KUWAIT, Feb 14 (KUNA) -- Burgan Bank Group announced on Wednesday its full year 2017 earnings. The set of results for the period ending in 31st December 2017 reflected Burgan Bank's continuous focus on maximizing returns for shareholders, delivering high quality earnings, operating efficiencies, and to further improve asset quality and risk profile.
Reported net income for the year 2017 reached KD65.2 million (USD214.9 million). Earnings per share reached 25.4 fils.
On underlying bases, Burgan Bank net income (excluding precautionary provisions & after AT1 cost) reached KD76.2 million (USD251.4 million) and return on tangible equity (ROTE) reached 12.5% for full year 2017.
The Board of Directors recommends a pay-out of 7% in cash dividends and 5% in bonus shares.
In 2017, Operating income grew by 2% year- on- year to reach KD239.4 million (USD789.8 million). Operating efficiency continued to improve with operating expense declining by 4% to reach KD109.2 million (USD360.2 million).
The high quality earnings clubbed with across the board efficiencies, enabled the bank to grew its operating profit by 8% year-on- year to reach KD130.2 million (USD429.5 million).
Asset quality registered significant improvement with Non-performing loans (NPL) ratio declined to reach 2.7% with Coverage ratio of 155% and a lower cost of credit that reached 0.9%.
During the same period, loans and advances grew by 4.3% year on year to reach KD4.4 billion (USD14.6 billion) and customers deposits grew by 11% to reach KD4.2 billion (USD13.8 billion).
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% while reducing risk weighted assets (RWAs) - after excluding real estate collateral phase out impact. Asset quality improved significantly as NPL ratio reached 2.7% for the group and 1.8% for Kuwait operations stand alone.
Group Capital Adequacy ratio stands at 16.2% 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 2017 with less dependency on one-offs." Continued Mr. Al-Ajeel.
"All our subsidiaries are growing, profitable and well capitalized. International Operations continued to grow and now contributing 45% of the Group's operating income. Burgan Bank Group's key financial indicators continue to point in the right direction," he added. (end)