Burgan Bank Announces Strong Second Quarter Delivering a Solid First Half

Press release

Published July 19th, 2018 - 05:18 GMT

Mr. Majed Essa Al Ajeel, Chairman of Burgan Bank Group

Burgan Bank Group announced today its first half earnings for the financial year 2018 reporting KD50.5 million (USD168 million) with a growth of 30%. During the second quarter the Bank registered KD30.1 million (USD100 million) growing 43% in comparison to the same period last year. The set of results for the period ending in 30^th June 2018 demonstrated solid operating capabilities and efficiencies. Earnings per share grew for the first half by 34% year-on-year reaching 20 Fils, and achieving return on tangible equity (ROTE) of 14.7% for the same period.

During the first half of 2018 and compared with the same period of 2017, operating income grew by 13% to reach KD139.2million (USD462 million). Asset quality measured by the Non-performing loans (NPL) to gross loans ratio, was significantly enhanced when compared to the same period in 2017, with NPL to gross loans ratio declining from 4.3% to 2.8% while NPL coverage ratio reached 168.5%.

Mr. Majed Essa Al Ajeel, Chairman of Burgan Bank Group said: “We are very pleased with the overall performance of Burgan Bank Group. Our strategy continues to deliver, our business model is solid, and our execution and deliverables are well ahead of expectations.”

“We trust our operating capabilities. Our domestic and international Banking arms are delivering and we are reaping the diversification benefits with our international operations contributing 42% thus diversifying risk, enhancing our revenue stream composition, and grasping the opportunity to benefit from operating higher growth markets. Our business pipeline remains strong with a focus on prudence and selective growth.” added Al-Ajeel.

"On behalf of the board, I take this opportunity to thank our customers and shareholders for their confidence in our capabilities. I would also like to thank our executive management team for their leadership and the excellent execution of the corporate strategy, and to our staff for their continued support and commitment." concluded Al Ajeel.

The consolidated financials encompass the results of the Group’s operations in Kuwait, and its share from its regional subsidiaries, namely Burgan Bank – Turkey, Gulf Bank Algeria, Bank of Baghdad, Tunis International Bank. Burgan Bank Group has one of the largest regional branch networks with 169 branches across Kuwait, Turkey, Algeria, Iraq, Tunis, Lebanon and representative office in Dubai-United Arab Emirates.

Background Information

Burgan Bank

Established in 1977, Burgan Bank is the youngest conventional Bank and second largest by assets in Kuwait, with a significant focus on the corporate and financial institutions sectors, as well as having a growing retail, and private bank customer base. Burgan Bank has majority owned subsidiaries in the MENAT region supported by one of the largest regional branch networks. which include Gulf Bank Algeria - AGB (Algeria), Bank of Baghdad - BOB (Iraq & Lebanon),Tunis International Bank – TIB (Tunisia), and fully owned Burgan Bank – Turkey, (collectively known as the “Burgan Bank Group”). Furthermore, Burgan Bank has a present in the UAE through its corporate office (“Burgan Financial Services Limited) which had helped the bank to participate in multiple financing opportunities in the UAE.