Burgan Bank reports KD 195 millionin revenue for first 9 months of 2023
KUWAIT: Burgan Bank (“Burgan” or “the Bank”) announced its financial results for the nine-month period ending Sept 30, 2023 (9M’23). The Bank reported KD 195 million in revenue for 9M’23, marking a 17 percent year-on-year (y-o-y) growth compared to KD 166 million during the same period in 2022.
Higher revenues were driven by strong increase in non-interest income of KD 104 million.
Burgan Bank also announced a 21 percent y-o-y increase in its Operating Profit, reporting KD 109 million in 9M’23, against KD 90 million for the corresponding period in 2022. This growth reflects the Bank’s improving operating efficiencies despite its investments in digital and technology infrastructure. The Bank’s 9M’23 Cost-to-Income ratio improved to 43.8 percent from 45.5 percent in the previous comparative period. Meanwhile, the Bank’s Cost of Credit (net of one-off recoveries) for the nine-month period in 2023 reduced to 20 bps, a marked improvement compared to 40 bps in 9M’22. Burgan Bank generated a Net Income of KD 30 million, compared to KD 41 million reported in the same period of 2022. This decrease is primarily attributed to the impact of its Turkish subsidiary’s hyperinflation-related monetary loss.
Burgan continued to maintain its stable asset quality during the first nine months in 2023 with a Non-performing Loan (NPL) ratio of 2 percent. The Bank’s capital and liquidity metrics also continued to be healthy in the same period.
Commenting on Burgan’s financial results, the Bank’s Chairman, Sheikh Abdullah Nasser Al-Sabah, said: “Burgan Bank is currently on a new, revitalized path towards progress and evolution, following the adoption of an expansive strategic transformation plan that has been initiated and approved by our Board of Directors. This transformation roadmap – which was developed collaboratively between our leadership team and our strategic consultancy partner, Oliver Wyman – seeks to build on our solid foundations, strengthened over the course of our five-decade-long history; to ensure we remain a modern, dynamic, and digitally smart Bank offering an elevated experience and tailored solutions.”
Sheikh Abdullah Nasser Al-Sabah.
He added: “As a group, Burgan has long had a strong regional presence, but today we are focused primarily on strengthening our Kuwait business with several key objectives in mind. This includes expanding our retail market share; re-assessing and optimizing certain aspects of our overall operations; and reallocating assets in line with the core business goals. With a new vision and mission in place, our team is embarking on an exciting journey of change and development.”
As a core part of its strategy, Burgan remains focused first and foremost on its long-term investment in its human capital, with a commitment towards attracting, retaining, and promoting top national talent. Accordingly, the Bank rolled out an exhaustive organizational restructuring exercise across the entire organization, including a number of strategic appointments and promotions at the leadership level. Additionally, as a certified Great Place to Work organized employer on the Best Workplaces in Kuwait and Best Workplaces in Asia lists, Burgan Bank continues to dedicate a tremendous number of resources towards the growth and development of its staff, continuing to position itself as an employer of choice for all aspiring and seasoned Kuwaiti bankers.
On the other hand, one of the biggest milestones of the Bank’s recent change efforts include the creation of the Transformation Unit, which has been positioned as a central driver of the entire transformation plan. The unit will play a pivotal role in helping the Bank achieve its strategic goals by monitoring the progress of the approved plan, ensuring timely execution, and providing periodic reporting to the board regarding transformational initiatives.
The Bank also continued to propel its efforts to enhance and develop its banking experience for all segments of customers. In line with its continued efforts to remain at the forefront of the digital transformation of Kuwait’s banking sector, Burgan Bank recently launched Tijarati Pay, a new and unique enhancement to its market-leading small and medium-sized enterprise (SME) platform, Tijarati. The Bank’s one-of-a-kind offering to local businesses, especially entrepreneurs and SMEs, is the first of its kind in the region, and it integrates multiple aspects of payment collection and monitoring, thereby transforming how merchants manage their finances.
“We continue to pursue constant dynamic change with focused development and growth across our business and operations. This includes continuing to grow our segment base; serving retail, corporate, and SME clients with a diversified product portfolio, a constantly evolving offering of modern financial solutions, and a next-level, customized level of service,” added Chairman Al-Sabah.
The chairman concluded his statement by thanking Burgan Bank’s Board of Directors, Executive Management, shareholders, customers, and all employees across every department for their dedication, loyalty, and notable contributions to the Bank. He also affirmed Burgan’s commitment to the sustainable development of its business operations across all departments with a sharpened focus on environment, social, and governance (ESG).
It serves to note that the consolidated financials for Burgan include the results of the Group’s operations in Kuwait, as well as its share of results from its subsidiaries, namely: Burgan Bank Turkey, Gulf Bank Algeria, and Tunis International Bank. Through this regional reach, Burgan Bank has one of the largest regional branch networks across Kuwait, Turkey, Algeria, Tunisia and a representative office in the United Arab Emirates.
