Net income reaches KD 71.0 million in 9 months of 2018 with 32% growth YoY
KUWAIT: Burgan Bank Group announced yesterday its nine months earnings for the financial year 2018 reporting a net income of KD 71.0 million ($235 million) with a growth of 32 percent year on year while during the third quarter of 2018 the Bank registered KD 20.5 million ($68 million) growing 36 percent in comparison to the same period last year. The set of results for the period ending in 30th September 2018 demonstrated solid operating capabilities and efficiencies.
Earnings per share grew for the first nine months by 38.5 percent year-on-year reaching 26.6 Fils, and achieving return on tangible equity (ROTE) of 13.4 percent for the same period.
During the first nine months of 2018 and compared with the same period of 2017, operating income grew by 15 percent to reach KD 206.6 million ($685 million). As of end of September 2018, total assets reached KD 6.8 billion ($22.6 billion), loans and advances to customers at KD 4.2 billion ($13.7 billion), and deposits from customer at KD 3.8 billion ($12.7 billion).
Majed Essa Al-Ajeel, Chairman of Burgan Bank Group said: “We continue delivering solid results in 2018 and we are pleased with the Group’s performance. We have confidence in our business model and adaptability and we are supported by our prudent approach to risk and returns. Our commitment to executing our strategy allowed us to deliver well ahead of expectations and amid shifting circumstances.”
“The balance between domestic and international operations and focus on enhancing operating income streams has proven successful. We have a strong pipeline. We trust our operating capabilities and we remain focused on prudence and selective growth,” added Al-Ajeel.
On 10th of October 2018, Burgan Bank successfully completed its Rights Issue, whereby the bank raised KD 62.55 million of equity by issuing 240.58 million shares. The Rights Issue was oversubscribed with healthy participation from its existing shareholders, underscoring the strength of the franchise. The net proceeds of the Rights Issue will be used to further strengthen the Bank’s capital position, and for general corporate purposes.
“On behalf of the board, I take this opportunity to thank our customers and shareholders for the trust they have in our capabilities. We are grateful for their support as the oversubscription in our Rights Issuance reflects their confidence in the bank’s performance and its future prospects,” continued Al-Ajeel.
“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 Burgan Bank – Turkey, Gulf Bank Algeria, Bank of Baghdad, Tunis International Bank. Burgan Bank Group has one of the largest regional branch networks with 167 branches across Kuwait, Turkey, Algeria, Iraq, Tunis, Lebanon and representative office in Dubai-United Arab Emirates.