Burgan Bank Group announces a record high Second Quarter performance

Burgan Bank Group announced today its second quarter & first half results for the financial year 2013. Burgan Bank Group achieved a record high performance during its second quarter of the year, the highest quarterly performance in three years. Net profits before precautionary provisions reach KD 23.3 million in the second quarter. Operating income soar to KD 71 million registering a growth of 48% compared to the same period last year. Operating Profits before provisions surge to reach KD 41.4 million reflecting a growth of 41% compared to the same period last year. The record high quarterly performance enabled the group to book KD 11.5 million in extra precautionary reserves to further support its growth plans and to strengthen the continuous improvements of its Asset quality. The Group’s first half of 2013 net profit accordingly is registered at KD 27.9 million. 

During the second quarter of 2013, Burgan Bank Group achieved an annualized growth of 5% in loans and advances as well as a 13% increase in customers’ deposits. Burgan Bank Group’s international operations continue to register a year – on – year profitability and increased contribution to Group’s revenue to reach 55% reflecting the soundness of the diversification strategy to high growth markets. 

Mr. Majed Essa Al Ajeel, Chairman of Burgan Bank Group said: "Once again, we are extremely proud of this record high & consistent quarterly performance. This achievement is a testament to the prudent approach Burgan Bank Group has been adopting, which aims at achieving the best possible results along with higher returns despite the hazy economic scene. The consistency in our strong financial & operating  performance, along with our prudency, has allowed us to take extra precautionary provisions, a step that is highly encouraged and welcomed by the Central Bank of Kuwait. Our leading financial indicators continue to point to right direction, and once again, we are optimistic about our performance going forward." 

" Our Balance sheet continues to be strong and healthy and allowing us with the support of the international operations to generate resilient streams of income. Our asset quality are on a continuous improving trend as we said before. The group´s non-performing assets ratio (net of collateral) to gross facilities reached 1.9% while coverage ratio (net of collateral) reached 246%. The group´s Capital Adequacy ratio stands at 17.7% while liquidity ratio stands at 34%." 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 217 branches across Kuwait, Turkey, Jordan, Algeria, Iraq, Tunis, Lebanon and Palestine.