BURGAN BANK K.P.S.C. BURGAN BANK GROUP
INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION
30 SEPTEMBER 2023 (UNAUDITED)
Kuwait: 26 October 2023
Burgan Bank Group
Interim Condensed Consolidated Statement of Income
Period ended 30 September 2023 (Unaudited)
Three months ended | Nine months ended | |||||
30 September | 30 September | |||||
Notes | 2023 | 2022 | 2023 | 2022 | ||
KD 000's | KD 000's | KD 000's | KD 000's | |||
Interest income | 115,748 | 83,996 | 312,621 | 218,863 | ||
Interest expense | (85,650) | (45,258) | (221,739) | (113,614) | ||
───────── | ────── | ───────── | ────── | |||
Net interest income | 30,098 | 38,738 | 90,882 | 105,249 | ||
Fee and commission income | 13,840 | 11,817 | 36,343 | 33,785 | ||
Fee and commission expense | (2,144) | (2,524) | (6,266) | (5,678) | ||
───────── | ────── | ───────── | ────── | |||
Net fee and commission income | 11,696 | 9,293 | 30,077 | 28,107 | ||
Net gain from foreign currencies | 8,934 | 1,966 | 15,470 | 9,699 | ||
Net investment income | 2,617 | 814 | 3,959 | 8,070 | ||
Dividend income | 254 | 208 | 876 | 1,363 | ||
Other income | 33,042 | 4,621 | 53,374 | 13,528 | ||
───────── | ────── | ───────── | ────── | |||
Operating income | 86,641 | 55,640 | 194,638 | 166,016 | ||
Staff expenses | (16,714) | (13,119) | (44,077) | (38,143) | ||
Other expenses | (14,439) | (13,418) | (41,108) | (37,379) | ||
Operating profit before credit losses and | ───────── | ────── | ───────── | ────── | ||
other provisions | 55,488 | 29,103 | 109,453 | 90,494 | ||
Provision for credit losses | (17,208) | (2,404) | (35,268) | (13,291) | ||
Provision for other financial assets | (311) | (35) | (947) | (93) | ||
Net monetary loss | 2.3 | (16,531) | (5,641) | (23,857) | (16,695) | |
───────── | ────── | ───────── | ────── | |||
Profit before taxation | 21,438 | 21,023 | 49,381 | 60,415 | ||
Taxation | 7 | (8,954) | (5,201) | (17,924) | (15,035) | |
───────── | ────── | ───────── | ────── | |||
Profit for the period | 12,484 | 15,822 | 31,457 | 45,380 | ||
═════════ | ═════════ | ═════════ | ═════════ | |||
Attributable to: | ||||||
Equity holders of the Bank | 12,015 | 14,003 | 30,122 | 41,243 | ||
Non-controlling interests | 469 | 1,819 | 1,335 | 4,137 | ||
───────── | ────── | ───────── | ────── | |||
12,484 | 15,822 | 31,457 | 45,380 | |||
═════════ | ═════════ | ═════════ | ═════════ | |||
Basic and diluted earnings per share - | ||||||
attributable to the equity holders of the | 3.5 | 9.5 | ||||
Bank (Fils) | 8 | 3.2 | 7.1 | |||
═════════ | ═════════ | ═════════ | ═════════ |
The attached notes 1 to 13 form an integral part of this interim condensed consolidated financial information.
