KUWAIT CITY, July 20: Burgan Bank Group announced today its first half earnings of financial year 2017. The selective and prudent growth approach amid regional operating environment complexities, continues to yield good results, and reflects solid operating capabilities & efficiencies.
Reported net income grew by 24% reaching KD 38.9 million ($127.7 million) from KD 31.4 million reported in first half last year. Underlying net income (excluding precautionary reserves & after AT1 cost) grew by 14% reaching KD 41.4 million ($135.9 million).
During the first half of 2017, loans and advances grew by 4% to reach KD 4.4 billion ($ 14.6 billion). Customers deposits grew by 5% to reach KD 3.9 billion ($ 13.0 billion). NPA Ratio net of collateral stands at 1% while Coverage ratio net of collateral stands at 390%. Capital adequacy ratio stands at 16.3% as of June 30, 2017.
Majed Essa Al Ajeel, Chairman of Burgan Bank Group said: “The healthy trends almost on all indicators continue to be demonstrated with the delivery of this good set of results. International Operations are now contributing 43% of the Group’s operating income which grew by 8% year on year to reach KD 122.7 million ($403.2 million), confirming once again, that Burgan Bank Group is the most diversified commercial bank in the sector.” Added Al-Ajeel.
“The strength of our operating capabilities is yielding strong performance that was evident during the second quarter (Q2). In Q2’17, Burgan Bank Group recorded an underlying net income (excluding precautionary reserves & after AT1 cost) of KD 23.3 million ($ 76.7 million), and enabled us to accelerate comfortably the bookings of KD 5 million ($16.5 million) in precautionary reserves and KD 8.5 million ($28.1 million) investments provisions for some available for sale (AFS) securities, and still achieving a net income as reported of KD 21.1 million ($69.3 million) in the Q2’17. Majed Essa Al-Ajeel also said: “Our leading financial indicators continue to point to the right direction both in Kuwait and international operations. I remain confident and optimistic of the group’s strong performance going forward.”
“On behalf of the board, I take this opportunity to thank our customers and shareholders for their confidence in our capabilities and our regulators; the Central Bank of Kuwait, for their support. 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 Burgan Bank — Turkey, Gulf Bank Algeria, Bank of Baghdad, Tunis International Bank. Burgan Bank Group has one of the largest regional branch networks with more than 180 branches across Kuwait, Turkey, Algeria, Iraq, Tunis, Lebanon and representative offices in Dubai-United Arab Emirates.