Kuwait’s Burgan Bank Q1 Net Profit Up 10%

Burgan Bank, Kuwait’s third-largest lender by assets, reported a 10 per cent increase in first-quarter net profit on Sunday, beating analyst estimates, thanks to higher income from interest, commissions and fees.

Burgan, a unit of Kuwait Projects Co (KIPCO), made a net profit of KD17.1 million ($60.8 million) in the three months to the end of March, compared to 15.6 million in the same period a year ago, it said in a statement.

Five analysts in a Reuters survey estimated an average net profit of KD16.07 million for the first quarter at the bank, which makes roughly half of its earnings in Kuwait and half abroad.

“I remain confident and optimistic of the group’s strong performance going forward,” Chairman Majed Essa al-Ajeel said.

In March, the bank said it wants to raise more capital this year to comply with the Basel III banking industry regulations, using either pure capital, perpetual bonds or both. It did not give any details on this in Sunday’s statement.