Kuwait, 30 October 2024

Burgan Bank Group (“Burgan” or “the Bank”) announced its financial results for the nine-month period ended September 30, 2024 (9M’24).

The Group reported KD 165 million in revenues for 9M’24, improving by 5% y-o-y, compared to KD 157 million during the same period in 2023. The increase in revenues was mainly driven by higher Net-Interest Income of KD 112 million, up 23% y-o-y, while Non-Interest income remained solid at KD 53 million.

The Group’s Net Interest margin also increased to 2.2% for the current period as compared to 1.9% in 9M’23, improving by 30bps y-o-y.

Driven by higher revenues, the Group reported a solid net income of KD 33 million, compared to KD 30 million for the same period in 2023, marking a strong growth of 10% y-o-y.

The Group delivered strong asset growth of 11% y-o-y in 9M’24, reaching KD 7.8 billion by the end of the period. The Group’s loan book grew by 6% y-o-y, reaching KD 4.4 billion; primarily driven by its Kuwait operations. Burgan’s deposit base also expanded by 14% y-o-y and stood at KD 5.0 billion by the end of 9M’24.

The Group reported significant improvement in its asset quality metrics with Non-performing Loan (NPL) ratio of 1.9% in 9M’24 compared to 2.5% reported last quarter (6M’24) – translating into on a sequential (q-o-q) improvement of ~60bps. Further, the Group’s Provision Coverage Ratio was also strong at 218% at the end of 9M’24. 

The Group continues to maintain solid and healthy capital levels, with Common Equity Tier 1 ratio (CET1) of 12.9%, Tier I capital ratio of 15.2% and Capital Adequacy Ratio (CAR) of 19.0%, well above the regulatory requirements and demonstrating sufficient capital buffers to support future growth.

Commenting on Burgan’s financial results, the Bank’s Chairman, Sheikh Abdullah Nasser Al-Sabah, said: “During this year, we witnessed consistent innovation-driven growth and development across core areas of Burgan Bank’s operations, as we continue to push ahead with our evolution-focused strategy. Our financial core remains strong and our foundations solid, as we carefully balance risk with reward in pursuit of development. These past nine months have seen us make considerable long-term investments across our entire business, including fortifying our digital infrastructure and enhancing our digitally smart solutions; further evolving our customer experience online and off; expanding our tailored offerings to all segments of customers; and investing in the growth, development and well-being of our human capital.”

The Chairman further added: “Guided by our core vision to become the most progressive and modern bank in Kuwait, we remain committed to offering best-in-class financial services and tailored solutions that create sustainable, long-term value for our customers, employees and shareholders, while adhering to the global standards of Environmental, Social and Governance (ESG) practices.”

Affirming Burgan Bank’s strong financial core and stable standing, the Chairman highlighted that the Bank has maintained high international standards in terms of its creditworthiness. Within that vein, Standard & Poor’s Global Ratings (S&P) affirmed the Bank’s long-term and short-term issuer credit ratings at “BBB+/A-2” with a “stable” outlook, reflecting its expectations that Burgan’s financial profile will remain broadly stable.

Redefining Banking Excellence and Innovation

Among the various areas that continued to set Burgan Bank apart is its unwavering commitment to elevating the banking experience it offers to its different Retail Banking customers and Private Banking clients.

Commenting on the results, Mr. Tony Daher, Group Chief Executive Officer at Burgan Bank, said: “Three core facets of our ambitious business strategy include growing and diversifying our corporate portfolio, building our wealth management and private banking offering, and elevating the scope and quality of our retail banking offerings. During these past nine months, we continued to build on solid foundations, striving to achieve further sustainable progress with a determination to continue strengthening our Kuwait business.”

As part of efforts to establish regional leadership and actively contribute to Kuwait’s economic growth and development, Burgan Bank signed a memorandum of understanding (MoU) with Korea Finance for Construction (KFINCO), making Burgan the sole representing bank in Kuwait for the South Korean co-op institution, as part of the latter’s strategic expansion across the Middle East. The partnership agreement stipulates that Burgan Bank will be offering KFINCO fronting services, whereby the Bank will represent the company in issuing project-related guarantees on the back of their counter-guarantee.

