Complex Made Simple

Kuwait Burgan Bank announces Q1 2015 earnings

The bank continues to grow faster than market and continues to prudently build coverage amid complex regional operating environment

Burgan Bank Group announced its first quarter earnings for 2015 reflecting a continuation of the faster than market growth trend the bank is consistently demonstrating while continuing to prudently build coverage amid the complexity of the regional operating environment.

Net profit reported at KD17.5 million while earning per share reported at 6 fils. Compared to the same period last year, Operating income surged to KD 70.5 million registering a growth of 14 per cent while Operating Profits before provisions soared to register KD 38.2 million reflecting a growth of 12 per cent.

The performance during the first quarter of 2015 delivered a continuous solid growth in all business lines across the group with high quality earnings registered during the quarter, net interest income grew by 14 per cent reaching KD 47.4 million while net fees and commission grew by 6 per centreaching KD 11.6 million.

Mr. Majed Essa Al Ajeel, Chairman of Burgan Bank Group, said: “Once Again, our focused execution of our strategy is yielding solid operating performance and the bank is continuing to demonstrate faster than market growth trend almost in all indicators.”

Mr. Majed Essa Al-Ajeel also said: “Our leading financial indicators continue to point to the right direction, Our regional operations remain profitable and contributing 53 per cent to the group’s revenues . I remain confident and optimistic of the group’s strong performance going forward.”

“Our Balance sheet remains strong. Our asset quality continues to improve as non-performing assets (net of collateral) to gross facilities stands at 1.7 per cent and a strong coverage consisting of KD266 million including over KD100 million in specific and general provisions representing a coverage ratio (net of collateral) over 200 per cent. Our capital position is solid and fully compliant with Basel 3, our capital adequacy ratio stands at 13.3 per cent for the period ending March 31, 2015. Our liquidity ratio which is one of the strongest compared to our peers stands at +30 per cent at March 31, 2015,” he added.

“On behalf of the board, I take this opportunity to thank our customers and shareholders for their confidence in our capabilities. I would also like to thank our executive management team for their leadership and the excellent execution of the corporate strategy, and to our staff for their continued support and commitment,” concluded Al Ajeel.

The consolidated financials encompass the results of the Group’s operations in Kuwait, and its share from its regional subsidiaries, namely Jordan Kuwait Bank, Gulf Bank Algeria, Burgan Bank – Turkey, Bank of Baghdad, Tunis International Bank, in which Burgan Bank owns a majority stake. Burgan Bank Group has one of the largest regional branch networks with more than 235 branches across Kuwait, Turkey, Jordan, Algeria, Iraq, Tunis, Lebanon and Palestine.