Burgan Bank Group reports net income of KD 17.2 million for Q3
True performance continues to reflect business model resilience
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