Eguren: We are not anticipating any major impact
KUWAIT: Burgan Bank Group commented yesterday, in light of the current situation in Turkey, that Burgan Bank A S – Turkey has not had any major impact on its profitability in its operations as a result. It stated that its strategic decision to fully hedge its investment in the Turkish subsidiary’s capital has protected it from currency fluctuations in the Turkish Lira. Burgan Bank AS – Turkey is currently running in business as usual mode with no interruptions.
Eduardo Eguren, Group Chief Executive Officer commented: “at present, we are not anticipating any major impact. We are prudent in our risk model and have enjoyed lower than market averages of non-performing loan ratios in Turkey being very selective in the credit front and minimizing our exposure to customers with high leverage or aggressive speculative positions.”
“We have healthy margins and our liquidity is at sound levels and with no material FX positions in Turkey, the Bank is set to navigate well through the turbulences. Our business model is solid and well prepared to handle volatility if it persists. We are in Turkey for the long run,” added Eguren
The pre-emptive approach of hedging Burgan Bank Group’s investment in the capital of Burgan Bank A. S. – Turkey’s was taken in 2015 with the aim of minimizing geo-political and economic turbulence; a move which has enabled the Bank to confront volatility unharmed over the last few years. At this point, Burgan Bank A. S. – Turkey is well-poised to face volatility, to support customers, and to remain competitive in the long run.
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. The adoption of state-of-the-art services and technology has positioned it as a trendsetter in the domestic market and within the MENA region. Burgan Bank’s brand has been created on a foundation of real values – of trust, commitment, excellence and progression, to remind us of the high standards to which we aspire. ‘People come first’ is the foundation on which its products and services are developed.