Burgan Bank reported total revenues of KD138 million ($444.78 million) for the six-month period ended June 30, 2026 (H1’26), representing a 9% year-on-year increase, reflecting broad-based growth across its core revenue streams, supported by higher net interest income and stronger contributions from non-interest income activities. 

Net interest income increased to KD90 million, supported by continued growth in the group’s loan portfolio and other earning assets, alongside the group’s ability to maintain a stable Net Interest Margin (NIM) of 2.2% despite the challenging interest rate environment, reflecting the resilience of its funding strategy and disciplined balance sheet management. 

Non-interest income grew by 9% year-on-year to KD47 million, driven primarily by stronger fee generation and higher contributions from the group’s diversified business lines.

The group reported an operating profit of KD45 million for the period, compared to KD49 million in the corresponding period of the previous year. The moderate decline in operating profit was primarily attributable to higher operating expenses, reflecting the Group’s continued investment in digital capabilities across its operations, together with higher operating costs arising from the inflationary environment in Turkey.

Overall profitability was further impacted by higher precautionary credit provisions and increased net monetary losses arising from the application of hyperinflation accounting in Turkey. Consequently, Burgan Bank recorded a net profit attributable to shareholders of KD11 million ($35.45 million), compared to KD21 million in the first half of 2025.

Burgan Bank’s Chairman Sheikh Abdullah Nasser Al-Sabah said: “Burgan Bank’s performance during the first half of 2026 reflects the strength of our diversified business model and our continued focus on disciplined execution. Despite a complex and evolving operating environment, we remained focused on maintaining business momentum, executing our strategy with discipline and strengthening our ability to support customers while creating long-term value for shareholders.”

Burgan continued to strengthen its balance sheet, with total assets increasing by 10% year-on-year to KD9.6 billion, reflecting sustained growth momentum across its markets, with Kuwait operations (+9% year-on-year), remaining a key contributor to overall asset growth. Loans and advances grew by 10% to KD5.1 billion, supported by higher lending activity in Kuwait (+9% year-on-year), alongside continued expansion across the group’s other key franchises. Customer deposits increased by 5% to KD5.6 billion, underscoring the resilience and diversification of the Group’s funding base, with deposit growth in Kuwait (+4% year-on-year), complemented by contributions from its Algerian and Turkish operations.

Asset quality strengthened during the period, reflecting the group’s disciplined and prudent risk management approach. The non-performing loan (NPL) ratio improved to 2.3%, down from 3.2% a year earlier and 2.7% in Q1’26, demonstrating continued improvement in the quality of the Group’s credit portfolio. The total coverage ratio increased to 240%, reinforcing the Bank’s conservative provisioning strategy, while net NPLs, after considering collateral coverage, remained contained at 0.5%, underscoring the strength and resilience of the Group’s credit portfolio. - TradeArabia News Service