Burgan Bank Reports Record Profits of KD 82.6mn in FY 2018, Growth of 26.6%
Kuwait, 20 February 2019: Burgan Bank Group (Burgan) reported its financial results for Fiscal Year 2018 with strong growth of 10.8% in its Revenue to KD 265.3 mn (USD 878.1mn). Burgans Net Income grew strongly by 26.6% from KD 65.2mn (USD 214.9 mn) in FY17 to KD 82.6mn (USD 273.5 mn) in FY18.
These strong results reaffirm Burgans focus on generating shareholders returns through optimal use of its resources. FY18 Earnings per Share (EPS) grew by 28.1% to 31 fils with Return on Shareholders Equity (RoE) growing from 8.3% (FY17) to 10.7% (FY18).
Burgans Board of Directors has proposed cash dividend of 12 fils per share and 5% bonus shares, subject to shareholders approval at Burgans Annual General Meeting.
Burgans strong FY18 performance is also reflected in the continued improvement of its core business metrics; Net Interest Margin (NIM) increased from 2.6% (FY17) to 2.9% (FY18) and Cost-to-Income Ratio (CIR) improved from 45.6% (FY17) to 42.1% (FY18).
Prudent risk management continues to be a key focus area for the Bank. In spite of the challenging environment in certain geographies, Burgans asset quality continues to be stable with FY18 Non-Performing Loans Ratio at 2.7%, while the Coverage Ratio further strengthened from 155% (FY17) to 168% (FY18).
Burgans regulatory capital ratios are stronger in FY18 with the Common Equity Tier 1 (CET1) ratio rising from 10.9% (FY17) to 11.9% (FY18) and Capital Adequacy Ratio (CAR) improving from 16.2% (FY17) to 17.4% (FY18), well above the minimum required CAR of 14%.
Mr. Majed Essa Al Ajeel, Chairman of Burgan Bank Group said: Burgans record profits in 2018 were achieved through leveraging its operating capabilities and through tactical optimization of resources. Our prudent approach allowed the Group to maneuver through the changing operating environments while maintaining its progress on key initiatives related to improving capitalization, risk profile and operating efficiencies. All our subsidiaries are on a trajectory with international operations contributing 43.5% of the Groups operating income.
