Burgan Bank · KSE:BURG
Burgan Bank — Q1 2025 Earnings Presentation
19 slides from Burgan Bank's earnings presentation, May 8, 2025
Slide 1: Burgan Bank Group Investor Presentation Q1'25 Financial Results
BURGAN BANK GROUP INVESTOR PRESENTATION Q1’25 FINANCIAL RESULTS 8TH MAY 2025
Slide 2: Table of Contents
TABLE OF CONTENTS Contents Page Overview and Operating Strategy 4-6 Key Highlights – Q1’25 8 Financial Review – Key P&L Metrics 10 Financial Review – Asset Quality 11 Financial Review – Balance Sheet Metrics & Liquidity 12 - 13 Financial Review – Capital Levels 14 Financial Review – KPIs Across Fran
Slide 3: Overview & Operating Strategy
Overview & Operating Strategy
Slide 4: Burgan at a Glance
BURGAN AT A GLANCE About Us Credit Ratings Rating(1) ▪ Established in 1977 as Joint Stock Company by the Government of Kuwait and privatized in 1997. A (Outlook: Stable) ▪ Listed on Boursa Kuwait in 1984 and grew to be one of Baa1 the leading conventional banks in Kuwait (in terms of (Outlook: Stabl
Slide 5: Kuwait Focused Bank with Regional Diversification
KUWAIT FOCUSED BANK WITH REGIONAL DIVERSIFICATION Domestic Market % of Group Franchises Ownership(1) Business Model Position(1) Assets(1),(3) Burgan Bank Kuwait Corporate banking is the key One of the top three N/A conventional Banks(2) business; Retail Banking growth is a 74% focus area Burgan Bank
Slide 6: Burgan's Business Strategy – Strategic Pillars
BURGAN’S BUSINESS STRATEGY – STRATEGIC PILLARS Strategic Pillars Strengthen Asset Digital A Kuwait Business B Re-Allocation C Transformation • Grow & Diversify the Corporate • Pursue Sale of Non-Core Assets • Revamp IT infrastructure with Portfolio modern technology • Re-Invest in New Markets • Doub
Slide 7: Key Highlights
y) glsy Su BURGAN BANK Key Highlights
Slide 8: Key Highlights – Q1'25
KEY HIGHLIGHTS – Q1’25 Net Interest Margins Revenues Net Income^ Strong Profitability 2.5% KD 58mn KD 10.7mn (+50bps y-o-y) (+8% y-o-y) (+5% y-o-y) Assets Deposits NPL Ratio Robust Balance Sheet KD 8.6bn KD 5.4bn 1.8% (+11% y-o-y) (+7% y-o-y) (-80bps y-o-y) CAR NSFR LDR Optimal Capital & Liquidity 1
Slide 9: Financial Review – Q1'25
BURGAN BANK y) glsy Su Financial Review — Q1’25
Slide 10: P&L Metrics
P&L METRICS Revenue | KD mn Operating Profit | KD mn Net Income (1) | KD mn 58 24 24 54 10 11 Q1'24 Q1'25 Q1'24 Q1'25 Q1'24 Q1'25 Net Interest Margin (NIM)(2) | % Cost to Income Ratio (CIR) | % Cost of Credit (CoC)(2),(3) | % 55.6% 57.8% 2.5% 2.0% 0.5% 0.3% Q1'24 Q1'25 Q1'24 Q1'25 Q1'24 Q1'25 Notes:
Slide 11: Asset Quality Metrics
ASSET QUALITY METRICS Non-Performing Loans (NPLs) & NPL Ratio | KD mn,% 300 Total Provisions & IFRS 9 ECL Requirements | KD mn 250 238 2.6% 200 186 1.8% 150 126 130 120 95 100 50 0 Q1'24 Q1'25 Q1'24 Q1'25 NPLs NPL Ratio CBK Provision ECL Provision Charge(1) | KD mn Provisions Coverage Ratio(2) | % 1
Slide 12: Assets & Loans
ASSETS & LOANS Total Assets | KD mn Customer Loans & Sector Concentration | KD mn, % 8,624 Includes UGB’s 4,655 7,767 asset contribution 4,322 2% 11% Personal of KD 239mn 5% 2,347 988 Real estate 1,855 877 9% Manufacturing 40% Commerce 12% Construction 6,333 6,764 3,455 3,677 Oil & Gas 20% Others Q1
Slide 13: Liquidity Profile
LIQUIDITY PROFILE Customer Deposits | KD mn Deposits by Type – Q1’25 | % 5,417 5,065 2% 1,255 1,105 27% 3,961 4,162 70% Q1'24 Q1'25 BB Kuwait International Ops CASA Time Other Loan to Deposit Ratio (LDR) | % Regulatory Liquidity Metrics^ | % 90% 90% 207% 181% 80% 120% 113% 73% 100% Q1'24 Q1'25 Q1'24
Slide 14: Capital Position
CAPITAL POSITION Regulatory Capital | KD mn, % 18.6% 3,000 18.0% 17.5% 16.0% 2,500 14.0% 14.0% 2,000 12.6% 11.7% 12.0% 10.5% 10.0% 1,500 1,308 1,300 8.0% 262 267 161 1,000 162 6.0% 4.0% 500 885 872 2.0% - 0.0% FY'24 Q1'25 7,017 7,437 CET1 AT1 Tier II CET 1 Ratio CAR Ratio Min. Required CAR Min. Requ
Slide 15: KPIs Across Franchises
KPIS ACROSS FRANCHISES CONTRIBUTION (1) KPIS ASSETS NIM(2) CROSS SELL(5) COC(2),(3) NPL RATIO Kuwait 74% 1.3% 28.5% 0.3% 1.6% ASSETS NIM(2) CROSS SELL(5) COC(2),(3) NPL RATIO Turkey 11% 7.2% 10.8% 0.6% 0.8% ASSETS NIM(2) CROSS SELL(5) COC(2),(3) NPL RATIO Algeria 10% 5.1% 27.5% 3.7% 3.9% ASSETS NIM(
Slide 16: Summary
y) glsy Su BURGAN BANK Summary
Slide 17: Summary
SUMMARY Robust quarterly performance driven by a resilient business model Asset quality remains strong with minimal credit costs Poised to sustain asset growth with a focus on Kuwait 17
Slide 18: Thank You
BURGAN BANK Qa Thank You
Slide 19: Disclaimers
DISCLAIMERS IMPORTANT NOTICE This presentation has been prepared by Burgan Bank K.P.S.C. 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