Q1 -2013 Underlying performance remains solid: KD20.4 million Net Income Excluding Provisions reflecting 16% Year-on-year growth

Burgan Bank Group reported today KD 15.6 million net profits for the first quarter of 2013 after taking KD 5 million in precautionary provisions. Operating Profit before provisions grew by 12% to reach KD 29.8 million compared to KD 26.6 million reported for the first quarter last year.   

Underlying performance for the first quarter 2013 reflects the solid financial and operating performance of the group. Net income excluding the KD 5 million in provisions charges equates to KD 20.4 million reflecting 16% Year-on-year growth.

Burgan Bank Group’s international operations continue to operate on a growth mode and increased contribution to Group’s revenue to reach 58% which is in line with the diversifications policy in faster economies. Burgan Bank Group’s balance sheet remains strong, Capital Adequacy ratio stands at 18.57% while liquidity ratio stands at 32.5%. Asset quality continues to improve in which non-performing loans (net of collateral) ratio to gross loans stands at 2.1%.

Mr. Majed Essa Al-Ajeel, Chairman of Burgan Bank Group, said: “we are very proud with the underlying performance that reflects the soundness of our strategy execution. Burgan Bank Group is growing faster than the economy and still outperforming the market almost on all metrics. The decision to take extra precautionary provisions reflects our adopted approach to cope with current adverse market conditions, and by implementing prudent measures encouraged by the Central Bank of Kuwait.”

“All leading indicators continue on the right trajectory to sustain a solid operating performance while maintaining our prudent approach toward striking the right “risk & reward” balance,” added Mr. 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 Jordan Kuwait Bank, Gulf Bank Algeria, Burgan Bank – Turkey, Bank of Baghdad, Tunis International Bank, in which Burgan Bank owns a majority stake in. Burgan Bank Group has one of the largest regional branch networks with more than 216 branches across Kuwait, Turkey, Jordan, Algeria, Iraq, Tunis, Lebanon and Palestine.