Kuwait: Burgan Bank (“Burgan” or “the Bank”) announced its financial results for the first quarter ending March 31, 2025 (Q1 2025). The Bank delivered robust financial results for Q1 2025, reporting revenues of KD 57.9 million—a remarkable 8 percent year-on-year (y-o-y) increase. This performance was primarily driven by a rise in Net Interest Income to KD 44.2 million, reflecting a 30 percent y-o-y increase, supported by a substantial 50 bps improvement in Net Interest Margins and sustained growth in the loan portfolio. The Bank’s Net Interest Margin improved to 2.5 percent in Q1 2025 from 2.0 percent in Q1 2024, primarily driven by a broad-based improvement in spreads across the Group.

Operating profit for the quarter reached KD 24.4 million, representing an 3 percent increase from KD 23.8 million in Q1 2024. As a result, Net Income for Q1 2025 rose to KD 10.7 million, marking a 5 percent year-on-year increase compared to KD 10.1 million in Q1 2024.

As of the end of Q1 2025, total assets reached KD 8.6 billion, demonstrating Burgan Bank’s strong asset growth of 11 percent y-o-y. The Bank’s loan portfolio remained resilient, standing at KD 4.7 billion (+8 percent y-o-y), primarily supported by strong growth in its Kuwait portfolio, which grew by 6 percent y-o-y. The deposit base also expanded by 7 percent y-o-y, reaching KD 5.4 billion.

Burgan’s asset quality remained solid in Q1 2025, with the Non-Performing Loan (NPL) ratio improving to 1.8 percent, down from 2.6 percent in Q1 2024—reflecting a significant y-o-y reduction of 80bps. The Provision Coverage Ratio also remained strong at 170 percent.

The Bank’s capital position was robust, with a Common Equity Tier 1 (CET1) ratio of 11.7 percent and a Capital Adequacy Ratio (CAR) of 17.5 percent, both well above the regulatory minimum requirements of 10.5 percent and 14.0 percent, respectively. Additionally, Burgan’s liquidity position remained exceptionally strong, with a Liquidity Coverage Ratio (LCR) of 181 percent and a Net Stable Funding Ratio (NSFR) of 113 percent, both significantly exceeding the regulatory minimum of 100 percent.

Commenting on Burgan’s financial results, the Bank’s Chairman Sheikh Abdullah Nasser Al-Sabah, 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.”

Burgan strengthens its regional presence with acquisition of United Gulf Bank, Bahrain

Burgan Bank successfully completed the acquisition of a 100 percent stake in United Gulf Bank B.S.C. (UGB) during the quarter, further strengthening its geographic footprint and expanding its range of offerings. This strategic acquisition provides Burgan Bank with access to high-growth opportunities in Islamic finance through UGB’s license in Bahrain, as well as investment capabilities via Kamco Invest. It also unlocks significant potential for cross-selling, up-selling, and operational integration across the Bank’s regional network.

It is worthwhile to note that UGB’s balance sheet has been consolidated into our Q1 2025 financial statements, while the profit and loss contribution from its operations will be reflected in our results from Q2’25 onwards.

Burgan leads the way with Kuwait’s first certificates of deposit issuance

In February 2025, Burgan Bank announced the establishment of a strategic $500 million Certificates of Deposit (CDs) program in Kuwait. The program has been assigned a short-term rating of ‘F1’ by Fitch Ratings, equivalent to an ‘A’ rating, reflecting the Bank’s strong credit quality. Developed under the leadership of the Bank’s Treasury team, this short-term debt instrument serves as a key initiative to broaden the Bank’s funding base, strengthen balance sheet efficiency, and ensure sustained access to diversified sources of liquidity.

The program was structured in collaboration with Mizuho Bank, acting as Lead Arranger, while MUFG Bank, the Industrial and Commercial Bank of China (ICBC), Korea Development Bank (KDB), Development Bank of Singapore (DBS), and Standard Chartered Bank (SCB) have been appointed as Dealers. This initiative is fully aligned with the Group’s strategic funding framework, which emphasizes diversification of funding sources to enhance liquidity resilience and mitigate exposure to market volatility. Furthermore, the program is expected to contribute meaningfully to the Bank’s ongoing compliance with key Basel III liquidity requirements, including the Liquidity Coverage Ratio (LCR), Loan-to-Deposit Ratio (LDR), and Net Stable Funding Ratio (NSFR).

Burgan’s strategic partnerships

As Burgan advances with resolve toward realizing its vision to be the most modern and progressive bank in Kuwait, it continues to expand and reinforce its network of trusted partners who share the Bank’s commitment to innovation-driven excellence.

Among the long-standing, valuable partnerships that Burgan renewed at the turn of 2025 was that with Visa, the global leader in digital payments. The partnership agreement renewal comes in line with Burgan’s unwavering commitment to elevating the banking experience it offers customers through a suite of advanced digital payment solutions that leverage the Bank’s leading digital infrastructure and technological tools.

To emphasize its role as a thought-leader and trend-shaper within the domestic and regional investments market, Burgan Bank, in collaboration with Kamco Invest, co-hosted the second edition of their joint investment conference under the theme “Exploring Trends: Ideas That Move Markets”. The conference was attended by thought leaders and industry experts in addition to institutional and high-net-worth investors from Kuwait and the region, who discussed crucial topics spanning the global economy, geopolitics, and various asset classes.

Strengthening Burgan’s ESG commitment and sustainable impact

Burgan announced the launch of a waste management and recycling initiative at its head office in collaboration with Tadwire, the first recycling facility of its kind in Kuwait, confirming its dedication to upholding the highest environmental, social, and governance (ESG) standards in the banking sector and reducing its carbon footprint across all operations. As per this partnership, Burgan Bank is set to adopt the best practices in responsible waste management across multiple areas, such as collecting, recycling, upcycling, and repurposing different materials and types of waste, including cardboard, paper, plastic, and wood, as well as electronic waste.

In March 2024, Burgan Bank published its sixth annual Sustainability Report, representing a significant milestone in the Bank’s ongoing Environmental, Social, and Governance (ESG) journey and reaffirming its leadership in sustainable banking practices. As the first financial institution in Kuwait to release the2024 Sustainability Report, Burgan Bank continues to demonstrate its steadfast commitment to transparency, accountability, and long-term value creation through responsible business conduct. The report details the Bank’s key ESG achievements, underscoring the integration of sustainability into its operations, corporate culture, and stakeholder engagement. The full 2024 Sustainability Report is available on the Bank’s website.

Burgan’s international recognition for excellence

As a testament to Burgan’s continued efforts to maintain excellence across all fronts of its operations, the services it delivers, as well as the professional experience it offers to employees, the Bank was recognized by international organizations, including the International Organization for Standardization (ISO).

In recognition of its forward-thinking risk management and mitigation strategies, Burgan received the Business Continuity Management Systems (BCMS) certification, ISO 22301:2019, confirming the Bank’s ability to uphold sound operations during times of disruption as per the best international practices. The certification further cements Burgan’s position as a reliable financial partner for its customers and stakeholders, validating the Bank’s robust frameworks, continuous investment in technology, and skilled workforce to ensure seamless banking operations.