4
Burgan Bank Group
Interim Condensed Consolidated Statement of Comprehensive Income
Period ended 30 September 2023 (Unaudited)
Three months ended | Nine months ended | ||||
30 September | 30 September | ||||
2023 | 2022 | 2023 | 2022 | ||
KD 000's | KD 000's | KD 000's | KD 000's | ||
Profit for the period | 12,484 | 15,822 | 31,457 | 45,380 | |
───────── | ───────── | ───────── | ───────── | ||
Other comprehensive loss | |||||
Items that will not be reclassified to interim condensed | |||||
consolidated statement of income in subsequent | |||||
periods: | |||||
Net change in fair value of equity instruments at fair | |||||
value through other comprehensive income | (1,312) | (1,021) | 776 | (1,735) | |
───────── | ───────── | ───────── | ───────── | ||
(1,312) | (1,021) | 776 | (1,735) | ||
───────── | ───────── | ───────── | ───────── | ||
Items that will be reclassified to interim condensed | |||||
consolidated statement of income in subsequent | |||||
periods: | |||||
Debt instruments at fair value through other | |||||
comprehensive income: | |||||
Net change in fair value | 2,133 | (8,092) | (55) | (27,178) | |
Net transfer to interim condensed consolidated | |||||
statement of income | (770) | 491 | (1,272) | 501 | |
Foreign currency translation adjustment | (4,717) | (1,665) | (31,124) | (18,415) | |
Changes in fair value of cash flow hedges | 1,975 | 2,363 | 4,595 | 12,411 | |
Net gain on hedge of a net investment | 1,854 | 2,058 | 14,561 | 3,249 | |
Reversal of disposal group held for sale: | |||||
Net transfer to interim condensed consolidated | |||||
statement of income on sale of disposal group held | |||||
for sale | - | - | 6,153 | - | |
───────── | ───────── | ───────── | ───────── | ||
Other comprehensive loss for the period | (837) | (5,866) | (6,366) | (31,167) | |
───────── | ───────── | ───────── | ───────── | ||
Total comprehensive income for the period | 11,647 | 9,956 | 25,091 | 14,213 | |
═════════ | ═════════ | ═════════ | ═════════ | ||
Attributable to: | |||||
Equity holders of the Bank | 11,192 | 7,076 | 23,569 | 8,975 | |
Non-controlling interests | 455 | 2,880 | 1,522 | 5,238 | |
───────── | ───────── | ───────── | ───────── | ||
11,647 | 9,956 | 25,091 | 14,213 | ||
═════════ | ═════════ | ═════════ | ═════════ |
The attached notes 1 to 13 form an integral part of this interim condensed consolidated financial information.
5
Burgan Bank Group
Interim Condensed Consolidated Statement of Changes in Shareholder's Equity
Period ended 30 September 2023 (Unaudited)
Attributable to the equity holders of the Bank | |||||||||||
Perpetual | Non- | ||||||||||
Share | Share | Treasury | Statutory | Voluntary | Other | Retained | Tier 1 capital | controlling | |||
capital | premium | shares | reserve | reserve | reserves* | earnings | Total | securities | interests | Total equity | |
KD 000's | KD 000's | KD 000's | KD 000's | KD 000's | KD 000's | KD 000's | KD 000's | KD 000's | KD 000's | KD 000's | |
Balance as at 1 January 2023 | 328,781 | 282,802 | (1,742) | 113,234 | 113,612 | (243,163) | 152,542 | 746,066 | 153,150 | 48,199 | 947,415 |
Profit for the period | - | - | - | - | - | - | 30,122 | 30,122 | - | 1,335 | 31,457 |
Other comprehensive (loss) income for the | (6,553) | (6,553) | 187 | (6,366) | |||||||
period | - | - | - | - | - | - | - | ||||
───────── | ───────── | ───────── | ───────── | ───────── | ───────── | ───────── | ───────── | ───────── | ───────── | ───────── | |
Total comprehensive (loss) income for the | (6,553) | 30,122 | 23,569 | 1,522 | 25,091 | ||||||
period | - | - | - | - | - | - | |||||
Bonus shares issued (note 6) | 16,439 | - | - | - | - | - | (16,439) | - | - | - | - |
Cash dividend (note 6) | - | - | - | - | - | - | (26,262) | (26,262) | - | - | (26,262) |
Dividend paid to non-controlling interests | - | - | - | - | - | - | - | - | - | (820) | (820) |
Foreign currency translation adjustment | - | - | - | - | - | - | (1,350) | (1,350) | 1,350 | - | - |
Net transfer to retained earnings for equity | (85) | 85 | - | ||||||||
investments at FVOCI | - | - | - | - | - | - | - | - | |||
Sale of disposal group held for sale | - | - | - | - | - | - | - | - | - | (29,948) | (29,948) |
Interest payment on Tier 1 capital securities | - | - | - | - | - | - | (4,420) | (4,420) | - | - | (4,420) |
Impact of application of IAS 29 (Note 2.3) | - | - | - | - | - | 23,705 | - | 23,705 | - | 69 | 23,774 |
───────── | ───────── | ───────── | ───────── | ───────── | ───────── | ───────── | ───────── | ───────── | ───────── | ───────── | |
Balance as at 30 September 2023 | 345,220 | 282,802 | (1,742) | 113,234 | 113,612 | (226,096) | 134,278 | 761,308 | 154,500 | 19,022 | 934,830 |
═════════ | ═════════ | ═════════ | ═════════ | ═════════ | ═════════ | ═════════ | ═════════ | ═════════ | ═════════ | ═════════ |
- Refer to note 6 for further break up of other reserves
The attached notes 1 to 13 form an integral part of this interim condensed consolidated financial information.
