Al Ahli Bank Of Kuwait · KSE:ABK
Al Ahli Bank Of Kuwait — 9M 2024 Earnings Presentation
36 slides from Al Ahli Bank Of Kuwait's earnings presentation, 2024
Slide 1: Investor Presentation 9M 2024
AL AHLI BANK OF KUWAIT INVESTOR PRESENTATION 9M 2024
Slide 2: Disclaimer
DISCLAIMER THE INFORMATION SET OUT IN THIS PRESENTATION AND PROVIDED IN THE Past performance is not indicative of future results. Al Ahli Bank of Kuwait is DISCUSSION SUBSEQUENT THERETO DOES NOT CONSTITUTE AN OFFER OR under no obligation to update or keep current the information contained SOLICI
Slide 3: Table of Contents
SECTION 01 ABK Overview & Footprint 4 TABLE OF CONTENTS SECTION 02 Operating Environment 13 SECTION 03 Strategy & Business Overview 17 SECTION 04 Financial Performance Highlights 29 SECTION 05 Appendix 32 3
Slide 4: ABK Overview and Footprint
SECTION 1 ABK OVERVIEW AND FOOTPRINT 4 IR Presentation Q2023 3
Slide 5: Al Ahli Bank of Kuwait Overview
AL AHLI BANK OF KUWAIT ABK Egypt Subsidiary Acquired 2015 Overview 45 Branches ABK Kuwait Parent Entity Established 1967 Egypt Leasing Company 29 Branches Subsidiary (1 Fully Digitized Branch) Headquarters in Kuwait ABK Cayman Island Limited Egypt Investments Company Established 2022 Subsidiary Subs
Slide 6: ABK Overview & Background
ABK OVERVIEW & BACKGROUND Ownership Structure Established in 1967 by the Behbehani family, ABK has steadily become one of the leading Kuwaiti Banks retaining the same core shareholder base since its establishment. 11.7% 10.1% Headquartered in Kuwait City, the Group has three subsidiaries: Ahli Capit
Slide 7: Overview of ABK's Awards & Ratings
OVERVIEW OF ABK’S AWARDS & RATINGS Ratings Awards MEED Last Affirmed | Jun-24 • Best Retail Bank (Egypt) Long Term Rating |A2 • Excellence in Customer Outlook | Stable Protection/Fraud Control (Kuwait) Global Finance • Best Consumer Digital Bank in Kuwait • Best Consumer Digital Bank in the Middle E
Slide 8: ABK Key Financial Highlights
ABK KEY FINANCIAL HIGHLIGHTS Self-funded balance sheet Stable operating performance Strong capital position Customer Deposits: KD 4.3Bn Net Interest Margin: 2.2% Tier 1 Ratio: 13.72% Customer Deposits / Total Liabilities: 68.0% Operating Profit / Average Assets: 1.61% CAR: 17.01% Solid investor dema
Slide 9: Financial Snapshot (KD'Bn)
FINANCIAL SNAPSHOT (KD’Bn) Net Loans & Advances Total Assets 9M 2024 4.6 9M 2024 7.1 9M 2023 4.3 9M 2023 6.3 2023 4.3 2023 6.3 2022 4.0 2022 6.4 2021 3.4 2021 5.6 Customer Deposits Shareholders’ Equity 9M 2024 4.3 9M 2024 0.6 9M 2023 3.9 9M 2023 0.6 2023 3.8 2023 0.6 2022 4.4 2022 0.5 2021 3.9 2021
Slide 10: Financial Snapshot
FINANCIAL SNAPSHOT Total Operating Income (KD’Mn) Net Profit Attributable to Shareholder’s of the Bank (KD’Mn) 9M 2024 150.8 9M 2024 38.8 9M 2023 135.8 9M 2023 32.6 2023 185.0 2023 45.2 2022 171.6 2022 32.3 2021 153.9 2021 27.2 Non Performing Loans (%) Loans to Deposit Ratio (%)* 9M 2024 1.30 9M 202
Slide 11: Financial Snapshot
FINANCIAL SNAPSHOT Net Interest Margin (%) Cost / Income Ratio (%) Return on Average Equity (%) 9M 2024 2.2 9M 2024 46.6 9M 2024 8.4 9M 2023 2.1 9M 2023 47.6 9M 2023 6.3 2023 2.2 2023 47.5 2023 6.8 2022 2.3 2022 47.2 2022 5.0 2021 2.4 2021 46.6 2021 4.1 Tier 1 Ratio (%) Total Capital Adequacy Ratio
Slide 12: Key Highlights
KEY HIGHLIGHTS • 68% of the total liabilities consist of customer deposits Stable funding base and good • Liquidity coverage ratio and net stable funding ratio of 378% and 116% against regulatory requirement of 100% for each benchmark liquidity buffers • Leverage of 8.2%, above the 3.0% required by
