Bur­gan Bank Group re­ports net in­come of KD 17.2 mil­lion for Q3

True per­for­mance con­tin­ues to re­flect busi­ness model re­silience

Kuwait Times - - INTERNATIONAL -

KUWAIT:

Bur­gan Bank Group an­nounced yes­ter­day its earn­ings for the 9 months and third quar­ter for the fi­nan­cial year 2016. Bur­gan Bank Group re­ported net in­come of KD 17.2 mil­lion for the third quar­ter hence KD48.6 mil­lion for the first 9 nine months of 2016. Earn­ings per share for the 9 months of the fi­nan­cial year 2016 stood at 18.6 fils.

Bur­gan Bank Group con­tin­ues with pru­dence to main­tain its solid true per­for­mance and se­lec­tive growth ap­proach amid the high market volatil­i­ties, geopo­lit­i­cal risks and chal­leng­ing oper­at­ing en­vi­ron­ment. Year-on-year, Loans and ad­vances to cus­tomers grew by 10 per­cent reach­ing KD4.3 bil­lion while cus­tomers de­posits re­mained flat at KD3.9 bil­lion due to ac­tions taken to di­ver­sify the bank’s long-term fund­ing pro­file dur­ing 2016. Also year-on-year, Non-per­form­ing As­sets ra­tio net of col­lat­eral drops to 1.2 per­cent with cov­er­age ra­tio net of col­lat­er­als reach­ing 385 per­cent. Basel 3 Cap­i­tal Ad­e­quacy Ra­tio stands at 15.8 per­cent at the end of Septem­ber 30, 2016. Ma­jed Essa Al-Ajeel, Chair­man of Bur­gan Bank Group said: “Bur­gan Bank Group con­tin­ues the de­fen­sive and pru­dent ap­proach amid the in­creas­ing volatil­i­ties. Yet again, our busi­ness model has proven to be re­silient and lead­ing in­di­ca­tors con­tinue to point north.” “De­spite the sale of Jor­dan Kuwait Bank in De­cem­ber 2015, Bur­gan Bank Group true per­for­mance re­mains solid. For ac­cu­rate anal­y­sis, the third quar­ter of 2016 re­ported net in­come of KD 17.2 mil­lion re­veals a true growth of 21 per­cent when nor­mal­ized by elim­i­nat­ing the non-repet­i­tive items such as FX gains and oth­ers for a liketo-like com­par­i­son. There­fore, the first 9 months of 2016 mir­rors a true growth of 27 per­cent com­pared to the same pe­riod last year,” com­mented Al-Ajeel. “It is also worth not­ing that such solid true per­for­mance is main­tained while also book­ing KD5 mil­lion in pre­cau­tion­ary re­serves for the third quar­ter and a to­tal of KD15 mil­lion year to date.” “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 more than 180 branches across Kuwait, Turkey, Al­ge­ria, Iraq, Tu­nis, Le­banon and rep­re­sen­ta­tive of­fices in Dubai-United Arab Emi­rates.

Es­tab­lished in 1977, Bur­gan Bank is the youngest com­mer­cial 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.

The Bank has con­tin­u­ously im­proved its per­for­mance over the years through an ex­panded rev­enue struc­ture, di­ver­si­fied fund­ing sources, and a strong cap­i­tal base. The adop­tion of sta­teof-the-art ser­vices and tech­nol­ogy has po­si­tioned it as a trend­set­ter in the do­mes­tic market and within the MENA region. Bur­gan Bank’s brand has been cre­ated on a foun­da­tion of real val­ues - of trust, com­mit­ment, ex­cel­lence and pro­gres­sion, to re­mind us of the high stan­dards to which we as­pire. ‘Peo­ple come first’ is the foun­da­tion on which its prod­ucts and ser­vices are de­vel­oped. The bank was re-cer­ti­fied with the pres­ti­gious ISO 9001:2008, mak­ing it the first bank in the GCC, and the only bank in Kuwait to re­ceive such ac­cred­i­ta­tion for the third con­sec­u­tive year. The Bank also has to its credit the dis­tinc­tion of be­ing the only Bank in Kuwait to have won the JP Mor­gan Chase Qual­ity Recog­ni­tion Award for twelve con­sec­u­tive years.

Bur­gan Bank, a sub­sidiary of KIPCO (Kuwait Projects Com­pany), is a strongly po­si­tioned re­gional Bank in the MENA region.

Chair­man of Bur­gan Bank Group Ma­jed Essa Al-Ajeel

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