Burgan Bank Group Announces First Quarter 2018 Earnings

Press release

Published May 8th, 2018 - 04:26 GMT

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

Burgan Bank Group announced today its first quarter earnings for the financial year 2018. The set of results for the period ending in 31st March 2018 demonstrated a solid operating capabilities and efficiencies. Reported net income for 2018 first quarter grew year-on-year by 14% reaching KD20.4 million (USD68 million). Earnings per share grew year-on-year by 20% reaching 6.6 fils.

During the first quarter of 2018 and compared with the same period of 2017, Operating income grew by 8% to reach KD60.5 million (USD201.7 million). Operating profit before provisions grew by 12% reaching KD32.5 million (USD108 million). Asset quality measured by the Non-performing loans (NPL) to gross loans ratio, was significantly enhanced when compared to the same period of 2017, with NPL to gross loans ratio declined to 2.7% and NPL ratio net of collateral declining to 0.7%.

Mr. Majed Essa Al Ajeel, Chairman of Burgan Bank Group said: “Burgan Bank Group continues to deliver good performance enabled by the solid operating capabilities, diversification benefits, and the optimization of capital to strike the right risk/return balance.”

“Once again, the focus on high quality earnings enabled by our solid operating capabilities and efficiencies at a group level yielded a good a top line growth of 8%. While credit growth in the market was modest in the first quarter of 2018, our net interest income grew by almost 20% compared to the first quarter of 2017.”

“International operations contribute 47% of Burgan Bank’s revenues, enabling the bank to distribute risks, to diversify revenues streams, and to enjoy a solid presence in faster growth markets. All our subsidiaries are growing and profitable.”

“As for capital, our executive management team has executed impeccably a capital optimization plan for the last three years that have averted a dilutive capital hike, and enabled us to be consistently positioned in the top quartile among peers in Kuwait, and delivering decent double-digit returns to shareholders. Our capital is managed well, and for the period ended March 31^st 2018, our capital adequacy ratio stood at 16.6%.”

"On behalf of the board, I take this opportunity to thank our customers and shareholders for their confidence in our capabilities and our regulators; the Central Bank of Kuwait, for their support. 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 180 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.