Burqan Bank: 200 Million KD in Total Revenues in 9 Months

Boubyan Bank K.S.C.P. (“Boubyan,” the “Bank,” or the “Group”) announced its financial results for the nine-month period ended September 30, 2026, recording continued growth in its core revenue sources and further expansion on the balance sheet. This performance reflects sustained momentum across the Group’s various banking operations, supported by growth in credit activity, contributions from diverse business segments, and a disciplined approach to financial center management. Although profitability was impacted by rising operating expenses and the consequences of applying hyperinflation accounting to the Group’s operations in Turkey, Boubyan Bank maintained a strong capital and liquidity position, with regulatory ratios comfortably exceeding the minimum requirements of applicable regulations. Furthermore, the successful completion of a 50 million Kuwaiti dinar capital increase through a rights issue during the period strengthened the Bank’s capital base and enhanced its financial flexibility, supporting its ability to advance its long-term strategic priorities.

Continued Growth

During the first nine months of 2026, Boubyan Bank recorded total revenues of 201 million dinars, compared to 192 million dinars during the same period in 2025, driven by higher net interest income and continued growth in fee and commission income. This performance underscores the ongoing momentum in core banking activities, supported by loan portfolio growth and contributions from the Group’s diverse business segments. Net interest income rose to 137 million Kuwaiti dinars, compared to 128 million Kuwaiti dinars in the first nine months of 2025, while the net interest margin remained relatively stable at 2.2%, reflecting the Bank’s ability to maintain margin stability despite pressures on interest rates.

Non-interest income remained largely stable year-on-year at 64 million Kuwaiti dinars, with continued growth in fee and commission income, partially supported by the contribution of United Gulf Bank, which the Group acquired in 2025, and its subsidiary specializing in investment banking services, Kamco Invest K.S.C.P. (“Kamco Invest”). These fee-generating activities continued to support income source diversification, complementing the Group’s core net interest income.

Operating profit for the period amounted to 65 million dinars, compared to 76 million Kuwaiti dinars in the first nine months of 2025, as higher operating expenses offset the impact of revenue growth. The rise in expenses reflects the Group’s continued strategic investments in developing digital capabilities across its operations, as well as increased operating costs resulting from high inflation in Turkey. Profitability was also affected by higher net cash losses arising from the application of hyperinflation accounting to the Group’s operations in Turkey.

Credit provisions remained largely stable year-on-year, consistent with the Bank’s prudent approach to credit risk management and maintaining adequate coverage levels to address potential losses. The cost of credit stood at 50 basis points, compared to 60 basis points during the same period in 2025. Consequently, Boubyan Bank recorded net profit attributable to shareholders of 22 million dinars for the nine-month period, compared to 32 million Kuwaiti dinars in the first nine months of 2025.

In commenting on the financial results, Sheikh Abdullah Nasser Al-Sabah Al-Sabah, Chairman of the Board of Directors of Boubyan Bank, said: “Boubyan Bank’s performance during the first nine months of 2026 reflects the resilience of our business model and the strength of the financial foundations we continue to consolidate. Amid economic changes and uncertainty at both the regional and global levels, we have continued to focus on maintaining financial stability, protecting stakeholders’ rights, and executing our strategy prudently. The continued growth in our core business demonstrates the strength of the Group’s operations and its banking standing, reinforcing our confidence in its long-term direction.”

Balance Sheet Strength

Boubyan Bank continued to achieve growth in its balance sheet during the period, with total assets reaching KD 9.4 billion as of September 30, 2026, compared to KD 8.9 billion in the corresponding period. This growth reflects continued activity in the Group’s key operating markets, supported by the performance of its core banking business.

Total loans and advances grew by 8% year-on-year to KD 5.1 billion, driven by sustained credit activity, particularly in Kuwait, where the credit portfolio grew by 9%. Customer deposits also increased by 6% year-on-year to KD 5.5 billion, supported by a 5% growth in deposits in Kuwait. The continued growth in loans and deposits underscores the strength of the Bank’s customer base and the resilience of its core banking operations, as well as its ability to meet funding needs while maintaining a diversified funding base.

