Kuwait : Burgan Bank Group (Group) is closely monitoring the market developments in Turkey and it remains committed to support Burgan Bank Turkey (BBT) if needed. Our Turkish operation has good fundamentals with prudent approach in managing risk. Its loan book is well diversified across various sectors and multiple segments, while maintaining a stable funding base.
The Group’s strategic decision to hedge its investment in BBT since 2015 has protected it from Turkish Lira volatility. Also, its decision to proactively build additional provision buffers since Q1’18 has helped BBT to be stronger in Turkey’s current macro-economic environment.
Mr. Faisal Al Radwan, Chairman of the Board of Burgan Bank Turkey said, “BBT is well-prepared to face current economic situation in Turkey’s due to its focus on prudent risk management and its cost-efficient operations, thereby generating positive results for the Group.”
Furthermore, Mr. Masaud Hayat, Burgan Bank Group CEO commented, “Burgan Bank Group remains committed to support BBT as the Turkish operation continues to generate healthy margins and improved efficiencies backed by a strong management team. The bank is well-positioned to weather the current macro-economic situation in Turkey. As consolidated under the Group, in Q1’19, BBT’s NPL ratio reached 3.8% with adequate NPL coverage ratio of 116.8% and strong Capital Adequacy Ratio at 18.0%.”
Burgan Bank Turkey has been part of the Group since December 2012, where the Group acquired majority stake. As well, BBT has an optimal branch network of 39 branches operating across 15 cities in Turkey.
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 majority owned subsidiaries in the MENAT region supported by one of the largest regional branch networks which include Gulf Bank Algeria - AGB (Algeria), Bank of Baghdad - BOB (Iraq & Lebanon),Tunis International Bank – TIB (Tunisia), and fully owned Burgan Bank – Turkey, (collectively known as the “Burgan Bank Group”). Furthermore, Burgan Bank has a present in the UAE through its corporate office (“Burgan Financial Services Limited) which had helped the bank to participate in multiple financing opportunities in the UAE.
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.
The bank was re-certified with the prestigious ISO 9001:2015, making it the one of the few banks in the GCC and Kuwait to receive such certification for the Fifth consecutive time. 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, a subsidiary of KIPCO (Kuwait Projects Company), is a strongly positioned regional Bank in the MENA region.
© Press Release 2019