Burgan Bank · KSE:BURG

Burgan Bank — FY2018 Earnings Presentation

23 slides from Burgan Bank's earnings presentation, 2019

  1. Slide 1: Burgan Bank Group Investor Presentation FY 2018 Financial Results

    BURGAN BANK GROUP INVESTOR PRESENTATION FY 2018 FINANCIAL RESULTS

  2. Slide 2: FY2018 Key Highlights

    FY2018 KEY HIGHLIGHTS … FY 2017 FY 2018 ∆% Revenue KD mn 239.4 265.3 +11% STRONG EARNINGS Net Income KD mn 65.2 82.6 +27% GROWTH EPS(1) Fils 24.2 31.0 +28% 2018 PERFORMANCE HIGH RoE(2) 8.3% 10.7% +230 BPS SHAREHOLDERS’ RETURNS Dividend per share Fils 7.0 12.0(3) +71% NIM(4) 2.6% 2.9% +30 BPS CONTINU

  3. Slide 3: Results Driven by Improving Margins and Continued Efficiency

    RESULTS DRIVEN BY IMPROVING MARGINS AND CONTINUED EFFICIENCY… Revenue (KD mn) & Margins (%) (1) Operating Profit (KD mn) & Efficiency (%) 2.9% 48.5% 2.6% +30bps Y-o-Y(2) 45.6% 2.4% 42.1% (350bps) Y-o-Y(2) +18% Y-o-Y 265 +11% Y-o-Y 235 239 81 69 79 154 121 130 171 184 156 FY 2016 FY 2017 FY 2018 FY 2

  4. Slide 4: Delivering Strong Bottomline Growth & Improved Returns

    …DELIVERING STRONG BOTTOMLINE GROWTH & IMPROVED RETURNS Net Income (KD mn) & Earnings Per Share (Fils) RoE (%) (1) & Dividend Per Share (Fils) 31 10.7% 27 +28% Y-o-Y +230bps Y-o-Y (2) 24 9.0% 8.3% +27% Y-o-Y +71% Y-o-Y 83 12 68 65 7 5 FY 2016 FY 2017 FY 2018 FY 2016 FY 2017 FY 2018 Net Income Earnin

  5. Slide 5: While Asset Quality Continues to be Stable

    ….WHILE ASSET QUALITY CONTINUES TO BE STABLE NPL Ratios (%) FY 2016 NPLs (KD mn) &FYCoverage 2017 FY(1) (%) 2018 339% 285% +54% Y-o-Y(2) 4.1% 170% +13% Y-o-Y(2) 3.1% 155% 168% 120% 2.7% 2.7% 1.8% 1.6% (4%) Y-o-Y (20bps) Y-o-Y(2) 196 133 128 FY 2016 FY 2017 FY 2018 FY 2016 FY 2017 FY 2018 Group NPL R

  6. Slide 6: With Well-Diversified Loan Portfolio

    …WITH WELL-DIVERSIFIED LOAN PORTFOLIO Total Assets (KD bn) & Customer Loans (KD bn) Loans by Sector (%) FY 2017 (%) FY 2018 (%) 7.3 7.4 7.3 4.2 4.4 4.3 19% 33% 33% 17% 2% 37% 2% 7% 8% 30% 27% 12% 12% 12% 22% 11% 67% 63% 67% 19% FY 2016 FY 2017 FY 2018 Personal Real estate Manufacturing Commerce Kuwa

  7. Slide 7: And High Liquidity Levels

    …AND HIGH LIQUIDITY LEVELS Customer Deposits (KD bn) & LDR (%) Liquidity Metrics (%) 89% 80% 84% 132% 129% 122% 117% 4.2 3.7 3.8 29% 28% 29% FY 2016 FY 2017 FY 2018 FY 2016 FY 2017 FY 2018 (2) Customer Deposits Loan to Deposit Ratio (LDR) (1) Liquid Assets Ratio Liquidity Coverage Ratio Net Stable F

  8. Slide 8: With Enhanced Core Capital Levels

    …. WITH ENHANCED CORE CAPITAL LEVELS Regulatory Capital (KD mn) 2,500 20.0% +270bps 17.4% 16.7% 16.2% +220bps +340bps 18.0% 2,000 16.0% 14.0% 14.0% 11.2% +70bps +40bps 11.9% +140bps 1,500 10.9% 12.0% 10.5% 10.0% 1,001 1,000 907 924 8.0% 170 151 154 146 145 6.0% 146 500 4.0% 610 624 686 2.0% - 0.0% 2

  9. Slide 9: And Improving KPIs for Key Businesses of the Group

    …AND IMPROVING KPIS FOR KEY BUSINESSES OF THE GROUP CONTRIBUTION GROWTH YOY(1) KPI’S FY 2018(2) LOANS REVENUES NET INCOME LOANS NIM ∆% CI RATIO ∆% CAR(3) ∆% Kuwait 67% 59% 76% +2% 2.3% +20 bps 32.3% +130 bps 17.4% +120 bps CONTRIBUTION GROWTH YOY(1) KPI’S FY 2018(2) LOANS REVENUES NET INCOME LOANS N

  10. Slide 10: In Conclusion

    IN CONCLUSION  FY’18 results underscore the consistent progress made by Burgan Bank  In FY’18, Burgan Bank generated strong earnings for its shareholders:  Return on Equity: 10.7% (+230 bps)  Recommended Dividend Per share: 12 fils (+71%)  Burgan Bank shall continue to maintain its focus on: 

