Burgan Bank Group reports KD55.6m net profits for 2012, 10% year-on-year growth

The group posted KD55.6m net profits, 10% increase from the same period of 2011 reported at KD50.6m. Earnings per share (EPS) grew 12% to reach 37.8 fils compared to 33.7 fils reported last year. The Board of Directors recommended a payout of 10 fils as a cash dividend and 5 % as bonus shares subject to the approval of the annual general assembly meeting.

The group's performance during 2012 reflects a solid performance reflecting a constant growth trend. Compared to the same period last year, Operating income grew 16% to reach KD190m while operating profit before provisions grew 17% reaching KD119m. International Operations (Algeria, Iraq, Jordan, Tunis, Turkey) are profitable and on growth mode, the contribution of the International Operations ( Excluding the subsidiary in Turkey which was acquired on December 21st 2012) to the group's total revenues during 2012 stood at 48%.

Mr. Majed Essa Al Ajeel, Chairman of Burgan Bank said: "We are continuously increasing our market share with profitability, Loans and advances grew 50% reaching KD3.4bn while customer deposits grew 39% reaching KD3.9bn. Our Non-Performing Loans (NPLs) are decreasing and our total provisions reached KD194.4m. Our NPL ratio (net of collateral) to gross loans stands at 1.9%. Capital Adequacy Ratio stands at 18.5%."

"The solid performance reiterates our foremost commitment to our shareholders as well as our customers, and we are optimistic that we will continue achieving sound results. On behalf of the board, I take this opportunity to thank the executive management team and staff under the leadership of Mr. Eduardo Eguren, Chief Executive Officer, for their continuous hard work and delivery of strong results. I also take this opportunity to express our gratitude towards our customers and shareholders for their continued confidence in our capabilities," added Mr. Al Ajeel.

During 2012, Burgan Bank Group achieved an impressive array of international awards. Burgan Bank achieved the "Best bank in Kuwait" award by EMEA finance, Bank of Baghdad achieved the "Best bank in Iraq" award by EMEA finance, Jordan Kuwait Bank achieved the "Best Bank in Jordan" award by Global Banking and Finance review, Tunis International Bank achieved the "Bank of the Year" by Intercontinental Finance Magazine. In recognition of its delivery of sound results across its operations in the region, Burgan Bank Group also achieved the "Best banking group in MENA" by Global Banking & Finance Review.