(MENAFN- Arab Times) KUWAIT CITY Feb 23: Burgan Bank Group announced today its financial year 2014 results. A solid operating & financial performance continues reflecting a faster than market growth almost in all indicators and mirroring the soundness of Burgan Bank''s resilient business model. Compared to the same period last year Operating income grew by 9 percent from KD 253.6 million to KD 275.7 million while Operating Profits before provisions soared to register KD 153.5 million reflecting a growth of 9 percent.Net interest income grew by 12 percent while net fees and commission grew by 9 percent compared to last year. Loans & Advances were up to KD 4.4 billion while customer deposits grew to KD 4.7 billion registering annual growth of 11 percent &1 percent respectively.
The Group''s net profit for the year 2014 reported at KD 61.8 million while earning per share (EPS) is reported at 37.6 fils the second highest bank in Kuwait in Earning per share. The board of directors has recommended a pay-out of 15 fils in cash dividends and 5 percent in bonus shares. The strong operating performance during the financial year2014 delivered a continuous solid growth in all business lines translated in profitable market share gains in core market quality top line earnings and faster than market credit growth despite the complexity in the regional & global operating environment.
Majed Essa Al Ajeel Chairman of Burgan Bank Group said: ''2014was a complex year due to the volatility in global markets and regional operating environment yet again the focused execution of our strategy confirms that our performance remains solid.'' ''Asset quality improved in 2014 as our non- performing assets reducing to1.5 percent to gross facilities (net of collaterals) while coverage ratio (net of collateral) has increased to reach 278 percent. In 2014 we initiated our capital optimization plan that yielded more than KD 300 million in proceeds to adjust for Basel 3 requirements and to further support our growth plans. Our Capital Adequacy ratio stands at 13.5 percent under Basel 3.'' Added Al-Ajeel. Majed Essa Al-Ajeel also said: ''Our diversification strategy remains fruitful as all of our subsidiaries are profitable and contributing to 53 percent of the group''s revenues.
One of the analysts covering Burgan Bank has dubbed us as the most international Kuwaiti bank which reflects the investment community appreciation of the benefits our diversification into faster growth markets offers. I remain confident and optimistic of the group''s strong performance going forward. '' ''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 that is yielding such solid performance 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 Tunis International Bank in which Burgan Bank owns a majority stake. Burgan Bank Group has one of the largest regional branch networks with 235 branches across Kuwait Turkey Jordan Algeria Iraq Tunis Lebanon and Palestine.
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