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

National Bank Of Kuwait K.s.c — National Bank of Kuwait — Investor Presentation (April 2021)

30 slides from National Bank Of Kuwait K.s.c's investor presentation, April 2021

  1. Slide 1: National Bank of Kuwait Investor Presentation

    National Bank of Kuwait Investor Presentation April 2021 National Bank of Kuwait 1

  2. 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

  3. Slide 3: Contents

    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

    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 2018 2019 2020 shareholding company in Kuwait  The leading banking group in Kuwait in terms of assets, customer deposits and customer loans and ad

  5. Slide 5: Regional and International Geographic Presence

    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 – 2 Turkey – 2007 Associate – 8 Geneva – 1984 Subsidiar

  6. Slide 6: Key Strengths

    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 2020, 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, loans a

  7. Slide 7: Contents

    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

    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 the  C

  9. Slide 9: Kuwait Operations

    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 undisputed lead

  10. Slide 10: International Operations

    International Operations Established or  NBK’s international operations has been traditionally contributing up to circa 30% of the Group’s Branches Legal structure acquired bottom line with the Bank aspiring to increase this contribution.  The Bank generally aims to maintain a majority stake in it

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

    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 in Boubyan

  12. Slide 12: Contents

    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 12

  13. Slide 13: Overview of Kuwait

    Overview of Kuwait Overview Fiscal breakeven oil price  The State of Kuwait is a sovereign state on the coast of the 80 80 Arabian Gulf with a population of 4.8 million 75 Excl inv inc Incl inv inc 75 73 75 72  Kuwait is a constitutional monarchy, headed by His Highness the 70 70 68 66 Emir, Sheik

  14. Slide 14: Kuwait’s Economy

    Kuwait’s Economy Recent Developments Real GDP (% y/y)  GDP is estimated to have declined by 8.0% in 2020 due to sharply lower oil Total Non-oil production as Kuwait adhered to OPEC+ cuts and reduced non-oil activity resulting from the coronavirus pandemic. Headline growth could rebound to 10 10 6.5

  15. Slide 15: Kuwait’s Banking Sector

    Kuwait’s Banking Sector Snapshot  The Kuwaiti banking sector comprises 23 banks, including 11 domestic banks (five conventional, five Shariah-compliant and one specialized), and branches of 12 international banks (11 conventional and one Islamic).  The sector is well regulated by the Central Bank

  16. Slide 16: Dominant Kuwaiti Franchise

    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 Finance House

  17. Slide 17: Contents

    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: Operating Performance & Profitability

    Operating Performance & Profitability Profitability (USD mn) Operating Income Composition (USD mn) Net Operating Income Net Profit NII & NI from Islamic financing Non-interest income 2,953 2,778 2,953 2,778 23% 25% 1,323 812 743 733 77% 75% 743 733 279 25% 27% 257 75% 73% 2019 2020 1Q 2020 1Q 2021 2

  19. Slide 19: Operating Performance & Profitability (cont’d)

    Operating Performance & Profitability (cont’d) 1Q 2021 Op. income by type (%) 1Q 2021 Op. income by business line (%) Cost to income (%) Others, 5% Consumer FX, 4% & Private Corporate, 37.0% 37.1% Banking, 16% 36.7% Fees, 18% 32% 34.0% Inv Bkg & AM, 4% Others, 1% Net Interest Islamic Income, Banking

  20. Slide 20: Balance Sheet Parameters

    Balance Sheet Parameters Net loan portfolio (USD bn) Loans to assets (USD bn) Net Loans Net loan growth YoY (%) Total Assets Loans/Assets 102.5 101.0 58.6 59.0 98.0 57.7 96.5 54.6 58.0% 56.5% 58.9% 57.6% 10.4% 6.8% 5.7% 0.8% Dec-19 Dec-20 Mar-20 Mar-21 Dec-19 Dec-20 Mar-20 Mar-21 Loan exposure by se

  21. Slide 21: Funding and Liquidity Positions

    Funding and Liquidity Positions Customer Deposits (USD bn) (Total Liabilities) Funding Mix (USD mn) Due to banks and other financial institutions Customer Deposits Certificates of deposit Other borrowed funds 56.4 56.9 56.4 52.5 64% 65% 64% 67% 30% 23% 28% 25% Dec-19 Dec-20 Mar-20 Mar-21 Dec-19 Dec-

  22. Slide 22: Capitalization and Asset Quality

    Capitalization and Asset Quality Total Equity1 Breakdown (USD mn) Prudent capitalization (%) Share capital Statutory reserves Tier 1 Tier 2 Retained Earnings Other Reserves & Treasury Shares 18.4% 18.4% 17.8% 11,323 1.9% 2.4% 16.0% 2.4% 10,915 10,831 10,163 1.9% 3,382 3,134 1,834 2,644 4,715 4,392 4

  23. Slide 23: Expected Credit Losses (ECL) 1Q 2021

    Expected Credit Losses (ECL) 1Q 2021 Financial Statements ECL Disclosure (USD mn) Total Gross Loans (USD bn) Stage 1 Stage 2 Stage 3 31 March 2021 Stage1 Stage 2 Stage 3 Total 60.4 60.2 61.4 1% 2% 2% Loans, advances and Islamic 6% 10% 10% 53,843 6,486 1,024 61,353 financing to customers Contingent l

  24. Slide 24: Contents

    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 24

  25. Slide 25: Kuwait Selected Mega Projects

    Kuwait Selected Mega Projects Project Sector Value (KD bn) Scope Status Underway: The infrastructure works have progressed up to 93% on Plots N2 & N3 and up to 67% on Plots N1 & N4. Construction South Al Mutlaa City Housing 2.33 30,000 residential units, schools and other facilities works have comme

  26. Slide 26: Consolidated financials 1Q 2021 (USD million)

    Consolidated financials 1Q 2021 (USD million) YoY Growth YoY Growth Income Statement (USD million) 1Q-2020 1Q-2021 Balance sheet (USD million) Mar-2020 Mar-2021 (%) (%) Interest Income 754 529 (30%) Cash and short term funds 12,475 15,558 25% Interest Expense 306 125 (59%) Central Bank of Kuwait bon

  27. Slide 27: Consolidated Statement Of Income (USD million)

    Consolidated Statement Of Income (USD million) USD million 2018 2019 2020 Interest Income 2,959 3,253 2,496 Interest Expense 1,091 1,390 880 Net Interest Income 1,868 1,863 1,617 Murabaha and other Islamic financing income 614 697 742 Finance cost and Distribution to depositors 204 287 270 Net Incom

  28. Slide 28: Consolidated Statement Of Financial Position (USD million)

    Consolidated Statement Of Financial Position (USD million) USD million 2018 2019 2020 Cash and short term funds 9,783 12,489 12,782 Central Bank of Kuwait bonds 2,671 2,715 2,738 Kuwait Government treasury bonds 2,876 2,184 1,527 Deposits with banks 7,796 6,295 3,388 Loans, advances and Islamic fina

  29. Slide 29: Contact

    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 of Kuwai

  30. Slide 30: National Bank of Kuwait Investor Presentation

    National Bank of Kuwait Investor Presentation April 2021 National Bank of Kuwait 30

National Bank of Kuwait — Investor Presentation (April 2021) on 6ix