Burgan Bank Demonstrates Financial Strength and Operational Resilience in 2025

Burgan Bank K.P.S.C. (“Burgan” or “the Bank”) announced its financial results for the year ended 31 December 2025 (FY’25), reporting a resilient performance underpinned by disciplined strategy execution, diversified revenue streams, prudent risk management, and a robust balance sheet. The Bank’s results were achieved amid a complex global and regional backdrop shaped by evolving economic conditions and ongoing geopolitical developments.

For FY’25, total revenues increased 17% y-o-y to KD 268 million, driven by strong growth across both interest and non-interest income streams. Net interest income rose 13% y-o-y to KD 178 million, supported by continued loan growth and stable net interest margins of 2.3%, reflecting effective balance sheet management in a changing interest-rate environment. Non-interest income grew 25% y-o-y to KD 90 million, driven by higher fee income, securities gains, and the successful integration and contribution of United Gulf Bank (UGB), including its key subsidiary, Kamco Investment Company K.S.C.P. (KAMCO Invest). This performance further strengthened revenue diversification and enhanced overall earnings quality.

Operating profit increased by 6% year-on-year to KD 105 million, supported by higher revenues, while net income for the year ended 31 December 2025 reached KD 47 million, broadly in line with the prior year, underscoring the stability of earnings and the resilience of the Bank’s business model, even amid heightened market uncertainty.

Burgan continued on its growth trajectory in FY’25, with total assets reaching KD 9.1 billion, up 12% y-o-y, supported by broad-based growth across key markets. The Bank’s flagship operations in Kuwait led the momentum, with assets rising 6% y-o-y to KD 6.9 billion. The loans portfolio expanded by 8% y-o-y to KD 4.8 billion, primarily supported by the Kuwait business and solid performance across key subsidiaries. Asset quality remained solid, with the non-performing loan (NPL) ratio stable at 1.9% and net NPLs, after collateral, at a low 0.4%, underscoring the conservative risk profile of the portfolio. NPL coverage remained prudent at 239%.

Customer deposits rose 11% y-o-y to KD 5.5 billion, reflecting growth across all entities but led by Kuwait operations. In Kuwait, the deposit base reached KD 4.1 billion, marking a robust 9% y-o-y increase. The deposit mix remained healthy, supported by high CASA balances that continue to underpin liquidity and cost-efficient funding.

The Bank maintained a strong liquidity and capital position throughout the year, with a Liquidity Coverage Ratio (LCR) of 186% and a Net Stable Funding Ratio (NSFR) of 112%, both comfortably above the regulatory minimum of 100%. Burgan’s capital strength remained solid, with a Tier 1 ratio of 13.3%, and a total Capital Adequacy Ratio (CAR) of 16.8%, well above the respective regulatory minimums of 12.0%, and 14.0%. Together, these robust liquidity and capital metrics reflect prudent financial management, robust loss-absorbing capacity, and resilience, supporting strategic initiatives and long-term growth.

In recognition of the Bank’s solid performance in 2025, Burgan’s Board of Directors has proposed a cash dividend of 6 fils per share, along with a 5% bonus share issue for the full year ended 31 December 2025. These recommendations are subject to approval by shareholders at the upcoming Annual General Meeting and reflect the Board’s commitment to delivering sustainable shareholder returns while maintaining the Bank’s robust capital and liquidity position.

Commenting on the Bank’s financial results, Burgan’s Chairman, Sheikh Abdullah Nasser Al-Sabah, said that “Burgan’s performance in 2025 reflects the strength of its financial foundations and the disciplined execution of its strategic plan, even amid a year of uncertainty and external challenges. The Bank’s ability to maintain stability, preserve asset quality, and sustain profitability underscores the effectiveness of its governance framework and prudent risk management approach, while reaffirming the Bank’s commitment to delivering long-term value for all stakeholders”.

The Chairman further added that, “Our progress is anchored in balancing the strengthening of core operations in Kuwait, advancing our transformation agenda, investing in talent, and embedding sustainability and ESG practices across the business - ensuring resilience today while building a strong foundation for the future”.

Burgan Bank’s strong financial performance and credit profile were affirmed by leading international rating agencies, with the Bank maintaining its investment-grade ratings and stable outlooks. These include an ‘A+’ long-term foreign currency rating from Capital Intelligence, an ‘A’ issuer default rating from Fitch, a ‘Baa1’ long-term deposit rating from Moody’s, and a ‘BBB+’ long-term credit rating from S&P Global, reflecting its sound financial position, strong capitalization, and prudent risk management.

Executing a Focused Growth Strategy Across Core and International Markets

In 2025, Burgan Bank advanced its refreshed strategic agenda, focusing on scaling its core franchise in Kuwait while pursuing selective, disciplined growth across international markets.

In Kuwait, Corporate Banking remained a key driver of performance, underpinned by broader portfolio diversification, reduced concentration risk, and deeper client engagement. The Bank strengthened existing relationships, expanded into emerging sectors, and onboarded new corporate clients, resulting in higher deposit volumes, enhanced connectivity, and increased cross-selling - further reinforcing Burgan Bank’s role as a trusted financial partner to the business community. In Private Banking and Wealth Management, the Bank enhanced its advisory-led model for high-net-worth and ultra-high-net-worth clients, delivering tailored solutions, faster execution, and greater service integration. Retail Banking sustained strong momentum through targeted product innovation, disciplined credit growth, and service enhancements, supporting expansion in consumer lending and card portfolios while maintaining a consistently high standard of customer experience.

Across its international network, Burgan Bank maintained a disciplined, risk-aware approach to growth, emphasizing diversification, operational resilience, and efficiency. Despite a challenging external environment, the Bank’s international franchises delivered steady progress, supporting sustainable performance and long-term value creation.

Commenting on this progress, Mr. Tony Daher, Group Chief Executive Officer of Burgan Bank, said: “In 2025, our focus was on scaling core operations in Kuwait while pursuing disciplined, selective growth internationally. By deepening client relationships, diversifying portfolios, and enhancing service offerings, we reinforced Burgan’s foundations and delivered sustainable, long-term value across all markets.”