BURGAN BANK GROUP
INVESTOR PRESENTATION
9M'23 FINANCIAL RESULTS
1ST NOVEMBER 2023
TABLE OF CONTENTS
Contents
Overview and Operating Strategy
Key Performance Highlights
Financial Review - Key P&L Metrics
Financial Review - Asset Quality
Financial Review - Balance Sheet Metrics & Liquidity
Financial Review - Capital Levels
KPIs Across Franchises
Q3'23 Earnings Update
Summary
Page
4 - 6
8
10
11
12 - 13
14
15
17
19
Overview & Operating Strategy
BURGAN AT A GLANCE
About Us | Credit Ratings |
- Established in 1977 as Joint Stock Company by the Government of Kuwait and privatized in 1997.
- Listed on Boursa Kuwait in 1984 and grew to be one of the leading conventional banks in Kuwait (in terms of total assets)(1), with a market capitalization of KD 628 million(2).
- Has one of the largest regional networks of 128 branches and 295 ATMs (1) .
Rating(1)
A
(Outlook: Stable)
Baa1
(Outlook: Stable)
BBB+
(Outlook: Stable)
A+
(Outlook: Stable)
Ownership Structure(1),(3) | Our Presence |
KIPCO
28.3%
33.5% | UGHC |
7.4%
Other KIPCO Related Entities
PIFSS
15.8% 15.0%
Others
Notes: (1) As of 30th September 2023; (2) Based on share price as at 27th September 2023 (Source: Kuwait Boursa); (3) KIPCO: Kuwait Projects Company Holding K.S.C.P., UGHC: United Gulf Holding Company
B.S.C. and PIFSS: Public Institution for Social Security
4
KUWAIT FOCUSED BANK WITH REGIONAL DIVERSIFICATION
Franchises
Burgan Bank
Kuwait
Burgan Bank
Turkey
Gulf Bank
Algeria
Tunis
International Bank
Ownership(1)
N/A
99.7%
86.0%
86.7%
Domestic Market
Position(1)
One of the top three conventional Banks(2)
Niche Player
Growing Private
sector Bank
Offshore Bank
Business Model
Corporate banking is the key
business; Retail Banking
growth is a focus area
Corporate and Commercial
clients are key segments; One
of the best digital banking platform; individual clients focus increased
Focused on Trade Finance & Corporate Banking segment; Growing retail franchise
Focused on Trade Finance and Financial Institutions business
-
of Group
Assets(1),(3)
77%
11%
10%
2%
Notes: (1) As at 30th September 2023; refer to effective shareholding; (2) Based on total assets; (3) Total Assets excluding consolidation adjustments
5
BURGAN'S LONG-TERMSTRATEGIC 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 | Pursue Cautious Growth in | Customer Experience | |||||||||||
banking | subsidiaries | Collaborative Group-wide | |||||||||||
Focus on embedding ESG | Increase Kuwait's share of | Digital Strategy | |||||||||||
across businesses | Group's assets | ||||||||||||
Enablers | Culture | Enhancing Systems' | Strengthening Risks | ||||||||||
Transformation | Capabilities | and Controls | |||||||||||
6
Key Performance Highlights
KEY PERFORMANCE HIGHLIGHTS
Robust Earnings
- 9M'23 Revenue grew by 17% y-o-y supported by improved fee income, FX income & recoveries
- 9M'23 Operating Profit grew by 21% y-o-y
Stable Asset Quality
- NPL Ratio continues to be ≤ 2% levels.
- Provisions Coverage Ratio healthy at 200%+
- 9M'23 CoC lower at 20bps^
Resilient Franchises
- Strong Growth in Kuwait
- Loans: +5% y-o-y
- Deposits: +28% y-o-y
- Continued Outperformance by Turkey
- 9M'23 Revenue: 65% y-o-y
- 9M'23 Net Income: +153% y-o-y
- Represents daily average ratios for the quarters.; ^Adjusted for provisions provided against one-off recoveries
Capital & Liquidity
- Optimal Capital ratios:
- CET1: 11.3%
- CAR: 17.6%
(1)
Strong Liquidity ratios:
NSFR: 120%
LCR: 174%
8
Financial Review - 9M'23
P&L METRICS
Revenue (4) | KD mn
195
167166
1416
195
152150
9M'21 | 9M'22 | 9M'23 | ||
BB Group (excl BoB) | BoB | |||
Net Interest Margin (NIM)(3) | %
Operating Profit (4) | KD mn
109
96 | 90 | ||
12 | |||
9 | |||
87 | 109 | ||
79 | |||
9M'21 | 9M'22 | 9M'23 | ||
BB Group (excl BoB) | BoB | |||
Cost to Income Ratio (CIR) | %
Net Income(1) | KD mn | |||||||||
56 | 54 | ||||||||
41 | 30 | ||||||||
40 | 17 | 2 | 24 | ||||||
2 | |||||||||
39 | 39 | 30 | |||||||
9M'21 | 9M'22 | 9M'23 | |||||||
BB Group (excl BoB) | BoB | IAS 29 Impact | |||||||
Net income adjusted for IAS29 and BoB
Cost of Credit (CoC)(2),(3),(4) | %
2.1% | 2.3% |
1.9% | |
45.5%
42.1%
43.8%
1.4%
1.5% | 1.7% | 1.6% | |
9M'21 | 9M'22 | 9M'23 | |
BB Group | BB Kuwait | ||
44.0%
41.0%
33.1%
9M'219M'229M'23
BB Group | BB Kuwait |
0.9% 0.4%0.5%
0.4% | 0.2% | |
9M'21 | 9M'22 | 9M'23 |
BB Group | BB Kuwait |
Notes: (1) Net Income attributable to equity holders of bank; (2) Cost of Credit based on Loan Loss Provisions over Gross Loans; (3) NIM & CoC have been annualized; (4) 9m'23 CoC Adjusted for provisions provided against one-off recoveries ; 9m'23 Revenue & Operating Profit include the said one-offs recoveries. Bank of Baghdad (BoB) was classified as Held for sale during 9M'21 & 9M'22 and it was sold in Feb'23.
10
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Burgan Bank SAKP published this content on 31 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 October 2023 12:27:11 UTC.