Burgan Bank posts KD 25.3 million Net Profit for the first half of 2011

Press release

Published July 31st, 2011 - 12:26 GMT

Al Bawaba

Burgan Bank today announced first half 2011 net profit of KD 25.3 million for the period ended June 30^th 2011.

For the second quarter in 2011, net profit grew by 14% to KD 13.455 million while revenues grew by 10% to KD 42.7 million from the first quarter of 2011. While comparing with the same period of 2010, a growth of 17% of the normalized revenues (excluding the KD10.9 million consolidation gains) was reported.

This is the fourth consecutive quarter where Burgan Bank Group reports a growth trend of its results. The consolidated financials encompass the results of Kuwait operations and Burgan Bank share from its subsidiaries, namely Bank of Baghdad, Gulf Bank Algeria, Tunis International Bank and Jordan Kuwait Bank, in which Burgan Bank has a majority stake.

Burgan Bank’s Chairman, Mr. Majed Essa Al-Ajeel said: “The first half of 2011 has witnessed a positive growth for the Burgan Bank Group. Despite the regional unrest, our subsidiaries continue to be progressing satisfactorily well ahead of plans. The bank’s performance during the first half of 2011 reflects a positive financial delivery trend. We are optimistic about the remaining half of the year.”

Commenting on the results, Burgan Bank’s Chief Executive Officer Mr. Eduardo Eguren said, “We are pleased that our overall performance, particularly of our normalized revenues is on a growth trend. Our second quarter core revenues grew by 17% excluding the one off gains compared to the same period of last year despite adapting a prudent approach by building counter cyclical reserves of KD 8.1 million”.

“In the second quarter, Burgan Bank Group witnessed notable achievements. The Corporate Banking Group launched a range of Corporate Cash Management products and services, offering cost effective end to end banking solutions. Also, the Private Banking group was once again recognized and rewarded for excellence as it has been awarded the “Best Private Bank in Kuwait” by the prestigious “World Finance Banking Awards for the year 2011”. added Mr. Eguren.

Background Information

Burgan Bank

Established in 1977, Burgan Bank is the youngest conventional 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.