Burgan Bank · KSE:BURG
Burgan Bank — Investor Presentation (March 2012)
28 slides from Burgan Bank's investor presentation, March 2012
Slide 1: Investor Presentation
Shafafiyah Members of Burgan Bank Group: 1 March, 2012 Investor Presentation March 2012
Slide 2: Disclaimer
Disclaimer The information contained in this document has been provided on the basis of current knowledge, assumptions and expectations. In the event that any information is incorrect or any party misrepresented, Burgan Bank and its consultants cannot be held responsible for this. Various factors co
Slide 3: Agenda
Agenda Summary: Solid performance despite bearish market 2011: What we said and what we achieved Financial Trends Financial Performance - Consolidated Financial Performance - By Country Kuwait Operations Returns for Local Conventional Banks External Recognition Outlook & Conclusion Members of Burgan
Slide 4: Summary: Solid performance despite bearish market
Summary: Solid performance despite bearish market Members of Burgan Bank Group: 4
Slide 5: Summary: Solid performance despite bearish market
Summary: Solid performance despite bearish market Turnaround process delivered a solid financial performance despite a bearish market Best year for Kuwait operations (Restored profitability). Subsidiaries 2011 remain in growth mode Maintaining a strong balance sheet – Liquidity of KD1.0b and C
Slide 6: 2011: What we said and what we achieved
2011: What we said and what we achieved Members of Burgan Bank Group: 6
Slide 7: 2011: What we said and what we achieved
2011: What we said and what we achieved 2011: Shafafiyah Assumptions & Outlook 2011: Actual Performance Group operating income expected to grow Normalized operating income increased further from KD 88.7mn to KD 102.0mn NPLs increased from 6.1% to 11.5%; NPLs were expected to remain stable ho
Slide 8: Financial Trends
Financial Trends Members of Burgan Bank Group: 8
Slide 9: Financial Trends - Annual
Financial Trends - Annual Revenue* (KD million) Cost of Credit (KD million) 163.4 79.4 71.8 154.0 151.6 29.1 16.0 FY 09 FY 10 FY 11 FY 09 FY 10 FY 11 Additional general provisions of KD 16.0m Net Profit (KD million) Key Indicators Burgan Bank Group FY 09 FY 10 FY 11 Revenue Growth* 28.9% 1.5% 6.1% 5
Slide 10: Financial Performance - Consolidated
Financial Performance - Consolidated Members of Burgan Bank Group: 10
Slide 11: Financial Performance - Income Statement
Financial Performance - Income Statement KD (million) FY 10 FY 11 Revenues* 154.0 163.4 Operating Expense 65.3 61.4 Operating Profit* 88.7 102.0 Regular Provisions 71.7 17.6 Net Profit Before Additional General Provisions 4.7 65.9 Additional General Provisions - 16.0 Net Profit After Additional Gene
Slide 12: Strong Credit Reserve
Strong Credit Reserve Non Performing Loans (KD million) 400 200% 300 131% 150% 100% 270 200 100% 219 143 142 100 50% 95 73 0 0% Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 NPL NPL net of collateral Total provisions Coverage net of collateral (RHS) NPLs net of collateral to Gross Loans (%) 6.1% 4
Slide 13: Financial Performance - Balance Sheet
Financial Performance - Balance Sheet KD (million) FY 10 FY 11 Loans & Advances 2,136 2,252 Total Assets 4,147 4,552 Deposits 2,565 2,796 Total Liabilities 3,609 3,986 Shareholder's Equity 420 447 Liab & Sh.Equity 4,147 4,552 Assets Progression (KD billion) Liabilities Progression (KD billion) 4.6 4
