National Bank Of Kuwait K.s.c. · KSE:NBK
National Bank Of Kuwait K.s.c — National Bank of Kuwait — Q1 2021 Earnings Presentation
23 slides from National Bank Of Kuwait K.s.c's earnings presentation, 2021
Slide 1: National Bank of Kuwait Investor Presentation 1Q 2021 Earnings Call
National Bank of Kuwait Investor Presentation 1Q 2021 Earnings Call National Bank of Kuwait 1
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 Group CEO Opening Remarks Section 2 Financial Performance 1Q 2021 Section 3 Appendix Section 4 Questions National Bank of Kuwait 3
Slide 4: NBK Profitability (KDm)
NBK Profitability (KDm) Net Profit Attributable 8.5% 8.6% 84.3 77.7 77.7 57.6 33.4 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 National Bank of Kuwait 4
Slide 5: Key Econ and Financial Highlights
Key Econ and Financial Highlights COVID-19 Vaccine Doses Administered Real GDP (% y/y) Total Non-oil 10 10 1,200,000 6.5 4.9 4.2 1,000,000 5 4.0 5 2.7 1.5 1.7 800,000 1.0 1.1 0.5 0.6 600,000 0 0 400,000 1.2 -0.7 1.2 2.9 200,000 -5 -5 -4.7 -8.0 - -8.0 -10 -10 2013 2014 2015 2016 2017 2018 2019f 2020f
Slide 6: 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 7: Contents
Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance 1Q 2021 Section 3 Appendix Section 4 Questions National Bank of Kuwait 7
Slide 8: Operating Performance 1Q 2021
Operating Performance 1Q 2021 Net Profit (KDm) Operating Surplus (KDm) 84.3 142.4 139.4 -2.0% 124.6 77.7 77.7 +8.5% 1Q 2020 4Q 2020 1Q 2021 1Q 2020 4Q 2020 1Q 2021 Operating Income (KDm) Operating Income Composition Net interest income & Net income from Islamic Financing Non-interest income 224.8 22
Slide 9: Operating Performance 1Q 2021
Operating Performance 1Q 2021 Net Interest Income* (KDm) Average Interest Earning Assets (KDbn) 169.2 29.1 160.9 162.4 28.6 -4.0% +1.8% 1Q 2020 4Q 2020 1Q 2021 1Q 2020 1Q 2021 Net Interest Margin* Net Interest Margin drivers YTD NIM Qtrly NIM 2.38% -0.52% +0.91% 2.26% -0.51% 2.38% 2.25% 2.26% 2.20%
Slide 10: Operating Performance 1Q 2021
Operating Performance 1Q 2021 Non-interest income (KDm) Operating Expenses (KDm) Staff expenses Other operating expenses Net fees and commissions Net gains from dealing in FX Other non-interest income -0.4% 59.1 85.5 55.6 49.2 82.4 82.1 12 7 20 +6.4% 8 37 35 36 6 38 36 39 46 50 46 1Q 2020 4Q 2020 1Q
Slide 11: Operating Performance 1Q 2021
Operating Performance 1Q 2021 Operating Income (KDm) - International Operating Income (KDm) Int'l Int'l 26% 26% 58.4 57.3 -1.8% Dom. Dom. 74% 74% 1Q 2020 1Q 2021 1Q 2020 1Q 2021 Net profit (KDm) - International Net Profit (KDm) Int'l 11% 9.6 >100% Dom. -1.9 89% 1Q 2020 1Q 2021 1Q 2021 Net profit (KD
Slide 12: Operating Performance 1Q 2021
Operating Performance 1Q 2021 Total Assets (KDbn) Loans, Advances and Islamic Financing (KDbn) 30.5 31.0 29.7 17.7 17.5 17.9 +1.5% +0.8% Mar 20 Dec 20 Mar 21 Mar 20 Dec 20 Mar 21 Customer Deposits (KDbn) Funding Mix Due to banks and other FIs Customer Deposits CD's / Other borrowed funds 17.2 17.1 1
Slide 13: Performance and Asset Quality Ratios 1Q 2021
Performance and Asset Quality Ratios 1Q 2021 Return on Average Equity Return on Average Assets 1.13% 9.9% 10.4% 1.04% 0.82% 7.0% 1Q 2020 FY 2020 1Q 2021 1Q 2020 FY 2020 1Q 2021 Capital Adequacy Ratios Asset Quality Ratios CET 1 Ratio Tier 1 Ratio Capital Adequacy Ratio Loan Loss Coverage Ratio NPL R
Slide 14: Expected Credit Losses (ECL) 1Q 2021
Expected Credit Losses (ECL) 1Q 2021 Financial Statements ECL Disclosure (KD’m) Total Gross Loans (KD’bn) Stage 1 Stage 2 Stage 3 31 March 2021 Stage1 Stage 2 Stage 3 Total 18.3 18.2 18.6 1% 2% 2% Loans, advances and Islamic 6% 10% 10% financing to customers 16,282 1,961 310 18,553 93% 88% 88% Conti
Slide 15: 2021 Guidance
2021 Guidance 1Q 2021 2021 Guidance Loan Growth +0.8% Mid To High Single Digit NIM 2.26% Broadly Stable Cost to Income ratio 37.1% High 30s Cost of Risk 94bps Earnings +8.5% yoy Capital Adequacy 18.4% National Bank of Kuwait 15
Slide 16: Contents
Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance 1Q 2021 Section 3 Appendix Section 4 Questions National Bank of Kuwait 16
Slide 17: Consolidated Statement Of Income (KDm)
Consolidated Statement Of Income (KDm) KDm 1Q-2020 1Q-2021 YoY Growth (%) Interest Income 228 160 (30%) Interest Expense 93 38 (59%) Net Interest Income 136 122 (10%) Murabaha and other Islamic financing income 58 56 (4%) Finance cost and Distribution to depositors 25 16 (37%) Net Income from Islami
Slide 18: Consolidated Statement Of Financial Position (KDm)
Consolidated Statement Of Financial Position (KDm) KDm Mar-2020 Mar-2021 YoY Growth % Cash and short term funds 3,773 4,705 25% Central Bank of Kuwait bonds 826 831 1% Kuwait Government treasury bonds 612 456 (26%) Deposits with banks 1,864 1,171 (37%) Loans, advances and Islamic financing to custom
Slide 19: Performance Measures 1Q 2021
Performance Measures 1Q 2021 % Mar-2020 Mar-2021 Return on average assets 1.04% 1.13% Return on average equity 9.9% 10.4% Net interest margin 2.38% 2.26% Cost to income 36.7% 37.1% NPLs to gross loans 1.30% 1.68% Loan loss reserves to NPLs 231% 225% Tier 1 capital 14.1% 16.0% Tier 2 capital 1.9% 2.4
Slide 20: Contents
Contents Section 1 Group CEO Opening Remarks Section 2 Financial Performance 2020 Section 3 Appendix Section 4 Questions National Bank of Kuwait 20
Slide 21: Questions?
Questions? National Bank of Kuwait 21
Slide 22: Thank You
Thank You National Bank of Kuwait 22
Slide 23: National Bank of Kuwait Investor Presentation 1Q 2021 Earnings Call
National Bank of Kuwait Investor Presentation 1Q 2021 Earnings Call National Bank of Kuwait 23
National Bank of Kuwait — Q1 2021 Earnings Presentation on 6ix