Al-Ajeel: The sale creates room for growth and strengthens capital
Eguren: Jordan Kuwait Bank is a great asset that will remain part of the KIPCO Group.
Kuwait, December 31st, 2015
Burgan Bank Group (BBG) announced today the sale of Jordan Kuwait Bank to subsidiary of the Kuwait Projects Company (KIPCO) Group.
Since 2010, Burgan Bank has undertaken a number of steps to enhance its capital, similar to actions taken by leading banks in the world as a result of the introduction of Basel III. These measures included selling treasury shares, issuing new capital via a rights issue, as well as a series of subordinated bond issues.
The sale yields a reduction of over KD 500 million in Burgan's risk-weighted assets. The resultant capital adequacy ratio is forecast to be in excess of 15% at the end of 2015.
Mr. Majed Essa Al-Ajeel, Chairman of Burgan Bank, commented: "This move has positioned the bank with capital levels comfortably in excess of that required under the Basel III regime. It also gives us capacity to grow for the next few years without the need for further capital."
"The transaction reflects the unique opportunity we enjoy as part of a strong group like KIPCO. It demonstrates our flexibility, strategic optionality, as well as the strong support of our main shareholder," concluded Mr. Al-Ajeel.
On his part, Mr. Eduardo Eguren, Burgan Bank's Group Chief Executive Officer, commented: "This capital friendly solution allows us to strengthen our focus on execution and further improve our earnings," Mr. Eguren added.
"Jordan Kuwait Bank is a great asset that will remain part of the KIPCO Group, allowing us to keep our link to such a well-run bank. Being members of the same diversified Group, we will continue our strong support and close cooperation with Jordan Kuwait Bank," concluded Mr. Eguren.
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.
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 9001:2008, 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, a subsidiary of KIPCO (Kuwait Projects Company), is a strongly positioned regional Bank in the MENA region.
© Press Release 2015