Burqan achieves net profits of 11 million dinars for the first half

Boubyan Bank announced its financial results for the six-month period ended June 30, 2026. Total bank revenues reached KD 138 million in the first half of 2026, representing a 9% year-on-year increase. This performance reflects growth across various key revenue sources, driven by higher net interest income and contributions from non-interest income.

Net interest income rose to KD 90 million, benefiting from sustained growth in the loan portfolio and other income-generating assets. The Group also maintained a stable net interest margin of 2.2% despite pressures on interest rates, underscoring the robustness of the Bank’s funding strategy and its disciplined balance sheet management.

Non-interest income increased by 9% year-on-year to KD 47 million, primarily driven by higher fee and commission income, as well as strong performance across the Group’s diverse business segments.

The Group recorded operating profits of KD 45 million for the period, compared to KD 49 million in the same period last year. This slight decline in operating profit was mainly due to higher operating expenses, resulting from the Group’s continued investment in digital transformation across all its operations, alongside increased operational costs stemming from high inflation in Turkey.

Profitability was further impacted by higher prudent credit provisions and increased net losses arising from the application of hyperinflation accounting in Turkey. Consequently, Boubyan Bank reported net profits of KD 11 million, compared to KD 21 million in the first half of 2025.

Commenting on the financial results, Sheikh Abdullah Nasser Al-Sabah, Chairman of the Board of Directors of Boubyan Bank, said: “Boubyan Bank’s performance in the first half of 2026 reflects the strength of our diversified business model and our continued focus on disciplined strategy execution. Despite the complex and evolving operating environment, we have remained focused on maintaining business momentum, executing our strategy prudently, and enhancing our ability to support customers while delivering sustainable long-term value to shareholders.”

Boubyan Bank continued to strengthen its balance sheet, with total assets increasing by 10% year-on-year to KD 9.6 billion. This reflects sustained growth momentum across its various markets, primarily driven by operational activities in Kuwait, which grew by 9% year-on-year and remained the main contributor to total asset growth. Total loans and advances also grew by 10% to reach KD 5.1 billion, supported by a 9% year-on-year increase in credit activity in Kuwait, alongside the continued expansion of other subsidiaries’ activities.

On the liability side, customer deposits rose by 5% to KD 5.6 billion, confirming the strength and diversity of the Group’s funding base. Deposit growth in Kuwait (up 4% year-on-year) was complemented by strong performance of the Group’s operations in Algeria and Turkey.

In addition, asset quality improved during this period, reflecting the Group’s disciplined and prudent approach to risk management. The non-performing loan (NPL) ratio stood at 2.3%, compared to 3.2% in the previous year and 2.7% in the first quarter of 2026, indicating continuous improvement in the quality of the Group’s credit portfolio. Total coverage ratio increased to 240%, reinforcing the Bank’s conservative strategy in setting aside provisions. Meanwhile, the net NPL ratio, after accounting for collateral, remained at a low level of 0.5%, underscoring the strength and resilience of the Group’s credit portfolio.

Boubyan Bank continued to maintain a strong capital and liquidity position. Key regulatory ratios remained at levels above the minimum requirements set by the Central Bank of Kuwait in March 2026 following the launch of its monetary stimulus measures. As of June 30, 2026, the Bank’s Common Equity Tier 1 (CET1) ratio stood at 10.5%, while the Capital Adequacy Ratio (CAR) reached 15.9%. This provides a solid capital base exceeding the minimum applicable requirements of 9.5% and 13.0%, respectively.

The Bank’s liquidity position also remained robust, with the Liquidity Coverage Ratio (LCR) at 197% and the Net Stable Funding Ratio (NSFR) at 110%, as in the second quarter of 2026. Both ratios are significantly higher than the Central Bank of Kuwait’s minimum requirement of 80%, reflecting the strength of the Bank’s funding structure and prudent liquidity management.

Sheikh Abdullah Al-Nasser added: “Our prudent risk management approach enhances the resilience of our credit portfolio and balance sheet. The improvement in asset quality, supported by adequate provisions and sound capital and liquidity management, reflects our strong financial position and enables Boubyan Bank to continue supporting customers and capitalizing on strategic opportunities.”

