Burgan Bank's profits continue to soar in first half of 2007

The earnings per share has also increased by 76% at 56.6 Fils while return on equity (ROE) reached 34.4 %, a 46 % increase over the achievement in 2006. These results compare very favorably to the full year net profit of KD 55.7 Million in 2006 and KD 42.3 Million in 2005.

The Bank's operational revenues rose by 70 % to KD 69.7 million mainly due to exceptional performance in non interest income. The Bank's total assets stand at KD 2.8 billion.

Commenting on the results and the Bank's performance, Chairman Mr. Tariq Mohammed Abdul Salam said,

"Our outstanding growth in the first six months of 2007 is promising and we will continue to build on our successes in the months ahead. It symbolizes the confidence that our customers hold in our capabilities as a leading banking institution to bring them the very best of products and services. The Bank's consistent growth over the last 3 years with a CAGR of 40% has been reflected in the appreciation of Burgan Bank's share price which has also strengthened investors' confidence. As a result of this and its aggressive strategy, its major shareholder KIPCO recently increased its share from 35% to 50.2% making the Bank a subsidiary of the group."

"As innovation, high standards of operational excellence and customer satisfaction are our key motivators, we will continue to endeavor to better our performance in the latter half of 2007. 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," concluded Mr. Tariq Abdul Salam.

The Bank's client loans and advances have grown by a robust 33 % with a prudent risk and reward criteria. An enlarged, diversified customer base has led to a 16 % growth in customer deposits. With a KD 319.2 million shareholders equity base, the Basel II capital adequacy ratio stands at 19.6 %, 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. In keeping with its unique expansion strategy, the Bank introduced a new concept of a 'Financial Center' at Adailiya early in 2007 as well as the third in its series of Solutions Centers' at Shaheed Tower in Sharq. During 2006, the Bank invited its customers to benefit from its new approach towards personalized banking by introducing its first 'Solutions Centers' at Fahaheel and Farwaniya. At present the Bank enjoys a wide reach through its network of 21 branches and close to 50 ATM facilities in Kuwait.

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. Further, Moody's Investor Services also upgraded the Bank's FSR rating from D+ to C- earlier this year.

Having completed 30 years of successful banking in Kuwait's dynamic socio-economic landscape, Burgan Bank continues to adopt a customer-centric approach to tailor and design products and services around customers' needs and preferences.