The loan-to-deposit ratio stood at 78% as of September 30, 2026, remaining comfortably below the regulatory threshold of 100%. Asset quality remained a key priority for the Bank, supported by disciplined credit granting standards, a prudent provisioning policy, and effective portfolio management. As of September 30, 2026, the Group’s non-performing loan ratio was 2.3%, with total coverage reaching 235%, reflecting the level of coverage maintained by the Bank to address potential credit defaults.

The Bank continued to monitor credit developments in the markets in which it operates, maintaining a balanced risk management approach that keeps pace with economic changes and market dynamics.

The Bank also maintained a strong capital position, with the Common Equity Tier 1 (CET1) ratio at 10.9% and the Capital Adequacy Ratio (CAR) at 16.3% as of September 30, 2026. Both ratios remained comfortably above the minimum regulatory requirements, providing a capital buffer that supports banking activities and enhances financial resilience.

The Bank maintained strong liquidity levels, with the Liquidity Coverage Ratio (LCR) at 162% and the Net Stable Funding Ratio (NSFR) at 111%, both exceeding the minimum regulatory requirements. This reflects the Bank’s ability to meet its short-term obligations while maintaining a stable long-term funding structure.

Commenting on the Group’s financial position, Sheikh Abdullah Nasser Al-Sabah said: “Our growth approach is based on prudent risk management, sound governance, and responsible capital management. Maintaining the strength of our balance sheet is essential to our ability to navigate market changes and seize strategic opportunities. The successful completion of the capital increase also represents an important step in this direction, as it enhances our financial flexibility and our ability to deliver sustainable value to shareholders and the communities we serve.”

Speaking on the Group’s operational performance and strategic priorities, Tony Daher, Chief Executive Officer of Bank AlBahrain Group, said: “Our performance during the first nine months of the year reflects sustained momentum in our core banking activities, supported by growth in net interest income, continued strength in fee and commission income, alongside growth in loan and deposit portfolios. Kuwait remains a central pillar of this performance, while the integrated capabilities of our international operations continue to support our diversified business model and enhance the range of solutions we offer to our clients.” He added: “Despite the ongoing impact of operating expenses and the consequences of hyperinflation accounting in Turkey on profitability, our priorities remain clear. We are focused on enhancing operational efficiency, developing our digital capabilities, and improving the consistency and sustainability of our performance. At the same time, we are leveraging the Group’s available expertise and relationships to enhance the value delivered to customers, support disciplined business growth, and build a more integrated banking platform for the future.”

During the third quarter of 2026, Bank AlBahrain successfully completed a capital increase of 50 million Kuwaiti dinars through an issue of rights shares. The offering attracted subscriptions totaling 66.79 million Kuwaiti dinars, representing an oversubscription ratio of 134%, or approximately 1.34 times the number of shares offered. The subscription period closed on September 14, 2026, following the issuance of 277.8 million new shares at an issue price of 0.180 Kuwaiti dinars per share, comprising a nominal value of 0.100 Kuwaiti dinars and an issue premium of 0.080 Kuwaiti dinars. After completing the relevant regulatory and corporate procedures, the shares were fully allocated, distributed, and issued, increasing the Bank’s issued and fully paid-up capital from 399.6 million Kuwaiti dinars to 427.4 million Kuwaiti dinars, an increase of approximately 7%.

The capital increase strengthened the Bank’s financial foundation and provided greater flexibility to advance its strategic priorities, including consolidating its position and operations in the Kuwaiti market, improving the asset mix, investing in digital transformation, and identifying opportunities that enable the Bank to achieve profitable and sustainable growth. The success of the offering also demonstrated the Group’s integrated capabilities, with KAMCO Invest acting as the issue advisor and subscription agent, leveraging its expertise in investment banking and capital markets to support the execution of the transaction.

