Burgan Bank Group posts KD 48.6m 9M net profit – Net income during third quarter clocks KD 17.2 million

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Majed Essa Al Ajeel, Chairman, Burgan Bank
Majed Essa Al Ajeel, Chairman, Burgan Bank

KUWAIT CITY, Nov 3: Burgan Bank Group announced today its earnings for the 9 months and third quarter for the financial year 2016. Burgan Bank Group reported net income of KD 17.2 million for the third quarter hence KD 48.6 million for the first 9 nine months of 2016. Earnings per share for the 9 months of the financial year 2016 stood at 18.6 fils.

Burgan Bank Group continues with prudence to maintain its solid true performance and selective growth approach amid the high market volatilities, geopolitical risks and challenging operating environment. Year-on-year, loans and advances to customers grew by 10 percent reaching KD 4.3 billion while customers deposits remained flat at KD 3.9 billion due to actions taken to diversify the bank’s long-term funding profile during 2016. Also year-on-year, non-performing assets ratio net of collateral drops to 1.2 percent with coverage ratio net of collaterals reaching 385 percent. Basel 3 Capital Adequacy Ratio stands at 15.8 percent at the end of Sept 30, 2016.

Majed Essa Al Ajeel, Chairman of Burgan Bank Group said: “Burgan Bank Group continues the defensive and prudent approach amid the increasing volatilities. Yet again, our business model has proven to be resilient and leading indicators continue to point north.”

“Despite the sale of Jordan Kuwait Bank in December 2015, Burgan Bank Group true performance remains solid. For accurate analysis, the third quarter of 2016 reported net income of KD 17.2 million reveals a true growth of 21 percent when normalized by eliminating the non-repetitive items such as FX gains and others for a like-to-like comparison. Therefore, the first 9 months of 2016 mirrors a true growth of 27 percent compared to the same period last year,” commented Al-Ajeel.

“It is also worth noting that such solid true performance is maintained while also booking KD 5 million in precautionary reserves for the third quarter and a total of KD 15 million year to date.”

“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.

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