Burgan Bank Growing with Strength and Vision

Sheikh Abdullah Naser Sabah Al Ahmad Al Sabah

In an exclusive interview with Al Masaref Magazine, Sheikh Abdullah Naser Sabah Al Ahmad Al Sabah, Chairman of Burgan Bank, reflected on the bank’s strong 2024 performance and its strategic direction for the future. He highlighted the bank’s growth in profits, robust financial results and steady progress in executing a forward-looking strategy.

Sheikh Abdullah focused on enhancing the bank’s digital infrastructure and delivering innovative, customer-centric solutions across all channels. He emphasized a balanced approach to risk and return, and a commitment to becoming the preferred choice for individuals and businesses.

How do you evaluate Burgan Bank’s performance in 2024? And what are your expectations for 2025?

In 2024, Burgan Bank achieved notable progress in implementing its strategic roadmap, delivering strong results across key financial indicators. This performance reflects the effectiveness of the bank’s forward-looking vision and efficient execution.

The bank recorded a 7% increase in net profit, reaching KD 46.4 million, and a 3% growth in total revenues, which amounted to KD 229 million. Net interest income grew by 17%, reaching KD 157 million.

Additionally, Burgan Bank maintained solid capital strength throughout 2024, with a Common Equity Tier 1 (CET1) ratio of 12.6% and a Capital Adequacy Ratio of 18.6% both comfortably above the regulatory requirements of 10.5% and 14.0% respectively.

Looking ahead, Burgan Bank remains committed to driving long-term sustainable growth by maintaining

Burgan addresses challenges by diversifying its investment portfolio and applying effective risk management strategies

a prudent balance between returns and risks, continuously enhancing customer experience and building on the strong momentum achieved in 2024.

What is Burgan Bank’s strategic vision for the coming years?

Our forward-looking strategy focuses on advancing the strategic investments we have already launched, aiming to enhance infrastructure and deliver innovative, customer-centric financial solutions. Strengthening our digital capabilities is key to providing faster, more efficient services and adapting to a fast-changing market.

We are committed to improving customer experience across both traditional and digital channels, offering integrated financial and investment solutions tailored to individuals and businesses. Our goal is to become the preferred choice for all customers through a seamless and innovative banking experience.

To support this vision, we continue to digitize operations and identify emerging needs and opportunities. Sustainability remains a core element of our strategy, guided by ESG best practices. We are committed to managing our carbon footprint, advancing community impact, promoting financial inclusion, and supporting diversity and empowerment across all levels of the organization.

What are the most significant challenges facing the bank amid global economic changes, and how do you address them?

The banking sector is closely linked to global economic developments and influenced by international monetary policies and market conditions. Burgan Bank, like other financial institutions, faces challenges such as inflation and rising interest rates, which affect performance and profitability. The bank addresses these through investment diversification and effective risk management.

At the same time, competition is intensifying with the rise of FinTech firms and digital banks. Burgan Bank continues to invest in digital technologies and develop innovative offerings to meet evolving customer needs.

As part of this effort, the bank launched Burgan Lab, a hub for collaboration and creativity through workshops and training. It also introduced Burgan Lab Academy, in partnership with CODED Academy, to prepare graduates as future tech leaders in Kuwait’s banking sector.

Strong focus on delivering tailored fintech solutions for youth and startups

Carefully planned expansion targeting markets with strong growth potential

Adopting advanced technologies to accelerate and sustain digital progress

In response to rising credit risk, the bank enforces strict credit policies and monitors asset quality. Operating under strong regulatory oversight, Burgan Bank remains committed to compliance and shareholder protection.

To sustain growth, the bank focuses on diversifying income, strengthening risk management, developing talent, reallocating assets and driving digital transformation, which reinforces its position in the sector.

What are Burgan’s plans to enhance customer experience through digital platforms?

Burgan Bank continues to enhance the digital banking experience by investing in advanced technologies and adopting the best practices in digital services. Innovation remains central to the bank’s operations, with a focus on developing financial solutions that add value for customers.

