Burgan Bank Group announced yesterday its first half earnings for the financial year 2018 reporting KD 50.5 million ($168 million) with a growth of 30 percent. During the second quarter the Bank registered KD 30.1 million ($100 million) growing 43 percent in comparison to the same period last year. The set of results for the period ending in 30th June 2018 demonstrated solid operating capabilities and efficiencies. Earnings per share grew for the first half by 34 percent year-on-year reaching 20 fils, and achieving return on tangible equity (ROTE) of 14.7 percent for the same period.
During the first half of 2018 and compared with the same period of 2017, operating income grew by 13 percent to reach KD 139.2million ($462 million). Asset quality measured by the Non-performing loans (NPL) to gross loans ratio, was significantly enhanced when compared to the same period in 2017, with NPL to gross loans ratio declining from 4.3 percent to 2.8 percent while NPL coverage ratio reached 168.5 percent.
Majed Essa Al-Ajeel, Chairman of Burgan Bank Group said: “We are very pleased with the overall performance of Burgan Bank Group. Our strategy continues to deliver, our business model is solid, and our execution and deliverables are well ahead of expectations.”
“We trust our operating capabilities. Our domestic and international Banking arms are delivering and we are reaping the diversification benefits with our international operations contributing 42 percent thus diversifying risk, enhancing our revenue stream composition, and grasping the opportunity to benefit from operating higher growth markets. Our business pipeline remains strong with a focus on prudence and selective growth,” added Al-Ajeel.
“On behalf of the board, I take this opportunity to thank our customers and shareholders for their confidence in our capabilities. 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 169 branches across Kuwait, Turkey, Algeria, Iraq, Tunis, Lebanon and representative office in Dubai-United Arab Emirates.
