Burgan Bank K.P.S.C. (“Burgan” or “the Bank” or “the Group”) reported its financial results for the six-month period ended 30 June 2026 (H1’26).
During the first half of 2026, Burgan reported total revenues of KD 138 million, representing a 9% year-on-year increase, reflecting broad-based growth across its core revenue streams, supported by higher net interest income and stronger contributions from non-interest income activities. Net interest income increased to KD 90 million, supported by continued growth in the Group’s loan portfolio and other earning assets, alongside the Group’s ability to maintain a stable Net Interest Margin (NIM) of 2.2% despite the challenging interest rate environment, reflecting the resilience of its funding strategy and disciplined balance sheet management. Non-interest income grew by 9% year-on-year to KD 47 million, driven primarily by stronger fee generation and higher contributions from the Group’s diversified business lines.
The Group reported an operating profit of KD 45 million for the period, compared to KD 49 million in the corresponding period of the previous year. The moderate decline in operating profit was primarily attributable to higher operating expenses, reflecting the Group’s continued investment in digital capabilities across its operations, together with higher operating costs arising from the inflationary environment in Turkey.
Overall profitability was further impacted by higher precautionary credit provisions and increased net monetary losses arising from the application of hyperinflation accounting in Turkey. Consequently, Burgan Bank recorded a net profit attributable to shareholders of KD 11 million, compared to KD 21 million in the first half of 2025.
Commenting on the financial performance, Burgan Bank’s Chairman, Sheikh Abdullah Nasser Al-Sabah, said: “Burgan Bank’s performance during the first half of 2026 reflects the strength of our diversified business model and our continued focus on disciplined execution. Despite a complex and evolving operating environment, we remained focused on maintaining business momentum, executing our strategy with discipline and strengthening our ability to support customers while creating long-term value for shareholders.”
Burgan continued to strengthen its balance sheet, with total assets increasing by 10% year-on-year to KD 9.6 billion, reflecting sustained growth momentum across its markets, with Kuwait operations (+9% year-on-year), remaining a key contributor to overall asset growth. Loans and advances grew by 10% to KD 5.1 billion, supported by higher lending activity in Kuwait (+9% year-on-year), alongside continued expansion across the Group’s other key franchises. Customer deposits increased by 5% to KD 5.6 billion, underscoring the resilience and diversification of the Group’s funding base, with deposit growth in Kuwait (+4% year-on-year), complemented by contributions from its Algerian and Turkish operations.
Asset quality strengthened during the period, reflecting the Group’s disciplined and prudent risk management approach. The non-performing loan (NPL) ratio improved to 2.3%, down from 3.2% a year earlier and 2.7% in Q1’26, demonstrating continued improvement in the quality of the Group’s credit portfolio. The total coverage ratio increased to 240%, reinforcing the Bank’s conservative provisioning strategy, while net NPLs, after considering collateral coverage, remained contained at 0.5%, underscoring the strength and resilience of the Group’s credit portfolio.
Burgan Bank continued to maintain a strong capital and liquidity profile, with key regulatory ratios remaining comfortably above the minimum requirements introduced by the Central Bank of Kuwait (CBK) in March 2026 as part of its financial stimulus measures. As at 30 June 2026, the Bank’s Common Equity Tier 1 (CET1) ratio stood at 10.5%, while the Capital Adequacy Ratio (CAR) reached 15.9%, providing a solid capital buffer above the applicable minimum requirements of 9.5% and 13.0%, respectively. The Bank’s liquidity position remained resilient, with a Liquidity Coverage Ratio (LCR) of 197% and a Net Stable Funding Ratio (NSFR) of 110% during Q2 2026, both comfortably above the applicable CBK minimum requirement of 80%, highlighting the strength of the Bank’s funding profile and prudent liquidity management framework.
Chairman Sheikh Abdullah Nasser Al- Sabah added: “Our prudent risk management approach continues to strengthen the resilience of our credit portfolio and balance sheet. The improvement in asset quality, supported by disciplined provisioning and sound capital and liquidity management, reflects the strength of our financial foundations and enables Burgan to continue supporting customers and pursuing strategic opportunities.”
On the Bank’s operational performance and strategic priorities, Mr. Tony Daher, Group Chief Executive Officer at Burgan Bank, said: “Our performance in the first half of the year reflects broad-based growth across our core revenue streams, supported by stronger net interest income, continued momentum in non-interest income and sustained expansion across key markets. The contribution of our Kuwait operations, alongside growth across our international franchises, demonstrates the value of the Group’s diversified business model.”
He added: “While profitability continued to reflect higher operating costs, proactive provisions and the impact of hyperinflation accounting in Turkey, we remain focused on strengthening the drivers of long-term performance. We are advancing our digital transformation agenda, enhancing operational efficiency and driving stronger execution across the Group. These priorities will support greater performance consistency, reinforce our resilience and position Burgan for sustainable long-term growth”
Strengthening Capital Foundations
As part of its ongoing capital enhancement measures, Burgan Bank has received the approval of the Central Bank of Kuwait and the Capital Markets Authority to proceed with a KD 50 million rights issue. The initiative represents an important step in enhancing the Bank’s capital position, increasing financial flexibility and supporting future strategic opportunities while maintaining strong foundations for continued growth.
