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

National Bank Of Kuwait K.s.c — National Bank of Kuwait — Investor Presentation (March 2022)

35 slides from National Bank Of Kuwait K.s.c's investor presentation, March 2022

  1. Slide 1: National Bank of Kuwait Investor Presentation

    RESTRICTED National Bank of Kuwait Investor Presentation March 2022 National Bank of Kuwait 1

  2. Slide 2: Disclaimer

    RESTRICTED 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 PRESENTA

  3. Slide 3: Contents

    RESTRICTED 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

    RESTRICTED NBK is Kuwait’s Leading Banking Group Snapshot Financial snapshot  Established in1952 as the first local and home-grown GCC bank, and first USD million 2019 2020 2021 shareholding company in Kuwait  The leading banking group in Kuwait in terms of assets, customer deposits and customer l

  5. Slide 5: Regional and International Geographic Presence

    RESTRICTED Regional and International Geographic Presence Middle East Europe Location - Year established/acquired Legal Structure - Branches Location - Year established/acquired Legal Structure – Branches Kuwait – 1952 Parent – 68 London – 1983 Subsidiary – 1 Egypt – 2007 Subsidiary – 52 Geneva – 19

  6. Slide 6: Key Strengths

    RESTRICTED Key Strengths High credit ratings and among the Largest banking group in Kuwait with top brand values regionally dominant market position  As at 31 December 2021, the Bank was the largest bank in  NBK has one of the highest credit ratings in the MENA region Kuwait in terms of total asse

  7. Slide 7: Contents

    RESTRICTED 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

    RESTRICTED 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

  9. Slide 9: Kuwait Operations

    RESTRICTED 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 blue-chip  Maintain undi

  10. Slide 10: International Operations

    RESTRICTED International Operations Established or  NBK’s international operations has been traditionally contributing to 25% of the Group’s bottom line acquired Branches Legal structure with the Bank aspiring to increase this contribution.  The Bank generally aims to maintain a majority stake in

  11. Slide 11: Boubyan Bank (59.9% owned subsidiary)

    RESTRICTED Boubyan Bank (59.9% owned subsidiary) Market share of Total Assets(%) Highlights  Islamic banking has been gaining ground in the Kuwaiti market, representing more than 40% of assets and deposits at year-end 2020. 7.6%  After a series of gradual share acquisitions since 2009, NBK’s stake

  12. Slide 12: Digital Transformation Strategy

    RESTRICTED 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

  13. Slide 13: During 2021 Our Initiatives Evidently Addressed Our Strategy

    RESTRICTED During 2021 Our Initiatives Evidently Addressed Our Strategy • Apple Widgets • New Bill splitting • UEFA credit and • Qmatic booking on • Launched Tesla • Salary allowance • PACI signature on • Side menu re- feature prepaid card MOB campaign for credit transfer form on MOB arrangement • U

  14. Slide 14: Achievements and Recognitions

    RESTRICTED Achievements and Recognitions We launched Increased Digital Adoption Recognition from the First Digital Bank in Kuwait at a high rate International Awards Weyay Bank Existing Business Best Consumer Digital Bank Best Online Product Offerings Best Bill Payment & Presentment 2020 2021 Best M

  15. Slide 15: NBK Sustainability Pillars

    RESTRICTED 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 15

  16. Slide 16: Close Alignment With International Frameworks and ESG Raters

    RESTRICTED Close Alignment With International Frameworks and ESG Raters National Bank of Kuwait 16

  17. Slide 17: Contents

    RESTRICTED 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

  18. Slide 18: Overview of Kuwait

    RESTRICTED Overview of Kuwait Overview Fiscal breakeven oil price  The State of Kuwait is a sovereign state on the coast of the 100 98 100 Arabian Gulf with a population of 4.6 million Exc. investment income 90 Incl. investment income 89 90  Kuwait is a constitutional monarchy, headed by His Highn

  19. Slide 19: Kuwait's Economy

    RESTRICTED Kuwait’s Economy Recent Developments Real GDP (% y/y)  Following a decline of 8.9% in 2020 due to the twin shocks of Covid-19 and lower oil activity/prices, output is estimated to have rebounded by 1% in 2021, Total Non-oil led by gains in private consumption and non-oil activity more br

  20. Slide 20: Kuwait's Banking Sector

    RESTRICTED 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 Ce

  21. Slide 21: Dominant Kuwaiti Franchise

    RESTRICTED 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 97,996 National Bank of Kuwait 56,403 Kuwait Finance House 70,906 Kuwait Fin

