Kuwait-based Burgan Bank Group has registered a 24 per cent jump in its net income for the first half of 2017 which soared to KD39 million ($128 million) from last year's KD31.4 million ($103.5 million).

Announcing the earnings for the first six months, Burgan said the selective and prudent growth approach amid regional operating environment complexities, continues to yield good results, and reflects solid operating capabilities and efficiencies.

Underlying net income (excluding precautionary reserves and after AT1 cost) grew by 14 per cent reaching KD41.4 million ($135.9 million).

During the first half, loans and advances grew by 4 per cent to reach KD4.4 billion ($14.6 billion). Customers deposits grew by 5 per cent to reach KD3.9 billion ($13 billion).

NPA Ratio net of collateral stands at 1 per cent while Coverage ratio net of collateral stands at 390 per cent. Capital adequacy ratio stands at 16.3 per cent as of June 30, 2017.

Majed Essa Al Ajeel, the chairman of Burgan Bank Group, said: "The healthy trends almost on all indicators continue to be demonstrated with the delivery of this good set of results."

"International Operations are now contributing 43 per cent of the Group’s operating income which grew by 8 per cent year on year to reach KD122.7 million ($403.2 million), confirming once again, that Burgan Bank Group is the most diversified commercial bank in the sector," he stated.

According to him, 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.

"The strength of our operating capabilities is yielding strong performance that was evident during the second quarter," explained Al Ajeel.

Burgan recorded an underlying net income (excluding precautionary reserves & after AT1 cost) of KD23.3 million ($76.7 million) in the second quarter, and enabled the bank to accelerate comfortably the bookings of KD5 million in precautionary reserves and KD8.5 million investments provisions for some available for sale (AFS) securities, and still achieving a net income as reported of KD21.1 million.     

“Our leading financial indicators continue to point to the right direction both in Kuwait and international operations. I remain confident and optimistic of the group’s strong performance going forward," he added.

Burgan Bank Group has one of the largest regional branch networks with more than 180 branches across Kuwait, Turkey, Algeria, Iraq, Tunis, Lebanon and representative offices in Dubai.-TradeArabia News Service