National Bank Of Kuwait K.s.c. · KSE:NBK
National Bank Of Kuwait K.s.c — National Bank of Kuwait — Investor Presentation (February 2024)
34 slides from National Bank Of Kuwait K.s.c's investor presentation, February 2024
Slide 1: National Bank of Kuwait Investor Presentation
PUBLIC National Bank of Kuwait Investor Presentation February 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: Building A Leading Journey In ESG
PUBLIC Building A Leading Journey In ESG ESG Ratings ESG Awards National and Global Frameworks NBK is at 27.4 – Global Finance 2023 Medium Risk ▪ Best Innovation and Transformation – World ▪ Best SME Bank Award – Kuwait ▪ Best Private Bank for Sustainable Investing – MSCI upgraded NBK Middle East ES
Slide 15: 2023 Key ESG Achievements
PUBLIC 2023 Key ESG Achievements We measure our progress against well-defined metrics and targets to achieve the greatest positive impact. Strategy Pillars Key Highlights ▪ Committed to become carbon neutral by 2060 and set an interim target to reduce gross operational emissions by 25% by 2025. ▪ In
Slide 16: 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 16
Slide 17: Kuwait Overview
PUBLIC Kuwait Overview Key Highlights Key Indicators ▪ Kuwait is a constitutional monarchy, headed by H.E. the Emir, Sheikh Meshal Al- Indicator 2021 2022 2023f 2024f Ahmad Al-Sabah, with a population of 4.8 million (June 2023). Nominal GDP (USD billion) 141.7 181.2 164.7 164.3 ▪ It is a founding me
Slide 18: Kuwait's Economy
PUBLIC Kuwait’s Economy Real GDP Growth1 (% y/y) Project Awards2 (KD million) 15 15 800 800 Oil sector Non-oil sector Estimates/forecast Construction Oil & Gas Transport Power & Water Industrial 700 700 10 10 Headline 600 600 5 5 500 500 0 0 400 400 300 300 -5 -5 200 200 -10 -10 100 100 -15 -15 0 0
Slide 19: Kuwait's Banking Sector
PUBLIC Kuwait’s Banking Sector Kuwait Discount Rate1 (%) Loans and Deposits2 6 6 50 110 Discount rate Loans (KD billion, LHS) Deposits (KD billion, LHS) Loan-to-deposit ratio (RHS) Fed target rate (upper limit) 49 108 5 5 48 106 4 4 47 104 46 102 3 3 45 100 44 98 2 2 43 96 42 94 1 1 41 92 0 0 40 90
Slide 20: 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 mn) Customer Deposits (USD mn) Kuwait Finance House 120,697 Kuwait Finance House 73,402 National Bank of Kuwait 118,637 National Bank of Kuwait 6
Slide 21: 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 21
Slide 22: 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 2,933 3,292 22% 2,933 25% 26% 1,828 1,660 1,181 78% 75% 74% 2021 2022 2023 2021 2022 2023 Re
Slide 23: Operating Performance & Profitability (cont'd)
PUBLIC Operating Performance & Profitability (cont’d) 2023 Op. Income by Type (%) 2023 Op. Income by Business Line (%) Cost to Income (%) Others, 2% Corporate, FX, 3% 14% NBK Wealth, Fees, 17% 10% Consumer, 39.2% 38.2% 20% 36.6% Islamic, 19% Net Interest Others, Income, 13% Intern'l 78% Banking, 24%
Slide 24: 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 72.6 122.8 68.5 100.0% 118.5 64.3 108.4 80.0% 12.7% 60.0% 59.3% 57.8% 59.2% 40.0% 6.5% 6.1% 20.0% 0.0% Dec-21 Dec-22 Dec-23 Dec-21 Dec-22 Dec-23 Loan Expos
Slide 25: 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 7% 6% 7% 12.2 14% 13% 12% 10.2 12% 11% 11% 71.6 65.8 59.6 63% 64% 67% Dec-21 Dec
Slide 26: 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 11,539 11,811 3,076 18.1% 3,063 17.4% 17.3% 3,506 15.7% 15.0%
Slide 27: Expected Credit Losses (ECL) 2023
PUBLIC Expected Credit Losses (ECL) 2023 Financial Statements ECL Disclosure (USDm) Total Gross Loans (USDbn) Stage 1 Stage 2 Stage 3 31 December 2023. Stage 1 Stage 2 Stage 3 Total 66.4 71.2 75.4 1% 1% 1% Loans, advances and Islamic 69,566 4,844 1,038 75,449 8% 8% 7% financing to customers Continge
Slide 28: 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 28
Slide 29: Consolidated Financials 2023 (USD mn)
PUBLIC Consolidated Financials 2023 (USD mn) Income Statement (USD mn) 2022 2023 YoY Growth (%) Balance Sheet (USD mn) Dec- 22 Dec-23 YoY Growth (%) Interest Income 3,089 5,323 72% Cash and short term funds 17,354 14,294 (18%) Central Bank of Kuwait bonds 2,873 2,793 (3%) Interest Expense 1,186 2,96
Slide 30: 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 31: 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 32: Kuwait Selected Mega Projects
PUBLIC Kuwait Selected Mega Projects Project Sector Budget (KD bn) Scope Status Underway: Construction works are still ongoing; the consultancy tender for supervision services was issued on November South Al Mutlaa City Construction 6.0 30,000 residential units, schools and other facilities 26, 2023
Slide 33: 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 34: National Bank of Kuwait Investor Presentation
PUBLIC National Bank of Kuwait Investor Presentation February 2024 National Bank of Kuwait 34
National Bank of Kuwait — Investor Presentation (February 2024) on 6ix