National Bank Of Kuwait K.s.c. · KSE:NBK
National Bank Of Kuwait K.s.c — National Bank of Kuwait — Investor Presentation (August 2024)
35 slides from National Bank Of Kuwait K.s.c's investor presentation, August 2024
Slide 1: National Bank of Kuwait Investor Presentation
PUBLIC National Bank of Kuwait Investor Presentation August 2024 National Bank of Kuwait 1
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
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
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 shareholding USD million 2021 2022 2023 company in Kuwait ▪ The leading conventional banking group in Kuwait in terms of assets, customer deposits and
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 – 72 branches Iraq – 3 branches Lebanon – 2 branches Egypt – 54 branches Bahrain – 2 branches Singapore – 1 branch UAE – 2 branches KSA – 3 branch
Slide 6: Key Strengths
PUBLIC Key Strengths High credit ratings and among the top brand values regionally A Leading market position in Kuwait ▪ NBK enjoys a dominant market share across various business segments in ▪ NBK has one of the highest credit ratings in the MENA region Kuwait ▪ Named the most valuable banking bran
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
Slide 8: NBK's Strategy
PUBLIC NBK’s Strategy ▪ The Bank aims to (i) remain the primary banker for the leading local companies whilst continuing to be active in the mid-market sector;(ii) ✓ Corporate remain the bank of choice for foreign companies and continuing to serve at least 75% of those companies and (iii) maintain i
Slide 9: Kuwait Operations
PUBLIC Kuwait Operations NBK Islamic Banking (Boubyan Bank 60.4% owned subsidiary) ▪ After a series of gradual share acquisitions since 2009, NBK’s stake in Boubyan bank reached 58.4% in 2012. Corporate Banking Consumer Banking Through Boubyan, NBK aims at diversifying its income stream, complementi
Slide 10: International Banking Operations
PUBLIC International Banking Operations London – 1 branch ▪ NBK’s international banking operations have been traditionally contributing 25% of the Group’s bottom line. New York – 1 Branch Paris – 1 branch ▪ NBK’s international presence is a differentiating factor for the Group, enabling better servi
Slide 11: NBK Wealth
PUBLIC NBK Wealth NBK Wealth emerged as the outcome of the transformation plan of merging NBK’s private banking and asset management businesses under one leadership and one identity. The transformation plan was focused on client-centricity, and NBK Wealth now offer SHNWI/UHNWI/HNWI and institutional
Slide 12: Digital Transformation Underpinning the Strategy of the Group
PUBLIC Digital Transformation Underpinning the Strategy of the Group We developed our digital agenda with strong ambitions NBK has embraced the changing business environment and evolving customer demands Being and percieved as Building “next Establishing a digital resulting from technological advanc
Slide 13: NBK ESG Strategy Framework
PUBLIC NBK ESG Strategy Framework National Bank of Kuwait 13
Slide 14: The Fundamental Guiding Forces of NBK's ESG Journey
PUBLIC The Fundamental Guiding Forces of NBK’s ESG Journey ESG Ratings* ESG Governance National and Global NBK’s score improved to ▪ A Board approved ESG Governance Structure and Frameworks 27.1 – Medium Risk, up Framework that assigns ESG responsibility across from 27.4 members of the Executive Man
Slide 15: Key ESG Achievements
PUBLIC Key ESG Achievements We measure our progress against well-defined metrics and targets to achieve the greatest positive impact. Strategy Pillars Key Highlights* ▪ In the process of developing an Environmental and Climate Change Policy, a fundamental part of NBK’s commitment to carbon neutralit
Slide 16: NBK's Debut Green Bond
PUBLIC NBK’s Debut Green Bond In June 2024, NBK successfully issued its debut 6NC5 green bond under its Sustainable Financing Framework, raising USD 500 million to support the financing of low- carbon initiatives. By issuing this green bond, NBK strengthens its dedication to environmental stewardshi
Slide 17: 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 17
Slide 18: Kuwait Overview
PUBLIC Kuwait Overview Key Highlights Key Indicators Indicator 2021 2022 2023e 2024f ▪ Kuwait is a constitutional monarchy, headed by H.E. the Emir, Sheikh Meshal Al- Ahmad Al-Sabah, with a population of 4.8 million (June 2023). Nominal GDP (USD billion) 142.5 182.1 163.7 159.2 ▪ It is a founding me