6
Burgan Bank Group
Interim Condensed Consolidated Statement of Changes in Shareholder's Equity
Period ended 30 September 2023 (Unaudited)
Attributable to the equity holders of the Bank
Balance as at 1 January 2022 Profit for the period
Other comprehensive (loss) income for the period
Perpetual | Non- | |||||||||
Share | Share | Treasury | Statutory | Voluntary | Other | Retained | Tier 1 capital | controlling | ||
capital | premium | shares | reserve | reserve | reserves* | earnings | Total | securities | interests | Total equity |
KD 000's | KD 000's | KD 000's | KD 000's | KD 000's | KD 000's | KD 000's | KD 000's | KD 000's | KD 000's | KD 000's |
313,125 | 282,802 | (1,742) | 107,755 | 108,133 | (223,218) | 151,028 | 737,883 | 151,250 | 42,792 | 931,925 |
- | - | - | - | - | - | 41,243 | 41,243 | - | 4,137 | 45,380 |
- | - | - | - | - | (32,268) | - | (32,268) | - | 1,101 | (31,167) |
───────── | ───────── | ───────── | ───────── | ───────── | ───────── | ───────── | ───────── | ───────── | ───────── | ───────── |
Total comprehensive (loss) income for the | (32,268) | 41,243 | 8,975 | 5,238 | 14,213 | ||||||
period | - | - | - | - | - | - | |||||
Bonus shares issued (note 6) | 15,656 | - | - | - | - | - | (15,656) | - | - | - | - |
Cash dividend (note 6) | - | - | - | - | - | - | (15,632) | (15,632) | - | - | (15,632) |
Dividend paid to non-controlling interests | - | - | - | - | - | - | - | - | - | (102) | (102) |
Foreign currency translation adjustment | - | - | - | - | - | - | (4,150) | (4,150) | 4,150 | - | - |
Net transfer to retained earnings for equity | 3,779 | (3,779) | - | - | - | - | |||||
investments at FVOCI | - | - | - | - | - | ||||||
Interest payment on Tier 1 capital securities | - | - | - | - | - | - | (4,410) | (4,410) | - | - | (4,410) |
Impact of application of IAS 29 (Note 2.3) | - | - | - | - | - | 19,588 | 7,212 | 26,800 | - | 83 | 26,883 |
───────── | ───────── | ───────── ───────── ───────── ───────── ───────── ───────── ───────── ───────── ───────── | |||||||||
Balance as at 30 September 2022 | 328,781 | 282,802 | (1,742) | 107,755 | 108,133 | (232,119) | 155,856 | 749,466 | 155,400 | 48,011 | 952,877 |
═════════ | ═════════ | ═════════ | ═════════ | ═════════ | ═════════ | ═════════ | ═════════ | ═════════ | ═════════ | ═════════ |
*Refer to note 6 for further break up of other reserves
The attached notes 1 to 13 form an integral part of this interim condensed consolidated financial information.
7
Burgan Bank Group
Interim Condensed Consolidated Statement of Cash Flows
Period ended 30 September 2023 (Unaudited)
Nine months ended | |||
30 September | |||
2023 | 2022 | ||
Note | KD 000's | KD 000's | |
Operating activities | |||
Profit for the year before taxation | 49,381 | 60,415 | |
Adjustments: | |||
Net investment income | (3,959) | (8,070) | |
Provision for credit losses | 35,268 | 13,291 | |
Provision charge for other financial assets | 947 | 93 | |
Dividend income | (876) | (1,363) | |
Depreciation and amortisation | 10,021 | 10,235 | |
Net monetary loss | 23,857 | 16,695 | |
───────── | ───────── | ||
Operating profit before changes in operating assets and | |||
liabilities | 114,639 | 91,296 | |
Changes in operating assets and liabilities: | |||
Treasury bills and bonds with the CBK and others | (57,671) | (91,880) | |
Due from banks and other financial institutions | (34,082) | (87,426) | |
Loans and advances to customers | 49,061 | 172,296 | |
Other assets | (36,521) | 19,484 | |
Due to banks | 228,467 | (195,990) | |
Due to other financial institutions | (398,165) | 160,240 | |
Deposits from customers | 477,396 | (369,079) | |
Other liabilities | 19,217 | 26,405 | |
Taxation paid | (5,622) | (5,578) | |
───────── | ───────── | ||
Net cash flows from (used in) operating activities | 356,719 | (280,232) | |
───────── | ───────── | ||
Investing activities | |||
Purchase of investment securities | (425,407) | (317,931) | |
Proceeds from sale of investment securities | 392,606 | 297,340 | |
Purchase of property and equipment, net of disposals | (15,908) | (18,356) | |
Net movement in non-controlling interests | - | 26 | |
Dividends received | 876 | 1,363 | |
Net cash outflow on sale of disposal group held for sale | (109,692) | - | |
───────── | ───────── | ||
Net cash flows used in investing activities | (157,525) | (37,558) | |
───────── | ───────── | ||
Financing activities | |||
Other borrowed funds | (229,644) | 173,324 | |
Cash dividend paid to equity holders of the Bank | (26,262) | (15,632) | |
Cash dividend paid to non-controlling interests | (820) | (102) | |
