Bank of Kuwait and the Foreign Trade reports 138 million dinars in revenue in the first half of the current year
Burqan Bank announced its financial results for the six-month period ended on June 30, reporting total revenues of 138 million dinars, representing a 9% year-on-year increase. This performance reflects growth across its main revenue sources, according to a bank statement.
Net interest income rose to 90 million dinars, driven by continued 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 on interest rates. This underscores the strength of the bank’s funding strategy and its disciplined balance sheet management.
Non-interest income increased by 9% year-on-year to reach 47 million dinars, primarily fueled by higher fee and commission income, as well as strong performance across the group’s diversified business segments.
The group recorded operating profits of 45 million dinars for the period, compared to 49 million dinars in 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 arising from the application of hyperinflation accounting in Turkey. Consequently, Burqan Bank reported net profits of 11 million dinars, compared to 21 million dinars in the first half of 2025.
Commenting on the financial results, Sheikh Abdullah Nasser Al-Sabah, Chairman of the Board of Directors of Burqan Bank, stated: “Burqan 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.”
In addition, asset quality improved during the period, reflecting the group’s disciplined and prudent approach to risk management. The non-performing loan ratio stood at 2.3%, down from 3.2% in the previous year and 2.7% in the first quarter of 2026.
Burqan Bank 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 financial stimulus measures. As of June 30, 2026, the bank’s Common Equity Tier 1 (CET1) ratio stood at 10.5%, while its Capital Adequacy Ratio (CAR) reached 15.9%.
For his part, Tony Daher, Chief Executive Officer of Bank Burhan Group, said: “Our performance during the first half of the year reflects broad-based growth across our core revenue streams, supported by higher net interest income, sustained momentum in non-interest income, alongside continued expansion in our key markets, in parallel with growth in our international units, underscoring the value of the Group’s diversified business model.” He added: “Although profitability continues to be impacted by rising operating costs, prudent provisions, and the effects of hyperinflation accounting in Turkey, we remain focused on strengthening our long-term performance drivers.”