Slide 19: Kuwait's Economy
PUBLIC Kuwait’s Economy Real GDP Growth1 (% y/y) Project Awards2 (KD million) 15 15 800 800 Oil sector Construction Oil & Gas Transport Power & Water Industrial 700 700 10 Non-oil sector 10 600 600 Headline 500 500 5 5 400 400 0 0 300 300 200 200 -5 -5 100 100 -10 -10 0 0 1Q22 2Q22 3Q22 4Q22 1Q23 2Q
Slide 20: Kuwait's Banking Sector
PUBLIC Kuwait’s Banking Sector Kuwait Discount Rate1 (%) Loans and Deposits2 6 Discount rate 6 50 Credit (KD bn, LHS) 110 Fed target rate (upper limit) Deposits (KD bn, LHS) 108 5 5 49 Loan-to-deposit ratio (RHS) 106 48 4 4 104 47 3 3 102 46 100 2 2 45 98 1 1 44 96 0 0 43 94 Jul-21 Jan-22 Jul-22 Jan
Slide 21: Dominant Kuwaiti Franchise
PUBLIC Dominant Kuwaiti Franchise NBK is the leading conventional banking group in Kuwait with a market leading position across its business segments Total Assets (USD mn) Customer Deposits (USD mn) Kuwait Finance House 123,912 National Bank of Kuwait 71,553 National Bank of Kuwait 122,787 Kuwait Fi
Slide 22: 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 22
Slide 23: 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 3,804 3,804 3,292 3,292 22% 25% 1,997 1,828 1,845 1,997 1,660 1,845 21% 24% 78% 898 954 75% 76% 79% 2022 2023
Slide 24: Operating Performance & Profitability (cont'd)
PUBLIC Operating Performance & Profitability (cont’d) 1H 2024 Op. Income by Type (%) 1H 2024 Op. Income by Business Line (%) Cost to Income (%) FX, 3% Others, 1% Corporate, NBK Fees, 17% 13% Wealth, 38.2% 9% 36.6% 36.5% 37.0% Consumer, 20% Islamic, 21% Net Interest Others, Income, 13% Intern'l 79% B
Slide 25: 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 74.1 122.8 122.9 72.6 100.0% 70.3 118.5 117.7 68.5 80.0% 7.1% 6.5% 60.0% 6.1% 5.4% 57.8% 59.2% 59.8% 60.3% 40.0% 20.0% 0.0% Dec-22 Dec-23 Jun-23 Jun-24 Dec
Slide 26: 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 12.1 9.3 6% 7% 7% 7% 12.2 12.0 13% 12% 12% 14% 12% 11% 12% 9% 71.6 71.1 65.8 66.1 64%
Slide 27: Capitalization and Asset Quality
PUBLIC Capitalization and Asset Quality Total Equity1 Breakdown (USD mn) Prudent Capitalization (%) Share capital Statutory reserves Retained Earnings Other Reserves & Treasury Shares CET 1 Ratio Tier 1 Ratio Capital Adequacy Ratio 12,661 12,783 11,811 12,008 2,420 3,076 2,537 17.4% 3,063 17.3% 16.8
Slide 28: Expected Credit Losses (ECL) 1H 2024
PUBLIC Expected Credit Losses (ECL) 1H 2024 Financial Statements ECL Disclosure (USDm) Total Gross Loans (USDbn) Stage 1 Stage 2 Stage 3 30 June 2024 Stage 1 Stage 2 Stage 3 Total 73.1 75.5 77.0 2% 1% 1% Loans, advances and Islamic financing to customers 69,998 5,856 1,169 77,023 7% 7% 8% Contingent
Slide 29: 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 29
Slide 30: Consolidated Financials 1H 2024 (USD mn)
PUBLIC Consolidated Financials 1H 2024 (USD mn) Income Statement (USD mn) 1H 2023 1H 2024 YoY Growth (%) Balance Sheet (USD mn) Jun-23 Jun-24 YoY Growth (%) Interest Income 2,465 2,925 19% Cash and short term funds 12,453 11,726 (6%) Central Bank of Kuwait bonds 2,906 2,527 (13%) Interest Expense 1,
Slide 31: Consolidated Statement Of Income (USD mn)
PUBLIC Consolidated Statement Of Income (USD mn) USD mn 2021 2022 2023 Interest Income 2,155 3,089 5,323 Interest Expense 505 1,186 2,961 Net Interest Income 1,650 1,903 2,362 Murabaha and other Islamic financing income 743 937 1,312 Finance cost and Distribution to depositors 211 376 724 Net Income
Slide 32: Consolidated Statement Of Financial Position (USD mn)
PUBLIC Consolidated Statement Of Financial Position (USD mn) USD mn Dec-21 Dec-22 Dec-23 Cash and short term funds 16,567 17,354 14,294 Central Bank of Kuwait bonds 2,706 2,873 2,793 Kuwait Government treasury bonds 1,359 690 633 Deposits with banks 2,886 4,858 4,297 Loans, advances and Islamic fina
Slide 33: Kuwait Selected Mega Projects
PUBLIC Kuwait Selected Mega Projects Project Sector Budget (KD bn) Scope Status Underway: Construction works are still ongoing; the main contract bids for public buildings in N2 & N4 were submitted and South Al Mutlaa City Construction 6.0 30,000 residential units, schools and other facilities are c
Slide 34: 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
Slide 35: National Bank of Kuwait Investor Presentation
PUBLIC National Bank of Kuwait Investor Presentation August 2024 National Bank of Kuwait 35
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