Burqan wins 11 million dinars in 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 during the first half of 2026, representing a 9% year-on-year increase. This performance reflects growth across various key revenue sources, supported 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, alongside the Group’s ability to maintain a stable net interest margin of 2.2% despite pressures surrounding interest rates. This underscores 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 from the Group’s diversified business segments.
The Group recorded operating profits of KD 45 million for the period, compared to KD 49 million for the same period last year. This slight decline in operating profits was mainly due to higher operating expenses, resulting from the Group’s continued investment in digital transformation across all its operations, as well as increased operating costs stemming from rising inflation in Turkey.
Profitability was also impacted by higher prudent credit provisions and increased net losses resulting from the application of hyperinflation accounting in Turkey. Consequently, Boubyan reported net profits of KD 11 million, compared to KD 21 million for the first half of 2025.
Commenting on the financial results, Sheikh Abdullah Nasser Al-Sabah, Chairman of the Board of Directors of the Bank, stated: “The Bank’s performance during 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 maintained our focus on sustaining business momentum, executing our strategy prudently, and enhancing our ability to support customers while delivering sustainable long-term value to shareholders.”
Sheikh Abdullah Al-Nasser added: “Boubyan continued to strengthen its balance sheet through disciplined strategy execution, 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.”
He noted that total loans and advances 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 other hand, he pointed out that customer deposits rose by 5 percent to reach 5.6 billion dinars, underscoring the strength and diversity of the Group’s funding base. This deposit growth in Kuwait, which increased by 4 percent year-on-year, was complemented by the 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 risk management approach. The non-performing loan (NPL) ratio stood at 2.3 percent, down from 3.2 percent last year and 2.7 percent in the first quarter of 2026, demonstrating continuous improvement in the quality of the Group’s credit portfolio. Total coverage ratios rose to 240 percent, reinforcing the Bank’s conservative strategy in provisioning. Meanwhile, the net NPL ratio, after accounting for collateral, remained at a modest level of 0.5 percent, confirming the strength and resilience of the Group’s credit portfolio.
Sheikh Abdullah Al-Nasser stated that “Burqan” continued to maintain a strong capital and liquidity position, with key regulatory ratios remaining 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 percent, while the Capital Adequacy Ratio (CAR) reached 15.9 percent, providing a robust capital buffer well above the minimum regulatory requirements of 9.5 percent and 13.0 percent, respectively. He further noted the continued strength of the Bank’s liquidity position, with the Liquidity Coverage Ratio (LCR) at 197 percent and the Net Stable Funding Ratio (NSFR) at 110 percent, consistent with the second quarter of 2026. Both metrics are significantly higher than the Central Bank’s minimum requirement of 80 percent, reflecting the strength of the Bank’s funding structure and prudent liquidity management.
Sheikh Abdullah Al-Nasser added, “Our prudent risk management approach contributes to enhancing the resilience of our credit portfolio and balance sheet. The improvement in asset quality, supported by adequate provisioning and sound capital and liquidity management, reflects our strong financial position and enables the Bank to continue supporting customers and capitalizing on strategic opportunities.”
Al-Nasser said, “The planned capital increase of 50 million dinars through a rights issue is a significant step toward strengthening the Bank’s capital base and enhancing its capacity to support future growth opportunities. It also contributes to boosting our strategic flexibility and positions the Bank well to continue delivering sustainable value to its shareholders.”
For his part, Tony Dagher, Chief Executive Officer of the Burqan 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 from our Kuwait operations, alongside growth in our international units, demonstrates the value of the Group’s diversified business model.”
Daher added that “although profitability continues to be affected by rising operational costs, prudent provisions, and the implications of hyperinflation accounting in Turkey, we remain focused on strengthening long-term performance drivers, particularly as we make steady progress on our digital transformation agenda, enhance operational efficiency, and improve execution across all group sectors. These priorities will support performance consistency, reinforce our resilience, and position the bank on a path of sustainable long-term growth.”
He noted that, as part of its ongoing capital enhancement plans, “Burqan” obtained approval from the Central Bank 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.
During the first half of 2026, “Burqan” announced the full resumption of “Kanz” account draws, completing all deferred draws from the period spanning March 2025 to April 2026 over five consecutive days. This draw cycle crowned more than 250 winners, including the fourth millionaire of the “Kanz” account, and included the monthly deferred draws, the semi-annual draw, and the major annual draw, alongside the announcement of the “Kanz” account draw schedule for 2026.
The successful completion of these draws constituted a tangible achievement in retail banking services and reinforced the core principles underpinning the bank’s relationship with its customers.
All draws were conducted following the necessary regulatory approvals and under the supervision of internal and external auditors, reaffirming the bank’s commitment to transparency and its fulfillment of promises to customers.
Under its slogan “You Are Our Motivation,” the bank honored employees of the Ministry of Interior and the General Fire Force, 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 across healthcare, fitness, entertainment, retail, and lifestyle sectors. This enabled frontline heroes and their families to enjoy exclusive benefits in recognition of their efforts in serving Kuwait.
In continuation of these efforts, the bank launched a package of benefits 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 programs targeting frontline staff, reflected the bank’s dedication to appreciating their efforts and supporting their families.
