Burgan Bank Group announces first nine months earnings

Burgan Bank Group announced today the first nine month results for the financial year 2013. Compared to the same period last year, Operating income surged to KD 187.3 million registering a growth of 35% while Operating Profits before provisions soared to register KD 105.4 million reflecting a growth of 21%. The solid consistent growth over the past quarters clubbed with the positive leading indicators, enabled the bank to accelerate the reserves build up. Reserves booked in the third quarter 2013 reached KD 31.3 million by which KD26 million as general reserves and KD5.3 Million as specific reserves. The Group’s first nine months of 2013 net profit is reported at KD 17.6 million. 

During the third quarter of 2013, Burgan Bank Group achieved an annualized growth of 17% in loans and advances as well as a 20% increase in customers’ deposits, reflecting the bank’s achievement to previously announced plan of gaining market share in the core market, together with building strong stream of earnings from International operations. Burgan Bank Group’s international operations continue to register a year – on – year profitability and increased contribution to Group’s revenue to reach 53.6% reflecting the soundness of the diversification strategy into high growth markets. 

Mr. Majed Essa Al Ajeel, Chairman of Burgan Bank Group said: "Once again, the prudent execution of the group strategy yielded good underlying performance. The strong underlying performance is enabling us to parapet reserves to further enhance our asset quality which is a step that is highly encouraged by the Central Bank of Kuwait. Total loan loss reserves reached KD238.3 million with a coverage ratio (net of collateral) of 254%.” 

“Our leading financial indicators continue to point to the right direction, and once again, we are optimistic about our performance going forward." Added Mr. Al-Ajeel. 

"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, 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 Jordan Kuwait Bank, Gulf Bank Algeria, Burgan Bank – Turkey, 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 more than 220branches across Kuwait, Turkey, Jordan, Algeria, Iraq, Tunis, Lebanon and Palestine.