Burgan Bank Reports 36% Growth In Q1 2021 Operating Profit Of KD 27mn

Burgan Bank K.P.S.C. (“Burgan” or “Bank”) announced its financial results for the first quarter ending on 31st March 2021.

Burgan reported Revenue of KD 48mn for Q1’21, driven by higher Non-Interest Income (up 34% vs Q4’20). Burgan continued to exhibit strong cost discipline leading to lower operating expenses of KD 21mn in Q1’21 (reduced by 27% vs Q4’20). These factors resulted in strong operating profit of KD 27mn (up 36% vs Q4’20). Provision Charge for Q1’21 was also lower by KD 2mn compared to Q4’20. Burgan reported Net Income of KD 5mn for the quarter.

Key Performance indicators as at 31st March 2021 are as follows:

• NPL Coverage Ratio: 169%
• CAR: 17%
• Liquidity Coverage Ratio: 152%
• Net Stable Funding Ratio: 105%

During the quarter, Burgan continued to progress on its Digitalization Journey and launched its New Burgan Prepaid card portal and app. Burgan also successfully launched its first Interactive Teller Machine (ITM) machine at Marina Mall to give its customers continued access. 

Commenting on the results, Mr. Majed Essa Al Ajeel, Chairman of Burgan Bank Group said, “Global economy continues to face challenges due to the pandemic and the restrictions imposed. We expect Kuwait’s economy to recover its growth momentum over the next two quarters on the back of increasing vaccinations. Burgan continues to deliver resilient performance despite these challenges and the team is making strong progress to further strengthen the bank’s operating model by investing in digitalization efforts.”

Mr. Masoud M.J. Hayat, Vice Chairman and Group CEO, Burgan Bank Group, added, “Burgan is continuing to deliver results while maintaining strong liquidity and capital metrics despite the difficult operating environment. Burgan has continued to improve its operating efficiency through focused cost optimization efforts. We continue to make solid progress on digital enhancements and this quarter also was no exception. Burgan is also strengthening its Cybersecurity Framework given the increased usage of online channels”. 

The consolidated financials encompass the results of the Group’s operations in Kuwait, and its share of results from its subsidiaries, Burgan Bank Turkey, Gulf Bank Algeria, Bank of Baghdad and Tunis International Bank. Through this regional reach, Burgan Bank has one of the largest regional branch networks with 162 branches across Kuwait, Turkey, Algeria, Iraq, Tunis, Lebanon and a representative office in the United Arab Emirates.