Burgan Bank · KSE:BURG
Burgan Bank — 9M 2023 Earnings Presentation
21 slides from Burgan Bank's earnings presentation, Nov 1, 2023
Slide 1: Burgan Bank Group 9M'23 Financial Results
BURGAN BANK GROUP INVESTOR PRESENTATION 9M’23 FINANCIAL RESULTS 1ST NOVEMBER 2023
Slide 2: Table of Contents
TABLE OF CONTENTS Contents Page Overview and Operating Strategy 4-6 Key Performance Highlights 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 KPIs Across Franchises 15 Q3’23
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 A Kuwait and privatized in 1997. (Outlook: Stable) ▪ Listed on Boursa Kuwait in 1984 and grew to be one of the leading Baa1 (Outlook: Stable) conventional banks in Kuwait (in terms
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 77% growth is a focus area Burgan Bank
Slide 6: Burgan's Long-Term Strategic Priorities
BURGAN’S LONG-TERM STRATEGIC PRIORITIES A. Strengthen Kuwait B. Strategic Asset C. Digital Business Reallocation Transformation Revitalize key businesses Sale of non-core assets Delivering Superior in Kuwait such as Retail Customer Experience Pursue Cautious Growth in banking subsidiaries
Slide 7: Key Performance Highlights
BURGAN BANK y) glsy Su Key Performance Highlights
Slide 8: Key Performance Highlights
KEY PERFORMANCE HIGHLIGHTS Robust Earnings Stable Asset Quality 9M’23 Revenue grew by 17% NPL Ratio continues to be y-o-y supported by improved ≤ 2% levels. fee income, FX income & recoveries Provisions Coverage Ratio healthy at 200%+ 9M’23 Operating Profit grew by 21% y-o-y 9M’23 CoC lowe
Slide 9: Financial Review – 9M'23
BURGAN BANK y) glsy Su Financial Review — 9M’23
Slide 10: P&L Metrics
P&L METRICS Revenue (4) | KD mn Operating Profit (4) | KD mn Net Income(1) | KD mn 56 54 195 109 167 166 96 90 14 16 9 12 41 30 195 40 17 109 2 2 24 152 150 87 79 39 39 30 9M'21 9M'22 9M'23 9M'21 9M'22 9M'23 9M'21 9M'22 9M'23 BB Group (excl BoB) BoB BB Group (excl BoB) BoB BB Group (excl BoB) BoB IA
Slide 11: Asset Quality Metrics
ASSET QUALITY METRICS Non-Performing Loans (NPLs) | KD mn NPL Ratio | % 4.3% 210 2.6% 79 3.4% 119 2.0% 92 40 2.2% 131 18 1.9% 79 74 9M'21 9M'22 9M'23 9M'21 9M'22 9M'23 Kuwait International Ops (excl BoB) BB Group BB Kuwait Provision Charge(1) | KD mn Provisions Coverage Ratio(2) | % 222% 189% 176% 4
Slide 12: Assets & Loans
ASSETS & LOANS Total Assets | KD mn Customer Loans & Sector Concentration | KD mn, % 4,144 Personal 6,965 6,903 6,990 1% 10% 5% 298 338 873 8% Real estate 1,756 1,731 1,739 Manufacturing 12% 40% Commerce 3,285 Construction 5,421 5,328 5,802 Oil & Gas 24% Others 9M'21 9M'22 9M'23 9M'23 BB Kuwait Inte
Slide 13: Liquidity Profile
LIQUIDITY PROFILE Customer Deposits | KD mn Deposits by Type – 9M’23 | % 4,347 4,410 3,761 2% 1,166 1,020 1,120 32% 3,180 3,390 66% 2,641 9M21 9M'22 9M'23 BB Kuwait International Ops (excl BoB) CASA Time Other Loan to Deposit Ratio (LDR) | % Regulatory Liquidity Metrics^ | % 100% 95% 174% 90% 86% 85
Slide 14: Capital Position
CAPITAL POSITION Regulatory Capital | KD mn, % CET1 6,251 6,434 6,234^ AT1 Tier II 1,092 1,084 1,094 228 232 231 RWAs 153 155 156 711 697 707 FY'21 FY'22 9M'23 Reg. Reg. Reg. FY’21 FY’22 9M’23 Min Min Min CET 1 % 11.4% 8.0% 10.8% 9.0% 11.3% 10.5% Tier 1 % 13.8% 9.5% 13.2% 10.5% 13.9% 12.0% CAR % 17.
Slide 15: KPIs Across Franchises
KPIS ACROSS FRANCHISES CONTRIBUTION (1) KPIS(2) ASSETS NIM ∆% CI RATIO ∆% COC(3) ∆% NPL RATIO ∆% Kuwait(5) (30 77% 1.6% (10 bps) 41.0% (300 bps) 0.5% +10 bps 1.9% bps) ASSETS NIM ∆% CI RATIO ∆% COC(3) ∆% NPL RATIO ∆% Turkey 11% (160 (180 (100 (400 2.3% bps) +57 bps 33.1% bps) (2.3)% bps) 1.2% bps) A
Slide 16: Financial Review – Q3'23
BURGAN BANK y) glsy Su Financial Review — Q3’23
Slide 17: Q3'23 Earnings Update
Q3’23 EARNINGS UPDATE Revenue(4) | KD mn Operating Profit(4) | KD mn Net Income(1) | KD mn 18 29 87 55 55 56 12 5 6 29 29 14 87 16 17 3 4 55 6 1 1 50 50 26 25 15 13 12 Q3'21 Q3'22 Q3'23 Q3'21 Q3'22 Q3'23 Q3'21 Q3'22 Q3'23 BB Group (excl BoB) BoB Consol. Adj & Others BB Group (excl BoB) BoB BB Group
Slide 18: Summary
y) glsy Su BURGAN BANK Summary
Slide 19: Summary
SUMMARY Bank is focused on growing its franchise in Kuwait, as seen in the restored growth numbers over last 12 months Underlying Net Income levels are healthy, pre-impact of IAS29 International Operations’ performance continues to be stable with minimal surprises 19
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