Burgan Bank Group announces KD 31.4 mln profit for H1 2016

KUWAIT, Aug 2 (KUNA) -- Burgan Bank Group announced, Tuesday, net income of KD 17.1 million for the second quarter hence KD 31.4 million for the first half of 2016. Earnings per share for the first half of the financial year 2016 stood at 12.8 Fils.
Burgan Bank Group continues to register consistent growth in its leading indicators manifested by a solid growth in balance sheet and improved asset quality. Loans and advances grew by 8% reaching KD 4.3 billion while customers deposits grew by 5% reaching 4.1 billion.
Non-performing Assets ratio net of collateral drops to 1% with coverage ratio net of collaterals reaching 443%. Basel 3 Capital Adequacy Ratio stands at 16% at the end of June 30, 2016.
Majed Essa Al-Ajeel, Chairman of Burgan Bank Group said: "Burgan Bank Group continues to navigate smartly amid the evident high economic and geopolitical volatilities thanks to the risk-savvy model we have managed to build through the previous years and the prudent actions that were taken by the management." "The first six months of 2016 reported net income of KD 31.4 million also reflects solid performance when normalized for a like-to-like comparison (eliminating non-repetitive items) especially after the sale of Jordan Kuwait Bank for more efficient allocation of capital and for continuous growth. Therefore, Normalized net income mirrors 23% growth from the first half of 2015. A very solid true performance and growth despite the sale of Jordan Kuwait Bank and amid such volatilities. The leading indicators are pointing north." commented Mr. Al-Ajeel. "We started 2016 which can be classified as not ordinary year in terms of volatility with a prudent outlook. Nevertheless, we have managed to report good set of results in the first quarter with net income of KD14.3 million despite taking KD5 million in precautionary reserves. And once again, we report in the second quarter a good set of results with net income of KD17.1 million reflecting 20% growth from the first quarter despite also taking KD5 million in precautionary reserves. The true solid performance is allowing us to take almost 17% of our earnings as precautionary reserves and out of prudence amid such economic backdrop," he added.
"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 Ba 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. Established in 1977, Burgan Bank is the youngest commercial Bank and second largest by assets in Kuwait, with a significant focus on the corporate and financial institutions sectors, as well as having a growing retail, and private bank customer base. Burgan Bank has majority owned subsidiaries in the MENAT region supported by one of the largest regional branch networks.
The Bank has continuously improved its performance over the years through an expanded revenue structure, diversified funding sources, and a strong capital base. (end) nfk.nfm