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
  2. 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

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.