Burgan Bank Group’s revenues for the financial year ending December 2021 increased by 10% year-on-year (y-o-y) to KD234.7 million ($776.53 million), driven by 46% y-o-y growth in non-interest income, the bank said.

 

The bank generated 35% y-o-y growth in its bottom line with the FY’21 net income totalling KD 45.4 million ($150.21 million).

 

The bank continued to successfully maintain cost discipline, restricting operating expenses to KD94.8 million, 2% lower than FY’20 operating expenses. The bank generated healthy operating profit of KD139.9 million an impressive y-o-y growth of 21%. The bank reported improved cost-to-income ratio of 40.4% in FY’21 compared to 45.7 % in FY’20. 

 

In FY’21, the bank reported significant improvement in its asset quality metrics with NPL ratio decreasing from 4.2% in FY’20 to 1.7% in FY’21 and NPL coverage ratio improving from 212.8% in FY’20 to 309.5% in FY’21.  

 

The board of directors approved distribution of cash dividend of 5 fils per share and 5% bonus shares, said a bank statement.

 

Burgan Bank Group successfully completed its right issue offering of 375 million shares to increase its equity capital by KD71.25 million. The rights issue concluded in December 2021 with strong market response as reflected in subscription levels of 225%+. The successful rights issue enabled the bank to report further improved regulatory capital ratios with CET1 ratio of 11.4% and CAR ratio of 17.5%, it said.

 

Majed Essa Al Ajeel, Chairman of Burgan Bank, said: “2021 was a positive year despite the ongoing challenges to the world’s economies with the persistence of the pandemic situation globally. The banking sector has adapted to the new situation with increasing digitalization and a greater reliance on the integration of advanced technologies in the banking operation and services.”

 

“With a robust net income of KD45.4 million, and a growth of 35% over FY21, Burgan has delivered a strong performance demonstrating its institutional resilience, reliable operating model, and sustainable practices. These results reflected positively on the returns to shareholders, with the Board recommending the distribution of 5 fils cash dividends and 5% bonus shares. The successful capital increase will drive further the implementation of the Bank’s growth strategy and will enable us to deliver more value in shareholder earnings in the future,” added Al Ajeel. 

 

He said: “In 2021, we have made considerable progress in rolling out our digitalisation roadmap to enhance the Bank’s functions and services, committed as always to delivering excellence in the overall banking experience of our customers. I am grateful to the relentless efforts and dedication of the group’s executive management and employees as well as to our loyal shareholders and customers. My utmost gratitude goes to the Central Bank of Kuwait and the Capital Markets Authority too for their unwavering support that helps us deliver our strategic business objectives.” 

 

Masaud M  J Hayat, Vice Chairman and Group Chief Executive Officer of Burgan Bank, said: “The resilient performance and positive growth this year has been a natural result of our commitment to implementing our long-term strategy that aims to focus on maximizing shareholder value and providing the best safe and comfortable banking experience through our digital transformation and further enhancing the talent and organizational culture of the group, in addition to establishing sustainability as a strategic pillar. The results confirm Burgan Bank's strong position locally and in the Middle East, North Africa and Turkey markets.” – TradeArabia News Service