Burgan Bank Group (Group) is intently checking the market improvements in Turkey and it stays resolved to support Burgan Bank Turkey (BBT) if necessary. Our Turkish operation has great fundamentals with prudent approach in managing hazard. Its credit book is very much enhanced across various sectors and multiple segments, while maintaining a stable subsidizing base.
The Group’s strategic decision to hedge its investment in BBT since 2015 has protected it from Turkish Lira volatility. Also, its decision to proactively build extra provision buffers since Q1’18 has helped BBT to be stronger in Turkey’s present macro-economic environment.
Mr. Faisal Al Radwan, Chairman of the Board of Burgan Bank Turkey said, “BBT is well-prepared to face current monetary situation in Turkey’s due to its focus on prudent risk management and its cost-efficient operations, thereby generating positive results for the Group.”
Furthermore, Mr. Masaud Hayat, Burgan Bank Group CEO commented, “Burgan Bank Group resolved to support BBT as the Turkish operation continues to generate healthy margins and improved efficiencies backed by a strong management team. The bank is well-positioned to weather the current macro-economic situation in Turkey. As consolidated under the Group, in Q1’19, BBT’s NPL ratio reached 3.8% with adequate NPL coverage ratio of 116.8% and strong Capital Adequacy Ratio at 18.0%.”
Burgan Bank Turkey has been part of the Group since December 2012, where the Group acquired majority stake. As well, BBT has an optimal branch network of 39 branches operating across 15 cities in Turkey.