Burgan Bank, the third largest bank by assets in Kuwait, has announced that it has won shareholders' approval for the distribution of cash dividends of 5 fils per share and 5% stock for the financial year 2020.
The announcement was made at Burgan Bank's 55th Ordinary Annual General Assembly meeting yesterday (June 6) held at Kipco Tower, where the board of directors submitted to its shareholders the financial results achieved for the past year ending on December 31, 2020.
Burgan Bank is a majority-owned unit of Kipco (Kuwait Projects Company), one of the largest holding companies in the Middle East and North Africa.
The bank posted FY’20 revenues of KD212.8 million with stable levels of non-interest income of KD72.8 million and expenses of KD97.2 million falling by 5% and leading to operating profit of KD115.5 million.
The customer loans and advances grew by 1.4% to KD4.3 billion and customer deposits grew by 2.5% to KD4.1 billion.
These results reflected Burgan Bank’s ability to maintain resilient revenues while delivering on its strategic initiatives despite the unprecedented challenges, remarked its Chairman Majed Essa Al Ajeel.
Al Ajeel highlighted the Q4 successful issue of $500 million Tier 2 Capital securities, further strengthening the bank’s capital adequacy ratio to 18.3%.
In a year of unprecedented change, Al Ajeel touched upon Burgan Bank’s efforts to actively support its customers, employees and the community through a host of measures.
These included postponement of loan installments for 6 months for retail clients and SME clients, deferral of interest servicing for corporate and private banking customers on a case-by-case basis and a smooth functioning of all client channels including 24/7 access to contact centers, he added.
During the General Assembly, two non-independent Board Members - Entisar Al Suwaidi and Abdullah Mohammed Al Mansour - were elected for this year.
Addressing the shareholders, Vice Chairman and Group CEO Masoud MJ Hayat highlighted the bank’s 2020 strategic key pillars which include human development, sustainability, digital transformation, and asset reallocation.
He stressed on the bank’s long-term sustainability efforts and pointed out how the past year emphasized the utmost importance of sustainability in the way we do business.
"In implementing these goals, we have prioritized the focus on developing our human element that we consider the main pillar in putting our strategy in practice. We have therefore concentrated on reinforcing and empowering our talent pool by providing specialized learning and development opportunities," he added.-TradeArabia News Service