Burgan Bank Kuwait posts net income for FY 2022

Burgan Bank Kuwait posts net income for FY 2022

Burgan Bank announced its financial results for the fiscal year ending December 31, 2022, reporting Revenues 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 Margins 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 improvement of 70% for the fiscal year 2022 compared to the performance in fiscal year 2021. This improvement underlines Burgan’s prudent risk practices across the Group and consequently, its credit costs for the year improved to 60 bps (as compared to 190 bps in 2021).

The strong growth in Net Interest Income and significant reduction in credit costs ensured that Burgan Bank produced a growth of 15% to deliver Net Income of KD 52.1 million.

Burgan’s asset quality continues to be stable with an NPL ratio of 1.9% for 2022. Capital Ratios for 2022 continued to be well above minimum regulatory 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 recommended