Burgan Bank Group announced today its financial year 2013 results. Compared to the same period last year, operating income grew to KWD 254 million registering a growth of 33 per cent while operating profits before provisions soared to register KWD 141 million reflecting a growth of 18 per cent.
The growth over the past quarters clubbed with the positive leading indicators, enabled the bank to accelerate the reserves build up out of prudence. Reserves outstanding in 2013 reached KWD 232.5 million. The Group's net profit for the year 2013 reported at KWD 20.1 million. The board of directors has recommended a pay-out of 7 fils in cash dividends and 7 per cent in bonus shares.
Loans and advances were up to KWD 3.95 billion while customer's deposits grew to KWD 4.6 billion registering annual growth of 17 per cent & 19 per cent respectively. Net interest income grew by 39 per cent while net fees and commission grew by 17 per cent compared to last year.
Mr. Majed Essa Al Ajeel, Chairman of Burgan Bank Group said: "2013 was a complex year due to the uncertainty that faced the regional operating environment, yet again; every analysis confirms that our underlying performance remains solid and is enabling us to parapet reserves to further enhance our asset quality and build a strong war chest against any surprises. Hence, the decision to book KWD 52.6 million as a precautionary reserves, a step that is highly encouraged by the Central Bank of Kuwait."
"Asset quality improved in 2013. A significant drop registered in non- performing assets to reach 1.6 per cent to gross facilities (net of collaterals) while coverage ratio has increased to reach 256 per cent. Capital adequacy ratio at end of December 2013 reported at 15.4 per cent," added Mr. Al-Ajeel.
Mr. Majed Essa Al-Ajeel also said: "Our leading financial indicators continue to point to the right direction. Our regional operations remain profitable and contributing 54 per cent to the group's revenues. I remain confident and optimistic of the group's strong performance going forward."
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, Tunis International Bank, in which Burgan Bank owns a majority stake. Burgan Bank Group has one of the largest regional branch networks with more than 231 branches across Kuwait, Turkey, Jordan, Algeria, Iraq, Tunis, Lebanon and Palestine.