Bank to pay a cash dividend of 7% and 5% in bonus shares

KUWAIT: Burgan Bank management addresses the Ordinary and Extraordinary General Assembly meeting at the KIPCO Tower

KUWAIT: Burgan Bank held its Ordinary and Extraordinary General Assembly meeting and Al-Shafafiya Investors forum yesterday at the KIPCO Tower, wherein the Board of Directors presented the bank's financial earnings report for the year ended December 31, 2017 and agreed to pay a cash dividend of 7 percent and 5 percent in bonus shares.

The bank closed the financial year 2017 confirming a strong financial and operational position locally and regionally. Burgan Bank's solid performance is a direct result of the resilient business model and focused execution.

Shafafiya forum

Following the Annual General Assembly Meetings, Burgan Bank held its annual Shafafiya forum which serves as a platform for the bank's management to present the main events for 2017 to shareholders.

During Shafafiya, The Group Chief Executive Officer, highlighted to the shareholders and analyzed the set of results for the period ending in 31st December 2017 which reflected Burgan Bank's continuous focus on maximizing returns for shareholders, delivering high quality earnings, improving operating efficiencies, and to further improve asset quality and risk profile. Reported net income for the year 2017 reached KD 65.2 million ($214.9 million). Earnings per share reached 25.4 fils.

On underlying bases, Burgan Bank net income (excluding precautionary provisions and after AT1 cost) reached KD 76.2 million ($251.4 million) and return on tangible equity (ROTE) reached 12.5 percent for full year 2017.

In 2017, Operating income grew by 2 percent year- on- year to reach KD 239.4 million ($789.8 million). Operating efficiency continued to improve with operating expense declining by 4 percent to reach KD 109.2 million ($360.2 million). The high quality earnings clubbed with across the board efficiencies, enabled the bank to grew its operating profit by 8 percent year-on- year to reach KD 130.2 million ($429.5 million). Asset quality registered significant improvement with Non-performing loans (NPL) ratio declined to reach 2.7 percent with Coverage ratio of 155 percent and a lower cost of credit that reached 0.9 percent.

All the group's subsidiaries in Kuwait, Turkey, Algeria, Iraq and Tunis are growing, profitable and well capitalized. International Operations are contributing 45 percent of the Group's operating income.

The Shafafiya Forum is an annual event that is held amongst Kuwait Projects Company's (KIPCO) subsidiaries, and reflects a strong corporate governance and investor relations practices, which promotes corporate fairness, transparency and accountability. The forum provides an ideal platform to discuss financial reports and outlook as well as market predictions openly with shareholders.