Burgan Bank · KSE:BURG
Burgan Bank — FY2012 Earnings Presentation
28 slides from Burgan Bank's earnings presentation, Sep 12, 2013
Slide 1: Investor Presentation Financial Year 2012
INVESTOR PRESENTATION Financial Year 2012 1
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 2012: Key Highlights Financial Performance Inorganic Highlights Capital Adequacy Performance vs. Peers Conclusion Appendix 3
Slide 4: 2012: Key Highlights
F) sy = ’7e@ BURGAN BANK 2012: Key Highlights , Burgan Bank Group: Kuwait - Jordan - Turkey - Algeria - Iraq - Tunisia - Lebanon
Slide 5: FY 12: Key Highlights
FY 12: Key Highlights of 16% backed by growth in core income outpacing Peers. Solid Business of 10% outperforming Peers reaching KD55.6M. Performance of 27.5% and 21.3% respectively. at 12.4% and at 20.2% in FY 12. Improved Credit drop from 11.5% in FY 11 to 7.1% in FY 12. Quality improved from 131.
Slide 6: Financial Performance
BURGAN BANK >] ol sp =a Financial Performance Burgan Bank Group: Kuwait - Jordan - Turkey - Algeria - Iraq - Tunisia - Lebanon
Slide 7: Strong Financial and Operating Performance…
Strong Financial and Operating Performance… Revenue (KD million)(1) Cost of Credit (KD million)(1) ∆16.4% 190.1 3,384 163.4 2,252 2,135 36.1 29.1 17.3 ∆33.4% 51.2 16.1 12.9 13.7 38.4 7.9 10.8 18.8 13.1 5.0 2.9 Q4 11 Q4 12 FY 11 FY 12 Q4 11 Q4 12 FY 10 FY 11 FY 12 Additional Provisions Net Loans in K
Slide 8: …with quality earnings…
…with quality earnings… Revenue (KD million) 39 43 43 48 44 48 38 51 18 17 21 15 14 17 13 15 26 28 29 30 27 31 30 24 Q1 11 Q1 12 Q2 11 Q2 12 Q3 11 Q3 12 Q4 11 Q4 12 Net Interest Income (2011) Non Interest Income (2011) Net Interest Income (2012) Non Interest Income (2012) BB Consolidated (KD mn) Ope
Slide 9: …supported by solid balance sheet growth…
…supported by solid balance sheet growth… KD (million) Q4 11 Q1 12 Q2 12 Q3 12 Q4 12(1) Q4 12 Loans & Advances 2,252 2,405 2,592 2,783 2,871 3,384 Total Assets 4,552 4,773 4,967 5,171 5,272 5,977 Deposits 2,796 3,040 3,164 3,330 3,392 3,895 Total Liabilities 3,986 4,205 4,386 4,573 4,652 5,357 Share
Slide 10: …and enhanced risk position…
…and enhanced risk position… Non Performing Loans (KD million) and Coverage Ratio 400 198% 200% 154% 171% 145% 139% 300 131% 150% 200 100% 270 266 254 253 247 100 219 50% 102 105 111 114 73 95 70 76 72 92 67 46 0 0% Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 (Ex. BBT) Q4 12 (Inc. BBT) NPL NPL net of collateral T
Slide 11: …Solid & improved shareholder returns
…Solid & improved shareholder returns Quarterly Net Profit (KD million) Annual Net Profit (KD million) 72.9 20.0 66.6 17.0 17.1 17.5 17.6 17.7 16.5 16.1 2.5 17.3 3.5 4.0 10.8 4.6 4 16.1 7.9 . 17.5 5 16.1 15.2 11.8 13.5 13.6 55.6 9.2 9.2 50.6 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 FY 11 FY 1
Slide 12: Financial Performance - By Country
Financial Performance - By Country 12
Slide 13: Strong Revenue Diversity
Strong Revenue Diversity Revenue FY 12(1)(2) Operating Profit Margins FY 12(1)(2) Burgan Group at Burgan Group KD190.1m.(2) at 62.6%.(2) 69.6% (3) 70.6% (4) (4) 69.4% Jordan, KD46.2m, 24% (4) 57.6% (4) Kuwait, 54.1% KD94.2m, 49% Algeria, KD34.7m, 66.0% 69.2% 18% 66.6% 50.4% 37.0% Tunisia, Iraq, KD3.
