Burgan Bank Group announces 2017 first nine months earnings

Bank announces earnings of first nine months in 2017 Driven by prudent, selective growth

KUWAIT: Burgan Bank Group announced yesterday its first nine months earnings of financial year 2017. The bank continues to pursue selective and prudent growth approach, clubbed with focus on efficiencies and continuous yields improvements. For the 2017 first nine months and compared to the same period last year, reported net income grew by 11 percent reaching KD53.9 million ($177.5 million) from KD48.6 million. Underlying net income (excluding precautionary reserves & after AT1 cost) grew by 5 percent reaching KD58.7 million ($193.3 million). Earnings per share grew by 14 percent to 20.1 fils from 17.7 fils reported last year.

During the same period, loans and advances grew by 6 percent year on year to reach KD4.5 billion ($14.9 billion) and customers deposits grew by 3 percent to reach KD4.0 billion ($13.2 billion). Non-performing assets (NPA) Ratio net of collateral stands at 1.1 percent while Coverage ratio net of collateral stands at 400 percent. Capital adequacy ratio stands at 16.4 percent as of September 30, 2017.

Majed Essa Al-Ajeel, Chairman of Burgan Bank Group said: “The bank continues to deliver a solid year-to-date performance focusing on returns, prudence and efficiencies. Return on equity (ROE) stands at 11.2 percent while Return on tangible equity (ROTE) stands at 12 percent.”

“International Operations are now contributing 44 percent of the Group’s operating income which grew by 6 percent year on year to reach KD179.3 million ($590.8 million), providing further evidence that Burgan Bank Group is reaping the seed of its diversification strategy into faster growing economies,” added AlAjeel.

“The strength of our operating capabilities is yielding strong performance that was reflected during the first nine months of the year. Also, during the third quarter (Q3), Burgan Bank Group recorded an underlying net income (excluding precautionary reserves & after AT1 cost) of KD17.3 million ($57.4 million). The net income as reported for Q3 is KD15 million ($49.8 million) after the booking of KD5 million in precautionary reserves, “commented AlAjeel.

Majed Essa Al-Ajeel also said: “Our leading financial indicators continue to point to the right direction both in Kuwait and international operations. I remain confident and optimistic of the group’s strong performance going forward. “

“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 175 branches across Kuwait, Turkey, Algeria, Iraq, Tunis, Lebanon and representative office in DubaiUnited Arab Emirates.