Group announces earnings for Q1 2017

Majed Essa Al Ajeel, Chairman of Burgan Bank Group.

KUWAIT: Burgan Bank Group announced yesterday its first quarter earnings of financial year 2017. The selective growth approach clubbed with the focus on operating efficiencies enabled earnings strength to continue at both top line & bottom line levels, amid regional operating environment complexities. Reported net income grew by 25 percent reaching KD17.8 million ($58.4 million) from KD14.3 million reported in first quarter last year. Underlying net income (excluding precautionary reserves & after AT1 cost) grew by 8 percent reaching KD18.1 million ($59.3 million). Compared to the same period last year, loans and advances grew by 3 percent to reach KD4.3 billion ($14.1 billion) while deposits grew by 1 percent to reach KD3.9 billion ($12.9 billion). Capital adequacy ratio under Basel III stands at 16.5 percent as of March 31, 2017.

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 percent 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. Majed Essa Al-Ajeel also said: "Our leading financial indicators continue to point to the right direction both in Kuwait and international operations. I remain confident and optimistic of the group's strong performance going forward.

"On behalf of the board, I take this opportunity to thank our customers and shareholders for their confidence in our capabilities and our regulators; the Central Bank of Kuwait, for their support. 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 more than 180 branches across Kuwait, Turkey, Algeria, Iraq, Tunis, Lebanon and representative offices in Dubai-United Arab Emirates