Burgan Bank · KSE:BURG
Burgan Bank — FY2012 Earnings Presentation
25 slides from Burgan Bank's earnings presentation, Sep 12, 2013
Slide 1: 2012... a year of solid performance
Qin me A 7 BURGAN BANK “-:2012... a year of ALGER Solid performance TUNIS et is ye a iis JORDAN om e a Investor Prese
Slide 2: Disclaimer
Disclaimer The information contained in this document has been provided on the basis of current knowledge, assumptions and expectations. In the event that any information is incorrect or any party misrepresented, Burgan Bank and its consultants cannot be held responsible for this. Various factors co
Slide 3: Agenda
Agenda Economic Landscape Financial Performance Inorganic Highlights Performance vs. Peers Conclusion 3
Slide 4: Economic Landscape
BURGAN BANK ] ol sp So Economic Landscape Burgan Bank Group: Kuwait - Jordan - Turkey - Algeria - Iraq - Tunisia - Lebanon
Slide 5: Inclusive growth needed to support future growth
Inclusive growth needed to support future growth…. Global Macro in deceleration mode, driven by below potential growth prospects, higher debt, unemployment level and political risk. G3 and BRIC: Average GDP growth (%) 300 G3: Gross public debt (% GDP) 14 G3: Unemployment rate (%) Unemployment remain
Slide 6: Financial Performance
BURGAN BANK ] ol sp So Financial Performance Burgan Bank Group: Kuwait - Jordan - Turkey - Algeria - Iraq - Tunisia - Lebanon
Slide 7: Strong Financial and Operating Performance
Strong Financial and Operating Performance… Revenue (KD million)(1) Cost of Credit (KD million) 2,135 2,252 2,871 ∆16.4% 190.1 71.8 ∆6.1% 163.4 154.0 36.1 29.1 17.3 16.1 13.1 18.8 FY 10 FY 11 FY 12 FY 10 FY 11 FY 12 Additional Provisions Net EOP Loans n KD million – FY 12 Ex. BBT. Net Profit (KD mil
Slide 8: ...with quality earnings
…with quality earnings… Revenue (KD million) 39 43 43 48 44 48 38 51 18 17 21 15 14 17 13 15 26 28 29 30 27 31 30 24 Q1 11 Q1 12 Q2 11 Q2 12 Q3 11 Q3 12 Q4 11 Q4 12 Net Interest Income (2011) Non Interest Income (2011) Net Interest Income (2012) Non Interest Income (2012) BB Consolidated (KD mn) Ope
Slide 9: ...and enhanced risk position
…and enhanced risk position… Non Performing Loans (KD million) and Coverage Ratio 400 198% 200% 154% 171% 145% 139% 300 131% 150% 200 100% 270 266 254 253 247 100 219 50% 102 105 111 114 73 95 70 76 92 67 72 46 0 0% Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 (Ex. BBT) Q4 12 (Inc. BBT) NPL NPL net of collateral T
Slide 10: ...supported by solid balance sheet growth
…supported by solid balance sheet growth… (1) KD (million) Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q4 12 Loans & Advances 2,252 2,405 2,592 2,783 2,871 3,384 Total Assets 4,552 4,773 4,967 5,171 5,272 5,977 Deposits 2,796 3,040 3,164 3,330 3,392 3,895 Total Liabilities 3,986 4,205 4,386 4,573 4,652 5,357 Shar
Slide 11: ...Solid & improved shareholder returns
…Solid & improved shareholder returns Quarterly Net Profit (KD million) Annual Net Profit (KD million) 72.9 20.0 17.0 17.1 17.5 17.6 17.7 16.5 16.1 17.3 2.5 66.6 3.5 4.0 10.8 4.6 4 7.9 16.1 . 17.5 5 16.1 15.2 55.6 11.8 13.5 13.6 9.2 9.2 50.6 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 FY 11 FY 1
Slide 12: Financial Performance - By Country
Financial Performance - By Country 12
Slide 13: Diversity from all the subsidiaries
