The Banking Executive Magazine - February 2023 Issue

Burgan Bank announced its financial results for the fiscal year ending De- cember 31, 2022, reporting Rev- enues of KD 232 million and Operating Profit of KD 125 million. Revenue levels remained stable, backed by a growth of Net Interest Income by 15% year-on- year, due to improvement in its Net Interest Mar- gins by 30 bps, reaching 2.4% for 2022. This improvement was driven by rate hikes in Kuwait and improved margins in Burgan Bank Turkey. Moreover, the Bank’s provision charges saw a significant improve- ment of 70% for the fiscal year 2022 compared to the performance in fis- cal year 2021. This improvement un- derlines Burgan’s prudent risk practices across the Group and con- sequently, its credit costs for the year improved to 60 bps (as compared to 190 bps in 2021). The strong growth in Net Interest In- come and significant reduction in credit costs ensured that Burgan Bank produced a growth of 15% to deliver Net Income of KD 52.1 mil- lion. Burgan’s asset quality continues to be stable with an NPL ratio of 1.9% for 2022. Capital Ratios for 2022 contin- ued to be well above minimum reg- ulatory ratios. The Bank’s Capital Adequacy Ratio (CAR) of 16.8% is well above the regulatory minimum of 12.5%. Burgan’s Board of Directors recom- mended distribution of cash dividend of 8 fils per share, in addition to 5% bonus shares for fiscal year 2022, subject to shareholder approval at the Annual General Meeting. The recent approval of the sale of the Group’s Bank of Baghdad will avoid an increase in the bank’s NPL ratio and further strengthen the bank’s capital ratios. Moreover, the Group’s active measures to mitigate risks in Turkey have led to an overall im- provement in the performance of Burgan Bank Turkey, including much higher Net Income and improved asset quality. A FORWARD-LOOKING STRATEGY AND A GROWING MOMENTUM FOR DEVELOPMENT Burgan Bank continues to focus on delivering sustainable, long-term growth and operational resilience, according to the Bank’s Chairman, Sheikh Abdullah Nasser Sabah Al Ahmad Al- Sabah. “This year saw us make tremendous strides towards our strategic goals, whilst success- fully delivering strong financial per- formance and solid returns to our shareholders. We are carrying sub- stantial momentum into 2023, with clear development paths for our three core pillars of focus: sustain- ability, digitalization, and human capital development.” “With an ambitious strategy in place, it is vital that we strike the right bal- ance between mitigating risk and ac- celerating the pace of development.” the BANKING EXECUTIVE 26 ISSUE 170 FEBRUARY 2023 BURGAN BANK KUWAIT POSTS NET INCOME FOR FY 2022