Burgan Bank, a subsidiary of Kuwait Projects Company (Kipco) and the country's second largest commercial bank by assets, said its shareholders have approved the distribution of cash dividends of 5 fils per share and 5% stock for FY 2021.  

 

The announcement was made at Burgan Bank's 56th Ordinary Annual General Assembly meeting held today (April 5) at Kipco Tower, with a quorum of 79.3%  where the board of directors submitted to the shareholders the financial results achieved for the year ending on December 31, 2021.

 

The results reflected the Bank’s positive growth in revenue and net income amid improving economic environment. 

 

Lauding the solid performance, Chairman Majed Essa Al Ajeel said it showed the bank’s resilience amid pandemic through the successful maintenance of continuity, quality, and security of services across channels, which translated in a solid growth in its results. 

 

The bank reported robust revenues for FY 2021 with a 10% year-on-year (y-o-y) growth to hit KD234.7 million ($776.53 million), mainly driven by 46% y-o-y growth in non-interest income.

 

The group also reported an increased operating profit that surged to KD139.9 million (+21.1% y-o-y), due to solid topline growth and strong cost control. The cost-to-income ratio improved to 40.4% in 2021, compared to 45.7% in 2020. 

 

The group’s net income reached KD 45.4 million (+34.8% y-o-y) while the earnings per share jumped 47.2% y-o-y to 13.1 fils. 

 

According to him, Burgan was able to successfully raise KD71.25 million in Q4 2021 through a rights issue to support its long-term growth strategy.

 

"The real recovery in business activity following an unprecedented challenging situation, is positively impacting the country’s economic outlook," he added. 

 

Vice Chairman and Group CEO Masoud M. J. Hayat reaffirmed that Burgan Bank owes its strong position to the steady progress achieved in the implementation of its strategic pillars including human capital development, sustainability, digital transformation, and asset reallocation.

 

Burgan Bank has continued to rely on its well-established institutional and financial foundations to drive its growth plans. 

 

Its platform continues to be driven by the acceleration of banking services digitalization and further investment in technological infrastructure, bringing further support to the long-term transformation journey, he stated. 

 

These strategic choices are strong enablers of the Bank’s efforts to sustain its competitive edge, grow its market share, deliver on its promise of seamless banking experience and maintain the trust of its customers and shareholders, he added.-TradeArabia News Service