Kuwait – Burgan Bank, a leading bank in Kuwait, has reported KD52.6 million ($171.7 million) in revenue for the first quartern (Q1) for the year, up 10% from KD47.8 million in Q1 of 2021.
The growth was driven by the net interest income of KD31.9 million, up 22% year-on-year (y-o-y) as compared to KD26.1 million in Q1’21.
Net interest margins improved to 2.1% in Q1’22 as compared to 1.7% reported in Q1’21 (up 30bps y-o-y) largely driven by lower cost of funds. The bank also delivered robust operating profits of KD30.2 million in Q1’22, up 11% from KD27.2 million in Q1’21. As a result, Q1’22 Net Income grew to KD12.1 million – 140% higher than Q1’21 Net Income that amounted to KD5.1 million.
Burgan’s loans and advances grew to KD4.3bn (up 2% y-o-y) and its customer deposit balance increased to KD4.4bn (up 7% y-o-y). The Bank’s loans went up by 2% and the deposit base grew by 7%. Burgan’s capital and liquidity profile remained solid.
During Q1’22, Burgan launched its new Kanz draw account as part of its retail transformation strategy, with exciting prizes exceeding KD2.3 million in the monthly, quarterly, semi-annual, and annual draws. The Bank also continued to progress on its digitalization journey with the launch of the Cash Management Solution (CMS) Online Platform for corporate customers and the introduction of the Personal Finance Manager Tool (PFM) on the App for retail customers.
Majed Essa Al Ajeel, Chairman of Burgan Bank Group, pointed out that the upwards trajectory across all key financial indicators reflects the soundness of Burgan’s core strategy and the effectiveness of its endeavours focused on sustainability, digitalization and human capital development.
Al Ajeel added: “On the heels of such a prolonged period of economic instability and uncertainty, achieving such robust financial results indicates that we have successfully mitigated the challenges and set ourselves firmly on the path for sustainable growth.
“This positive performance is attributable to our focused growth plans aimed at delivering an elevated banking experience driven by first-class modern banking solutions. That is why we continue to invest heavily in accelerating digitalization across the bank’s activities and operations and bolstering our technological infrastructure.”
Al Ajeel also stressed the Bank’s continued commitment to its strategic Environmental, Social and Governance (ESG) initiative, adding: “Burgan’s ESG framework has been embedded into our organizational fabric across the business practices and choices and integrated in our long-term transformation journey. We will continue to conduct our business responsibly and ethically to amplify our positive impact on our community and environment.”
Masoud M J Hayat, Vice Chairman and Group CEO of Burgan Bank, pointed out that the Bank’s strong financial performance so far in 2022 is reflective of its well-grounded financial core and stable assets quality.
He added: “Our innovation-focused approach to development balances prudence and caution with innovation and progression to deliver an elevated banking experience whilst safeguarding our fiscal health. We are on a long-term journey of transformation, as we continue to actively enhance and elevate our offering.
“That includes rethinking the entire customer journey across every touch point and making a major investment in our digital and fintech operations, delivering intelligent, bespoke solutions that cater to the needs of our customers.”
The consolidated financials for Burgan Bank include the results of the Group’s operations in Kuwait, as well as its share of results from its subsidiaries, Burgan Bank Turkey, Gulf Bank Algeria, Bank of Baghdad and Tunis International Bank. Through this regional reach, Burgan Bank has one of the largest regional branch networks with 162 branches across Kuwait, Turkey, Algeria, Iraq, Tunisia, Lebanon and a representative office in the UAE.
Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).