Burqan's revenues reach 138 million dinars in the first half of 2026
Boubyan Bank announced its financial results for the six-month period ended June 30, 2026, with total revenues reaching KD 138 million, a 9% increase on a year-on-year basis. 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. The slight decline 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 arising from the application of hyperinflation accounting in Turkey. Consequently, Boubyan Bank reported net profits of KD 11 million for the first half of 2026, compared to KD 21 million for the first half of 2025.
Commenting on the financial results, Chairman of the Board Sheikh Abdullah Nasser Al-Sabah said: “Boubyan’s performance in the first half 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 long-term sustainable value to shareholders.”
The Bank continued to strengthen its balance sheet, with total assets rising 10% year-on-year to KD 9.6 billion, reflecting sustained growth momentum across its various markets. This growth was primarily driven by operational activities in Kuwait, which grew 9% year-on-year and remained the main contributor to total asset growth. Total loans and advances also grew by 10% to KD 5.1 billion, supported by a 9% year-on-year increase in credit activity in Kuwait.
Customer deposits rose by 5% to KD 5.6 billion, underscoring the strength and diversity of the Group’s funding base. Deposit growth in Kuwait (up 4% year-on-year) was complemented by strong performance from the Group’s operations in Algeria and Turkey.
The Bank’s asset quality improved, reflecting the Group’s disciplined and prudent approach to risk management. The non-performing loan (NPL) ratio stood at 2.3%, down from 3.2% last 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 provisioning. Meanwhile, the net NPL ratio, after accounting for collateral, remained at a low level of 0.5%, confirming the strength and resilience of the Group’s credit portfolio.
Burkan continued to maintain a strong capital and liquidity position, with key regulatory ratios settling at levels above the minimum requirements imposed by the Central Bank of Kuwait in March 2026 following the launch of its fiscal 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%, providing a robust capital buffer that significantly exceeds the applicable minimum requirements of 9.5% and 13.0%, respectively. The bank’s liquidity position also remained resilient, with the Liquidity Coverage Ratio (LCR) at 197% and the Net Stable Funding Ratio (NSFR) at 110% in the second quarter of 2026, both substantially higher than the Central Bank of Kuwait’s minimum requirement of 80%. This reflects the strength of the bank’s funding structure and prudent liquidity management.
Abdullah Al-Sabah added, “Our prudent risk management approach enhances the resilience of our credit portfolio and balance sheet. The improvement in asset quality, supported by adherence to provisions and sound capital and liquidity management, underscores our financial strength and enables Burkan Bank to continue supporting customers and capitalizing on strategic opportunities.”
Al-Sabah stated, “The progress we achieved in the first half of 2026 reflects the collective efforts of our employees and the ongoing trust placed in us by our customers and shareholders. We will sustain these successes through disciplined execution, strong governance, and responsible growth. Looking ahead, we will continue to advance our strategic priorities and expand our sustainability agenda, embedding responsible practices across all our operations to strengthen institutional resilience and deliver sustainable value to all stakeholders.”
He further noted, “The planned capital increase of KD 50 million through a rights issue is a significant step toward strengthening Burkan 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 Daher, Head of the Executive Committee of the Burkan Group, said, “Our performance in the first half reflects broad-based growth across our core revenue streams, 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 impacted by rising operational costs, prudent provisions, and the effects of hyperinflation accounting in Turkey, we remain focused on strengthening long-term performance drivers. This is particularly important as we make steady progress on our digital transformation agenda, enhance operational efficiency, and drive execution across all Group sectors. These priorities will support consistent performance, reinforce our resilience, and position Burkan on a path of sustainable long-term growth.”
Burkan received approval from the Central Bank and the Capital Markets Authority to proceed with the capital increase through the issuance of KD 50 million in rights shares. This initiative represents a key 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 the year, Burqan announced the full resumption of draws for the “Kanaz” account, completing all deferred draws scheduled between March 2025 and April 2026 over five consecutive days. This draw cycle crowned more than 250 winners, including the fourth millionaire of the “Kanaz” account, and included the deferred monthly and semi-annual draws, as well as the major annual draw, alongside the announcement of the “Kanaz” account draw schedule for 2026.
Under the slogan “You Are Our Motivation,” Burqan 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.
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 initiatives targeting frontline staff, reflected the bank’s commitment to recognizing their efforts and supporting their families.
Burqan continued to strengthen its strategy for human capital development through its strategic partnership with the Banking Institute, and participated in the Hult Ashridge Executive Program.
Designed to align with the bank’s strategic objectives and leadership priorities, the program involved more than 20 general managers and deputy general managers.
This initiative enhanced cooperation between Burqan Bank and the Banking Institute, reaffirming the bank’s commitment to preparing future leaders, supporting human resource development goals in Kuwait, and realizing the aspirations of Kuwait Vision 2035.
Speaking about the bank’s strategy for human capital development, Dhaher stated, “Investing in our employees is the foundation for Burqan Bank’s long-term success. Through partnerships, such as our collaboration with the Banking Institute and participation in the Hult Ashridge program for executive leadership development, we are equipping our leaders with the strategic skills needed to navigate changes, improve performance, and drive the bank’s future growth.”
Burqan continued to reinforce its leadership in sustainability by maintaining its inclusion in the FTSE4Good Index series, which serves as an independent certification of the bank’s commitment to responsible banking, strong governance, and the integration of environmental, social, and governance (ESG) criteria into its operations and activities. This global index evaluates companies against rigorous environmental and social standards. Burqan is one of only five Kuwaiti companies listed in this index, reflecting the strength of its sustainability framework and the alignment of its practices with international standards.
The bank further advanced its sustainability agenda by publishing its seventh annual Sustainability Report for 2025. As one of the first Kuwaiti banks to publish sustainability reports in both Arabic and English, it continues to set a benchmark for transparency and corporate responsibility.
