BURGAN BANK K.P.S.C. (Burgen) reported its Q3'19 financial results, which show a strong net income of KD 22.7mn in the third quarter, which translates into an impressive growth of 10.7% Y-o-Y.

Key factors contributing to revenue growth are:

Solid earnings levels of KD 61.9mn
Reduction in operating expenses (Q3'19 KD 25.7mn vs Q3'18 KD 25.9mn)
Low arrangements (Q3'19 KD 9.5mn vs Q3'18 KD 17.7mn)

This solid third-quarter performance has further strengthened Burgans 9-month performance (9M'19) as decorated below.

9M'19 Earnings Fixed Net Interest Margin at was strong at KD 178.3mn behind Margin at 2.8%. Burgan also maintained an efficient cost-to-income ratio of 41.9%, leading to a operating profit of KD 103.6mn.

Burgans risk expense is healthy at 0.8% and the NPL coverage rate at 162%.

As a result, Burgan continues to deliver strong returns with a net income of 9M19 Net Income of KD 67.5mn, resulting in a return on equity of 10.4%.

Burgans relentless focus on capital performance in its businesses has ensured that regulatory capital ratios are healthy, with a CET 1 ratio of 11.0%, a Tier 1 ratio of 13.7% and a CAR ratio of 16.6%.

The Chairman of the Bank of Burgen, Mr. Majed Essa Al Ajeel K.P.S.C Stated: Despite continued volatility in the region, we continue to deliver strong results to our shareholders. These results reflect the strength of Burgan's operating model in its subsidiaries, supported by a strong risk management framework.

Mr. Masaud M.J. Hayat, Vice President and CEO of Bergen Bank Group Further, "Burgan's strong performance in the first nine months of 2019 demonstrates the Bank's unwavering focus on meeting the needs of its customers, while achieving high levels of operational efficiency."

Please note that earlier this year, the bank had revised its financial statements to finalize its subsidiary's reporting date by one month earlier than the group's reporting date. Accordingly, the reported financial results of the first nine months of 2019 include only eight months (i.e. January to August) of the performance of the subsidiaries instead of the nine months as previously included.

The consolidated fund includes results of the group's operations in Kuwait and its subsidiaries, including Burgan Bank Turkey, the Gulf Bank Algeria, the Bank of Baghdad and the Tunis International Bank. Burgan Bank is one of the largest regional branch networks with 164 branches throughout Kuwait, Turkey, Algeria, Iraq, Tunis, Lebanon and a representative office in the United Arab Emirates.