Burgan Bank Group has reported KD17.5 million ($63.1 million) net profits for the first quarter of 2012, marking a growth of 48 per cent, compared to KD 11.8 million for the same period in 2011.

Earnings per share increased to 11.9 fils compared to 7.8 fils for the same period in 2011.

Revenues has reached to KD 42.6 million reflecting a growth of 10 per cent from KD38.8 million reported in the first quarter of 2011. Operating profit grew by 15 per cent to reach KD 26.6 million compared to KD23 million for the same period in 2011.

Customers’ deposits grew to KD 3,040 million, a 9 per cent increase from year ended on December 31,  2011, while loans grew by 7 per cent reaching KD2,406 million.

The consolidated financials include the results of the group’s operations in Kuwait as well as its subsidiaries, namely Jordan Kuwait Bank, Gulf Bank Algeria, Bank of Baghdad, Tunis International Bank, in which Burgan Bank has a majority stake. During the first quarter of 2012, the subsidiaries have demonstrated a steady growth path and maintained profitability.

Majed Essa Al-Ajeel, chairman of Burgan Bank Group said: “We are pleased with our results during the first quarter of the year. Our financial performance continues to be solid, and the Group demonstrates a consistent growth trend across its operations despite the slow economic growth in the region."

“Burgan Bank Group’s conservative strategy, prudent risk approach, and sustainable financial performance helped maintain the group’s overall position locally as well as regionally. The group announced earlier that it has entered into an agreement with Eurobank EFG to acquire a 99.26 per cent stake in Eurobank Tekfen, Turkey.”

“The final execution of the transaction is subject to regulatory approvals from Central Bank of Kuwait (“CBK”) and Turkey’s Banking Regulation and Supervision Agency (“BRSA”). The value of this transaction reflects a clear strategic approach, where Burgan Bank Group acquired an existing and leading banking platform that enjoys an extensive network of 60 branches across vibrant areas in Turkey, with a total price that equates to the cost of obtaining a license for an initial operational start-up,” added Al-Ajeel.

“On behalf of the board, I take this opportunity to thank our customers and shareholders for their confidence in our capabilities. Also to thank our executive management team for their leadership and the excellent execution of the corporate strategy, and to our staff for their continued support and commitment,” concluded Al Ajeel. – TradeArabia News Service