True performance continues to reflect business model resilience and strength amid challenging operating environment

Reported net income up by 12% reaching KD68 million.

Board of Directors recommends 5% in cash dividends and 5% in bonus shares

Al-Ajeel: "Burgan Bank Group solid business performance, optimized operating efficiencies and rigorous risk management have yielded a strong franchise."

Kuwait: February 16, 2017 

Burgan Bank Group announced today its earnings for the full year 2016. Burgan Bank Group reported net income of KD 68 million, up 12% from KD61 million reported in 2015 while Earnings per share stood at 28 Fils, up by 15% from 25 fils in 2015 (excluding the discontinued operations resulting from the sale of Jordan Kuwait bank in December 2015). The Board of Directors have recommended a cash dividend of 5% and 5% in bonus shares.   

Adjusted for foreign currencies devaluation and one-offs , core revenues for FY2016 reached KD236 million mirroring 8% Year-on-year growth. Loans and advances to customers grew by 7% reaching KD4.3 billion. Also year-on-year, Non-performing Assets ratio net of collateral drops to 1% with coverage ratio net of collaterals reaching 407%. Basel 3 Capital Adequacy Ratio stands at 16.7% at the end of December 31, 2016.

Mr. Majed Essa Al Ajeel, Chairman of Burgan Bank Group said: "As planned and expected, Burgan Bank Group’s resilient business model has proven successful in weathering the heavy headwinds stemming from regulatory changes, low interest rates and  investments, markets volatility and geopolitical risks. “

“Looking at the full financial year set of results; we can comfortably conclude that Burgan Bank Group true performance driven by high quality earnings remains solid. Although the KD68 million reported net income shows a growth of 12% from the previous year, for accurate analysis, the true net income achieved in 2016 stood at KD70 mirroring a growth of 23% from 2015 when normalized for a like-to-like comparison by eliminating the non-repetitive items such as FX gains and others. This true performance reflects the quality of earnings generated by Burgan Bank engines without any dependence on unusual gains and one-offs.”

"It is also worth noting that such solid performance is delivered after booking KD24 million in precautionary reserves for the full year, KD9 million of which was booked in the fourth quarter alone, a quarter that is considered one of the strongest quarters in terms of performance over the last 3 years with a net income reaching KD28.6 million excluding precautionary reserves” commented Mr. Al-Ajeel.  

“We are confident and proud that our solid business performance, optimized operating efficiencies and rigorous risk management have enabled us to build a strong and resilient franchise.”

“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.

-Ends-

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.

For all media enquiries, please contact: 
Dalal Al Dajani
PR Account Executive
MEMAC Ogilvy Public Relations
E. dalal.aldajani@ogilvy.com          
M. +965 97304625          
O. +965 22258716

© Press Release 2017