Burgan Bank net income rises 35% to $150m

Burgan Bank Group’s revenues climbed 10% year on year (y-o-y) to KD234.7 million ($776.53 million) in the financial year ended December 2021, thanks to a 46% increase in non-interest income, the bank stated.
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With a net income of KD 45.4 million ($150.21 million) in FY’21, the bank had a 35% year-on-year increase in its bottom line.

The bank effectively maintained cost discipline, limiting operating expenses to KD94.8 million, which is 2% lower than operating expenses in FY20. The bank made a strong operating profit of KD139.9 million, representing a year-on-year increase of 21%. In FY21, the bank recorded a cost-to-income ratio of 40.4%, down from 45.7% in FY20.

The bank’s asset quality measures improved significantly in FY21, with the NPL ratio falling from 4.2% in FY20 to 1.7% in FY21 and the NPL coverage ratio rising from 212.8% in FY20 to 309.5 per cent in FY21.

According to a bank statement, the board of directors approved the distribution of a cash dividend of 5 fils per share and 5% bonus shares.