Alongside strengthening its capital base, Bank AlBahrain continued to advance its regional integration strategy, focusing on consolidating its presence and brand in its markets. United Gulf Bank (UGB) completed its name change to become Bank AlBahrain S.A.K., operating under the trade name “Bank AlBahrain Bahrain.” This step marks a significant milestone in reinforcing the Bank AlBahrain brand across the Group’s regional operations and fostering a more integrated identity in its markets. The name change aligns the Bank’s operations in Bahrain with the Group’s regional direction, while preserving its specific focus on the Bahraini market and its potential, which complements the Group’s broader portfolio. Bank AlBahrain Bahrain will continue to focus on corporate and institutional banking, while enhancing its capabilities in Islamic financing and treasury investments, alongside corporate banking services, fixed-income products, and global markets and treasury services.

This initiative aims to integrate the Group’s capabilities and enhance its ability to meet the growing and evolving financial needs of high-net-worth individuals, family offices, corporate clients, and financial institutions in Kuwait and key regional markets, including Bahrain, the United Arab Emirates, and Saudi Arabia. Collectively, these developments underscore Bank Al-Bahrain’s strategic direction toward building a stronger, more integrated regional banking group, anchored in its core operations in Kuwait and underpinned by a unified identity and integrated capabilities across its markets, thereby supporting sustainable growth and long-term value creation.

During the first nine months of 2026, Bank Al-Bahrain continued to develop its personal banking services through customer-centric products, strategic partnerships, and initiatives designed to keep pace with the changing financial needs of individuals and families. As part of these efforts, the bank entered into a strategic partnership with the American University of Kuwait (AUK) to provide flexible financing solutions for university education for students’ parents. The initiative aims to help families manage university education costs through convenient, education-specific banking facilities available throughout the year, without additional costs or administrative fees, subject to the bank’s approved credit policy and final approval. This partnership reflects Bank Al-Bahrain’s commitment to supporting its clients during important life stages, as well as contributing to the development of human capital in Kuwait and supporting the broader aspirations of Kuwait Vision 2035.

The bank also continued to enhance savings benefits through its “Kanaz” account, one of its flagship offerings. In July, Bank Al-Bahrain awarded the semi-annual grand prize of 500,000 Kuwaiti dinars to one customer, along with 20 monthly draw winners, each receiving 2,000 Kuwaiti dinars. The 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 governance. Through ongoing monthly, semi-annual, and annual draws, the “Kanaz” account continues to encourage savings habits while offering customers the opportunity to win cash prizes throughout the year.

Bank Al-Bahrain’s continued investment in enhancing the customer experience has received international recognition, winning the “Best Bank in Kuwait for Customer Experience” award at the Euromoney Awards for Excellence 2026. The award acknowledged the bank’s progress in improving service quality and reliability, streamlining customer journeys, enhancing digital banking usability, and achieving greater integration between its traditional and digital channels. This recognition also highlighted the bank’s focus on customer feedback, excellence in direct service delivery, and maintenance of the highest levels of digital security.

Commenting on the Group’s continued focus on customer value, Tony Dagher said: “Our customers remain at the core of how we develop our business and measure our progress. Whether through providing more accessible financial solutions, enhancing our digital services, or delivering a smoother banking experience, our goal is to make every interaction with the bank more convenient, easier, and valuable for the customer. This recognition from Euromoney reflects the collective efforts of our teams and motivates us to continue raising our standards, in line with our slogan: ‘You are our drive.’”

Bank Al Baraka continued to make progress in integrating Environmental, Social, and Governance (ESG) criteria into its strategy and operational applications, thereby reinforcing its commitment to responsible banking, good governance, and sustainable value creation. The bank succeeded in upgrading its rating in the Morgan Stanley Capital International (MSCI) ESG Index from “BB” to “BBB,” a notable international recognition of the strides the bank has made in developing governance practices, enhancing sustainability disclosures, managing risks, and incorporating sustainability considerations into the bank’s decision-making processes. This rating upgrade reflects Bank Al Baraka’s ongoing advancement in meeting ESG standards and its vigorous efforts to align its responsible professional practices with the expectations of all investors and stakeholders.