Strategic investments have strengthened infrastructure and enabled tailored services across traditional and digital channels. These include expanded offerings and a more diverse product portfolio to meet the needs of individuals and businesses.

Key achievements include the launch of an upgraded queuing system integrated with the “Hawiyati” digital ID app, enabling faster and more personalized service. The bank also joined the GCC’s “AFAQ” real-time payment system, introduced the “Wamd” instant payment service, and signed a landmark agreement with Tata Consultancy Services to upgrade its core banking platform using TCS BaNCS™ solutions.

Do you plan to introduce innovative financial products for youth or startups?

Burgan Bank is committed to offering innovative banking products and services, particularly for youth and startups. It recently relaunched its Youth Account with improved benefits, including a KD 100 cash reward for student allowance transfers, referral incentives, an annual car raffle, and exclusive year-round offers and discounts.

The bank also offers a suite of digital services for businesses, supporting their needs in a fast-evolving digital landscape. It has introduced new e-transaction solutions for corporate and commercial clients as part of its ongoing digital transformation.

Looking ahead, Burgan Bank aims to expand its offerings for youth and focus on digital banking solutions tailored to businesses and startups.

How do you view Burgan Bank’s regional or international expansion opportunities?

Burgan Bank is pursuing a carefully planned regional and international expansion strategy, targeting high-potential markets that create value for shareholders and clients by leveraging its regional experience and network.

As part of its strategy to reallocate assets and grow new revenue streams, the bank acquired 100% of United Gulf Bank, a wholesale bank based in Bahrain. This acquisition enables entry into promising sectors such as investment and Islamic finance, while offering opportunities for cross-selling and operational integration.

The acquisition also enhances access to Kamco Invest, which provides a full range of asset management, investment banking, and brokerage services.

In parallel, Burgan Bank is expanding its digital services and aims to form strategic partnerships with international financial institutions to exchange expertise and broaden its service offerings.

How does Burgan Bank integrate sustainability and ESG standards into its services?

Burgan Bank integrates ESG principles across its investments and community initiatives, reinforcing its commitment to sustainability, environmental responsibility, and operational excellence. Through responsible practices and alignment with sector standards, the bank supports Kuwait Vision 2035.

One key initiative is the launch of a recycling program at the head office in partnership with Tadweer, contributing to reduced carbon emissions. Burgan Bank also received LEED Gold Certification from the U.S. Green Building Council for its headquarters.

Burgan Bank supports national talent development and remains actively engaged in community support. It also continues to expand eco-friendly digital services, including virtual bank cards, the "Banki" chatbot, and digital account opening, as part of its broader digital transformation and sustainability efforts.

How does Burgan Bank keep up with banking technology trends?

Burgan Bank is reinforcing its leadership by adopting advanced technologies and driving digital transformation across its operations. It aims to provide seamless and secure banking experience while adapting to ongoing developments in the sector.

The bank offers a full range of digital banking services through internet and mobile platforms, allowing customers to manage their accounts with flexibility and ease. These services are continuously enhanced to meet growing customer expectations.

Burgan Bank is also exploring AI applications in areas such as customer service, fraud detection, and risk assessment. Its Burgan Lab innovation center reflects the Bank’s ambition to lead in digital excellence and foster a culture of innovation and collaboration.

In parallel, the bank invests in cloud computing and big data analytics to improve efficiency and customer experience. It also supports digital upskilling for employees through specialized fintech training programs.

What risk management standards does the bank follow?

We take a proactive approach to managing risks. We follow international standards and have certifications for business continuity, quality, and security. Our risk committees and audit teams make sure our operations are safe and well-governed.

Burgan Bank takes a proactive approach to risk management by identifying and mitigating risks across its operations. It follows international best practices to maintain financial stability and safeguard stakeholder interests, supported by independent and effective risk systems.