Diversity from all the subsidiaries Total Assets (KD mn) Net Loans (KD mn) Customer Deposits (KD mn) 3,854 2,218 2,054 3,273 1,819 1,576 950 600 559 591 890 488 390 284 158 230 271 258 150 173 229 185 149 38 34 7 5 144 68 73 Kuwait Jordan Algeria Iraq Tunisia Kuwait Jordan Algeria Iraq Tunisia Kuwai
Slide 14: ...and further strengthened by acquisition of BBT
…and further strengthened by acquisition of BBT Contribution for FY 12 (Actual) (1) Contribution for FY 12 (Pro forma(2)) (1) 1.0% 1.7% 15.1% 12.9% 5.0% 4.4% 3.8% 11.1% 6.5% 11.1% 15.1% 12.9% 17.7% 8.0% 4.2% 0.9% 2.5% 2.5% 4.6% 4.5% 1.9% 18.3% 19.9% 1.9% 5.9% 18.2% 4.5% 6.8% 5.9% 1.4% 19.1% 6.1% 6.1
Slide 15: Inorganic Highlights
BURGAN BANK ] ol sp So Inorganic Highlights Burgan Bank Group: 15 Kuwait - Jordan - Turkey - Algeria - Iraq - Tunisia - Lebanon
Slide 16: BBT: Compelling Business Proposition
BBT: Compelling Business Proposition… Nationwide Network of 61 branches Istanbul Kocaeli Presence in 21 leading industrial and 27 Sakarya Samsun business cities, accounting for ~90% of the 1 2 1 1 Zonguldak 1 Turkish economy Tekirdag Bursa 3 Ankara A Smart Transaction terms, acquired below 1 6 b
Slide 17: Malta – FIMBank
Malta – FIMBank FIMBank market presence is significant in almost all international trade finance markets, serving customers in more than 50 countries across four continents. Business Model Geographic Footprint & Service Offering FORFAITING TRADE FINANCE FACTORING Key Updates Approval received from
Slide 18: Performance vs. Peers
F) sy, = 79 BURGAN BANK fF Performance vs. Peers Burgan Bank Group: 18 Kuwait - Jordan - Turkey - Algeria - Iraq - Tunisia - Lebanon
Slide 19: Local Peers (FY12 vs. FY11)
….. Local Peers (FY 12 Vs. FY 11) Net Loans Growth FY 12 vs. FY 11 Deposits Growth FY 12 vs. FY 11 Liquidity Ratio* 104% 108% 102% 94% 87% 50.3% 39.8% 39.3% 31.5% 29.2% 14.1% 27.3% 22.8% 18.0% 24.3% 23.0% 20.7% 21.3% 27.5% 25.7% 14.4% 0.1% 6.2% (3.8%) (0.3%) (1.5%) (12.5%) (2.5%) NBK ABK GBK CBK BB
Slide 20: Regional Peers (FY12 vs. FY11)
….. Regional Peers (FY 12 Vs. FY 11) Net Loans Growth FY 12 vs. FY 11 Deposits Growth FY 12 vs. FY 11 Liquidity Ratio* 33.1% 30.2% 31.5% 50.3% 39.8% 39.3% 23.0% 34.9% 21.6% 22.8% 14.1% 28.9% 18.0% 16.5% 15.5% 13.1% 20.7% 16.5% 27.5% 21.3% 11.3% 25.7% 8.9% 14.4% 8.2% 9.3% 7.4% 5.1% 5.1% 3.1% 0.4% 6.2
Slide 21: Strong Brand Position
Strong Brand Position Burgan Bank is an award winning brand and the only banking brand in Kuwait which increased in value in 2013 with positive outlook ( rated AA)* Brand Rating YoY Brand Rating Variance YoY Brand Value Variance YoY(1) Brand Value Comparison - Kuwaiti Banks 700 -$54m AA+ 600 500 AA
Slide 22: External Recognitions - 2012
External Recognitions - 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Best Private Best Bank in Best Corporate Best Banking Brand Bank in Kuwait Jordan for 2012 Bank in Kuwait Banker Middle East 2012 Global Banking & Global Banking & Capital Finance International Finance Review Finance Review Best Banking Qu
Slide 23: Conclusion
] ol sp Soi BURGAN BANK Conclusion Burgan Bank Group: 23 Kuwait - Jordan - Turkey - Algeria - Iraq - Tunisia - Lebanon
Slide 24: In Summary
In Summary…. Economic and business environment were less favorable than anticipated Resilient Business Model; significantly improved market position, diversification strategy paying off and completion of BBT acquisition Conclusion Enhanced Risk Position; both asset quality and coverage ratio s
Slide 25: Thank You
DQ ne BURGAN BANK Thank You 25 Burgan Bank Group: Kuwait - Jordan - Turkey - Algeria - Iraq - Tunisia - Lebanon