Slide 14: …from all the subsidiaries
…from all the subsidiaries Total Assets (KD mn) Net Loans (KD mn) Customer Deposits (KD mn) 3,854 2,218 2,054 3,273 1,819 1,576 950 600 559 591 890 488 390 284 158 230 271 258 150 173 229 185 149 38 34 7 5 144 68 73 Kuwait Jordan Algeria Iraq Tunisia Kuwait Jordan Algeria Iraq Tunisia Kuwait Jordan
Slide 15: …and further strengthened by acquisition of BBT
…and further strengthened by acquisition of BBT Contribution for FY 12 (Actual) (1) Contribution for FY 12 (Pro forma(2)) (1) 1.0% 1.7% 15.1% 12.9% 5.0% 4.4% 3.8% 11.1% 6.5% 11.1% 15.1% 12.9% 17.7% 8.0% 4.2% 0.9% 2.5% 2.5% 4.6% 4.5% 1.9% 18.3% 19.9% 1.9% 5.9% 18.2% 4.5% 6.8% 5.9% 1.4% 19.1% 6.1% 6.1
Slide 16: Inorganic Highlights
BURGAN BANK >] ol sp =a Inorganic Highlights Burgan Bank Group: 16 Kuwait - Jordan - Turkey - Algeria - Iraq - Tunisia - Lebanon
Slide 17: BBT: Compelling Business Proposition…
BBT: Compelling Business Proposition… Nationwide Network of 61 branches Istanbul Kocaeli Presence in 21 leading industrial and 2 Sakarya Samsun business cities, accounting for ~90% of the 1 7 2 1 1 1 Zonguldak Turkish economy Tekirdag Bursa 3 1 Ankara 6 44% of branches located in Istanbul, the c
Slide 18: …resulting in strengthening Business Position…
…resulting in strengthening Business Position… Opportunity to be part of the Significant trade synergies growing Turkish banking sector between Turkey and existing Access to Burgan Bank operations (Kuwait, Market Acquisition of full fledged Trade Jordan, Lebanon, Algeria, Tunisia commercial ba
Slide 19: Capital Adequacy
F) sy = ’7e@ BURGAN BANK Capital Adequacy Burgan Bank Group: 19 Kuwait - Jordan - Turkey - Algeria - Iraq - Tunisia - Lebanon
Slide 20: Capital Adequacy Trend
Capital Adequacy Trend CAR (FY08 – FY 12) 24% Acquisition ET and Issuance of 21.0% KD 100mn Sub debt 2,250 22% 20% 19.6% 18.5% 2,000 16.9% 18% 16.6% 1,750 16% 13.8% 1,500 Eligible Capital (KD Mn) 14% 1,250 12% 10% 742 1,000 8% 558 585 750 6% 309 379 441 262 146 145 144 143 144 146 150 152 152 500 4%
Slide 21: Performance vs. Peers
F) sy = ’7e@ BURGAN BANK fF Performance vs. Peers Burgan Bank Group: 21 Kuwait - Jordan - Turkey - Algeria - Iraq - Tunisia - Lebanon
Slide 22: Local Peers (FY 12 vs. FY 11)
….. Local Peers (FY 12 Vs. FY 11) Net Loans Growth FY 12 vs. FY 11 Deposits Growth FY 12 vs. FY 11 Liquidity Ratio* 104% 87% 50.3% 39.8% 39.3% 31.5% 14.1% 27.3% 28.0% 22.8% 18.0% 24.3% 23.0% 20.7% 21.3% 27.5% 25.7% 14.4% 6.2% (3.8%) (0.3%) (2.0%) (12.5%) (2.5%) (3.0%) NBK ABK GBK CBK Burgan NBK ABK
Slide 23: Regional Peers (FY 12 vs. FY 11)
….. Regional Peers (FY 12 Vs. FY 11) Net Loans Growth FY 12 vs. FY 11 Deposits Growth FY 12 vs. FY 11 Liquidity Ratio* 33.1% 30.2% 31.5% 50.3% 39.8% 39.3% 23.0% 34.9% 21.6% 22.8% 14.1% 28.9% 18.0% 16.5% 15.5% 13.1% 20.7% 16.5% 27.5% 21.3% 11.3% 25.7% 8.9% 14.4% 8.2% 9.3% 7.4% 5.1% 3.1% 5.1% 8.1% 6.2
Slide 24: Conclusion
>] ol sp Sais BURGAN BANK Conclusion Burgan Bank Group: 24 Kuwait - Jordan - Turkey - Algeria - Iraq - Tunisia - Lebanon
Slide 25: All leading indicators in place to sustain a solid operating performance
FY 12: Key Highlights in core market despite stagnant Resilient economy. with Subsidiaries being profitable & on Business growth mode. Model provides further diversified revenue stream through operations in a non-oil economy. Enhance Risk showing considerable Position improvement. Solid Capital of 1
Slide 26: Thank You
DQ BURGAN BANK Thank You 26 Burgan Bank Group: Kuwait - Jordan - Turkey - Algeria - Iraq - Tunisia - Lebanon
Slide 27: Appendix
>] ol sp Sais BURGAN BANK Appendix Burgan Bank Group: 27 Kuwait - Jordan - Turkey - Algeria - Iraq - Tunisia - Lebanon
Slide 28: Share Price Progress – Last Twelve Months
Share Price Progress – Last Twelve Months Share Price Performance vs. Peers 1400 1300 1200 1100 1000 900 800 700 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 NBK CBoK ABK GBK BB Source: Bloomberg. 28