Burgan Bank Q1 revenue up 10% to $171 million

Kuwait – Burgan Bank, a leading bank in Kuwait, recorded revenue of KD52.6 million ($171.7 million) for the first quarter (Q1) of the year, up by 10% from KD 47.8 million in Q1 2021.

Growth was driven by net interest income of KD 31.9 million, up 22% year-on-year (y-o-y) from KD 26.1 million in Q1′ 21.

Net interest margins improved to 2.1% in Q1 22 from 1.7% in Q1 21 (up 30bps year-on-year), mainly due to lower cost of funds. The bank also achieved strong operating profit of KD 30.2 million in Q1’22, up 11% from KD 27.2 million in Q1’21. As a result, the Q1’22 net result reached KD 12.1 million, which is 140% higher than the Q1’21 net result which amounted to KD 5.1 million.

Burgan’s loans and advances reached KD 4.3 billion (up 2% YoY) and its customer deposit balance increased to KD 4.4 billion (up 7% YoY). ). The Bank’s loans increased by 2% and the deposit base by 7%. Burgan’s capital and liquidity profile remained strong.

In Q1 22, Burgan launched its new Kanz draw account as part of its retail transformation strategy, with exciting prizes exceeding KD 2.3 million in monthly, quarterly, semi-annual and monthly draws. annual. The Bank also continued its progress towards digitization with the launch of the Cash Management Solution (CMS) online platform for businesses and the introduction of the Personal Finance Manager (PFM) tool on the application for individual customers.

Majed Essa Al Ajeel, Chairman of Burgan Bank Group, underlined that the upward trajectory of all key financial indicators reflects the strength of Burgan’s core strategy and the effectiveness of its efforts focused on sustainability, digitalization and development. human capital.

Al Ajeel added: “In the wake of such a prolonged period of economic instability and uncertainty, the achievement of such strong financial results indicates that we have successfully mitigated the challenges and put ourselves firmly on the path to recovery. sustainable growth.

“This positive performance is attributable to our targeted growth plans to deliver an elevated banking experience through best-in-class modern banking solutions. That’s why we continue to invest heavily in accelerating digitalization across all of the bank’s businesses and operations and in strengthening our technology infrastructure.

Al Ajeel also highlighted the Bank’s continued commitment to its Environmental, Social and Governance (ESG) strategic initiative, adding, “Burgan’s ESG framework has been embedded into our organizational fabric through business practices and choices and integrated into 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 MJ Hayat, Vice President and Group Chief Executive of Burgan Bank, pointed out that the Bank’s strong financial performance so far in 2022 reflects its solid financial core and the stable quality of its assets.

He added: “Our innovation-driven approach to development balances caution and prudence with innovation and progression to deliver an elevated banking experience while preserving our fiscal health. We are engaged in a long-term transformation process. term, as we continue to actively improve and elevate our offering.

“This involves rethinking the entire customer journey at every touchpoint and making a major investment in our digital and fintech operations, delivering smart, tailored solutions that meet our customers’ needs.”

The consolidated financial statements of Burgan Bank include the results of the Group’s operations in Kuwait, as well as its share of the results of its subsidiaries, Burgan Bank Turkey, Gulf Bank Algeria, Bank of Baghdad and Tunis International Bank. Thanks to this regional reach, Burgan Bank has one of the largest regional branch networks with 162 branches in Kuwait, Turkey, Algeria, Iraq, Tunisia, Lebanon and a representative office in the United Arab Emirates.

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