Meanwhile, the Bank upheld its dedicated efforts to provide its Private Banking customers with an exceptional banking experience by introducing its most exclusive and prestigious invitations-only Visa credit card, which unlocks a world of high-end services, luxury experiences, and unmatched benefits for Burgan’s ultra-high-net-worth (UHNW) clients. More importantly, the Bank expanded its Private Banking branch network to include the Al-Adailiya branch, making it easier for all Private Banking clients to access and benefit from a suite of exclusive banking services, tailored to their financial needs and investment aspirations.

On another front, the Bank led the third quarter of the year by announcing the launch of the instant payment service WAMD, which customers can access through the Burgan Mobile application to send, receive, and request money transfers easily, safely, and securely. The service comes as Burgan Bank forges ahead with its digital transformation journey, fueled by a commitment to the Central Bank of Kuwait’s (CBK) strategy for reducing cash transactions and encouraging reliance on digital services.

Entwining Business Growth with Talent Development

Another primary pillar of Burgan Bank’s continued success is its dedication to developing its employees and investing in Kuwait’s top calibers and aspiring talents, under the umbrella of its market-leading human capital development strategy.

On its mission to be an employer of choice, the Bank celebrated the graduation of numerous talents from its suite of learning and talent development programs in the third quarter of 2024, including “Entelaqah”, “Investment and Wealth Management”, “Burgan Cares”, and the “Empower Her” summer internship program.

In parallel, Burgan Bank launched its innovation and digital transformation central hub, “Burgan Lab”, designed to foster a culture of collaboration, creativity and excellence through workshops, training sessions and focus groups all year long. Subsequently, the Bank introduced the first program under this new hub, “Burgan Lab Academy”, in collaboration with CODED to empower fresh graduates to become the next generation of tech leaders.

Furthermore, the Bank launched the 2024 edition of its flagship talent development program, “Ro’ya”, and expanded its “Burgan Cares” program to support employees interested in pursuing postgraduate studies.

Domestic Leadership, International Recognition

During the third quarter of the year, several global institutions recognized Burgan Bank for its robust financial standing, commitment to excellence and adherence to the highest standards in banking, environmental advocacy, and human capital development.

Burgan Bank was awarded the prestigious Leadership in Energy and Environmental Design- LEED v4.1 O+M: EB (Operations and Maintenance - Existing Buildings) Gold Certification by the U.S. Green Building Council (USGBC) for operations and maintenance at its head office building in Kuwait City. This achievement demonstrated the Bank’s commitment to sustainability, operational excellence, and environmental stewardship while adhering to the highest standards of ESG practices in banking.

The Bank also received the prestigious Brandon Hall Group Human Capital Management (HCM) Gold Award of Excellence in the “Learning and Development” area under the “Best Use of Social/Collaborative Learning” category. The award acknowledged Burgan’s adoption of learning and development initiatives that focus on unconventional social learning methods and adapt to the dynamic and ever-evolving industry.

Lastly, Burgan ranked 35^th on The Banker magazine’s list of Top 100 Arab Banks in 2024, further affirming the Bank’s leading position on a regional level with strong investor and customer confidence. This prestigious recognition also confirmed the Bank’s robust financial strength and commitment to the highest standards of governance and transparency.

Advancing Together

Burgan Bank’s success in the first nine months of 2024 was also evident in its consistent efforts to develop and advance its community under the umbrella of its comprehensive social responsibility program. This included hosting the first “Empower Her” seminar, which followed the great success of the namesake summer internship program. The seminar, held under the auspices and sponsorship of Sheikha Dana Nasser Sabah Al-Ahmad Al-Sabah, gathered a distinguished audience including prominent figures in Kuwaiti banking and various sectors, creating a space for sharing valuable market insights to empower women in leadership positions across society.

The Chairman concluded his statement by thanking Burgan Bank’s Board of Directors, Executive Management, shareholders, customers, and all employees across every department for their dedication, loyalty, and notable contributions to the Bank. He also affirmed Burgan’s commitment to the sustainable development of its business operations across all departments with a sharpened focus on ESG.