Burgan Bank reports Q1’23 financial results

Burgan Bank reports Q1’23 financial results

Kuwait: Burgan Bank (“Burgan” or “the Bank”) announced its financial results for the first quarter ending March 31, 2023. The Bank reported KD 54.7 million in Revenue for Q1’23, up 4% from Q1’22, driven by growth in Net Interest Income of KD 34.4 million( +8% y-o-y) and Net Fees Income of KD 10.2 million (+9% y-o-y). Burgan generated Operating Profit of KD 25.8 million for Q1’23 while its Loan Provision charges for Q1’23 significantly reduced to KD 4.3 million (improvement of 69% y-o-y) driven predominantly by improved performance of the bank’s portfolio in Turkey. Accordingly, Burgan’s cost of credit for Q1’23 reduced to 40bps as compared to 130bps in Q1’22. Burgan’s Net Income for Q1’23 fell to KD 7.6 million primarily because of the Net Monetary Loss of KD 6.5 million recorded due to hyperinflationary accounting treatment for its subsidiary in Turkey.

During Q1’23, Burgan’s asset quality metrics continued to be solid with a Non-performing Loan (NPL) ratio of 1.8% and Provision Coverage Ratio of 219%. Additionally, the Bank’s Capital Ratios for Q1 2023 were strong with a Tier 1 ratio of 14.2% and Capital Adequacy Ratio (CAR) of 18.0%, well above the regulatory minimum requirement of Tier 1 ratio of