Burgan Bank · KSE:BURG
Burgan Bank — H1 2022 Earnings Presentation
14 slides from Burgan Bank's earnings presentation, Aug 3, 2022
Slide 1: Burgan Bank Group H1'22 Financial Results
BURGAN BANK GROUP INVESTOR PRESENTATION H1’22 FINANCIAL RESULTS 3RD AUGUST 2022
Slide 2: Table of Contents
TABLE OF CONTENTS Contents Page Burgan at a Glance 3 Key Highlights 4 Key P&L Metrics 5-6 Asset Quality 7 Key Balance Sheet & Liquidity Metrics 8-9 Capital Levels 10 Performance Summary – Kuwait & International Operations 11 Conclusion 12 2
Slide 3: Burgan at a Glance
BURGAN AT A GLANCE Geographic Market Cap(1) Total Assets(1) Employees(1) Branches(1) ATMs(1) Presence Kuwait, Turkey, Algeria, Tunisia KD 792mn KD 7.3bn 3,207(3) 125(3) 290(3) & Iraq(2) Ownership Structure(1) Credit Ratings Rating(4) Outlook(4) KIPCO 27.4% A Stable 35.3% UGHC Other KIPCO Related Ent
Slide 4: Key Highlights – H1'22 Kuwait-Led Asset Growth
KEY HIGHLIGHTS – H1’22 KEY PERFORMANCE INDICATORS(1) 1 BB Group BB Kuwait KUWAIT-LED KD 7.3BN KD 5.7BN ASSET GROWTH +5% y-o-y +7% y-o-y 2 Revenue Net Income(2) RESILIENT KD 110MN KD 27MN EARNINGS (-)1% y-o-y +13% y-o-y 3 Cost of Credit NPL Ratio IMPROVED ASSET 0.5% 2.6% QUALITY (-)126bps y-o-y (-)19
Slide 5: Revenue & Operating Expenses
REVENUE & OPERATING EXPENSES Revenue & Net Interest Margin(1) | KD mn, % Operating Exp. & Cost-to-Income Ratio(2) | KD mn, % 2.4% 2.1% 43.4% 44.4% 2.0% 40.1% 112 110 108 34 44 51 47 49 45 74 61 67 H1'20 H1'21 H1'22 H1'20 H1'21 H1'22 Net-Interest Income Non-Interest Income NIM Operating Expenses Cost
Slide 6: Operating Profit & Net Income
OPERATING PROFIT & NET INCOME Operating Profit | KD mn Net Income(1) | KD mn 67 61 61 27 24 23 H1'20 H1'21 H1'22 H1'20 H1'21 H1'22 (1) Net Income attributed to equity holders of bank before AT1 cost. 6
Slide 7: Asset Quality
ASSET QUALITY Provisions(1) | KD mn Cost of Credit (CoC)(2) | % 39 32 1.8% 1.4% 11 0.5% 1.0% 1.1% 0.5% H1'20 H1'21 H1'22 H1'20 H1'21 H1'22 BB Kuwait -CoC BB Group -CoC NPLs & Coverage(3) | KD mn, % NPL Ratio | % 398% 247% 273% 4.8% 4.5% 186% 193% 235% 237 214 2.6% 36 3.5% 83 119 134 - 43 2.0% 131 1.
Slide 8: Customer Loans & Sectoral Breakdown
CUSTOMER LOANS & SECTORAL BREAKDOWN Total Assets(1) | KD mn Asset Composition – H1’22 | % 7,109 6,946 7,307 5% 11% 300 326 280 9% 1,811 1,821 1,744 18% 5,584 5,348 5,745 57% (2) Loans Cash Investments Due from Banks & OFIs Others H1'20 H1'21 H1'22 Kuwait International(excl BoB) BoB Consol Adj Custom
Slide 9: Customer Deposits & Liquidity
CUSTOMER DEPOSITS & LIQUIDITY Customer Deposits | KD mn Deposits by Type – H1’22 | % 4,263 4,350 4,159 3% 220 1,190 1,131 1,063 34% 62% 2,980 3,160 3,028 H1'20 H1'21 H1'22 CASA Time Other BB Kuwait (1) International Ops (Excluding BoB) BoB (2) Consol Adj Cost of Funds(3) | % Regulatory Liquidity Met
Slide 10: Capital Levels
CAPITAL LEVELS Regulatory Capital | KD mn, % 2,500 17.2% 16.2% 16.5% 15.5% 2,000 12.5% 11.5% 10.5% 1,500 10.8% 11.1% 10.4% 9.0% 8.0% 1,078 1,005 1,022 5.5% 1,000 230 176 227 155 155 152 0.5% 500 673 643 693 - -4.5% H1'20 H1'21 H1'22 6,220 6,183 6,260 CET1 AT1 Tier II CET 1 Ratio CAR Ratio Min. Requi
Slide 11: KPIs Across Franchises – H1'22
KPIS ACROSS FRANCHISES – H1’22 CONTRIBUTION GROWTH(2) KPIS(3),(4) ASSETS REVENUES NET INCOME LOANS NIM ∆% CI RATIO ∆% COC ∆% NPL RATIO ∆% Kuwait(5) (70 (150 77% (-)2% +15% +3% 1.6% +10 40.8% +10 0.5% bps) 2.0% bps) bps pps ASSETS REVENUES NET INCOME LOANS NIM ∆% CI RATIO ∆% COC ∆% NPL RATIO ∆% Turke
Slide 12: Conclusion
CONCLUSION Solid financial performance amidst challenging operating environment particularly in subsidiary markets Looking ahead, we expect: Interest income growth momentum to continue Credit costs to further normalize Asset Quality to further improve 12
Slide 13: Thank You
Thank You =H ul Lo OL... 9 js Sms ‘79 BURGAN BANK
Slide 14: 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