(MENAFN- Kuwait News Agency (KUNA)) KUWAIT, Oct 24 (KUNA) -- Burgan Bank Group announced Tuesday its first nine months earnings of financial year 2017. The bank continues to pursue selective and prudent growth approach, clubbed with focus on efficiencies and continuous yields improvements. For the 2017 first nine months and compared to the same period last year, reported net income grew by 11 percent reaching K D53.9 million (USD 177.5 million) from KD 48.6 million. Underlying net income (excluding precautionary reserves & after AT1 cost) grew by five percent reaching KD 58.7 million (USD 193.3 million). Earnings per share grew by 14 percent to 20.1 fils from 17.7 fils reported last year.
During the same period, loans and advances grew by 6 percent year on year to reach KD 4.5 billion (USD 14.9 billion) and customers deposits grew by 3 percent to reach KD 4.0 billion (USD 13.2 billion). Non-performing assets (NPA) Ratio net of collateral stands at 1.1 percent while Coverage ratio net of collateral stands at 400 percent. Capital adequacy ratio stands at 16.4 percent as of September 30, 2017.
Majed Al-Ajeel, Chairman of Burgan Bank Group said: "The bank continues to deliver a solid year-to-date performance focusing on returns, prudence and efficiencies. Return on equity (ROE) stands at 11.2 percent while Return on tangible equity (ROTE) stands at 12 percent." "International Operations are now contributing 44 percent of the Group's operating income which grew by 6 percent year on year to reach KD179.3 million (USD 590.8 million), providing further evidence that Burgan Bank Group is reaping the seed of its diversification strategy into faster growing economies," added Al-Ajeel.
"The strength of our operating capabilities is yielding strong performance that was reflected during the first nine months of the year. Also, during the third quarter (Q3), Burgan Bank Group recorded an underlying net income (excluding precautionary reserves & after AT1 cost) of KD 17.3 million (USD 57.4 million). The net income as reported for Q3 is KD 15 million (USD 49.8 million) after the booking of KD 5 million in precautionary reserves," commented Al-Ajeel.
Al-Ajeel also said that "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. " "On behalf of the board, I take this opportunity to thank our customers and shareholders for their confidence in our capabilities and our regulators; the Central Bank of Kuwait, for their support. I would also like to thank our executive management team for their leadership and the excellent execution of the corporate strategy, 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 Burgan Bank - Turkey, Gulf Bank Algeria, Bank of Baghdad, Tunis International Bank. Burgan Bank Group has one of the largest regional branch networks with more than 175 branches across Kuwait, Turkey, Algeria, Iraq, Tunis, Lebanon, and representative office in Dubai. (end) fnk.gta
MENAFN2410201700710000ID1095982870
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.