Burgan Bank · KSE:BURG
Burgan Bank — 9M 2021 Earnings Presentation
14 slides from Burgan Bank's earnings presentation, Nov 8, 2021
Slide 1: Burgan Bank Group Investor Presentation 9 Months 2021 Financial Results
BURGAN BANK GROUP INVESTOR PRESENTATION 9 MONTHS 2021 FINANCIAL RESULTS 8TH NOVEMBER 2021
Slide 2: Table of Contents
TABLE OF CONTENTS Contents Page Performance Highlights 3 Key P&L Metrics 4-5 Asset Quality 6 Key Balance Sheet Metrics 7-8 Capital & Liquidity 9 Planned Rights Issue 10 9M’21 Performance: Kuwait & International Operations 11 Summary 12 2
Slide 3: Performance Highlights
PERFORMANCE HIGHLIGHTS Q3’21 9M’21 Solid Revenue KD 55mn KD 167mn Levels (-)KD 2mn y-o-y (4) +KD 2mn y-o-y (5) Stable Margins(1) 2.1% 2.1% (-)10bps y-o-y (4) (-)20bps y-o-y (5) Reduced KD 9mn KD 48mn Credit Costs(2) (-)61.8% y-o-y(4) (-)11.6% y-o-y (5) Healthy Bottomline(3) KD 16mn KD 40mn +65.3% y-
Slide 4: Solid Revenue Levels with Stable Margins
SOLID REVENUE LEVELS WITH STABLE MARGINS Revenue | KD mn Net Interest Margins* | % 165 167 2.3% 2.2% 2.1% 2.1% 81 71 1.6% 1.6% 1.6% 1.5% 57 55 89 98 27 23 33 35 9M'20 9M'21 Q3'20 Q3'21 9M'20 9M'21 Q3'20 Q3'21 Kuwait International Consol. Adj & Others NIM - Kuwait NIM - Group Operating Profit | KD mn
Slide 5: Strong Rebound in Bottom-Line
STRONG REBOUND IN BOTTOM-LINE Loan Loss Provisions | KD mn Cost of Credit(1) | % 1.9% 1.6% 1.4% 0.7% 54 48 0.9% 0.9% 0.9% 0.7% 22 9 9M'20 9M'21 Q3'20 Q3'21 9M'20 9M'21 Q3'20 Q3'21 CoC - Kuwait CoC - Group Net Income(2) & Returns(3) | KD mn Earnings Per Share (EPS)(4) | Fils 8.4% 6.6% 4.6% 4.1% 13 40
Slide 6: Continued Improvement in Asset Quality
CONTINUED IMPROVEMENT IN ASSET QUALITY NPL Ratio | % 6.0% 4.5% 4.3% 4.2% 5.4% 3.5% 3.4% 2.6% Q4'20 Q1'21 Q2'21 Q3'21 NPL Ratio - Kuwait NPL Ratio - Group NPLs & Coverage Ratio | KD mn, % 212.8% 168.6% 193.4% 198.5% 315.4% 191.9% 247.4% 249.9% 478 427 414 416 161 223 156 156 266 255 258 260 201 284 2
Slide 7: Loan Growth Led by Kuwait
LOAN GROWTH LED BY KUWAIT Customer Loans | KD mn +2.1%* 4,345 4,256 4,239 4,349 1,142 1,028 1,095 1,079 3,212 3,232 3,151 3,279 Q4'20 Q1'21 Q2'21 Q3'21 Kuwait International Ops Sector Concentration | % 17% 2% 13% 2% 5% 5% 10% 29% 32% 10% Q4’20 Stable Sector Mix Q3’21 12% 12% 25% 27% Personal Real es
Slide 8: Access to Customer Deposits Remains Strong
ACCESS TO CUSTOMER DEPOSITS REMAINS STRONG Customer Deposits | KD mn +6.8%* 4,091 4,139 4,350 4,347 1,113 1,070 1,190 1,166 2,979 3,069 3,160 3,180 Q4'20 Q1'21 Q2'21 Q3'21 Kuwait International Ops Deposits by Type | % 4% 4% 27% 28% CAS A Levels Remain Q4’20 Healthy Q3’21 66% 65% 4% 3% Demand Saving
Slide 9: Capital & Liquidity Levels Well Above Regulatory Requirements
CAPITAL & LIQUIDITY LEVELS WELL ABOVE REGULATORY REQUIREMENTS Liquidity Coverage Ratio (LCR)* & Net Stable Funding Regulatory Capital | KD mn, % Ratio (NSFR)* | % 250.0% 18.1% 3,000 16.7% 16.5% 16.3% 17.0% 207.7% 200.0% 2,500 12.0% 11.5% 2,000 134.7% 150.0% 133.4% 129.4% 10.5% 10.5% 10.4% 10.2% 8.0%
Slide 10: Planned Rights Issue
PLANNED RIGHTS ISSUE Details of the Rights Issue Offering Shareholding Structure* I % KIPCO Shares Offered (#) 375mn shares 28% Rights Issue Price (Fils) 190 /share Public Institution for Social Security Size of Offering (KD mn) KD 71.3 mn 7% 65% Others Offering Period Nov’21-Dec’21 Impact on Capita
Slide 11: Improving Performance Metrics Across Franchises
IMPROVING PERFORMANCE METRICS ACROSS FRANCHISES CONTRIBUTION(1) GROWTH(2) KPIS(3),(4),(5) ASSETS REVENUES NET INCOME LOANS NIM ∆% CI RATIO ∆% COC ∆% NPL RATIO ∆% Kuwait (10 (153 76% 64% 89% +2.1% 1.5% bps) 33.1% bps) 0.9% 3.4% +180 bps ASSETS REVENUES NET INCOME LOANS NIM ∆% CI RATIO ∆% COC ∆% NPL R
Slide 12: Summary
SUMMARY Burgan delivered another strong quarter with consistently improving 1 earnings 2 Asset Quality continues to improve across franchises The planned Rights Issue will boost capital levels & enable achievement of 3 Group’s growth plans 12
Slide 13: Thank You
Thank You =H ul Lo OL... 9 js Sms ‘79 BURGAN BANK
Slide 14: 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