Burgan Bank held its 58th Annual General Assembly meeting and it’s 36th Annual Extraordinary General Meeting at its Head Office on Saturday, April 1st, 2022, with a quorum of 79.268%.
The Bank’s Board of Directors submitted to its shareholders the financial results achieved for the year ending December 31, 2022, which reflected strong growth in the Bank’s Net Income. Accordingly, the Bank’s shareholders approved the distribution of cash dividend of 8 fils per share, in addition to 5% bonus shares for the fiscal year 2022.
During the meeting, the Bank’s Chairman, Sheikh Abdullah Nasser Sabah Al Ahmad Al-Sabah stressed the impressive progress the Bank has achieved in its strategic journey, supported by the delivery of growth in its key metrics, including Net Income. The Bank reported stable Revenues of KD 232 million for 2022, driven by a strong rebound in Net Interest Income, an increase of 15% year-on-year, due to 30 bps improvement in Net Interest Margins. The Group’s Net Income grew to KD 52.1 million, an increase of 15% year-on-year while maintaining strong capital and liquidity.
The Bank’s Capital Adequacy Ratio (CAR) of 16.8% remained well above the regulatory minimum of 12.5% while maintaining robust asset quality with the Non-Performing loans (NPL) ratio at 1.9%. Similarly, the Bank’s provision charges saw a healthy improvement of 70% for 2022 leading to a significant reduction in credit costs from 190 bps in 2021 to 60 bps in 2022.
Sheikh Al-Sabah also touched upon the recent conclusion of the sale of Bank of Baghdad, which would further improve the Bank’s capital ratios while protecting the bank’s NPL ratio. He also affirmed that Burgan Bank’s strong financial performance in 2022 indicates tangible progress towards the Bank’s strategic goals of accomplishing sustainable, long-term growth and operational resilience. Sheikh Al-Sabah further noted, “The past year was defined by our overarching commitment to develop our three core pillars of focus: sustainability, digitalization, and human capital. We have adopted a clear and ambitious strategy that will enable us to sustain and grow our business while effectively mitigating risk across all fluctuations in the operating environment.”
As for Burgan’s central theme of digitalization and service innovation, Vice Chairman and Group CEO of Burgan Bank, Mr. Masoud M.J. Hayat shed light on how the Bank’s retail banking business witnessed immense progress in 2022. He said: “During the past year, the Bank showcased the results of Bank's long-term digital transformation plan and the focus on retail banking, as highlighted by the immensely successful launch of the bank’s new flagship account, Kanz. As part of our goal to provide our customers with the best, safest and most convenient banking experience, Burgan introduced several features and service upgrades on its mobile application, each designed to address the changing needs of our customers. This included the introduction of its Electronic Know Your Customer (eKYC) form, the “Apply Now” feature for products, in addition to design and function upgrades. As for our corporate clients, Burgan’s digital innovations were to further develop its pioneering cash management digital platform.”
As a result of the positive developments in Burgan Bank’s digital transformation, the Bank successfully won four awards from Global Finance magazine. These included the “Best Information Security and Fraud Management” award, the “Best Open Banking APIs” award, the “Best Mobile Banking Adaptive Site” award and the “Best SME Banking” award. Commenting on these achievements, Mr.Hayat said: “The awards that the Bank has received in 2022 reflect the impact of its transformation and growth on communities, businesses and individuals alike. We strive to continuously push to deliver a convenient experience across every channel and touchpoint, while working towards launching further digital services, features, and capabilities in light of our digital transformation journey.”
Commenting on the Bank’s commitment to solidify its focus on environmental, social and governance (ESG), Mr. Hayat said: “In 2022, Burgan Bank expanded the scope and mandate of its ESG framework and reiterated its promise to innovating solutions for a more sustainable world for the future generations. Beyond our role as financial providers, our goal of delivering greater value to our shareholders and the communities in which we operate is instrumental to the success of our ‘driven by you’ philosophy, which is motivated by sustainability. The Bank also sought to actively identify opportunities to secure the financial wellbeing of its employees, customers and shareholders.” He added that Burgan Bank pledges to continue minimizing its energy consumption, reducing its environmental footprint and expanding its sustainability outreach for years to come.
Another notable achievement in 2022 is Burgan Bank making an impact with a people-centric strategy, Mr. Hayat highlighted that the Bank continued to enrich its employee learning experience during 2022 to ensure developing a high-skilled, empowered and technically trained workforce. He explained: “We place a high priority on the welfare of our employees and are keen to invest in the best national talents. Our people are vital to our strategy of achieving financial success, driving financial performance and continuing our digitalization journey. In line with Bank’s human capital development and training programs, Burgan supports undergraduates and diploma holders to pursue their academic degrees through the Burgan Cares initiative. The Bank also offers flagship programs internally and in partnership with distinguished universities such as Harvard, Berkeley, IMD, Columbia Business school and INSEAD to nurture the skills of its talents. Burgan Bank has also expanded its approach to learning with its flagship Ro2ya program, which aims to empower the future leaders of Kuwait’s banking sector. Furthermore, the Bank’s Entelaqah program allows new joiners moving to the branches to be fully immersed in the retail culture and work dynamics, which influence the Bank’s ability to collectively grow and achieve more success.”
Mr. Hayat concluded his statement by thanking the Bank’s valued clients and shareholders for their confidence, the supervisory authorities and the Central Bank of Kuwait for their constant support, the Bank’s executive management for their dedication to implementing the bank’s strategy effectively, and the employees for their commitment and outstanding efforts.
Vice Chairman and Group CEO of Burgan Bank, Mr. Masoud M.J. Hayat
Burgan Bank’s Chairman, Sheikh Abdullah Nasser Sabah Al Ahmad Al-SabahRelated Business Chains: