Burgan Bank reports net income of KD 10 million in first quarter of 2024
Bank makes conscious and consistent investment in human capital with focus on Kuwaitization
KUWAIT: Burgan Bank (“Burgan” or “the Bank”) announced its financial results for the first quarter ending March 31, 2024 (Q1 2024). The Bank reported KD 54 million in revenues for Q1 2024, marking a growth of 7 percent year-on-year (y-o-y). The increase in revenues was primarily driven by higher non-interest income of KD 20 million, up 27 percent y-o-y and stable net interest income of KD 34 million. Due to higher revenues and a stable cost base, the Bank’s operating profit for the quarter reached KD 24 million, up 14 percent y-o-y. Accordingly, Burgan’s net income in Q1 2024 increased by 34 percent y-o-y to KD 10 million.
In Q1 2024, the Bank demonstrated strong asset growth of 8 percent y-o-y, reaching KD 7.8 billion by the end of the period. The Group’s loan book was also robust at KD 4.3 billion; primarily driven by its Kuwait book, which increased by 6 percent y-o-y. Burgan’s deposit base also expanded by 23 percent y-o-y and stood at KD 5.1 billion by the end of Q1 2024.
Moreover, the Bank’s financial results reflect continued healthy capital levels. For Q1 2024, Burgan reported Common Equity Tier 1 ratio (CET1) of 13.2 percent, Tier I capital ratio of 15.7 percent and Capital Adequacy Ratio (CAR) of 19.5 percent, indicating sufficient capital buffers to support planned growth in the future.
Commenting on Burgan’s financial results, the Bank’s Chairman Sheikh Abdullah Nasser Al-Sabah, said: “This year has begun on solid footing, as we continue to strengthen our financial base and shore up our operational infrastructure to execute our growth plans. We continue to invest in our operations, our infrastructure and our human capital, strengthening the foundations we need for the aspired growth and development of the Bank. We have also been able to effectively balance our growth-focused plans with a prudent risk management approach, to deliver tangible value to our shareholders.”
The Chairman further added: “At the heart of our strategy is our customers, and our aim is to continue to deliver an elevated, seamless and personalized banking experience that constantly delivers on the fast-changing and ever-evolving needs of our customers.”
An elevated, bespoke banking experience
One of the key developments during the first quarter of 2024 was the unveiling of the Bank’s new brand and identity for its Private Banking and Wealth Management facilities, introducing a new suite of Private Banking and Wealth Management products and services.This revamp marks a new era of private banking services that promises to elevate our customers’ experience to new heights, as the Bank continues to expand its offering and diversify its bespoke product segmentation.
During Q1 2024, the Bank continued investing its resources in adopting cutting-edge technologies and implementing advanced digital banking solutions across the entire customer journey. This included the introduction of a personalized queuing system that is integrated with the Public Authority for Civil Information’s Kuwait Mobile ID platform to reduce customers’ waiting times.
In Q1 2024, the Bank continued to maintain momentum in its retail revamp strategy as the Bank expanded the scope of its services and solutions for its premier customers through its revamped Premier and Elite banking offerings.
Focus on Kuwaitization
The first quarter of 2024 was further marked by Burgan’s relentless commitment to investing in human capital and its growth and development, as part of its committed strategy to solidify its position as an employer of choice in the banking industry of Kuwait. The Bank continued to invest in local talent during Q1 2024 with several new appointments and promotions from its local talent pool across all levels including senior and executive management.
In Q1 2024, the Bank launched the innovative Burgan Beacon (Manarat Burgan) program, designed to reward all employees who go the extra mile in their line of work, as well as held a month-long ‘Rock Your Habits’ well-being program to raise awareness about healthy living. In addition, it celebrated the graduation of 34 employees from the Kuwait Institute for Banking Studies (KIBS) certification programs. It serves to note that the consolidated financials for Burgan include the results of the Group’s operations in Kuwait, as well as its share of results from its subsidiaries, namely: Burgan Bank Turkey, Gulf Bank Algeria, and Tunis International Bank. Through this regional reach, Burgan Bank has one of the largest regional branch networks across Kuwait, Turkey, Algeria, Tunisia and a representative office in the United Arab Emirates.