  22. Slide 22: Contents

    RESTRICTED 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

  23. Slide 23: Operating Performance & Profitability

    RESTRICTED Operating Performance & Profitability Profitability (USD mn) Operating Income Composition (USD mn) Net Operating Income Net Profit NII & NI from Islamic financing Non-interest income 2,960 2,996 2,960 2,996 2,785 2,785 23% 26% 25% 1,327 1,198 814 77% 75% 74% 2019 2020 2021 2019 2020 2021

  24. Slide 24: Operating Performance & Profitability (cont'd)

    RESTRICTED Operating Performance & Profitability (cont’d) 2021 Op. income by type (%) 2021 Op. income by business line (%) Cost to income (%) Others, 4% Consumer FX, 4% & Private Banking, Corporate, 34% 15% Fees, 18% 39.6% 37.0% Inv Bkg & 34.0% AM, 4% Others, 1% Net Interest Islamic Income, Banking,

  25. Slide 25: Balance Sheet Parameters

    RESTRICTED Balance Sheet Parameters Net loan portfolio (USD bn) Loans to assets (USD bn) Net Loans Net loan growth YoY (%) Total Assets Loans/Assets 65.2 109.9 57.9 54.7 98.2 96.8 12.7% 56.5% 58.9% 59.3% 6.8% 5.7% Dec-19 Dec-20 Dec-21 Dec-19 Dec-20 Sep-21 Loan exposure by sector (%) (as at 31 Decemb

  26. Slide 26: Funding and Liquidity Positions

    RESTRICTED 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 10.4 14% 12% 9.7 14% 13.1 16% 11% 11% 56.5 60.4 67% 52.7 64% 63% 2019 2020 2021 2

  27. Slide 27: Capitalization and Asset Quality

    RESTRICTED Capitalization and Asset Quality Total Equity1 Breakdown (USD mn) Prudent capitalization (%) Share capital Statutory reserves Retained Earnings Other Reserves & Treasury Shares Tier 1 Tier 2 18.4% 18.1% 17.8% 11,351 11,701 2.4% 10,942 1.9% 2.4% 3,390 3,555 3,142 4,726 4,403 4,579 15.9% 16

  28. Slide 28: Expected Credit Losses (ECL) 2021

    RESTRICTED Expected Credit Losses (ECL) 2021 Financial Statements ECL Disclosure (USD mn) Total Gross Loans (USD bn) Stage 1 Stage 2 Stage 3 31 Dec 2021 Stage1 Stage 2 Stage 3 Total 60.1 67.3 2% 1% Loans, advances and Islamic 10% 8% financing to customers 61,086 5,509 698 67,293 88% 91% Contingent l

  29. Slide 29: Contents

    RESTRICTED 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

  30. Slide 30: Kuwait Selected Mega Projects

    RESTRICTED Kuwait Selected Mega Projects Project Sector Value (KD bn) Scope Status Underway: Construction works are ongoing as per schedule and are expected to be completed by February 2022 South Al Mutlaa City Housing 2.33 30,000 residential units, schools and other facilities on Public Building in

  31. Slide 31: Consolidated financials 2021 (USD million)

    RESTRICTED Consolidated financials 2021 (USD million) Income Statement (USD million) 2020 2021 YoY Growth (%) Balance sheet (USD million) Dec-2020 Dec-2021 YoY Growth (%) Interest Income 2,502 2,185 (13%) Cash and short term funds 12,904 16,800 30% Interest Expense 882 512 (42%) Central Bank of Kuwa

  32. Slide 32: Consolidated Statement Of Income (USD million)

    RESTRICTED Consolidated Statement Of Income (USD million) USD million 2019 2020 2021 Interest Income 3,261 2,502 2,185 Interest Expense 1,394 882 512 Net Interest Income 1,867 1,621 1,673 Murabaha and other Islamic financing income 699 744 753 Finance cost and Distribution to depositors 288 271 214

  33. Slide 33: Consolidated Statement Of Financial Position (USD million)

    RESTRICTED Consolidated Statement Of Financial Position (USD million) USD million 2019 2020 2021 Cash and short term funds 12,520 12,904 16,800 Central Bank of Kuwait bonds 2,721 2,745 2,744 Kuwait Government treasury bonds 2,189 1,530 1,379 Deposits with banks 6,311 3,396 2,927 Loans, advances and

  34. Slide 34: Contact

    RESTRICTED 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 Ba

  35. Slide 35: National Bank of Kuwait Investor Presentation

    RESTRICTED National Bank of Kuwait Investor Presentation March 2022 National Bank of Kuwait 35

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