Burgan Bank · KSE:BURG
Burgan Bank — FY2024 Earnings Presentation
21 slides from Burgan Bank's earnings presentation, Feb 19, 2025
Slide 1: Burgan Bank Group FY'24 Financial Results
BURGAN BANK GROUP INVESTOR PRESENTATION FY’24 FINANCIAL RESULTS 19TH FEBRUARY 2025
Slide 2: Table of Contents
TABLE OF CONTENTS Contents Page Overview and Operating Strategy 4-6 FY’24 Key Developments & Achievements 8 FY’24 Performance Highlights 10 Financial Review – Key P&L Metrics 12 Financial Review – Asset Quality Metrics 13 Financial Review – Balance Sheet Metrics & Liquidity 14 - 15 Financial Review
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 76% growth is a 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: FY'24 Key Developments & Achievements
FY’24 Key Developments & Achievements
Slide 8: FY'24 Key Developments & Achievements
FY’24 KEY DEVELOPMENTS & ACHIEVEMENTS Launched New “Private Signed an SPA to Acquire Banking” Brand United Gulf Bank (UGB), Bahrain for USD 190mn Continued Retail (~1.0x BV) Transformation Impact of the acquisition Sector Focused Growth of on our regulatory Capital Corporate Book is expect
Slide 9: FY'24 Performance Highlights
FY’24 Performance Highlights
Slide 10: FY'24 Performance Highlights
FY’24 PERFORMANCE HIGHLIGHTS Solid Asset Growth Robust Earnings Group Kuwait Revenues Net Income(1) KD 8.2BN KD 6.5BN KD 229MN KD 46MN +10% Y-O-Y +8% Y-O-Y +3% Y-O-Y +7% Y-O-Y Enhanced Asset Quality Optimal Capital Levels Cost of Credit (2) NPL Ratio CET1 CAR 0.1% 1.8% 12.6% 18.6% FLAT Y-O-Y -20bps
Slide 11: Financial Review – FY'24
BURGAN BANK y) glsy Su Financial Review — FY’24
Slide 12: P&L Metrics
P&L METRICS Revenue | KD mn Operating Profit | KD mn Net Income(1) | KD mn 222 229 106 99 44 46 FY'23 FY'24 FY'23 FY'24 FY'23 FY'24 Net Interest Margin (NIM) | % Cost to Income Ratio (CIR) | % Earnings Per Share (EPS) | % 10.3 2.3% 57.0% 52.4% 9.5 2.1% FY'23 FY'24 FY'23 FY'24 FY'23 FY'24 Note: (1) N
Slide 13: Asset Quality Metrics
ASSET QUALITY METRICS 400 Non-Performing Loans (NPLs) & NPL Ratio | KD mn,% 350 Total Provisions & IFRS 9 ECL Requirements | KD mn 300 250 232 2.0% 1.8% 174 200 150 94 92 119 109 100 50 0 FY'23 FY'24 FY'23 FY'24 NPLs NPL Ratio CBK Provision ECL Requirement Provision Charge(1) | KD mn Cost of Credit
Slide 14: Loans & Assets
LOANS & ASSETS Customer Loans | KD mn, % Total Assets | KD mn 4,471 8,158 4,237 7,426 927 2,025 919 1,839 3,331 3,554 6,029 6,520 FY'23 FY'24 FY'23 FY'24 BB Kuwait International Ops Consol. Adj BB Kuwait International Ops Consol. Adj Loans by Stages(1) | % Liquid Assets Ratio(2) | % 120% Stage 1 Sta
Slide 15: Liquidity Profile
LIQUIDITY PROFILE Customer Deposits | KD mn Deposits by Type – FY’24 | % 4,904 2% 4,463 1,149 1,078 31% 3,386 3,755 67% FY'23 FY'24 BB Kuwait International Ops CASA Time Other Loan to Deposit Ratio (LDR) | % Regulatory Liquidity Metrics(1) | % 151% 153% 90% 90% 81% 81% 117% 116% 100% 100% FY'23 FY'2
Slide 16: Capital Position
CAPITAL POSITION Regulatory Capital | KD mn, % 3,000 20.0% 18.6% +460bps 20.0% 2,500 15.0% 14.0% 13.5% +210bps 2,000 12.6% 10.5% 10.0% 1,500 1,272 1,308 248 262 5.0% 161 1,000 162 0.0% 500 861 885 - -5.0% FY'23 FY'24 6,359 7,017 CET1 AT1 Tier II CET 1 Ratio CAR Ratio Min. Required CAR Min. Required
Slide 17: KPIs Across Franchises
KPIS ACROSS FRANCHISES CONTRIBUTION (1) KPIS ASSETS NIM(2) CROSS SELL(5) COC(2),(3) NPL RATIO Kuwait 76% 1.3% 25.3% 0.1% 1.6% ASSETS NIM(2) CROSS SELL(5) COC(2),(3) NPL RATIO Turkey 12% 5.7% 43.7% (1.8)% 0.9% ASSETS NIM(2) CROSS SELL(5) COC(2),(3) NPL RATIO Algeria 10% 5.4% 27.0% 3.3% 5.0% ASSETS NI
Slide 18: Summary
y) glsy Su BURGAN BANK Summary
Slide 19: Summary
SUMMARY Burgan delivered strong financial results, maintaining its stable financial outlook and robust market position. Going forward, we expect: 1 Risk Calibrated prudent “Growth” to continue at renewed pace 2 Focus on building “asset-lite” revenue streams 3 Continued investment on Digital / IT inf
Slide 20: Thank You
BURGAN BANK Qa Thank You
Slide 21: 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