Burgan Bank profit drops 31% to KD 22 million in nine months

Summary

• Burgan Bank earned KD 22 million in nine months, down from KD 32 million a year earlier.
• Revenues and net interest income rose, but operating profit fell to KD 65 million from KD 76 million.
• The decline follows a KD 50 million rights issue, pressuring per-share returns and distribution capacity.

The latest

Net profit attributable to Burgan Bank shareholders fell to KD 22 million in the first nine months of 2026 from KD 32 million a year earlier, a decline of roughly 31% based on the reported figures, according to results published by Al-Anba on Thursday, 29 October. The drop came even as total revenues climbed and the balance sheet expanded past KD 9 billion.

Details

• The headline number: Net profit attributable to shareholders came in at KD 22 million for the nine months to 30 September 2026, against KD 32 million in the same period of 2025, according to Al-Anba. The published results did not state a percentage change; the roughly 31% decline is derived from the two reported figures.
• Revenue up, profit down: Total revenues rose to KD 201 million from KD 192 million, and net interest income to KD 137 million from KD 128 million, on a net interest margin of 2.2%. Non-interest income held at around KD 64 million. Operating profit nonetheless fell to KD 65 million from KD 76 million.
• Cost of risk: Cost of credit eased to 50 basis points from 60 a year earlier, according to the results. That improvement in provisioning cost did not offset the slide in operating profit, leaving the bottom line lower despite a stronger top line and lower credit charges.
• Balance sheet: Total assets reached KD 9.4 billion as of 30 September 2026, up from KD 8.9 billion a year earlier. Loans grew 8% to KD 5.1 billion and customer deposits 6% to KD 5.5 billion, putting the loan-to-deposit ratio at 78%.
• Asset quality: Non-performing loans stood at 2.3% of the portfolio, with a coverage ratio of 235%, according to the published results. That coverage level means provisions held exceed the value of the impaired loans themselves by more than twofold.
• Capital and liquidity: The capital adequacy ratio was 16.3% and common equity tier one 10.9%. The liquidity coverage ratio stood at 162% and net stable funding at 111%, both comfortably above the 100% regulatory floor those metrics are built around.
• The rights issue: Burgan completed a KD 50 million capital increase through a rights issue during the period. A larger share count spreads a smaller profit pool more thinly, weighing on earnings per share even where headline capital ratios strengthen.
• Disclosure to the market: The figures were also filed with Boursa Kuwait and carried via Argaam. The results did not break out the line items behind the KD 11 million fall in operating profit, nor did the bank announce an interim distribution alongside them.

Background

Burgan Bank is among Kuwait's listed lenders reporting nine-month results this season. Its earnings arrive after a capital-raising cycle that included both the rights issue and bond approvals, moves that strengthen the balance sheet while diluting the per-share return available to existing shareholders.

Between the lines

The gap between rising revenues and falling profit points to cost pressure rather than weak business volumes: lending grew 8%, deposits 6%, and cost of credit improved to 50 basis points. With CET1 at 10.9% after a KD 50 million rights issue, a larger equity base against a smaller profit pool is what tightens the room for distributions, not asset quality, which held at a 2.3% NPL ratio with 235% coverage.

What's next

Watch Burgan's full-year 2026 results and any board recommendation on distributions, plus the fourth-quarter trajectory of operating profit and net interest margin, which held at 2.2% through September.

Source: Al-Anba; Boursa Kuwait filing