Burgan, a leading bank in Kuwait has announced that its revenue for the nine-month period ended September 30, 2022, rose to KD166 million ($533.2 million), driven mainly by a net interest income growth of 12.8% year-on-year.

The increase in net interest income came as a result of a 20bps improvement in the Net Interest Margins, which grew to 2.3%. Operating expenses came in marginally higher at KD75.5 million compared to the same period of 2021, due to the current inflationary environment.

On the other hand, Burgan’s provision charges decreased significantly from KD47.2 million over the first nine months in 2021, to KD13.4 million in the first nine months of 2022, marking an improvement of 71.6%.

Consequently, the cost of credit went down from 1.4% in the first nine months to 0.4% for the same period in 2022. As a result, Burgan’s net income improved to KD41.2 million for the nine-month period in 2022, as compared to KD40.3 million in the same period in 2021.

The bank’s asset quality remained steady with a 2.6% Non-Performing Loan (NPL) ratio and an NPL Coverage ratio of 233.2%. Burgan’s Capital Ratios for the first nine months of 2022 remained well above the required regulatory ratios.

The Common Equity Tier 1 ratio of 11% and its Capital Adequacy Ratio of 17.3% are healthy and higher than the regulatory minimum ratios of 9% and 12.5% respectively.

The bank delivered a stable performance across key indicators for Q3 2022, with KD 55.6 million in Revenues, KD 29.1 million in Operating Profits and KD 14 million in Net Income.

On Burgan’s overall solid performance, Chairman Sheikh Abdullah Nasser Sabah Al Ahmad Al Sabah, said steady upward trajectory across key indicators was a testament to the effectiveness of its dynamic business model and focused strategy.

"Burgan Bank’s strategic direction is clear-cut and particular, seeking to consolidate efforts and invest long-term in three core pillars: sustainability, digitalization and human capital development," he stated.

"In this post-pandemic operating environment, we know that economic recovery remains fragile. The landscape may be more favorable and primed for growth, but it also requires a precise strategy that prioritizes stability in the short-term and sustainable innovation in the long-term," noted Al Sabah.

"That is why we remain focused on strengthening our financial core and bolstering our operational infrastructure, ensuring a sustained growth momentum that we can continue to build upon and accelerate in due course," he stated.

Al Sabah said NBB's performance so far this year underscores its ability to leverage the robust asset and capital base.

"It is also a testament to our insightful yet prudent investment decisions, our operational resilience and our impressive pool of talent and expertise. I remain confident that we will keep delivering on the promise and potential of our strategy. That includes service excellence, an elevated banking experience, added value to shareholders and long-term, mutual investment in our people," he stated.

Vice Chairman and Group CEO Masoud M.J. Hayat said the healthy growth registered across key financial performance indicators is attributable to the successful implementation of Burgan’s strategy across all three pillars of its strategy.

"This in large-part includes the substantial efforts undertaken to vitalize the Bank’s offerings and service model, especially the accelerated and successful implementation of Burgan’s digital transformation roadmap, which remains at the heart of its strategy," he added.

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