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

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

33 slides from National Bank Of Kuwait K.s.c's investor presentation, October 2022

  1. Slide 1: National Bank of Kuwait Investor Presentation

    PUBLIC National Bank of Kuwait Investor Presentation October 2022 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 2019 2020 2021 shareholding company in Kuwait  The leading banking group in Kuwait in terms of assets, customer deposits and customer loan

  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 – 66 branches Iraq – 4 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 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 assets,

  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 has been traditionally contributing to 25% of the Group’s bottom line. New York – 1 Branch  NBK’s international presence is a differentiating factor for the Group, enabling better s

  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: Sustainability is Embedded in NBK’s DNA and Strategy

    PUBLIC Sustainability is Embedded in NBK’s DNA and Strategy Our ESG Strategy is built upon six robust pillars… Contributing to Serving Respecting & Leading in Giving back to Caring for our Economic Customers Developing Governance our Community Environment Development People Our long-term ESG focus i

  13. Slide 13: Our Key ESG Achievements

    PUBLIC Our Key ESG Achievements Our ESG Strategic Pillars What we achieved Contributing to Economic  74.6% Kuwaitization rate  71% Local Procurement which contributed to 84% of our expenditure Development  Launched Weyay Bank, the first digital bank for the Youth in Kuwait Serving Customers  94%

  14. Slide 14: Introducing NBK’s Sustainable Financing Framework

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

  15. Slide 15: 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 15

  16. Slide 16: Overview of Kuwait

    PUBLIC Overview of Kuwait Overview Fiscal breakeven oil price (USD)  The State of Kuwait is a sovereign state on the coast of the Exc. investment income Incl. investment income Arabian Gulf with a population of 4.5 million 100 98 100 90 90  Kuwait is a constitutional monarchy, headed by His Highne

  17. Slide 17: Kuwait’s Economy

    PUBLIC Kuwait’s Economy Recent Developments Real GDP (% y/y) 10 Total Non-oil 10 7.8  Following a decline of 8.9% in 2020 due to the twin shocks of Covid-19 and 5.7 lower oil activity/prices, output is estimated to have rebounded by 1.1% in 3.8 3.1 3.4 5 2.4 2.5 5 2021, led by gains in private cons

  18. Slide 18: 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

  19. Slide 19: 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

  20. Slide 20: 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 20

  21. Slide 21: 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 2,996 2,996 2,785 2,785 2,424 26% 2,424 2,191 25% 2,191 27% 26% 1,198 1,204 814 820 75% 74% 74% 73% 2020 2021

  22. Slide 22: Operating Performance & Profitability (cont’d)

    PUBLIC Operating Performance & Profitability (cont’d) 9M 2022 Op. income by type (%) 9M 2022 Op. income by business line (%) Cost to income (%) Others, 1% Consumer FX, 8% & Private Corporate, Banking, 14% 39.6% 39.1% 31% 38.2% Fees, 18% 37.0% Inv Bkg & AM, 4% Others, 5% Islamic Banking, Net Interest

  23. Slide 23: 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 66.3 111.7 65.2 109.9 61.0 104.6 57.9 12.7% 98.2 58.9% 59.3% 58.3% 59.4% 8.7% 7.5% 5.7% Dec-20 Dec-21 Sep-21 Sep-22 Dec-20 Dec-21 Sep-21 Sep-22 Loan exposu

  24. Slide 24: Funding and Liquidity Positions

    PUBLIC Funding and Liquidity Positions Funding Mix (Total Liabilities) Customer and FI Deposits (USD bn) Customer Deposits FI Deposits Customer deposits Deposits from other FIs Due to banks Other borrowed funds CDs 12.8 10.4 9.7 11.1 12% 14% 15% 12% 11% 13% 11% 12% 60.4 62.0 56.5 55.9 67% 63% 62% 64

  25. Slide 25: 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 Tier 1 Tier 2 18.4% 18.1% 18.1% 11,701 2.4% 16.3% 10,942 11,067 11,235 2.4% 2.5% 2.3% 3,555 2,652 2,292 3,142 4,999

  26. Slide 26: Expected Credit Losses (ECL) 9M 2022

    PUBLIC Expected Credit Losses (ECL) 9M 2022 Financial Statements ECL Disclosure (USDm) Total Gross Loans (USDbn) Stage 1 Stage 2 Stage 3 30 September 2022 Stage1 Stage 2 Stage 3 Total 63.1 67.3 68.9 1% 1% 1% Loans, advances and Islamic 8% 8% 8% financing to customers 62,631 5,444 858 68,933 Continge

  27. Slide 27: 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 27

  28. Slide 28: Kuwait Selected Mega Projects

    PUBLIC Kuwait Selected Mega Projects Project Sector NPV (KD bn) Scope Status Underway: Construction works have progressed up to 85% and the project is expected to be completed by South Al Mutlaa City Housing 3.5 30,000 residential units, schools and other facilities February 2023 on Multaa Future Ci

  29. Slide 29: Consolidated financials 9M 2022 (USD million)

    PUBLIC Consolidated financials 9M 2022 (USD million) Income Statement (USD million) 9M 2021 9M 2022 YoY Growth (%) Balance sheet (USD million) Sep- 21 Sep-22 YoY Growth (%) Interest Income 1,582 2,022 28% Cash and short term funds 16,782 12,311 (27%) Interest Expense 364 685 88% Central Bank of Kuwa

  30. Slide 30: Consolidated Statement Of Income (USD million)

    PUBLIC 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 Net

  31. Slide 31: Consolidated Statement Of Financial Position (USD million)

    PUBLIC 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 Isla

  32. Slide 32: 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

  33. Slide 33: National Bank of Kuwait Investor Presentation

    PUBLIC National Bank of Kuwait Investor Presentation October 2022 National Bank of Kuwait 33

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