Burkan Bank Reports 22 Million KD Profit in First 9 Months of 2026

Bank Al-Burhan announced its financial results for the nine-month period ended September 30, 2026, reporting net profits attributable to shareholders of 22 million dinars, compared to 32 million dinars in the corresponding period of 2025. The bank also recorded continuous growth in its core revenue sources and further expansion in its balance sheet.

This performance reflects the 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 management.

In a statement, the bank noted that while profitability was impacted by rising operating expenses and the consequences of applying hyperinflation accounting to the Group’s operations in Turkey, Al-Burhan maintained a strong capital and liquidity position, with regulatory ratios comfortably exceeding the minimum requirements of applicable regulations.

The bank highlighted that the successful completion of a 50 million dinar capital increase, achieved through the issuance of rights shares during the period, strengthened the bank’s capital base and enhanced its financial flexibility, thereby supporting its ability to advance its long-term strategic priorities.

During the first nine months of 2026, Al-Burhan recorded total revenues of 201 million dinars, compared to 192 million dinars in the same period of 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 dinars, up from 128 million dinars, 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 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.

These fee-generating activities continued to support income diversification, complementing the Group’s core net interest income. Operating profits amounted to 65 million dinars, down from 76 million dinars, 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 all its operations, alongside 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 its maintenance of adequate coverage levels to address potential losses. The cost of credit stood at 50 basis points, compared to 60 basis points in the same period of 2025.

In commenting on the financial results, Sheikh Abdullah Nasser Al-Sabah, Chairman of the Board of Directors of Burqan, stated: “Burqan’s performance during the first nine months of 2026 reflects the robustness 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 position, reinforcing our confidence in its long-term direction.”

Burqan continued to achieve growth in its balance sheet during the period, with total assets reaching KD 9.4 billion, compared to KD 8.9 billion. This growth reflects sustained 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 reach KD 5.1 billion, driven by continued credit activity, particularly in Kuwait, where the credit portfolio grew by 9%. Customer deposits also rose by 6% year-on-year to reach KD 5.5 billion, supported by a 5% growth in deposits in Kuwait.

According to the bank’s statement, 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 financing needs while maintaining a diversified funding base. The loan-to-deposit ratio stood at 78%, 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 loans ratio stood at 2.3%, with a total coverage ratio of 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 it operates in, maintaining a balanced risk management approach that keeps pace with economic changes and market dynamics. It 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%. 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.

Al-Nasser added: “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 a significant step in this direction, as it enhances our financial flexibility and our ability to deliver sustainable value to shareholders and the communities we serve.”

He added: “The progress we have achieved reflects the dedication of our team, as well as the trust of our clients and shareholders. As we move forward, we bear the responsibility of leveraging these strong foundations within a clear vision, disciplined execution, and long-term strategic planning. We reaffirm our continued commitment to solidifying Burqan’s position as a resilient and responsible financial institution that confidently looks toward the future, while actively contributing to supporting Kuwait’s economic development journey and delivering sustainable value to all stakeholders.”

Speaking about the Group’s operational performance and strategic priorities, Tony Dagher, Chief Executive Officer of Burqan 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 key driver 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 working to leverage the expertise and relationships available across the Group to enhance the value delivered to clients, support disciplined business growth, and build a more integrated banking platform for the future.”

Dagher further stated: “Our clients remain central to 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. The recognition from Euromoney reflects the joint efforts of our teams and motivates us to continue raising our standards, in line with our slogan, ‘You are our motivation.’”