Burgan Bank Announces Net Income of KD 45.4 mn for FY 2021 
Improvement of 35% year on year
Operating Profit of KD 139.9mn (+21% y-o-y)

Kuwait— February 7, 2022: Burgan Bank K.P.S.C (“Burgan Bank Group” or “the bank “) announced its results for the financial year ending December 2021.Burgan Bank Group’s FY’21 revenues increased by 10 % y-on-y to KD 234.7mn, driven by 46 % y-o-y growth in non-interest income. 
The Bank continued to successfully maintain cost discipline, restricting operating expenses to KD 94.8 mn, 2% lower than FY’20 operating expenses. The bank generated healthy operating profit of KD 139.9mn an impressive y-o-y growth of 21%. The bank reported improved cost-to-income ratio of 40.4% in FY’21 compared to 45.7 % in FY’20. 

In FY’21, the Bank reported significant improvement in its asset quality metrics with NPL ratio decreasing from 4.2% in FY’20 to 1.7% in FY’21 and NPL coverage ratio improving from 212.8% in FY’20 to 309.5% in FY’21. As a result, the Bank generated 35% y-o-y growth in its bottom-line with the FY’21 net income of KD 45.4mn. 

The Board of Directors approved distribution of cash dividend of 5 fils per share and 5% bonus shares.
Burgan Bank Group successfully completed its right issue offering of 375 mn shares to increase its equity capital by KD 71.25 mn. The rights issue concluded in Dec’21 with strong market response as reflected in subscription levels of 225%+. The successful rights issue enabled the Bank to report further improved regulatory capital ratios with CET1 ratio of 11.4% and CAR ratio of 17.5%.

Commenting on the Bank’s performance, Mr. Majed Essa Al Ajeel, Chairman of Burgan Bank K.P.S.C. said “2021 was a positive year despite the ongoing challenges to the world’s economies with the persistence of the pandemic situation globally. The banking sector has adapted to the new situation with increasing digitalization and a greater reliance on the integration of advanced technologies in the banking operation and services.”

“With a robust net income of KD 45.4 mn, and a growth of 35% over FY21, Burgan has delivered a strong performance demonstrating its institutional resilience, reliable operating model, and sustainable practices. These results reflected positively on the returns to shareholders, with the Board recommending the distribution of 5 fils cash dividends and 5% bonus shares. The successful capital increase will drive further the implementation of the Bank’s growth strategy and will enable us to deliver more value in shareholder earnings in the future” added Al Ajeel. 

He concluded “In 2021, we have made considerable progress in rolling out our digitalisation roadmap to enhance the Bank’s functions and services, committed as always to delivering excellence in the overall banking experience of our customers. I am utterly grateful to the relentless efforts and dedication of the Group’s Executive Management and employees as well as to our loyal shareholders and customers. My utmost gratitude goes to the Central Bank of Kuwait and the Capital Markets Authority too for their unwavering support that helps us deliver our strategic business objectives.” 

Mr. Masaud M. J. Hayat, Vice Chairman and Group Chief Executive Officer of Burgan Bank K.P.S.C. also commented the Bank’s performance saying ““The resilient performance and positive growth this year has been a natural result of our commitment to implementing our long-term strategy that aims to focus on maximizing shareholder value and providing the best safe and comfortable banking experience through our digital transformation and further enhancing the talent and organizational culture of the group, in addition to establishing sustainability as a strategic pillar. The results confirm Burgan Bank's strong position locally and in the Middle East, North Africa and Turkey markets.”

He further stressed “We will continue to invest our resources in offering comprehensive banking solutions driven by our customers' needs and guided by market insights. We are confident that we are on the right track to extend and strengthen our foothold in the local and regional markets, and to reach our growth ambitions in order to deliver the best-in-class banking experience as well as higher shareholder earnings in the future.”

Mr. Raed A. Al-Haqhaq, Deputy Group Chief Executive Officer & CEO- Kuwait of Burgan Bank K.P.S.C affirmed “As the year progressed and with the public health situation stabilizing, we have witnessed real signs of recovery and a general improvement in the economic climate and operating environment. Burgan Bank has continued to implement strict measures to protect the safety and health of its employees and customers, while maintaining the delivery of uninterrupted, top-tier services across the Bank’s branches and digital channels.” 

“The Bank’s strong performance is largely due to the efforts of our talented people, who are undoubtedly the key driver of our success. We will pursue our commitment to invest in their growth and support their development. Our sight for the future is firmly set on innovation, digitalization and differentiation and we are confident that Burgan is ready to further strengthen its position in Kuwait and the international markets as a top-tier banking and financial services providers” concluded Al Haqhaq.