Burgan Bank 2017 income tops $214m

15/02/2018 05:28 AST

Kuwait-based Burgan Bank has posted a net income of KD65.2million ($214.9 million) for the year 2017. Earnings per share reached 25.4 fils.

On underlying bases, net income (excluding precautionary provisions& after AT1 cost) reached KD76.2 million ($251.4 million) and return on tangible equity (ROTE) reached 12.5 per cent for full year 2017.

The Board of Directors has recommended a pay-out of 7 per cent in cash dividends and 5 per cent in bonus shares.

In 2017, operating income grew by 2 per cent year- on- year to reach KD239.4 million ($789.8 million). Operating efficiency continued to improve with operating expense declining by 4 per cent to reach KD109.2 million ($360.2 million).

The high quality earnings clubbed with across the board efficiencies, enabled the bank to grow its operating profit by 8 per cent year-on- year to reach KD130.2 million ($429.5 million). Asset quality registered significant improvement with Non-performing loans (NPL) ratio declined to reach 2.7 per cent with Coverage ratio of 155 per cent and a lower cost of credit that reached 0.9 per cent.

During the same period, loans and advances grew by 4.3 per cent year on year to reach KD4.4 billion ($14.6billion) and customers deposits grew by 11 per cent to reach KD4.2 billion ($13.8billion).

Majed Essa Al Ajeel, chairman of Burgan Bank Group said: "the executive management team has made significant progress on key initiatives to improve the bank capital utilization, risk profile and operating efficiencies amid challenging operating environment.

"The bank managed to grow loans year-on- year by 4.3 per cent while reducing risk weighted assets (RWAs) - after excluding real estate collateral phase out impact. Asset quality improved significantly as NPL ratio reached 2.7 per cent for the group and 1.8 per cent for Kuwait operations stand alone. Group Capital Adequacy ratio stands at 16.2 per cent as of December 31, 2017. Also, the bank has invested heavily in its control areas to further strengthened it risk management capabilities.

"The strength of our operating capabilities is yielding good performance reflected in the high quality earnings in 2017with less dependency on one-offs.

"All our subsidiaries are growing, profitable and well capitalized. International Operations continued to grow and now contributing 45 per cent of the Group's operating income. Burgan Bank Group's key financial indicators continue to point in the right direction," 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, Tunis International Bank. Burgan Bank Group has one of the largest regional branch networks with more than 170branches across Kuwait, Turkey, Algeria, Iraq, Tunis, Lebanon and representative office in Dubai-United Arab Emirates.

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