National Bank Of Kuwait K.s.c. · KSE:NBK
National Bank Of Kuwait K.s.c — National Bank of Kuwait — Investor Presentation (October 2015)
29 slides from National Bank Of Kuwait K.s.c's investor presentation, October 2015
Slide 1: National Bank of Kuwait Investor Presentation
National Bank of Kuwait Investor Presentation October 2015
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 Overview of NBK Section 2 Overview of Operating Environment Section 3 Strategy and Business Overview Section 4 Financial Performance (Historical) Section 5 Performance Overview 9M 2015 Section 6 Appendix 2
Slide 4: NBK at a Glance
NBK at a Glance Snapshot Financial Snapshot National Bank of Kuwait S.A.K.P. (“NBK” or the “Bank”) was USD million 2012 2013 2014 established in 1952 as the first local bank and the first shareholding Total Assets 56,327 63,525 74,399 company in Kuwait and as the first indigenous bank in the GCC.
Slide 5: Key Strengths
Key Strengths High Credit Ratings and among the Largest Banking Group in Kuwait with Top Brand Values Regionally Dominant Market Position NBK has one of the highest credit ratings in the MENA As at 31 December 2014, the Bank was the largest region. bank in Kuwait in terms of total assets, loans
Slide 6: Rating Excerpts
Rating Excerpts “ The standalone C bank financial strength rating assigned to NBK….reflects the bank’s (1) dominant position in its domestic market; (2) resilient core profitability and (3) robust financial fundamentals including consistently good asset quality metrics and strong capitalisation. ” M
Slide 7: Contents
Contents Section 1 Overview of NBK Section 2 Overview of Operating Environment Section 3 Strategy and Business Overview Section 4 Financial Performance (Historical) Section 5 Performance Overview 9M 2015 Section 6 Appendix 6
Slide 8: Overview of Kuwait
Overview of Kuwait Snapshot Substantial Current Account Surpluses The State of Kuwait (“Kuwait” or the “Sovereign”) is a sovereign Current Account Balance (USD bn, lhs) Current Account Balance / GDP (%, rhs) emirate on the coast of the Arabian Gulf, covering a total area of 80 45.28% 60% 43.60% Ov
Slide 9: Overview of Kuwait (Continued)
Overview of Kuwait (Continued) Recent Developments Investment Economic growth seen improving despite drop in oil prices, as Investments (KD Bn, lhs) Investments (% Non-oil GDP, rhs) project awards pick up. Fiscal and external buffers give Kuwait 10 50% GDP ample capacity to sustain spending plans.
Slide 10: Overview of the Kuwaiti Banking Sector
Overview of the Kuwaiti Banking Sector Snapshot Overview of Basel III Implementation in Kuwait The Kuwaiti banking sector comprises 23 banks, including five In June 2014, the Central Bank of Kuwait announced the implementation commercial banks, one specialised bank, five Shari’a-compliant local
Slide 11: The Dominant Kuwaiti Franchise
The 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 74,399 National Bank of Kuwait 38,455 Kuwait Finance House 58,681 Kuwait Finance Ho
Slide 12: Contents
Contents Section 1 Overview of NBK Section 2 Overview of Operating Environment Section 3 Strategy and Business Overview Section 4 Financial Performance (Historical) Section 5 Performance Overview 9M 2015 Section 6 Appendix 11
Slide 13: 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
Slide 14: 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 Maintain undisputed leadership in
Slide 15: International Operations
International Operations International Operations NBK’s international operations currently contributed to circa 27% of its bottom line with Established or Branches Legal structure the Bank aspiring to increase this contribution. acquired The Bank generally aims to maintain a majority stake in it
Slide 16: Boubyan Bank (58.4% owned subsidiary)
Boubyan Bank (58.4% owned subsidiary) Market share of Total Assets(%) Key Highlights Islamic banking has been gaining strong grounds in the Kuwaiti market in recent years, representing close to 40% of assets and deposits at year-end 2014. After a series of gradual share acquisitions since 2009,
Slide 17: Contents
