Kuwai-based Burgan Bank Group has announced that it achieved a net profit of KD17.6 million ($62 million) during the first nine months of 2013.

Operating income surged to KD187.3 million registering a growth of 35 per cent compared to the same period last year, while operating profits before provisions soared to register KD105.4 million reflecting a growth of 21 per cent.

The solid consistent growth over the past quarters clubbed with the positive leading indicators, enabled the bank to accelerate the reserves build up. Reserves booked in the third quarter 2013 reached KD31.3 million by which KD26 million as general reserves and KD5.3 million as specific reserves.

During the third quarter of 2013, Burgan Bank Group achieved an annualized growth of 17 per cent in loans and advances as well as a 20 per cent increase in customers’ deposits, reflecting the bank’s achievement to previously announced plan of gaining market share in the core market, together with building strong stream of earnings from International operations.

Burgan Bank Group’s international operations continue to register a year–on–year profitability and increased contribution to Group’s revenue to reach 53.6 per cent reflecting the soundness of the diversification strategy into high growth markets.

Majed Essa Al Ajeel, chairman of Burgan Bank Group said: "Once again, the prudent execution of the group strategy yielded good underlying performance. The strong underlying performance is enabling us to parapet reserves to further enhance our asset quality which is a step that is highly encouraged by the Central Bank of Kuwait. Total loan loss reserves reached KD238.3 million with a coverage ratio (net of collateral) of 254 per cent.”

“Our leading financial indicators continue to point to the right direction, and once again, we are optimistic about our performance going forward,” he added.

"On behalf of the board, I take this opportunity to thank our customers and shareholders for their confidence in our capabilities. I would also like to thank our executive management team for their leadership and the excellent execution of the corporate strategy, and to our staff for their continued support and commitment," concluded Al Ajeel.

The consolidated financials encompass the results of the Group’s operations in Kuwait, and its share from its regional subsidiaries, namely Jordan Kuwait Bank, Gulf Bank Algeria, Burgan Bank – Turkey, Bank of Baghdad and Tunis International Bank. – TradeArabia News Service