Slide 13: Operating Environment
SECTION 2 OPERATING ENVIRONMENT 13 IR Presentation Q2023 3
Slide 14: Snapshot of Kuwait's Economy
SNAPSHOT OF KUWAIT'S ECONOMY Key Economic Indicators GCC GDP per capita (2024) (USD’000)*** 72 50 33 32 30 Population Inflation CBK Benchmark 21 2024 Aug 2024 Rate 4.92 Mn* 2.92% 4.00%** Qatar UAE KSA Kuwait Bahrain Oman Evolution of oil price and Kuwait’s - average daily crude oil production Oil Pr
Slide 15: Snapshot of Kuwait's Banking Sector
SNAPSHOT OF KUWAIT’S BANKING SECTOR The banking sector is highly Provisions required by CBK regulated by the CBK. Leading instructions have been more supervisory practices are in place to precautionary in nature and higher monitor interest rates charged, than the ECL calculated under IFRS USD 153.4
Slide 16: Peer Comparison
PEER COMPARISON Loans & Advances (KD’Bn) Customer Deposits (KD’Bn) 22.7 21.8 Gulf Bank 5.6 4.6 4.5 4.6 Burgan Bank 4.4 4.0 2.7 2.5 Net Interest Margin (%) Return on Equity (%) 2.7 19.0 2.7 16.3 2.3 9.5 2.2 7.0 2.1 5.0 16 *Numbers are as of Q2 2024
Slide 17: Strategy and Business Overview
SECTION 3 STRATEGY AND BUSINESS OVERVIEW IR17 Presentation Q2023 3
Slide 18: ABK's Vision, Mission, and Core Values
ABK'S VISION, MISSION, AND CORE VALUES The Foundation of ABK’s Strategy ABK’s strategy supports our Vision and Mission across our values that define our holistic approach to each element of our organization from processes and product development to talent management and client service. Vision Missio
Slide 19: ABK's Strategic Priority Areas
ABK'S STRATEGIC PRIORITY AREAS Core business & risk areas Scale & Create Value Kuwait: Scale franchise in retail, private banking, and commercial banking Egypt: Maintain growth momentum, continuous focus on risk [ UAE: Grow selectively; focus on diversification/synergy benefits Cross-group: Leverage
Slide 20: ABK's Strategic Priority Areas: Innovate & Enable
ABK'S STRATEGIC PRIORITY AREAS Core enablers areas: Innovate & Enable Digital & Advanced Analytics transformation: Implement comprehensive digital and advanced analytics roadmap focused on customer experience as well as efficiency gains [ Technology & operational excellence Build modern, agile, and
Slide 21: Overview of ABK's Business Segments
OVERVIEW OF ABK’S BUSINESS SEGMENTS Breakdown by Operating Income (KD’Mn) 18% 8% 12% 16% 15% Commercial Banking A holistic range of various cash & non-cash 2021 47% 2022 48% 9M 45% 9M 46% 2023 49% 43% 2023 2024 facilities to local and international entities. 35% 36% 43% 39% 153.9 171.6 185.0 135.8 1
Slide 22: Commercial and Retail Banking
COMMERCIAL AND RETAIL BANKING Commercial Banking Operating Income (KD’Mn) 171 Corporate Banking 143 • Split into 2 divisions (Corporate Banking & Structured 126 128 Finance), 10 specialized business units 53% 119 • Offering a wide & broad spectrum of financial products and 57% services to local & in
Slide 23: Treasury & Investments
TREASURY & INVESTMENTS Treasury & Investment Segment Assets (KD’Mn) The Group’s Treasury manages the Group’s assets and liabilities and liquidity requirements under the supervision of the Asset and Liabilities Committee (ALCO) Manages the money market books and money market funding positions for the
Slide 24: International Operations
