Burgan Bank Holds Annual General Assembly Meeting and 2018 Shafafiyah Forum

Press release

Published March 28th, 2018 - 11:27 GMT

The bank closed the financial year 2017 confirming a strong financial and operational position locally and regionally.

Burgan Bank held its Ordinary and Extraordinary General Assembly meeting and Al Shafafiya Investors forum yesterday at the KIPCO Tower, wherein the Board of Directors presented the bank’s financial earnings report for the year ended December 31, 2017 and agreed to pay a cash dividend of 7% and 5% in bonus shares.

The bank closed the financial year 2017 confirming a strong financial and operational position locally and regionally. Burgan Bank’s solid performance is a direct result of the resilient business model and focused execution.

Shafafiya forum

Following the Annual General Assembly Meetings, Burgan Bank held its annual Shafafiya forum which serves as a platform for the bank’s management to present the main events for 2017 to shareholders.

During Shafafiya, The Group Chief Executive Officer, highlighted to the shareholders and analyzed the set of results for the period ending in 31st December 2017 which reflected Burgan Bank’s continuous focus on maximizing returns for shareholders, delivering high quality earnings, improving operating efficiencies, and to further improve asset quality and risk profile. Reported net income for the year 2017 reached KD65.2 million (USD214.9 million). Earnings per share reached 25.4 fils.

On underlying bases, Burgan Bank net income (excluding precautionary provisions & after AT1 cost) reached KD76.2 million (USD251.4 million) and return on tangible equity (ROTE) reached 12.5% for full year 2017.

In 2017, Operating income grew by 2% year- on- year to reach KD239.4 million (USD789.8 million). Operating efficiency continued to improve with operating expense declining by 4% to reach KD109.2 million (USD360.2 million). The high quality earnings clubbed with across the board efficiencies, enabled the bank to grew its operating profit by 8% year-on- year to reach KD130.2 million (USD429.5 million). Asset quality registered significant improvement with Non-performing loans (NPL) ratio declined to reach 2.7% with Coverage ratio of 155% and a lower cost of credit that reached 0.9%.

All the group’s subsidiaries in Kuwait, Turkey, Algeria, Iraq & Tunis are growing, profitable and well capitalized. International Operations are contributing 45% of the Group’s operating income.

The Shafafiya Forum is an annual event that is held amongst Kuwait Projects Company’s (KIPCO) subsidiaries, and reflects a strong corporate governance and investor relations practices, 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.

Background Information

Burgan Bank

Established in 1977, Burgan Bank is the youngest conventional 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. which include Gulf Bank Algeria - AGB (Algeria), Bank of Baghdad - BOB (Iraq & Lebanon),Tunis International Bank – TIB (Tunisia), and fully owned Burgan Bank – Turkey, (collectively known as the “Burgan Bank Group”). Furthermore, Burgan Bank has a present in the UAE through its corporate office (“Burgan Financial Services Limited) which had helped the bank to participate in multiple financing opportunities in the UAE.