Burgan Bank Group continues to deliver a solid performance amid volatilities.
Third quarter net income is up by 41% reaching KD21.6 million.
Kuwait, 1 November, 2015
Burgan Bank Group announced today the first nine month results for the financial year 2015. The results demonstrate the consistent solid operating performance of the group in its local and regional contexts amid the headwinds stemming from economic, exchange rates & geo-politics volatilities. Burgan Bank Group reported net income for the first 9 months of 2015 is up by 21% reaching KD59 million. Third quarter net income is up by 41% reaching KD21.6 million.
Compared to the same period last year and on a consolidated basis, Operating income surged to KD 216.8 million mirroring a growth of 8%. Operating Profits grew by 9% to reach KD77.7 million while operating profits before provision grew by 7.5% reaching KD 121 million. International Operations Contribution to groups revenue reached 53%.
Mr. Majed Essa Al Ajeel, Chairman of Burgan Bank Group commented: "The positive leading indicators continue to point north across the group subsidiaries. Burgan Bank Kuwait achieved y-o-y growth of 3% for loans and 7% for deposits. Jordan Kuwait bank grew its loans & deposits by 1% & 9% respectively. Burgan Bank-Turkey grew its loans & deposits by 11% & 15% respectively. Gulf bank Algeria grew its loans book by 4% while deposits growth remained flat. Bank of Baghdad grew its loans & deposits by 6% & 2% respectively and growth in Tunis International bank remained flat. In its local currency reporting, international operations achieved even a higher growth. It is important to mention that this positive results are after taking a precautionary provisions of KD5 million in the third quarter as a prudent step "
"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 240 branches across Kuwait, Turkey, Jordan, Algeria, Iraq, Tunis, Lebanon and Palestine.
About Burgan Bank
Established in 1977, Burgan Bank is the youngest commercial Bank and second largest by assets in Kuwait, with a significant focus on the corporate and financial institutions sectors, as well as having a growing retail, and private bank customer base. Burgan Bank has five majority owned subsidiaries, which include 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.
The Bank has continuously improved its performance over the years through an expanded revenue structure, diversified funding sources, and a strong capital base. The adoption of state-of-the-art services and technology has positioned it as a trendsetter in the domestic market and within the MENA region. Burgan Bank's brand has been created on a foundation of real values - of trust, commitment, excellence and progression, to remind us of the high standards to which we aspire. 'People come first' is the foundation on which its products and services are developed.
Excellence is one of the Bank's four key values and Burgan Bank continually strives to maintain the highest standards in the industry. Brand Finance, the international brand valuation company re-affirmed Burgan Bank's brand rating as AA with a positive outlook making it the highest rated banking brand in Kuwait and the second highest in brand value. The bank was also re-certified with the prestigious ISO 9001:2008, making it the first bank in the GCC, and the only bank in Kuwait to receive such accreditation for the third consecutive year. The Bank also has to its credit the distinction of being the only Bank in Kuwait to have won the JP Morgan Chase Quality Recognition Award for twelve consecutive years. Burgan Bank won the prestigious "Banking Web Awards" prize in the commercial and corporate Category for Kuwait. In 2010 Burgan Bank was awarded with the "Best Internet Banking Service award" from Banker Middle East Awards. Burgan Bank was recognized in 2011 as Kuwait's "Best Private Bank", by World Finance. The bank also won, in 2011, the coveted "International Platinum Star for Quality" award from Business Initiative Directions, and "The Best Technical Award" from Banking Web Awards. In 2012, Global Banking and Finance Review online magazine recognized Burgan Bank as the "Best Banking Group in the MENA" as well as the "Best Corporate Bank in Kuwait". The bank also won the coveted "Best Bank Branding" award by the Banker Middle East. For the second consecutive year in 2012, Burgan Bank also won World Finance's "Best Private Bank" award, as well as the "Best Private Bank in Kuwait" in 2012 and 2013 from Capital Finance International. The bank also won the "Best Bank in Kuwait" award from EMEA Finance, along with the "Deal of the Year" award from Acquisition International.
In 2013, Burgan Bank Group was named "MENA - Bank of the Year" by Acquisition Finance Magazine and "Best Banking Group in MENA" for the second consecutive year by Global Banking and Finance Review. The bank also won the coveted "Best Domestic Retail Bank of the Year" award from the Asian Banking and Finance Magazine. Moreover, Burgan Bank also picked up the "Best Private Bank in Kuwait" for the 3rd consecutive year by Capital Finance International followed by the "Best Employee Development in GCC" award from World Finance. In 2015, Burgan Bank bagged the 'Best Domestic Cash Management Bank of the Year" award for the second consecutive year, 'Best Domestic Retail Bank of the Year' award for the third consecutive year, 'Best Credit Card Initiative of the Year in Kuwait' award, and 'Best Advertising Campaign of the Year in Kuwait' award from the Asian Banking and Finance Magazine's Wholesale Banking Awards 2014. The bank was also named the 'Best Investor Relations in GCC' by World Finance, one of the world's leading financial publications.
Burgan Bank, a subsidiary of KIPCO (Kuwait Projects Company), is a strongly positioned regional Bank in the MENA region.
For more information, please contact:
Bashir Jaber Assistant General Manager - Corporate Communications
T: +965 22988400
F: +965 22988419
Fahad AL Reshaid
Unit Head - Marketing Communications
T: +965 22988383
F: +965 22988419
© Press Release 2015