This has resulted in strong earnings per share, which went up by 28% at 89.4 Fils.
During 2007, the Bank witnessed significant growth across various business segments and as a result customer lending shot up by 50% underpinned by a 33% growth in customer deposits. Asset quality improved considerably with sharp reduction in non-performing loans leaving a NPL ratio of 1.73% from 3.57% last year.
It is worthwhile to note that over the last 4 years, bank's net profit consistently grew by a CAGR of 38%.The Board of Directors recommended a proposed cash dividend of 60 Fils in addition to 10% bonus shares subject to the approval of the Annual General Assembly, and this represents a yield of 18.5% on the average stock price for 2007.
Commenting on the results and the Bank's performance, Burgan Bank Chairman Mr. Tariq Mohammed Abdul Salam said, "Our promising growth in 2007 only reiterates the confidence that our customer-centric strategy has successfully secured. We will continue to bring all our stakeholders - from customers and investors to employees - further success as we translate the promise of our new corporate identity into reality. 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."
With a KD351m shareholders equity base, the Bank's 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.
Having recently unveiled its new customer-centric corporate identity, Burgan Bank seeks to extend more value to customers throughout the year. Presently enjoying a wide network of 20 branches, as well as one of the largest drive-through ATM service networks in the Middle East, the Bank will continue to focus on reaching customers through multiple touch-points as per their need and convenience.
In keeping with the specific banking and financial needs of different segments of customers, the Bank successfully implemented its unique 'Branch Strategy' as part of its 'Bright Future' program over the past two years by introducing specialized branch types - Financial Centers, Solutions Branches and Transactions Branches - which have received a positive response by customers and staff alike, thereby enhancing the banking experience.
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Burgan Bank 2007 results exceed expectations with a new record net profit of KD74.8m
- Kuwait: Saturday, February 09 - 2008 at 11:41
- PRESS RELEASE
Burgan Bank, amongst the leading commercial banks in the state of Kuwait, announced a record profit of KD74.8m for the year 2007, up 34% from KD55.7m registered in 2006.
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About Burgan BankHaving recently unveiled its new corporate identity which reflects its commitment towards customer centricity,), Burgan Bank is a subsidiary of KIPCO (Kuwait Projects Company). Amongst the youngest commercial banks in the State of Kuwait, established in 1977, the Bank has acquired a leading role in the retail, corporate and investment banking sector through innovative product offers and technologically advanced delivery channels. It has continuously improved its performance over the years by applying an expanded revenue structure, good asset quality, diversified funding sources and a strong capital base. The adoption of state-of-the-art services and ground-breaking technology has positioned it as a trendsetter in the domestic market. At present it enjoys a wide reach through our network of 20 branches and close to 80 ATM's making it one of the widest ATM networks in the GCC.
The brand has been created on a foundation of real values - of trust, commitment, excellence and progression to remind us of the high standards to which we aspire. 'People come first' is the foundation on which its products and services are developed and are further augmented by its three pillars of innovative technology, staff competency and customer service. It is committed to offering an enhanced banking experience.
The 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, 10th year in succession and was also acknowledged as the 'Best Local Private Bank' in Kuwait in the Fourth Annual Euromoney Private Banking Survey 2007. Further, for two consecutive years, it was conferred the COMMERZBANK Recognition Award, for maintaining high standards of quality, efficiency and reliability while processing Euro currency transactions as well. The Bank's commitment to uphold best practices was recognized when it won the region's first Hawkamah-UAB Bank Corporate Governance Award 2007 while its marketing excellence was recognized as amongst the best in the region by the Middle East Business Achievement Awards 2007.
It's steadily improving financial performance was acknowledged by Standard & Poor's Ratings Services which revised its outlook on the 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- recently Capital Intelligence too acknowledged the improved financial profile and upgraded the Bank's Financial Strength Ratings from BBB to A-, the Foreign Currency Short Term rating as A2 and the Foreign Currency Long Term rating from BBB to A-.
For further information, kindly contact:
Leslie Mouawad
Ogilvy Public Relations, Kuwait
Tel: 4610371
Posted by Medilyn Manibo, Assistant News EditorSaturday, February 09 - 2008 at 11:41 UAE local time (GMT+4)
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