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Thursday , March 30 2023

Burgan Bank posts KD 40 mln net income for first 9 months

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Strong earnings reflect effectiveness of strategy implementation

KUWAIT CITY, Nov 3: Burgan Bank has reaffirmed over the first 9 months of 2021 its commitment to actioning the core pillars of its corporate strategy for growth and development, which refl ected positively in the reported strong net income of KD 40.3 million and a steady growth of 23.6% compared to the same period of the prior year. The Bank’s ambition to strengthen its leading position is backed by steady endeavors to accomplish the strategic sustainability, digitization, and human capital development objectives. The strategic planning’s significant impact on the organizational performance in the first 9 months of 2021 was confirmed by the solid revenue levels of KD 166.6 million, which were supported by the high non-interest income of KD 73.3 million (up 29.5% year-on-year), and the lower loan loss provision levels that improved by 11.5% compared to the same period in 2020. Commenting on the positive financial results of Q3’2021, Mr. Majed Essa Al Ajeel, Chairman of Burgan Bank Group, indicated that the net income rose by 65.3% to KD 16.3 million, compared to the same period of the previous year, and explained that this performance was driven by the KD 54.6 million revenues along with the lower loan loss provision charge of KD 8.5 million. “

Majed Essa Al Ajeel, Chairman, Burgan Bank Group

The volatility that has characterized the economic climate and the operating environment has begun to recede and we have started to see real recovery take place. Undoubtedly, the pandemic has altered the way banks operate and the way people engage with banking services, that is why we have accelerated our digital transformation and focused further on enhancing our digital banking platforms with innovative services and features. Burgan Bank is on a long-term transformation journey because we believe that the market’s rapid pace of change requires an ongoing, dynamic and flexible progression that we can accomplish by adhering to the foundations of our corporate strategy, developing our services and products and enhancing our asset base to consolidate our standing across all the markets where we operate” added Al Ajeel.

“We have succeeded by leveraging our digital capabilities to respond to challenges and to provide uninterrupted, top-tier services across all channels. Also, our adherence to sustainability has been a driving force in the implementation of our strategy as we remain deeply committed to our responsibility in driving positive change in the economic, social, governance and environmental spheres. Through our strategic ESG initiative, we endorse and incorporate in all our endeavors the values of ethical practices, transparency, responsible financing, sustainability, as well as positive social and environmental impact.” concluded Al Ajeel.

On his part, Mr. Masoud M.J. Hayat,Vice Chairman and Group CEO of Burgan Bank Group, noted “As we pursue our corporate strategy, we remain confident that by capitalizing on our digital capabilities, human capital, and sustainable practices, we will keep progressing towards achieving our growth and development objectives.We are concentrating our efforts on offering comprehensive banking solutions driven by the needs of our customers and guided by market and industry insights.” Mr. Hayat added “Under our strategic focus on digital transformation, we have released two Burgan App updates in Q3, and introduced over 6 new key App features to guarantee a seamless user experience through Burgan App that has become a comprehensive platform providing flexibility and convenience to process most of the banking transactions. We have also enhanced the digital services dedicated to our corporate customers with the launch of the Cash Management Services platform that includes 25 features designed to facilitate the efficient management of business accounts and multiple banking services. It is worth mentioning that customers using our digital banking platforms up until Q3’21 have given it a90% customer satisfaction rate.”

The Bank’s capital and liquidity profile maintained its strong standing, with key indicators showcasing a robust and healthy fiscal framework. The results of Q3’2021 showed key indicators performing at healthy margins, well above minimum regulatory requirements, with Capital Adequacy Ratio (CAR) at 16.3% compared to the minimum requirements of 11.5%, Liquidity Coverage Ratio (LCR) at 115.8% compared to the minimum requirements of 80% and Net Stable Funding Ratio (NSFR) 106.5% compared to the minimum requirements of 80%. The consolidated financials for Burgan Bank include the results of the Group’s operations in Kuwait, and its share of results from its subsidiaries, Burgan Bank Turkey, Gulf Bank Algeria, Bank of Baghdad, and Tunis International Bank. Through this regional reach, Burgan Bank has one of the largest regional branch networks with 162 branches across Kuwait, Turkey, Algeria, Iraq, Tunisia, Lebanon, and a representative office in the United Arab Emirates.

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