National Bank Of Kuwait K.s.c. · KSE:NBK
National Bank Of Kuwait K.s.c — National Bank of Kuwait — Q2 2019 Earnings Presentation
26 slides from National Bank Of Kuwait K.s.c's earnings presentation, 2019
Slide 1: National Bank of Kuwait Investor Presentation
National Bank of Kuwait Investor Presentation 2Q 2019 Earnings Call
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 Deputy GCEO opening remarks Section 2 Financial Performance 1H 2019 / 2Q 2019 Section 3 Appendix Section 4 Questions 2
Slide 4: NBK Resilient Profitability (KWD mn)
NBK Resilient Profitability (KWD mn) +12.5% 209 186 +9.9% 101 92 1H 2018 1H 2019 2Q 2018 2Q 2019 3
Slide 5: NBK's strategy update
NBK’s strategy update 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 Corporate Banking Defend and Grow Leadership Position in Kuwait Maintain excellence and market leadership positio
Slide 6: Kuwait: Outlook remains solid on infrastructure spending
Kuwait: Outlook remains solid on infrastructure spending Brent Crude Oil Prices ($ pb) Kuwait GDP (% y/y) 90 90 4 4 80 80 3 3 70 70 2 2 60 60 1 1 0 0 50 50 -1 -1 40 40 GDP -2 -2 30 30 Non-oil -3 -3 20 20 -4 -4 2015 2016 2017 2018 2019 2015 2016 2017 2018e 2019f 2020f 2021f Kuwait Fiscal Balance (% G
Slide 7: Egypt: Successful reforms support strong growth outlook
Egypt: Successful reforms support strong growth outlook Egypt GDP (%) Egypt Inflation (%) 6 6 50 Total 50 5 5 40 Food & beverage 40 4 4 Core 30 30 3 3 20 20 2 2 1 1 10 10 0 0 0 0 14/15 15/16 16/17 17/18 18/19 19/20 20/21 May-16 May-17 May-18 May-19 Egypt Fiscal Balance (% GDP) Egypt Interest Rates (
Slide 8: Saudi Arabia: A market offering a wealth of opportunities
Saudi Arabia: A market offering a wealth of opportunities GCC GDP (% y/y) Saudi Arabia GDP (% y/y) 5 GDP 5 5 GDP 5 4 Non-oil GDP 4 4 Non-oil GDP 4 3 3 3 3 2 2 2 2 1 1 1 1 0 0 0 0 -1 -1 -1 -1 2015 2017 2019f 2021f 2015 2017 2019f 2021f Saudi Fiscal Balance (% GDP) GCC Banks Credit (% y/y) 5 5 16 16 1
Slide 9: Contents
Contents Section 1 Deputy GCEO opening remarks Section 2 Financial Performance 1H 2019 / 2Q 2019 Section 3 Appendix Section 4 Questions 8
Slide 10: Operating Performance 1H 2019
Operating Performance 1H 2019 Net Profit (KDm) Operating Surplus (KDm) 307.1 306.0 209.1 -0.3% 185.9 +12.5% 158.2 154.4 151.7 107.7 101.4 92.3 2Q 2018 1Q 2019 2Q 2019 1H 2018 1H 2019 2Q 2018 1Q 2019 2Q 2019 1H 2018 1H 2019 Operating Income (KDm) Operating Income 451.9 Net interest income & Net incom
Slide 11: Operating Performance 1H 2019
Operating Performance 1H 2019 Net Interest Income (KDm) Average Interest Earning Assets (KDbn) 26.3 336.8 344.4 25.9 25.4 +1.5% +2.3% 173.2 171.2 173.2 +3.8% 2Q 2018 1Q 2019 2Q 2019 1H 2018 1H 2019 1H 2018 2H 2018 1H 2019 Net Interest Margin* Net Interest Margin drivers YTD NIM Qtrly NIM +0.27% -0.5
Slide 12: Operating Performance 1H 2019
Operating Performance 1H 2019 Non-interest income (KDm) Operating Expenses (KDm) Net fees and commissions 105.4 107.5 Staff expenses 135.1 145.8 Net gains from dealing in FX 10 Other operating expenses Other non-interest income 10 +2.0% 19 19 60 +7.9% 55 55.5 54.3 74.6 53.1 70.6 71.2 4 7 3 12 9 30 1
Slide 13: Operating Performance 1H 2019
Operating Performance 1H 2019 Operating Income (KDm) - International Operating Income (KDm) Int'l Int'l 101.9 109.1 23% 24% +7.1% Dom. Dom. 77% 76% 1H 2018 1H 2019 1H 2018 1H 2019 Net profit (KDm) - International Net Profit (KDm) 55.5 53.7 Int'l Int'l 30% 26% -3.2% Dom. Dom. 70% 74% 1H 2018 1H 2019
