Burgan Bank Q1 net profit up 25pc

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Burgan Bank Q1 net profit up 25pc

May 3, 2017 11:43 AM

Kuwait-based Burgan Bank Group reported a net income growth of 25 per cent to KD17.8 million ( 58.4 million) for the first quarter of this year compared with KD14.3 million for the same period last year....

Kuwait-based Burgan Bank Group reported a net income growth of 25 per cent to KD17.8 million ($58.4 million) for the first quarter of this year, compared with KD14.3 million for the same period last year.

Underlying net income (excluding precautionary reserves and after AT1 cost) grew 8 per cent to reach KD18.1 million ($59.3 million), the bank said.

The selective growth approach clubbed with the focus on operating efficiencies enabled earnings strength to continue at both top line and bottom line levels, amid regional operating environment complexities, it said.

Compared to the same period last year, loans and advances grew by 3 per cent to reach KD4.3 billion ($14.1 billion) while deposits grew by 1 per cent to reach KD3.9 billion ($12.9 billion). Capital adequacy ratio under Basel III stood at 16.5 per cent as of March 31, 2017, it said.

Majed Essa Al Ajeel, chairman of Burgan Bank Group, said: “We continued out of prudence, during the first quarter with our approach of selective growth focusing on high quality earnings clubbed with a focus on operating efficiencies.

“Our operations in Kuwait and the region continued to demonstrate and as planned, healthy trends almost on all indicators. International operations are now contributing 49 per cent of the group’s total revenues, confirming that Burgan Bank Group is the most diversified commercial bank in the sector,” added Al-Ajeel.

“Maintaining high quality top line earnings, focusing on operating efficiencies, and improved cost of risk, led to an impressive bottom line growth, ” added 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, and 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-UAE. – TradeArabia News Service