Interest payment on Tier1 capital securities | (4,420) | (4,410) | |
───────── | ───────── | ||
Net cash flows (used in) from financing activities | (261,146) | 153,180 | |
───────── | ───────── | ||
Net decrease in cash and cash equivalents | (61,952) | (164,610) | |
Effect of foreign currency translation | (31,561) | (20,636) | |
Cash and cash equivalents at 1 January | 807,253 | 971,575 | |
───────── | ───────── | ||
Cash and cash equivalents at 30 September | 3 | 713,740 | 786,329 |
═════════ | ═════════ | ||
Additional cash flow information: | |||
Interest received | 277,810 | 227,386 | |
Interest paid | 199,267 | 111,467 | |
═════════ | ═════════ |
The attached notes 1 to 13 form an integral part of this interim condensed consolidated financial information.
8
Burgan Bank Group
Notes to the Interim Condensed Consolidated Financial Information
As at 30 September 2023 (Unaudited)
1. INCORPORATION AND REGISTRATION
Burgan Bank K.P.S.C. (the "Bank") is a public shareholding company incorporated in the State of Kuwait by Amiri Decree dated 27 December 1975 listed on Boursa Kuwait and is registered as a bank with the Central Bank of Kuwait (the "CBK"). The Bank's registered address is P.O. Box 5389, Safat 12170, State of Kuwait.
The interim condensed consolidated financial information of the Bank and its subsidiaries (collectively, the "Group") for the period ended 30 September 2023 were authorised for issue in accordance with a resolution of the Board of Directors on 9 October 2023.
The principal activities of the Group are explained in note 9.
The Bank is a subsidiary of Kuwait Projects Company Holding K.S.C.P. (the "Parent Company"); whose shares are listed on Boursa Kuwait.
2. BASIS OF PREPARATION AND CHANGES TO ACCOUNTING POLICIES
2.1 Basis of preparation
The interim condensed consolidated financial information of the Group has been prepared in accordance with International Accounting Standard ("IAS") 34, Interim Financial Reporting, except as noted below.
The interim condensed consolidated financial information has been prepared in accordance with the regulations for financial services institutions as issued by the CBK in the State of Kuwait. These regulations, require banks and other financial institutions regulated by the CBK to adopt the International Financial Reporting Standards ("IFRS"), as issued by International Accounting Standards Board ("IASB"), with the following amendment:
-
Expected credit loss ("ECL") to be measured at the higher of ECL provision on credit facilities computed under
IFRS 9 in accordance with the CBK guidelines or the provisions as required by the CBK instructions along with its consequent impact on related disclosures.
The above framework is hereinafter referred to as 'IFRS as adopted by the CBK for use by the State of Kuwait'.
The interim condensed consolidated financial information does not contain all information and disclosures required for full financial statements prepared in accordance with IFRS and should be read in conjunction with the Group's consolidated financial statements for the year ended 31 December 2022.
Further, results for the nine months period ended 30 September 2023 are not necessarily indicative of the results that may be expected for the financial year ending 31 December 2023. Certain prior period amounts have been restated / reclassified in order to conform to the current period presentation. Such reclassifications do not affect previously reported assets, liabilities, equity and profit for the period.
2.2. Accounting policies adopted in the preparation of the interim condensed consolidated financial information
The accounting policies used in the preparation of the interim condensed consolidated financial information are consistent with those used in the previous financial year.
Amendments to IFRS which are effective for annual accounting period starting from 1 January 2023 are listed below. However, they did not have any material impact on the accounting policies, financial position or performance of the Group.
- IFRS 17 Insurance Contracts and Amendments to IFRS 17
- Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2)
- Definition of Accounting Estimate (Amendments to IAS 8)
- Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction - Amendments to IAS 12 Income Taxes
- Initial Application of IFRS 17 and IFRS 9 - Comparative Information (Amendments to IFRS 17)
9
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Burgan Bank SAKP published this content on 26 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 October 2023 14:17:44 UTC.