The bank promotes risk awareness through regular training and ensures employee alignment with global risk standards. Its commitment is reflected in several international certifications, including ISO 22301:2019 for business continuity, ISO 9001:2015 for quality, ISO 27001:2022 for information security, and ISO 20000-1:2018 for IT service management.

Burgan adopts a proactive approach to risk management by identifying, assessing, and mitigating potential risks across all its activities.

The Board Risk Committee oversees the bank’s risk strategy, while Internal Audit provides independent assurance to the Board and advises on governance, controls and risk effectiveness.

What makes Burgan Bank different from other banks in Kuwait?

Burgan Bank continues to distinguish itself in the Kuwaiti market through a strong focus on innovation. By adopting advanced technologies and delivering smart banking solutions, the Bank enhances customer experience and recently earned Visa’s “Fastest Growing in Premium Cards – Kuwait 2024” award.

We offer a wide range of personal banking services, including tailored solutions for high-net-worth individuals. Our private banking strategy focuses on expanding our network and launching exclusive offerings for this client segment.

In corporate banking, we provide integrated financial services such as trade finance and cash management. Under the slogan "You Drive Us Forward," we affirm our role in promoting sustainability and social responsibility by embedding these values across our operations.

What current and future challenges does Burgan Bank face?

Burgan Bank, along with the wider banking sector, is navigating a series of evolving challenges. Rapid technological shifts, particularly in AI and digital transformation, demand substantial investment and put pressure on operational budgets.

As digital banking expands, cybersecurity threats grow, prompting greater emphasis on data protection and robust security systems. At the same time, rising competition from fintech firms requires banks to deliver exceptional service to retain customer trust.

In addition, economic factors such as oil price volatility and potential slowdowns may impact profitability and raise regulatory demands related to credit risk and provisioning.

What is your vision for improving the banking sector in Kuwait?

Improving the operating environment of Kuwait’s banking sector requires a holistic strategy focused on key priorities. These include strengthening financial stability by implementing Basel 3 standards and enhancing risk management to withstand financial shocks. Diversifying funding sources and promoting transparency are also essential for building trust.

Accelerating digital transformation and adopting technologies such as AI and blockchain are critical to improving efficiency. Cybersecurity must also be strengthened to protect sensitive data.

Equally important is investing in human capital to ensure the sector keeps pace with technological change. Closer collaboration with regulators and strategic partners, along with a stronger role for the private sector, will support long-term growth and sustainable development.

Addressing challenges and improving the operating environment of the Kuwaiti banking sector requires a comprehensive vision and strategy.

Burgan is achieving notable progress and solid growth across most of its financial indicators.

The Kuwaiti banking sector is undergoing a qualitative shift driven by digital transformation and financial innovation.

How do you see the future of Kuwaiti banks?

The Kuwaiti banking sector is experiencing major transformation driven by rapid technological change and shifting global markets. Banks are adopting advanced digital solutions and introducing innovative products like sustainable finance, with strong regulatory support from the Central Bank of Kuwait to modernize payment systems.

These efforts align with Kuwait Vision 2035 and contribute to building trust and driving sustainable growth. Despite economic slowdown and limited local investment opportunities, regional expansion allows banks to diversify income and enhance their market presence.

Opportunities lie in embracing digital transformation, investing in fintech, and offering specialized services such as SME banking and wealth management, helping banks stand out in an increasingly competitive environment.

What are the bank’s most important community initiatives?

Burgan Bank adopts a strategic approach to social responsibility aimed at delivering sustainable impact in Kuwaiti society. Its initiatives span youth empowerment, women’s leadership, education, sports, arts, and humanitarian programs.

The bank supports inclusive employment, education development, and leadership opportunities, including participation in events such as the “Partners in Employment” campaign and EU-led workshops on women in leadership. It also provides internship programs through annual career fairs and celebrates employee and family academic achievements.

Burgan Bank actively contributes to community development through sports sponsorships, support for Kuwaiti Olympians, charitable donations, financial literacy awareness, and cultural initiatives.