Contents Section 1 Overview of NBK Section 2 Overview of Operating Environment Section 3 Strategy and Business Overview Section 4 Financial Performance (Historical) Section 5 Performance Overview 9M 2015 Section 6 Appendix 16
Slide 18: Operating Performance & Profitability
Operating Performance & Profitability Resilient Profitability (USD mn) Stable Returns (%) Net Operating Income Net Profit Return on Average Assets Return on Average Equity 2,220 2,258 2,139 13.4% 10.0% 10.5% 1,042 813 894 2.0% 1.3% 1.3% 2012¹ 2013 2014 2012 2013 2014 Operating Income Composition (US
Slide 19: Balance Sheet Parameters
Balance Sheet Parameters Assets & Loans and Advances (USD mn) Breakdown of Assets by Type (As at 31 December 2014) Loans, advances & Islamic financing Total Assets Goodwill and Other Cash and short 74,399 other intangible 3% term funds assets 14% 63,525 3% 56,327 Investment CBK Bonds and securities
Slide 20: Funding and Liquidity Positions
Funding and Liquidity Positions Customer Deposits (USD mn) Strong Liquidity Position (USD mn) Liquid Assets Liquid Asset Ratio 38.8% 34.6% 32.4% 32,472 35,786 38,455 18,225 21,994 28,837 2012 2013 2014 2012 2013 2014 (Total Liabilities) Funding Mix (USD mn) Overview of Investment Securities1 – USD 8
Slide 21: Capitalization and Asset Quality
Capitalization and Asset Quality Total Equity1 Breakdown (USD mn) Capital Adequacy2 (%) Share capital Statutory reserves Tier 1 Ratio Capital Adequacy Ratio Regulatory CAR Retained Earnings Other Reserves & Treasury Shares 9,062 8,287 8,568 18.3% 17.3% 3,127 3,104 3,035 17.7% 14.5% 16.8% 13.3% 3,191
Slide 22: Contents
Contents Section 1 Overview of NBK Section 2 Overview of Operating Environment Section 3 Strategy and Business Overview Section 4 Financial Performance (Historical) Section 5 Performance Overview 9M 2015 Section 6 Appendix 21
Slide 23: 9M 2015 Key Performance Extracts
9M 2015 Key Performance Extracts Interest Margins (%) Income Statement Key Highlights (USDmn) Net Interest Margin USD million 9M 2014 9M 2015 Net Interest Inc. & net inc. from Islamic financing 1,150 1,293 2.46% 2.40% Fees and Commissions 302 323 Net Operating Income 1,652 1,801 Total Operating Expe
Slide 24: 9M 2015 Key Performance Extracts (Continued)
9M 2015 Key Performance Extracts (Continued) Net Loan Portfolio (USD bn) Loans to Assets (USD bn) Net Loans Net loan growth YoY (%) 14.2% Total Assets Loans/Assets 11.3% 10.2% 54.7% 55.7% 53.3% 38.3 40.7 43.8 71.9 74.4 78.7 Sep-14 Dec-14 Sep-15 Sep-14 Dec-14 Sep-15 Loan exposure by sector (%) Non-Pe
Slide 25: Contents
Contents Section 1 Overview of NBK Section 2 Overview of Operating Environment Section 3 Strategy and Business Overview Section 4 Financial Performance (Historical) Section 5 Performance Overview 9M 2015 Section 6 Appendix 24
Slide 26: Kuwait Selected Mega Projects
Kuwait Selected Mega Projects Project Sector Value (KD bn) Scope Status Kuwait Health Assurance Co. Health insurance, medical treatment for non- Awarded: Founding Assembly held, a board of directors has been formed but Healthcare NA (PPP) Kuwaitis. Also, 3 hospitals & 15 clinics awaits ministerial a
Slide 27: Consolidated Financials 9M 2015
Consolidated Financials 9M 2015 USD million 9M-14 9M-15 USD million 9M-14 9M-15 Interest Income 1,257 1,420 Cash and short term funds 12,438 12,555 Interest Expense 278 330 Central Bank of Kuwait bonds 1,966 2,327 Net Interest Income 979 1,089 Kuwait Government Treasury bonds 1,154 1,166 Murabaha an
Slide 28: Consolidated Statement Of Income
Consolidated Statement Of Income USD million 2012 2013 2014 Interest Income 1,678 1,671 1,754 Interest Expense 406 347 390 Net Interest Income 1,273 1,324 1,364 Murabaha and other Islamic financing income 102 252 297 Distribution to depositors and Murabaha costs 16 34 59 Net Income from Islamic fina
Slide 29: Consolidated Statement Of Financial Position
Consolidated Statement Of Financial Position USD million 2012 2013 2014 Cash and short term funds 5,501 8,238 10,697 Central Bank of Kuwait bonds 2,098 1,825 1,826 Kuwait Government treasury bonds 1,217 1,094 1,177 Deposits with banks 4,110 3,073 7,003 Loans, advances and Islamic financing to custom
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