Burgan Bank Held its Annual General Assembly Meeting and Shafafiya Investors Forum

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Burgan Bank Held its Annual General Assembly Meeting and Shafafiya Investors Forum

Burgan Bank held its annual general assembly meeting and Al Shafafiya Investors forum at the Burgan Bank Tower on 22 March 2015.

General Assembly
During the general assembly meeting, the Banks board members presented the Banks financial earnings report for the year ended December 31, 2014 and agreed to a pay of 15% cash dividends while also distributing bonus shares of 5% to registered shareholders.

Shafafiya forum
Following the Annual General Assembly Meetings, Burgan Bank held its annual Shafafiya forum which serves as a platform for the banks management to present the main events for 2014 as well as its outlook for 2015 to shareholders, partners, as well as institutional investors.

The strong operating performance during the financial year 2014 delivered a faster than market growth almost on all indicators. Compared to last year, Operating income grew by 9% from KD253.6 million to KD 275.7 million while Operating Profits before provisions soared to register KD 153.5 million also reflecting a growth of 9%. The Groups net profit for the year 2014 reported at KD 61.8 million while earning per share (EPS) reported at 37.6 Fils.

Burgan Banks Chairman, Mr. Majed Essa Al-Ajeel said: In 2014, Burgan Bank Group has managed to achieve another year of solid financial performance. Sustainable growth inertia and diversification of revenue streams are the main characteristics that describe the Groups performance. We definitely generated returns for all our stakeholders: shareholders, customers, employees and communities.

During 2014 the Group implemented an optimized new capital plan that puts the Group in compliance with Basel III requirements and to support its further growth plan. The plan included the issuance of AT1 bonds in 3Q-2014 -the first of its kind in Kuwait and worth USD500 million; closed through a robust demand from local and international investors which reflected their trust in the Groups performance and prospects, added Mr. Al-Ajeel.

In addition to the AT1bond issuance, Burgan Bank Group has successfully raised capital through a rights issue with the total proceeds of KD102.6 million. The Group has adequate and efficient capitalization levels combined with improved asset quality and liquidity and the risk to return architecture has played an efficient role in managing and shaping its growth; its balance sheet remains healthy with sound liquidity levels at 30% and with Capital Adequacy ratio at 13.5% as the end of December 31, 2014. ,he said.

Burgan Banks Group Chief Executive Officer Mr. Eduardo Eguren said, On a Group level, 2014 can be described as a year of optimization and alignment to new regulations. The group continued to reap the benefits of its resilient business model, its performance culture and its focused execution. Our core strategy has not changed throughout the year; we have managed to expand on calculated growth plans, adapt to change, remain resilient to a less favorable operating environment and markets volatility, and to deliver; our promises of growing our market share in the core market with profitability, revamping our retail bank, growing our cross business origination and build capabilities have been met.

The Shafafiya Forum is an annual event that is held amongst Kuwait Projects Companys (KIPCO) subsidiaries, and reflects a strong corporate governance practice, which promotes corporate fairness, transparency and accountability. The forum provides an ideal platform to discuss financial reports and outlook as well as market predictions openly with shareholders.