Burgan Bank Reports Strong Earnings for Q1’25
- gceosocial
- May 6
- 2 min read
Updated: May 11
Burgan Bank announced its financial results for the first quarter ending March 31, 2025. The bank recorded revenues of KD 57.9 million, marking an 8% year-on-year increase. Net Interest Income rose by 30% to KD 44.2 million, supported by a 50 bps improvement in Net Interest Margins and growth in the loan portfolio. The Net Interest Margin improved to 2.5% compared to 2.0% in Q1 2024.
Operating profit reached KD 24.4 million (+3% y-o-y), and Net Income rose to KD 10.7 million (+5%). Total assets grew by 11% year-on-year to KD 8.6 billion. The loan portfolio stood at KD 4.7 billion (+8%) and customer deposits reached KD 5.4 billion (+7%). Asset quality improved, with the NPL ratio decreasing to 1.8% (from 2.6%), while the Provision Coverage Ratio remained strong at 170%.
The bank’s capital and liquidity positions remained solid, with a CET1 ratio of 11.7% and a CAR of 17.5%, exceeding regulatory requirements. Liquidity indicators were also healthy, with an LCR of 181% and NSFR of 113%.
Commenting on Burgan’s financial results, the bank’s Chairman, Sheikh Abdullah Nasser AlSabah, said:
We have started this year with considerably positive momentum, grounded by solid foundations and a sharply-focused strategy; as we continue to focus on enhancing our financial stability and bolstering our operational infrastructure to drive further growth, provide substantial value to our shareholders and deliver personalized banking excellence to our customers. Following consistent growth over the years, we are proud to continue playing a significant role in shaping the banking landscape in Kuwait and the region. With a promising year ahead, we maintain an optimistic outlook as we foresee major forward motion in our growth and success.
During the quarter, Burgan completed the acquisition of 100% of United Gulf Bank B.S.C. (UGB), enhancing its regional presence and enabling expansion in Islamic finance and investment offerings. UGB’s balance sheet was consolidated into Q1 results, with P&L contributions to follow in Q2.
In February, the bank launched a USD 500 million Certificates of Deposit program, rated ‘F1’ by Fitch. The program was structured with Mizuho Bank as Lead Arranger and multiple global dealers, supporting funding diversification and Basel III liquidity ratios.
Burgan renewed its partnership with Visa and co-hosted an investment conference with Kamco Invest. It also launched a recycling initiative with Tadwire and published its sixth annual Sustainability Report, highlighting its ESG progress.
Additionally, the bank received ISO 22301:2019 certification for Business Continuity Management and reported an 89% participation rate in its GPTW employee engagement survey.