  11. Slide 11: Appendix

    11 (a i APPENDIX 2 ol Sp Say BURGAN BANK

  12. Slide 12: FY 2018 Financial Results in USD Currency

    FY 2018 FINANCIAL RESULTS IN USD CURRENCY

  13. Slide 13: 2018 Key Highlights (USD)

    2018 KEY HIGHLIGHTS … FY 2017 FY 2018 ∆% Revenue USD mn 789.8 878.1 +11% STRONG EARNING Net Income USD mn 214.9 273.5 +27% GROWTH EPS(1) USD 0.08 0.10 +27% 2018 PERFORMANCE HIGH RoE(2) 8.3%(3) 10.7%(3) +230 BPS SHAREHOLDERS’ RETURNS Dividend per share USD 0.023 0.040(4) +71% NIM(5) 2.6% 2.9% +30 BPS

  14. Slide 14: Results Driven by Improving Margins and Continued Efficiency

    RESULTS DRIVEN BY IMPROVING MARGINS AND CONTINUED EFFICIENCY… Revenue (USD mn) & Margins (%) (1) Operating Profit (USD mn) & Efficiency (%) 2.9% 48.5% 2.6% +30bps Y-o-Y(2) 45.6% 2.4% 42.1% (350bps) Y-o-Y(2) 878 +18% Y-o-Y +11% Y-o-Y 775 790 269 226 261 508 399 430 564 609 514 FY 2016 FY 2017 FY 2018

  15. Slide 15: Delivering Strong Bottomline Growth & Improved Returns

    …DELIVERING STRONG BOTTOMLINE GROWTH & IMPROVED RETURNS Net Income (USD mn) & Earnings Per Share (USD) RoE (%) (1) & Dividend Per Share (USD) 0.10 10.7% +27% Y-o-Y +230bps Y-o-Y (2) 0.09 0.08 9.0% 8.3% +27% Y-o-Y +71% Y-o-Y 0.040 274 225 215 0.023 0.016 FY 2016 FY 2017 FY 2018 FY 2016 FY 2017 FY 201

  16. Slide 16: While Asset Quality Continues to be Stable

    ….WHILE ASSET QUALITY CONTINUES TO BE STABLE FY 2016 (1) NPL Ratios (%) NPLs (USD mn)FY & 2017 FY 2018 Coverage (%) 339% 285% +54% Y-o-Y(2) 4.1% 170% +13% Y-o-Y(2) 3.1% 155% 168% 120% 2.7% 2.7% 1.8% 1.6% (4%) Y-o-Y (20bps) Y-o-Y(2) 642 442 423 FY 2016 FY 2017 FY 2018 FY 2016 FY 2017 FY 2018 Group NP

  17. Slide 17: With Well-Diversified Loan Portfolio

    …WITH WELL-DIVERSIFIED LOAN PORTFOLIO Total Assets (USD bn) & Customer Loans (USD bn) Loans by Sector (%) FY 2017 (%) FY 2018 (%) 23.8 24.6 24.1 13.8 14.6 14.1 19% 33% 33% 17% 2% 37% 2% 7% 8% 30% 27% 12% 12% 12% 22% 11% 67% 63% 67% 19% FY 2016 FY 2017 FY 2018 Personal Real estate Manufacturing Comme

  18. Slide 18: And High Liquidity Levels

    …AND HIGH LIQUIDITY LEVELS Customer Deposits (USD bn) & LDR (%) Liquidity Metrics (%) 89% 80% 84% 132% 129% 122% 117% 13.8 12.2 12.4 29% 28% 29% FY 2016 FY 2017 FY 2018 FY 2016 FY 2017 FY 2018 (2) Customer Deposits Loan to Deposit Ratio (LDR) (1) Liquid Assets Ratio Liquidity Coverage Ratio Net Stab

  19. Slide 19: With Enhanced Core Capital Levels

    …. WITH ENHANCED CORE CAPITAL LEVELS Regulatory Capital (USD mn) 8,000 20.0% +270bps 17.4% 7,000 16.7% 16.2% +220bps +340bps 18.0% 16.0% 6,000 14.0% 14.0% 11.2% +70bps +40bps 11.9% +140bps 10.9% 5,000 12.0% 4,000 10.5% 10.0% 3,302 2,962 3,061 559 8.0% 511 3,000 493 480 477 482 6.0% 2,000 4.0% 1,000

  20. Slide 20: And Improving KPIs for Key Businesses of the Group

    …AND IMPROVING KPIS FOR KEY BUSINESSES OF THE GROUP CONTRIBUTION GROWTH YOY(1) KPI’S FY 2018(2) LOANS REVENUES NET INCOME LOANS NIM ∆% CI RATIO ∆% CAR(3) ∆% Kuwait 67% 59% 76% +1% 2.3% +20 bps 32.3% +130 bps 17.4% +120 bps CONTRIBUTION GROWTH YOY(1) KPI’S FY 2018(2) LOANS REVENUES NET INCOME LOANS N

  21. Slide 21: In Conclusion

    IN CONCLUSION  FY’18 results underscore the consistent progress made by Burgan Bank  In FY’18, Burgan Bank generated strong earnings for its shareholders:  Return on Equity: 10.7% (+230 bps)  Recommended Dividend Per share: USD 0.040 (+71%)  Burgan Bank shall continue to maintain its focus on:

  22. Slide 22: Thank You

    22 (a i THANK YOU 2 ol Sp Say BURGAN BANK

  23. Slide 23: 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

Burgan Bank — FY2018 Earnings Presentation on 6ix