Burgan Bank announces exceptional growth in 2006 results

This has resulted in strong earnings per share, which went up by 35 % at 69.9 Fils. Return on equity reached 24.1 %, a 26 % increase over the achievement in 2005.

The Bank's operational revenues rose by 26 % to KD 87.6 million mainly due to exceptional performance in non interest income. The Bank's total assets stand at KD 2.2 billion. The Board of Directors recommended a proposed cash dividend of 50 Fils subject to the approval of annual General Assembly, and this represents a yield of 7.8% on the average stock price for 2006.

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

"Our exceptional growth in 2006 is promising and we will continue to build on our successes in the year ahead. We are driven by our foremost commitment to our shareholders and our loyal customers whose confidence in our capabilities has translated into remarkable progress at the business and growth fronts. This year we will renew our focus to bring our partners new products and services and an enriched banking experience. 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 our dedicated staff for their continued support and commitment."

The Bank's client loans and advances have grown by a robust 15 % considering prudent risk and reward criteria. An enlarged, diversified customer base has led to a 6 % growth in customer deposits. With a KD 260 million shareholders equity base, the Basel II capital adequacy ratio stands at 16.5 %, strongly positioning the Bank's capitalization both by local as well as international standards. These indicators are strongly supportive of Burgan Bank's growth strategy to position itself as one of the leading banks in Kuwait.

Burgan Bank continually invests in innovating its products and services to meet the changing and growing demands of consumers. During 2006, the banks also opened two new branches as part of its expansion strategy. It continues to invest in technology to create added value and convenience for its customers through the implementation of best practices. Burgan Bank was recertified and is still the only bank in the GCC with ISO 9001:2000 certification in all its' banking businesses. It also has to its credit the distinction of being the only bank in Kuwait to have won the JP Morgan Chase Quality Recognition Award, 9th year in succession for maintaining high standards of quality, efficiency and reliability while processing foreign currency transactions. Additionally, Burgan Bank has also been acknowledged as the 'Best Local Private Bank' in Kuwait in the Fourth Annual Euromoney Private Banking Survey 2007, reflective of the high standards of wealth management services offered by the Bank. The Bank's steadily improving financial performance was acknowledged by Standard & Poor's Ratings Services which revised its outlook on Burgan Bank from stable to positive in addition to affirming its 'BBB+' long-term and 'A-2' short-term counterparty credit ratings on the Bank.