Burgan Bank · KSE:BURG
Burgan Bank — Q1 2019 Earnings Presentation
12 slides from Burgan Bank's earnings presentation, 2019
Slide 1: Burgan Bank Group Investor Presentation 1st Quarter 2019 Financial Results
BURGAN BANK GROUP INVESTOR PRESENTATION 1ST QUARTER 2019 FINANCIAL RESULTS
Slide 2: Change in Financial Statements' Closing Process
CHANGE IN FINANCIAL STATEMENTS’ CLOSING PROCESS Beginning this year, Burgan has revised its financial statements’ closing process by changing the reporting date of its subsidiaries to one month earlier than the Group’s reporting date to ensure earliest possible release of the Group’s financial sta
Slide 3: Q1'19 Performance Overview
Q1’19 PERFORMANCE OVERVIEW Earnings Efficiency Net Income of KD19.2mn Further improvement in Cost- to-Income Ratio (CIR); down Key drivers: to 41.8% Continued strong Kuwait Kuwait franchise remains franchise performance lean with CIR of 28.4% Lower cost of credit at Group & Kuwait levels
Slide 4: Revenue and Operating Profits
REVENUE AND OPERATING PROFITS Revenue (KD mn) Operating Profit (KD mn) 2.9% 47.9% 2.8% 46.2% 2.4% 41.8% 2.3% 2.3% 2.0% 37.3% 36.8% 60.5 55.9 50.3 28.4% 28.3 18.1 27.4 29.2 32.5 29.2 9.4 13.0 10.5 35.5 39.9 31.7 28.5 19.9 22.4 Q1'17 Q1'18 Q1'19 Q1'17 Q1'18 Q1'19 BB Kuwait International Ops Revenues G
Slide 5: Cost of Credit and Net Income
COST OF CREDIT AND NET INCOME Cost of Credit^ (KD mn) Net Income (KD mn) 0.9% 0.7% 0.6% 0.5% 0.4% 0.4% 19.2 20.4 3.1 17.8 6.1 9.6 - 4.5 7.5 6.3 - - 24.3 5.9 3.2 4.4 15.9 18.0 3.2 3.8 3.0 Q1'17 Q1'18 Q1'19 Q1'17 Q1'18 Q1'19 BB Kuwait International Ops Group Expenses & Consol. Adj CoC - BB Kuwait BB K
Slide 6: NPL Ratio and Coverage
NPL RATIO AND COVERAGE NPL Ratios (%) NPLs (KD mn) & Coverage (%) 4.7% 308.7% 305.9% 3.8% 3.0% 141.9% 2.7% 164.9% 162.0% 1.8% 106.0% 1.7% 227.0 89.3 127.1 136.3 70.0 72.0 137.7 57.1 64.4 Q1'17 Q1'18 Q1'19 Q1'17 Q1'18 Q1'19 Group NPL Ratio Kuwait NPL Ratio BB Kuwait International Ops Group Coverage R
Slide 7: Customer Loans and Deposits
CUSTOMER LOANS AND DEPOSITS Customer Loans (KD bn) & Sector Concentration (%) Customer Deposits (KD bn) & Deposits by Type (%) Q1’19 (%) Q1’19 (%) 4.3 4.3 4.2 3.9 3.9 4.0 1.4 1.6 1.3 1.4 1.4 1.3 19% 3% 2% 7% 28% 30% 11% 2.9 2.7 2.9 2.7 62% 2.5 2.5 6% 10% 20% Q1'17 Q1'18 Q1'19 Personal Real estate Q1
Slide 8: Capital and Liquidity
CAPITAL AND LIQUIDITY Regulatory Capital (KD mn) Liquidity Metrics (%) 2,500.0 20.0% 154.9% 151.9% 16.6% 17.3% 16.5% 18.0% 144.1% 2,000.0 16.0% 118.1% 14.0% 14.0% 109.4% 11.2% 11.8% 1,500.0 11.1% 12.0% 100% 10.5% 10.0% 990.6 1,000.0 902.3 909.1 8.0% 169.6 151.5 151.2 145.6 6.0% 146.1 145.3 500.0 4.0
Slide 9: Q1'19 Performance by Entities
Q1’19 PERFORMANCE BY ENTITIES GROWTH CONTRIBUTION (1) KPIS YOY(2) LOANS REVENUES LOANS NIM(3) ∆% CI RATIO ∆% COC(4) ∆% Kuwait (840 (10 67% 56% +4% 2.3% 28.4% bps) 0.4% bps) Turkey +90 21% 19% (27%) 4.1% +40 bps 55.3% (11 pps)(5) 1.9% bps Algeria (650 10% 19% +8% 7.0% +40 bps 33.1% bps) 2.1% +70 bps
Slide 10: In Summary
IN SUMMARY STABLE EARNINGS UNDERSCORE STRENGTH AND RESILIENCE OF BURGAN’S BUSINESS MODEL HEALTHY CAPITAL LEVELS WILL ENABLE BURGAN TO PURSUE PRUDENT GROWTH IN ITS KEY MARKETS KUWAIT WILL CONTINUE TO BE THE KEY MARKET FOR GROUP’S GROWTH 10
Slide 11: Thank You
11 (a i THANK YOU 2 ol Sp Say BURGAN BANK
Slide 12: 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