Slide 14: Financial Performance - By Country
Financial Performance - By Country Members of Burgan Bank Group: 14
Slide 15: Operating Profit - By Country (FY11 vs. FY10)
Operating Profit** - By Country (FY11 vs. FY10) KD (million) Kuwait Operating Profit 54.1 49.2 Jordan Operating Profit Algeria Operating Profit 30.2 15.9 30.1 FY 10 FY 11 11.8 FY 11 vs. FY 10 FY 11 FY 10 FY 11 FY 10* Iraq Operating Profit 14.9% Tunisia Operating Profit 6.8 2.0 4.1 0.9 # FY 10 FY 11
Slide 16: Contribution Summary by Country
Contribution Summary by Country Contribution* for FY 11 Total Assets 68.8% 18.7% 5.4% 3.9% 3.1% Customer Loans 69.8% 21.6% 6.6% 1.7% 0.3% Customer Deposits 65.1% 21.1% 6.2% 5.2% 2.4% Net Interest Income 54.5% 31.8% 7.4% 4.9% 1.4% Revenue 50.5% 26.0% 14.2% 6.9% 2.4% Operating Expense 52.2% 22.7% 13.4
Slide 17: Kuwait Operations
Kuwait Operations Members of Burgan Bank Group: 17
Slide 18: Kuwait Operations – Product Progression
Kuwait Operations – Product Progression Commercial Cash Assets* (KD billions) Total Deposits* (KD billions) 2.0 2.6 2.0 2.5 2.3 2.4 1.9 2.3 1.9 1.9 2.2 2.1 1.9 2.1 1.9 1.8 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Letter of Credit (KD millions) L
Slide 19: Kuwait Operations – Market Share
Kuwait Operations – Market Share Cash Facilities* All Deposits* 12.9% 12.3% 11.8% 11.9% 11.8% 11.6% 12.2% 11.2% 12.0% 11.0% 11.7% 10.3% 11.5% 11.4% 11.5% 11.0% Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Letter of Credit Letter of Guarantee 14.2% 1
Slide 20: Returns for Local Conventional Banks
Returns for Local Conventional Banks Members of Burgan Bank Group: 20
Slide 21: Operating Profit Growth - Local Con. Banks
Operating Profit Growth- Local Con. Banks Operating Profit Growth 14.9%* 11.4% 9.1% 10.0% 8.2% Bank 1 Bank 2 Bank 3 Bank 4 BB Group BB Kuwait -25.3% *Adj. for one time Consolidation gain of KD 10.9m in FY 10 Members of Burgan Bank Group: 21
Slide 22: RoE - Local Conventional Banks
RoE - Local Conventional Banks RoE * 16.5% 16.1% 15.7% 13.6% 10.7% 12.0% 9.2% 7.5% 4.7% 1.4% 0.2% Bank 1 Bank 2 Bank 3 Bank 4 BB FY 10 FY 11 5 ROE before add. general provisions * Calculated as net profit divided by opening shareholders equity Members of Burgan Bank Group: 22
Slide 23: RoNAV - Local Conventional Banks
RoNAV - Local Conventional Banks RoNAV* 27.5% 19.1% 21.1% 16.1% 15.2% 10.7% 9.6% 7.5% 4.7% 2.7% 0.2% Bank 1 Bank 2 Bank 3 Bank 4 BB FY 10 FY 11 RONAV before add. general provisions * Calculated as net profit divided by opening shareholders equity less intangible assets Members of Burgan Bank Group:
Slide 24: External Recognition
External Recognition Members of Burgan Bank Group: 24
Slide 25: External Recognition
External Recognition International Platinum Best Local Bank in Star for Quality Iraq By By Business Initiatives Directions EMEA Finance ( 2011 Middle East Banking Awards) August September November February Best Private Bank in Best Technical Award Kuwait By By Banking Web Awards World Finance Magazi
Slide 26: Outlook & Conclusion
Outlook & Conclusion Members of Burgan Bank Group: 26
Slide 27: Outlook & Conclusion
Outlook & Conclusion Growing market share with profitability Outlook Repositioning retail Expand footprint through inorganic growth Economic and business environment were less favorable than anticipated Objectives of 2011 were achieved driven by the strong recovery of Kuwait operations Con
Slide 28: Thank You
Thank You Members of Burgan Bank Group: 28