(MENAFN - Arab Times) Burgan Bank Group reported today KD 17.5 million net profits for the first quarter of 2012 (growth of 48%), compared to KD 11.8 million for the same period in 2011. Earnings per share increased to 11.9 fils compared to 7.8 fils for the same period in 2011.
Revenues has reached to KD 42.6 million reflecting a growth of 10% from KD38.8 million reported in the first quarter of 2011. Operating profit grew by 15 % to reach KD 26.6 million compared to KD23 million for the same period in 2011.
Customers' deposits grew to KD 3,040 million, a 9% increase from year ended on 31st December 2011, while loans grew by 7% reaching KD 2,406 million. The consolidated financials include the results of the group's operations in Kuwait as well as its subsidiaries, namely Jordan Kuwait Bank, Gulf Bank Algeria, Bank of Baghdad, Tunis International Bank, in which Burgan Bank has a majority stake. During the first quarter of 2012, the subsidiaries have demonstrated a steady growth path and maintained profitability.
Majed Essa Al-Ajeel, Chairman of Burgan Bank Group said: "We are pleased with our results during the first quarter of the year. Our financial performance continues to be solid, and the Group demonstrates a consistent growth trend across its operations despite the slow economic growth in the region".
"Burgan Bank Group's conservative strategy, prudent risk approach, and sustainable financial performance helped maintain the group's overall position locally as well as regionally. The group announced earlier that it has entered into an agreement with Eurobank EFG to acquire a 99.26% stake in Eurobank Tekfen, Turkey.
The final execution of the transaction is subject to regulatory approvals from Central Bank of Kuwait ("CBK") and Turkey's Banking Regulation and Supervision Agency ("BRSA").
The value of this transaction reflects a clear strategic approach, where Burgan Bank Group acquired an existing and leading banking platform that enjoys an extensive network of 60 branches across vibrant areas in Turkey, with a total price that equates to the cost of obtaining a license for an initial operational start-up," added Al-Ajeel.
During the first quarter of 2012, Global Banking & Finance Review recognized Burgan Bank on two levels, the "Best Banking Group in MENA", where its turnaround performance and delivery of sound results across its operations were acknowledged, and the "Best Corporate Bank in Kuwait", in which the Kuwait operations Corporate Banking Group's superior performance and commitment of maintaining exceptional growth levels by financing a range of projects in diversified industry sectors were realized.
"On behalf of the board, I take this opportunity to thank our customers and shareholders for their confidence in our capabilities. Also 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.
Established in 1977, Burgan Bank is the youngest commercial Bank based in Kuwait, with a significant focus on the corporate and financial institutions sectors, as well as having a growing retail and private bank customer base.
Burgan Bank has four majority owned subsidiaries: Gulf Bank Algeria - AGB (Algeria), Bank of Baghdad - BOB (Iraq), Jordan Kuwait Bank - JKB (Jordan) and Tunis International Bank - TIB (Tunisia), (collectively known as the "Burgan Bank Group").
The Bank has continuously improved its performance over the years through an expanded revenue structure, diversified funding sources, and a strong capital base. The adoption of state-of-the-art services and technology has positioned it as a trendsetter in the domestic market and within the MENA region.
Burgan Bank's brand has been created on a foundation of real values - of trust, commitment, excellence and progression, to remind us of the high standards to which we aspire. 'People come first' is the foundation on which its products and services are developed. Earlier this year, 'Brand Finance' - the international brand valuation company- rated Burgan Bank brand as AA with positive outlook. The rating places Burgan Bank Brand at 2nd amongst the most valuable banking brands in Kuwait.
Excellence is one of the Bank's four key values and Burgan Bank continually strives to maintain the highest standards in the industry. The Bank was re-certified in 2010 with the ISO 9001:2008 certification in all its banking businesses, making it the first bank in the GCC, and the only bank in Kuwait to receive such accreditation. The Bank also has to its credit the distinction of being the only Bank in Kuwait to have won the JP Morgan Chase Quality Recognition Award for twelve consecutive years.
Burgan Bank won the prestigious "Banking Web Awards" prize in the commercial and corporate Category for Kuwait. In 2010 Burgan Bank was awarded with the "Best Internet Banking Service award" from Banker Middle East Awards. Burgan Bank was recognized in 2011 as Kuwait's "Best Private Bank", by World Finance.
The bank also won, in 2011, the coveted "International Platinum Star for Quality" award from Business Initiative Directions, and "The Best Technical Award" from Banking Web Awards. In 2012, Global Banking and Finance Review online magazine recognized Burgan Bank as the "Best Banking Group in the MENA" as well as the "Best Corporate Bank in Kuwait". Burgan Bank, a subsidiary of KIPCO (Kuwait Projects Company), is a strongly positioned regional Bank in the MENA region.