INTERNATIONAL OPERATIONS The Group’s International operations encompass the operations of its UAE branches & its ABK Egypt subsidiary contributing around 45% of operating income & 34% of assets Operating Income (KD’Mn) Al Ahli Bank of Kuwait – UAE • First Kuwaiti Bank in the UAE and currently has th
Slide 25: ABK Sustainability Frameworks
ABK SUSTAINABILITY FRAMEWORKS Main Reporting Framework International Framework International ESG Rating Kuwait Frameworks Global Reporting Initiative for Sustainability for Sustainability • A sustainability reporting • The United Nations • ESG rating agencies assess and Kuwait National Development s
Slide 26: ABK Sustainability 2022 Report Highlights
ABK SUSTAINABILITY 2022 REPORT HIGHLIGHTS Committed Invested Customers at Invested in to Gender in Local Our Zenith Our People Diversity Procurement • 87.5% Customer Satisfaction • 131,395 total training hours • 38% female employees • 80.6% of total procurement Index (CSI) provided (13.8% YOY) expen
Slide 27: Loans, Portfolio, Funding and Liquidity
LOANS, PORTFOLIO, FUNDING AND LIQUIDITY Loan Portfolio (KD’Mn) Gross Maximum Exposure by Credit Risk (%) 4,564 4,258 4,297 Others* 4,039 17% 17% 20% Personal 3,387 17% 15% 15% Government and related entities Construction and real estate 6.72% 6.52% 6.97% 6.72% 6.91% Banks and other institution 23% 2
Slide 28: Asset Quality Overview
ASSET QUALITY OVERVIEW Non-Performing Loan Ratio (%) Stage-wise Breakdown of Gross Loans (KD’Mn) 4,902 4,578 4,608 4,321 60 61 61 264 59 235 283 273 3,631 55 295 1.55% 1.43% 1.33% 1.34% 1.30% 4,235 4,273 4,578 4,027 3,281 2021 2022 2023 9M 2023 9M 2024 2021 2022 2023 9M 2023 9M 2024 Loan Loss Covera
Slide 29: Financial Performance Highlights
SECTION 4 FINANCIAL PERFORMANCE HIGHLIGHTS 29
Slide 30: Operating Performance
OPERATING PERFORMANCE Operating Income (KD’Mn) & Cost to Income (%) Breakdown of Operating Income (%) 46.6% 47.2% 47.5% 47.6% 46.6% 73% 73% 74% 74% 72% 185 172 154 151 136 19% 19% 19% 19% 19% 8% 8% 7% 7% 9% 2021 2022 2023 9M 2023 9M 2024 2021 2022 2023 9M 2023 9M 2024 Net Interest Income Net Fee and
Slide 31: Capitalisation Overview
CAPITALISATION OVERVIEW Tier 1 Ratio and Capital Adequacy Ratio (%) Regulatory Capital (KD’Mn) 821 750 692 682 675 159 18.3% 154 95 103 106 16.7% 17.0% 15.6% 14.7% 597 596 662 15.8% 579 569 13.7% 13.3% 13.3% 12.4% 2021 2022 2023 9M 2023 9M 2024 2021 2022 2023 9M 2023 9M 2024 Tier 2 Capital Tier 1 Ca
Slide 32: Appendix
SECTION 5 APPENDIX 32
Slide 33: Balance Sheet
BALANCE SHEET BASED ON CONSOLIDATED IFRS FINANCIALS KD’000 2021 2022 2023 9M 2023 9M 2024 Assets Cash and balances with banks 1,147,795 1,138,750 691,432 689,507 1,058,028 Kuwait Government Treasury bonds 54,500 20,500 17,500 17,500 5,000 Central Bank of Kuwait bonds 139,101 167,884 163,712 164,520
Slide 34: Income Statement
INCOME STATEMENT BASED ON CONSOLIDATED IFRS FINANCIALS KD’000 2021 2022 2023 9M 2023 9M 2024 Interest income 202,033 269,327 413,538 301,969 349,700 Interest expense (89,538) (143,950) (276,146) (200,673) (241,733) Net Interest Income 112,495 125,377 137,392 101,296 107,967 Net Fees and commissions
Slide 35: Sustainability Report 2022
i! sax yy ~ ANNUAL REPORT Sustainability Report 2022
Slide 36: Contact / Investor Relations
Ahlan Ahli 1 899 899 | eahli.com | Al Ahli Bank of Kuwait | abk_kuwait Investor Relations: IR@abkuwait.com | +965 2290 7000 | Ext. 6704
Al Ahli Bank of Kuwait — 9M 2024 Earnings Presentation on 6ix