Operating profit of KD 29.2m with stable cost-to-income ratio of 41.8%
KUWAIT: Burgan Bank Group (Burgan) announced its financial results for the first quarter of 2019. Beginning this year, Burgan has revised its financial statements’ closing process by changing the reporting date of its subsidiaries to one month earlier than the Group’s reporting date.
Accordingly, Burgan’s Q1’19 financial results include only two months’ (January 2019 & February 2019) results of its subsidiaries instead of three months (as included in the prior periods). This change will enable Burgan to accelerate its financial closing process and the required procedures for earliest possible release of the Group’s financial statements to its stakeholders.
Key highlights of Burgan Bank Group’s Q1’19 financial results are as follows:
- Revenue of KD 50.3 million while maintaining healthy Net Interest Margin of 2.7%
- Net income of KD 19.2 million with low Cost of Credit of 0.7%
- CET1 Ratio of 11.8% and CAR of 17.3%, indicating optimal capital levels
Our Kuwait operations, which is the core engine of the Burgan Bank Group, continues to perform strongly as reflected in the below mentioned key business metrics:
- Q1’19 Net Interest Margin of 2.3% (vs Q1’18: 2.3%)
- Q1’19 Cost-to-Income Ratio of 28.4% (vs Q1’18: 36.8%)
- Q1’19 Cost of Credit of 0.4% (vs Q1’18: 0.5%)
- Q1’19 NPL Ratio of 1.8% (vs Q1’18: 1.7%)
These results reflect the stability of the operating business model of Burgan Bank Group despite headwinds in certain markets in the region.
Majed Essa Al-Ajeel, Chairman of Burgan Bank Group said: “the Bank’s business model continues to prove its resilience, while maintaining good progress on key initiatives aimed at mitigating risk, improving operating competences and capitalization levels.”
“On behalf of the board, I take this opportunity to thank our customers and shareholders for the trust they have in our capabilities and our regulator, 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 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 165 branches across Kuwait, Turkey, Algeria, Iraq, Tunis, Lebanon and representative office in Dubai-United Arab Emirates.