KUWAIT: Burgan Bank Group announced yesterday its financial year 2015 results. A solid operating & financial performance continues reflecting a faster than market growth almost in all indicators and mirroring the soundness of Burgan Bank’s resilient business model.
Compared to the same period last year, Operating income grew by 12 percent from KD222 million to KD 248 million while Operating Profit before provisions soared to register KD 133 million reflecting a growth of 9 percent. Profit before tax from continuing operations soared by 12 percent reaching KD 74 million. As a result of this solid performance, Burgan Bank Group’s net profit for the year 2015 is up by 23 percent reaching KD 76 million while earning per share (EPS) is reported at 32.1 Fils. The board of directors has recommended a payout of 18 fils in cash.
Majed Essa Al-Ajeel, Chairman of Burgan Bank Group said: ” I am glad for the continuity of the group’s solid performance during 2015 and the last 5 years. The 2015 set of results indicates that once again, Burgan Bank is well positioned among the top performers not only in Kuwait but also in the region.
“2015 was a year of balance sheet optimization for Burgan Bank Group. Optimizing capital through a mix of well planned and executed initiatives that aimed at adjusting capital to Basel 3 and to solidify our platform for continuous growth. Our capital ratios by December 31st 2015 stand at 11.7 percent for core equity capital (CET1) and a capital adequacy ratio (CAR) of 15.6 percent, well above regulatory levels “
“Asset quality continued to be in reasonable levels. Non- performing assets (net of collaterals) stood at 1.4 percent to gross facilities while coverage ratio (net of collateral) reached 332 percent, very comfortable levels compared to any benchmarks” Added Mr. Al-Ajeel
Majed Essa Al-Ajeel added: “We remain confident of the way forward as our strategy clubbed with a focused execution have proven successful. The positive leading indicators continue to point to the right direction across the group subsidiaries and we continue to reap the benefits of our regional diversification. It is also imperative to highlight that such strong underlying performance is delivered even after taking a precautionary provisions of KD29 million during 2015.”
“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 that continues to yield such solid performance, and to our staff for their 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, in which Burgan Bank owns a majority stake. Burgan Bank Group has one of the largest regional branch networks with over than 180 branches across Kuwait, Turkey, Algeria, Iraq, Tunis and Lebanon.
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.