Slide 14: Operating Performance 1H 2019
Operating Performance 1H 2019 Total Assets (KDbn) Loans, Advances and Islamic Financing (KDbn) 27.4 27.9 16.2 26.9 15.2 15.5 +1.6% +4.6% +3.4% +6.5% Jun 18 Dec 18 Jun 19 Jun 18 Dec 18 Jun 19 Customer Deposits (KDbn) Funding Mix Due to banks and other FIs Customer Deposits CD's / GMTN / T2 Bonds 15.5
Slide 15: Performance and Asset Quality ratios 1H 2019
Performance and Asset Quality ratios 1H 2019 Return on Average Equity Return on Average Assets 1.53% 13.2% 1.41% 1.38% 12.3% 12.0% 1H 2018 FY 2018 1H 2019 1H 2018 FY 2018 1H 2019 Capital Adequacy Ratios Asset Quality Ratios CET 1 Ratio Tier 1 Ratio Capital Adequacy Ratio Loan Loss Coverage Ratio NPL
Slide 16: 2019 Guidance
2019 Guidance 1H 2019 2019 Guidance Loan Growth +4.6% ytd HIGH SINGLE DIGIT NIM 2.64% BROADLY STABLE Cost to Income ratio 32.3% 32%-33% Cost of Risk 82bps BROADLY STABLE Earnings +12.5% yoy LOW DOUBLE DIGIT Capital Adequacy 16.6% 15
Slide 17: Contents
Contents Section 1 Deputy GCEO opening remarks Section 2 Financial Performance 1H 2019 / 2Q 2019 Section 3 Appendix Section 4 Questions 16
Slide 18: Consolidated Financials 1H 2019 (KWD million)
Consolidated Financials 1H 2019 (KWD million) YoY Growth YoY Growth Income Statement (KWD million) 1H-18 1H-19 Balance sheet (KWD million) 1H-18 1H-19 (%) (%) Interest Income 425 492 16% Cash and short term funds 3,020 3,047 1% Interest Expense 149 208 40% Central Bank of Kuwait bonds 787 818 4% Net
Slide 19: Performance Measures 1H 2019
Performance Measures 1H 2019 % 1H 2018 1H 2019 Return on average assets 1.41% 1.53% Return on average equity 12.3% 13.2% Net interest margin 2.68% 2.64% Cost to income 30.6% 32.3% NPLs to gross loans 1.40% 1.39% Loan loss reserves to NPLs 254.4% 234.3% Tier 1 capital 15.1% 14.6% Tier 2 capital 2.1%
Slide 20: Consolidated Statement Of Income (KWD million)
Consolidated Statement Of Income (KWD million) KWD million 2016 2017 2018 Interest Income 665 743 897 Interest Expense 190 224 331 Net Interest Income 476 519 566 Murabaha and other Islamic financing income 128 156 186 Finance cost and Distribution to depositors 34 46 62 Net Income from Islamic fina
Slide 21: Consolidated Statement Of Financial Position (KWD million)
Consolidated Statement Of Financial Position (KWD million) KWD million 2016 2017 2018 Cash and short term funds 2,687 2,744 2,967 Central Bank of Kuwait bonds 749 656 810 Kuwait Government treasury bonds 493 1,076 872 Deposits with banks 2,408 2,488 2,364 Loans, advances and Islamic financing to cus
Slide 22: Stable Credit Ratings
Stable Credit Ratings Long-term Standalone Rating Agency Outlook Key Rating Drivers Rating Rating • Dominant domestic position Aa3 a3 Stable • Resilient profitability and growth outlook • Robust asset quality, capitalization and liquidity • Leading position in Kuwait A+ a- Stable • More diversified
Slide 23: Contents
Contents Section 1 GCEO opening remarks Section 2 Financial Performance 1H 2019 / 2Q 2019 Section 3 Appendix Section 4 Questions 22
Slide 24: Questions
Questions yiibagJl NBK ee
Slide 25: Thank You
Thank You yiibagJl NEE
Slide 26: National Bank of Kuwait Investor Presentation
National Bank of Kuwait Investor Presentation 2Q 2019 Earnings Call
National Bank of Kuwait — Q2 2019 Earnings Presentation on 6ix