Kuwait-based Burgan Bank has reported a net income of KD19.2 million ($63.10 million) for the first quarter of this year.
The bank's revenue for the perid was KD50.3 million ($165.3 million), while it maintained a healthy net interest margin of 2.7 per cent; operating profit was KD29.2 million ($95.9 million) with stable cost-to-income ratio of 41.8 per cent.
The bank has revised its financial statements’ closing process by changing the reporting date of its subsidiaries to one month earlier than the group’s reporting date.
Accordingly, Burgan’s Q1’19 financial results include only two months’ (January and February) results of its subsidiaries instead of three months (as included in the prior periods). This change will enable Burgan to accelerate its financial closing process and the required procedures for earliest possible release of the Group’s financial statements to its stakeholders, said a statement.
The Kuwait operations, which is the core engine of the Burgan Bank Group, continues to perform strongly as reflected in the below mentioned key business metrics:
• Q1 2019 net interest margin of 2.3 per cent (vs Q1 2018: 2.3 per cent);
• Q1 2019 cost-to-income ratio of 28.4 per cent (vs Q1 2018: 36.8 per cent);
• Q1 2019 cost of credit of 0.4 per cent (vs Q1 2018: 0.5 per cent);
• Q1 2019 NPL Ratio of 1.8 per cent (vs Q1 2018: 1.7 per cent).
These results reflect the stability of the operating business model of Burgan Bank Group despite headwinds in certain markets in the region, it said.
Majed Essa Al Ajeel, chairman of Burgan Bank Group, said: “The bank’s business model continues to prove its resilience, while maintaining good progress on key initiatives aimed at mitigating risk, improving operating competences and capitalisation levels.”
“On behalf of the board, I take this opportunity to thank our customers and shareholders for the trust they have in our capabilities and our regulator, the Central Bank of Kuwait, for their support,” he said.
“I would also like to thank our executive management team for their leadership and the excellent execution of the corporate strategy, and our staff for their continued support and commitment,” he added.
The consolidated financials encompass the results of the group’s operations in Kuwait, and its share from its regional subsidiaries, namely Burgan Bank – Turkey, Gulf Bank Algeria, Bank of Baghdad, Tunis International Bank.
Burgan Bank Group has one of the largest regional branch networks with 165 branches across Kuwait, Turkey, Algeria, Iraq, Tunis, Lebanon and representative office in Dubai-UAE, it stated. – TradeArabia News Service