Investor Presentation Q3 2021

BURGAN BANK GROUP

INVESTOR PRESENTATION

9 MONTHS 2021 FINANCIAL RESULTS

8TH NOVEMBER 2021

TABLE OF CONTENTS

Contents

Performance Highlights

Key P&L Metrics

Asset Quality

Key Balance Sheet Metrics

Capital & Liquidity

Planned Rights Issue

9M'21 Performance: Kuwait & International Operations

Page

3

4 - 5

6

7 - 8

9

10

11

Summary

12

2

PERFORMANCE HIGHLIGHTS

Solid Revenue

Levels

Stable Margins(1)

Reduced

Credit Costs(2)

Healthy Bottomline(3)

Q3'21

KD 55mn

(-)KD 2mn y-o-y(4)

2.1%

(-)10bpsy-o-y(4)

KD 9mn

(-)61.8%y-o-y(4)

KD 16mn

+65.3% y-o-y(4)

9M'21

KD 167mn

+KD 2mn y-o-y(5)

2.1%

(-)20bpsy-o-y(5)

KD 48mn

(-)11.6%y-o-y(5)

KD 40mn

+23.6% y-o-y(5)

Notes: (1) Refers to Net Interest Margins; annualized; (2) Refer to Loan Loss Provisions; (3) Refers to Net Income attributed to equity

holders of bank before perpetual cost; (4) Compared to Q3'20; (5) Compared to 9M'20.

3

SOLID REVENUE LEVELS WITH STABLE MARGINS

Revenue | KD mn														Net Interest Margins* | %
165				167										2.3%			2.2%
																					2.1%	2.1%
81				71
																					1.6%	1.5%	1.6%	1.6%
														57	55
89				98			27	23
														33	35
		9M'20	9M'21	Q3'20		Q3'21				9M'20		9M'21			Q3'20			Q3'21
					Kuwait			International			Consol. Adj & Others						NIM - Kuwait				NIM - Group
Operating Profit | KD mn									Cost to Income Ratio** | %
																														46.2%
96				96										41.9%	42.1%	39.0%
45				38																			36.7%
															34.6%
																					33.1%	33.1%
														35	29
58				66			16	12
														22	22
		9M'20	9M'21	Q3'20		Q3'21				9M'20		9M'21			Q3'20			Q3'21
				Kuwait			International			Consol. Adj & Others						CIR - Kuwait				CIR - Group

* NIMs have been annualized; ** Cost to Income ratio has been computed as Operating Expenses / Revenues.

4

STRONG REBOUND IN BOTTOM-LINE

Loan Loss Provisions | KD mn

Cost of Credit(1) | %

5448

22

9

9M'20

9M'21

Q3'20

Q3'21

Net Income(2) & Returns(3) | KD mn

		1.9%
1.6%	1.4%
			0.7%
0.9%	0.9%	0.9%	0.7%
9M'20	9M'21	Q3'20	Q3'21
	CoC - Kuwait		CoC - Group

Earnings Per Share (EPS)(4) | Fils

6.6%

8.4%

4.6%	4.1%

13

33

40

1016

10

4

6

9M'20	9M'21	Q3'20	Q3'21	9M'20	9M'21	Q3'20	Q3'21
		Net Income		RoE
Notes: (1) Cost of Credit based on Loan Loss Provisions over Gross Loans; annualized; (2) Net Income attributed to equity holders of bank
before perpetual cost; (3) ROE is based on Net Income after perpetual cost and calculated on opening equity; RoE% annualized; (4) EPS as
reported in financials.							5