuwait and as the first indigenous bank in the GCC.
Slide 5: Key Strengths
Key Strengths High Credit Ratings and among the Largest Banking Group in Kuwait with Top Brand Values Regionally Dominant Market Position NBK has one of the highest credit ratings in the MENA As at 31 December 2015, the Bank was the largest region. bank in Kuwait in terms of total assets, loans
Slide 6: Rating Excerpts
Rating Excerpts “ The standalone baseline credit assessment (BCA) of a3, reflects the bank's (1) dominant position in its domestic market, underpinning its resilient core profitability and growth prospects; and (2) robust financial fundamentals including consistently good asset quality metrics, as w
Slide 7: Contents
Contents Section 1 Overview of NBK Section 2 Overview of Operating Environment Section 3 Strategy and Business Overview Section 4 Financial Performance (Historical) Section 5 Performance Overview FY 2015 Section 6 Appendix 6
Slide 8: Overview of Kuwait
Overview of Kuwait Snapshot Substantial Current Account Surpluses The State of Kuwait (“Kuwait” or the “Sovereign”) is a sovereign Current Account Balance (USD bn, lhs) Current Account Balance / GDP (%, rhs) emirate on the coast of the Arabian Gulf, covering a total area of 80 45.28% 60% 43.60% 40
Slide 9: Overview of Kuwait (Continued)
Overview of Kuwait (Continued) Recent Developments Investment Economic growth seen improving despite drop in oil prices, as Investments (KD Bn, lhs) Investments (% Non-oil GDP, rhs) project awards pick up. Fiscal and external buffers give Kuwait 10 50% 33.3% GDP ample capacity to sustain spending
Slide 10: Overview of the Kuwaiti Banking Sector
Overview of the Kuwaiti Banking Sector Snapshot Overview of Basel III Implementation in Kuwait The Kuwaiti banking sector comprises 23 banks, including five In June 2014, the Central Bank of Kuwait announced the implementation commercial banks, one specialised bank, five Shari’a-compliant local
Slide 11: The Dominant Kuwaiti Franchise
The 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 78,340 National Bank of Kuwait 38,349 Kuwait Finance House 55,357 Kuwait Finance Ho
Slide 12: Contents
Contents Section 1 Overview of NBK Section 2 Overview of Operating Environment Section 3 Strategy and Business Overview Section 4 Financial Performance (Historical) Section 5 Performance Overview FY 2015 Section 6 Appendix 11
Slide 13: 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 14: 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 Maintain undisputed leadership in
Slide 15: International Operations
International Operations International Operations NBK’s international operations currently contributed to circa 27% of its bottom line with Established or Branches Legal structure the Bank aspiring to increase this contribution. acquired The Bank generally aims to maintain a majority stake in it
Slide 16: Boubyan Bank (58.4% owned subsidiary)
Boubyan Bank (58.4% owned subsidiary) Market share of Total Assets(%) Key Highlights Islamic banking has been gaining strong grounds in the Kuwaiti market in recent years, representing close to 40% of assets and deposits at year-end 2015. After a series of gradual share acquisitions since 2009,
Slide 17: Contents
Contents Section 1 Overview of NBK Section 2 Overview of Operating Environment Section 3 Strategy and Business Overview Section 4 Financial Performance (Historical) Section 5 Performance Overview FY 2015 Section 6 Appendix 16
Slide 18: Operating Performance & Profitability
Operating Performance & Profitability Resilient Profitability (USD mn) Stable Returns (%) Net Operating Income Net Profit Return on Average Assets Return on Average Equity 10.5% 10.5% 10.0% 2,401 2,178 2,063 863 930 785 1.3% 1.3% 1.2% 2013 2014 2015 2013 2014 2015 Operating Income Composition (USD m
Slide 19: Balance Sheet Parameters
Balance Sheet Parameters Assets & Loans and Advances (USD mn) Breakdown of Assets by Type (As at 31 December 2015) Loans, advances & Islamic financing Total Assets Goodwill and Other Cash and short other intangible 2% term funds 77,752 assets 15% 71,776 3% Investment 61,285 securities CBK Bonds and
Slide 20: Funding and Liquidity Positions
Funding and Liquidity Positions Customer Deposits (USD mn) Strong Liquidity Position (USD mn) Liquid Assets Liquid Asset Ratio 38.8% 37.1% 34.6% 34,524 37,100 39,734 21,219 27,821 28,853 2013 2014 2015 2013 2014 2015 (Total Liabilities) Funding Mix (USD mn) Overview of Investment Securities1 – USD 9
Slide 21: Capitalization and Asset Quality
Capitalization and Asset Quality Total Equity1 Breakdown (USD mn) Capital Adequacy2 (%) Share capital Statutory reserves Tier 1 Ratio Capital Adequacy Ratio Regulatory CAR Retained Earnings Other Reserves & Treasury Shares 9,081 8,742 8,266 17.3% 2,942 16.8% 3,017 2,929 16.8% 14.5% 3,648 14.7% 3,078
Slide 22: Contents
Contents Section 1 Overview of NBK Section 2 Overview of Operating Environment Section 3 Strategy and Business Overview Section 4 Financial Performance (Historical) Section 5 Performance Overview FY 2015 Section 6 Appendix 21
Slide 23: FY 2015 Key Performance Extracts
FY 2015 Key Performance Extracts Interest Margins (%) Income Statement Key Highlights (USDmn) Net Interest Margin USD million 2014 2015 Net Interest Inc. & net inc. from Islamic financing 1,546 1,747 2.45% 2.42% Fees and Commissions 401 428 Net Operating Income 2,178 2,401 Total Operating Expenses 7
Slide 24: FY 2015 Key Performance Extracts (Continued)
FY 2015 Key Performance Extracts (Continued) Net Loan Portfolio (USD bn) Loans to Assets (USD bn) Net Loans Net loan growth YoY (%) 13.8% Total Assets Loans/Assets 11.3% 54.7% 57.4% 39.2 44.6 71.8 77.8 2014 2015 2014 2015 Loan exposure by sector (%) Non-Performing Loans Prudent Capitalization (%) Te
Slide 25: Contents
Contents Section 1 Overview of NBK Section 2 Overview of Operating Environment Section 3 Strategy and Business Overview Section 4 Financial Performance (Historical) Section 5 Performance Overview FY 2015 Section 6 Appendix 24
Slide 26: Kuwait Selected Mega Projects
Kuwait Selected Mega Projects Project Sector Value (KD bn) Scope Status Kuwait Health Assurance Co. Health insurance, medical treatment for non- Awarded: Company has appointed a CEO; the project is expected to be Healthcare NA (PPP) Kuwaitis. Also, 3 hospitals & 15 clinics operational within 3 years
Slide 27: Consolidated Statement Of Income
Consolidated Statement Of Income USD million 2013 2014 2015 Interest Income 1,612 1,692 1,928 Interest Expense 335 376 459 Net Interest Income 1,277 1,316 1,468 Murabaha and other Islamic financing income 243 287 350 Distribution to depositors and Murabaha costs 33 57 72 Net Income from Islamic fina
Slide 28: Consolidated Statement Of Financial Position
Consolidated Statement Of Financial Position USD million 2013 2014 2015 Cash and short term funds 7,947 10,320 11,471 Central Bank of Kuwait bonds 1,761 1,762 2,649 Kuwait Government treasury bonds 1,055 1,135 1,252 Deposits with banks 2,964 6,756 4,701 Loans, advances and Islamic financing to custo
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