Burgan Bank announces exceptional growth in Q3 results - net profit up 48 per cent

This strong activity was confirmed by an increase of 61% in net profit for the quarter. This resulted in strong earnings per share, which went up by 52.2% at 53.9 fils. Return on equity reached 25.8%, a 44% jump over the achievement last year for the same period of 17.9%.

The Banks' operating income increased by 48% to KD 49.8 million due to momentum in lending activities, improved spreads resulting in a 37% increase in net interest income. One of the most substantial result has been in non-interest income thanks to robust growth in non-cash assets and FX trading, rising by 37% and significantly beating the year to date objective. This was made possible by an excellent asset allocation strategy coupled with stable funding. Sharp growth in productivity indicators like RoA and RoE are a good reflection of the success of this strategy. During the period, RoA went up by 26% to 2.97% as compared to the same period last year.

Client loans and advances grew by a healthy 10% considering prudent risk and reward criteria. An enlarged, diversified customer base led to an 18% growth in customer deposits. With KD 243 million shareholder's equity base, the Basel II capital adequacy ratio stands at 19.5%, strongly positioning the banks capitalization both by local as well as international standards. These indicators are strongly supportive of the Burgan Banks' growth strategy to position itself as one of the leading banks in Kuwait.

Commenting on the results and the banks' performance, Chairman Sheikh Mohamed Abdul Aziz Al-Jarrah Al-Sabah, said,

"Burgan Bank has grown from strength to strength and there are no indications of a slowdown. Our commitment to our shareholders and our customers remain intact and we are confident of a remarkable 2006 from both a business and growth perspective just as we promised during the Shafafiyah Investors Forum organized by KIPCO earlier this year. Burgan Banks' plan for the next few years lays down so many challenges, which we are certain and committed to translate into successes. On behalf of the board and myself, I would also like to take this opportunity to extend our thanks to all our customers for their loyalty, and to Burgan Bank staff for their continued support and commitment."

Burgan Bank continues to invest in developing its products and services to meet the changing and growing demands of consumers. It has and will continue to invest in technology to create added value and convenience for its customers through the implementation of best practices. Additionally, Burgan Bank was recertified and is still the only bank in the GCC with ISO 9001:2000 certification in all its' banking businesses.