The Bank is currently completing the remaining regulatory formalities and procedural requirements and will continue to provide shareholders and the market with updates through the appropriate regulatory disclosures as the process progresses.
Chairman Sheikh Abdullah Nasser Al- Sabah added: “The planned KD 50 million rights issue represents an important milestone in strengthening Burgan Bank’s capital foundations and enhancing our ability to support future growth opportunities. This initiative reinforces our strategic flexibility and positions the Bank to continue delivering sustainable value for shareholders.”
Advancing the Retail Banking Proposition and Customer Value
During the first half of 2026, Burgan Bank marked the full return of its flagship Kanz account draws, completing all postponed draws covering the period from March 2025 to April 2026 over five consecutive days. The completed cycle crowned more than 250 winners, including Kanz’s fourth millionaire, and included the postponed monthly, semi-annual and annual grand draws, alongside the introduction of the Kanz draw schedule for 2026.
The successful completion of the draws represented an important retail banking milestone and reinforced the principles underpinning the Bank’s relationship with its customers. All draws were conducted following the necessary regulatory approvals and under the supervision of internal and external auditors, reaffirming Burgan’s commitment to transparency, fairness and delivering on its promises to customers.
The Bank also launched its “Driven by You” initiative in honor of frontline heroes from the Ministry of Interior and the Kuwait Fire Force, offering a range of exclusive benefits and special offers in collaboration with selected KIPCO Group companies and leading Kuwaiti businesses. The initiative brought together partners across the healthcare, wellness, entertainment, retail and lifestyle sectors, providing tangible value to frontline personnel and their families in recognition of their service to Kuwait.
Extending this commitment internally, Burgan introduced a tailored support package for employees whose spouses serve in frontline roles. The package included greater flexibility in working hours, concierge assistance to support daily and personal responsibilities, and a dedicated wellbeing program focused on mental, emotional and physical support. Together, the two initiatives reflected a broader commitment to recognizing frontline heroes while supporting the families and communities who stand behind them.
Investing in Future-Ready Leadership
Burgan Bank continued to advance its human capital development strategy through a strategic partnership with the Kuwait Institute of Banking Studies (KIBS) and its participation in the Hult Ashridge Executive Program.
More than 20 General Managers and Deputy General Managers were selected to participate in the bespoke program, which was tailored to Burgan Bank’s strategic business objectives and leadership priorities. The program was designed to strengthen executive capabilities across strategic decision-making, governance, adaptability, innovation and effective leadership in an increasingly complex banking environment.
The initiative expanded the Bank’s longstanding collaboration with KIBS and reinforced its commitment to developing a strong pipeline of future-ready leaders, while supporting Kuwait’s wider human capital development objectives and the ambitions of Kuwait Vision 2035.
Speaking about the Bank’s human capital strategy, Mr. Tony Daher said: “Investing in our people is fundamental to Burgan Bank’s long-term success. Through partnerships such as our collaboration with KIBS and participation in the Hult Ashridge Executive Program, we are equipping our leaders with the strategic capabilities needed to navigate change, strengthen performance and guide the Bank’s future growth.”
Advancing ESG Leadership and Sustainable Banking Practices
Burgan continued to strengthen its sustainability leadership through its ongoing inclusion in the FTSE4Good Index Series, an independent recognition of the Bank’s commitment to responsible banking, strong governance, and the integration of environmental, social and governance (ESG) principles across its business. Developed by FTSE Russell, the globally recognized index assesses companies against rigorous ESG criteria. Burgan remains one of only five companies from Kuwait included in the index, reflecting the strength of its sustainability framework, transparency practices, and continued alignment with internationally recognized ESG standards.
The Bank further advanced its sustainability agenda through the publication of its seventh Annual Sustainability Report for 2025. As one of the first banks in Kuwait to publish sustainability reports in both Arabic and English, Burgan continues to enhance transparency and stakeholder engagement through comprehensive ESG disclosures. The report outlines the Bank’s progress in embedding ESG considerations across its strategy, operations, risk management framework, and decision-making processes. It also highlights key achievements in areas including emissions measurement, environmental governance, climate risk assessment, and the integration of ESG factors into credit risk practices.
Concluding his statement on the Bank’s H1’26 performance, Chairman Sheikh Abdullah Nasser Al-Sabah said: “The progress achieved during the first half of 2026 reflects the collective efforts of our employees and the continued confidence placed in Burgan Bank by our customers and shareholders. We remain committed to building on these foundations through disciplined execution, strong governance and responsible growth. As we look ahead, we will continue to advance our strategic priorities, strengthen our sustainability agenda and embed responsible practices across our business, while enhancing institutional resilience and delivering lasting value for all our stakeholders.”