On his part, Tony Dagher, Chief Executive Officer of Boubyan Bank Group, said: “Our performance in the first half of the year reflects broad-based growth across our core revenue sources, supported by higher net interest income, sustained momentum in non-interest income, and continued expansion in our key markets. The strong contribution of our operations in Kuwait, alongside growth in our international units, demonstrates the value of the Group’s diversified business model.”

He added: “Although profitability continues to be affected by rising operating costs, prudent provisions, and the implications of hyperinflation accounting in Turkey, we remain focused on strengthening long-term performance drivers. We are making steady progress on our digital transformation agenda, enhancing operational efficiency, and improving execution across all Group sectors. These priorities will support consistent performance, reinforce our resilience, and position Boubyan Bank on a path of sustainable long-term growth.”

As part of its ongoing plans to strengthen capital, Boubyan Bank received approval from the Central Bank of Kuwait and the Capital Markets Authority to proceed with a capital increase through the issuance of rights shares worth KD 50 million. This initiative represents a significant step in strengthening the Bank’s capital position, enhancing financial flexibility, and supporting future strategic opportunities, while maintaining a solid foundation for sustainable growth.

The Bank is currently completing the remaining regulatory and procedural requirements and will continue to keep shareholders and the market updated through standard regulatory disclosures.

Sheikh Abdullah Al-Nasser added: “The proposed KD 50 million capital increase via rights shares is a crucial step toward strengthening Boubyan Bank’s capital base and enhancing its capacity to support future growth opportunities. It also contributes to raising our strategic flexibility and positions the Bank well to continue delivering sustainable value to its shareholders.”

Retail Banking Development

During the first half of 2026, Boubyan Bank announced the full resumption of withdrawals for the “Kanaz” account. All deferred withdrawals scheduled between March 2025 and April 2026 were completed over five consecutive days. This cycle awarded more than 250 winners, including the fourth millionaire of the “Kanaz” account. It included the monthly and semi-annual deferred withdrawals, as well as the major annual draw, alongside the announcement of the “Kanaz” account withdrawal schedule for 2026.

Successfully completing these withdrawals marked a tangible achievement in retail banking management and reinforced the core principles underpinning the Bank’s relationship with its customers. All withdrawals were conducted following the necessary regulatory approvals and under the supervision of internal and external auditors, reaffirming the Bank’s commitment to transparency and fulfilling its promises to customers.

Under its slogan “You Are Our Motivation,” Boubyan Bank honored employees of the Ministry of Interior and the General Fireforce, offering them a range of exclusive benefits and special offers in collaboration with selected companies from Kuwait Projects Company (KIPCO) and a group of prominent Kuwaiti business owners and entrepreneurs in the healthcare, fitness, entertainment, retail, and lifestyle sectors. This initiative enabled frontline heroes and their families to benefit from exclusive perks, in appreciation of their efforts in serving Kuwait.

Continuing these efforts, Boubyan Bank launched a benefits package specifically designed for employees whose spouses work in frontline roles, aiming to support and empower them to achieve a better balance between work and family life. The package included greater flexibility in working hours, personal assistance services to facilitate daily and family affairs, and a comprehensive wellness program focused on providing all forms of support. This initiative, along with other measures directed at frontline staff, reflected the Bank’s commitment to recognizing their efforts and supporting their families.

Investing in Future Leaders

Boubyan Bank continued to strengthen its human capital development strategy through its strategic partnership with the Banking Institute, participating in the Executive Program (Hult Ashridge).

Designed for more than 20 general managers and deputy general managers, the program aligned with the Bank’s strategic objectives and leadership priorities. It aimed to enhance executive capabilities in strategic decision-making, governance, operational adaptability, innovation, and effective leadership, thereby preparing leaders to navigate an increasingly complex banking environment.

This initiative strengthened cooperation between Boubyan Bank and the Banking Institute, reaffirming the Bank’s commitment to developing future leaders, supporting Kuwait’s human resource development goals, and contributing to the aspirations of Kuwait Vision 2035.