Burgan Bank · KSE:BURG
Burgan Bank — Q1 2017 Earnings Presentation
12 slides from Burgan Bank's earnings presentation, May 2017
Slide 1: Burgan Bank Group Investor Presentation 1st Quarter 2017
BURGAN BANK GROUP INVESTOR PRESENTATION 1ST QUARTER 2017
Slide 2: Burgan Bank – a journey of success from local bank to regional powerhouse
Burgan Bank – a journey of success from local bank to a regional powerhouse with more than 180 branches in 7 countries across the MENAT region. Inception Lunch of new identify Entering the Iraqi Entering the Tunisian Entering the UAE Market and announcing Market through BOB Market through TIB throug
Slide 3: Resilient Business Model + Focused Execution – Key Performance Indicators Q1'17
RESILIENT BUSINESS MODEL + FOCUSED EXECUTION… KEY PERFORMANCE INDICATORS Q1’17 1 HIGH QUALITY EARNINGS 5% 6% 0.6% 23% Maintained with operating Core revenue Jaws Cost of Credit True earnings efficiencies focus growth(1)(2) Ratio(1) growth(1)(3) 2 LEADING INDICATORS 8% 66% 1.1% 16.5% ARE POSITIVE Cus
Slide 4: Amid Low Global and Regional Growth and Currency Depreciation
AMID LOW GLOBAL AND REGIONAL GROWTH AND CURRENCY DEPRECIATION… Past 3 months Next 3 months Trump reforms New US president Trump reforms are being Tax reform and infrastructure spending plans in delayed; oil delayed. US Dollar Index (DXY) is down 3.0% year- the US are likely to be passed. Uncerta
Slide 5: Delivering Solid Business Performance
DELIVERING SOLID BUSINESS PERFORMANCE Net Interest Income(1) USD million Revenue(1) USD million - 1 Offs (0.8) 1 1 Offs (3) (3) 2.4% 2.3% 15% 18% 3% 5% 197 134 138 188 9 11 134 129 188 186 Q1'16 Q1'17 Q1'16 (3) Q1'17 Foreign Exchange Impact (3) NIM's Foreign Exchange Impact F&C Income to Revenues Q1
Slide 6: Aiming to Deliver Double Digit Returns
AIMING TO DELIVER DOUBLE DIGIT RETURNS… Q1’16 Q1’17 Earnings Evolution | USDm 1.1 0.5 12.8 24.2 (7.6) 64 67 60 54 52 10 17 17 17 29 47 57 38 35 31 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Net Income excl. 1 offs after AT1 cost Additional Precautionary Provisions 1 Off’s Returns(1) % ROE ROTE RRWA 15.0% 16.1% 1
Slide 7: With Prudent Balance Sheet Progression
WITH PRUDENT BALANCE SHEET PROGRESSION… 14,310 14,118 Customers Deposits Breakdown 13,836 13,972 14,052 Q1’16 Q1’17 Customer Loans USDm 4,623 Other Other 4,435 4,539 4,547 4,500 Deman 3% 2% Deman d d 26% 27% USD USD Saving Saving 9,686 12.9b 5% 12.9b 5% 9,401 9,579 9,425 9,552 Time Time 66% 66% Q1'1
Slide 8: Capturing Diversification Benefits
CAPTURING DIVERSIFICATION BENEFITS… Kuwait | KDm Turkey | TRYm Algeria | DZDm Iraq | IQDm Tunisia | USDm 2,911 12,146 110,524 172,948 13 CUSTOMER 68% 24% 7% 1% 0.1% LOANS 2,838 9,342 98,158 247,209 21 33 144 2,721 25,452 4 REVENUES(1) 54% 20% 13% 11% 2% 35 115 2,384 14,165 3 0.4% 1.0% 0.7% 0.0% 9.4%
Slide 9: Burgan Bank Has Competitive Metrics Amongst Peers and Banking Universe
BURGAN BANK HAS COMPETITIVE METRICS AMONGST PEERS AND BANKING UNIVERSE… Customer Loans Revenues EPS(6) Upside Potential Q1’17 Growth % Growth % Growth % JAW’s % COC % ROTE % PE(x)(2) PB(x)(2) 8%(1) 5%(1)(3) 30% 6%(4) 0.6% 14%(3)(4) 11.2x 1.0x Rankings #1 #2 #1 #2 #1 #2 Undervalued Undervalued 3% 7%(
Slide 10: In Summary: Strong Franchise in Challenging Operating Environment
IN SUMMARY STRONG FRANCHISE IN CHALLENGING OPERATING ENVIRONMENT KEY METRICS Q1’17 REVENUE GROWTH Strength of franchise focused on high quality earnings ► True growth inertia maintained 5% (1) ► Continue carefully to capture diversification benefits despite operating in NET PROFIT GROWTH highly vola
Slide 11: Thank You
THANK YOU 2 ol Sp <a BURGAN BANK Lis dls cil driven by you 49... [| 11
Slide 12: Disclaimers
DISCLAIMERS IMPORTANT NOTICE This presentation has been prepared by Burgan Bank and is subject to the applicable laws and regulations in the State of Kuwait. It is for information purposes only and it shall not be reproduced or redistributed to any other person without obtaining Burgan Bank’s prior