No Image

Burgan Bank ratings affirmed at ‘A+’ and ‘A1’ with a stable outlook

CI ratings underscore the bank’s core financial strength

KUWAIT: Capital Intelligence Ratings (CI Ratings or CI) announced that it has affirmed the Long-Term Foreign Currency Rating (LT FCR) and Short-Term Foreign Currency Rating (ST FCR) of Burgan Bank K.P.S.C. (“Burgan or “the Bank”) at ‘A+’ and ‘A1’ respectively. In addition, CI Ratings has affirmed the Bank’s Standalone Rating (BSR) of ‘bbb+’, Core Financial Strength (CFS) rating of ‘bbb+’, and Extraordinary Support Level (ESL) of High.

CI also reported that the LT FCR and BSR outlooks remain stable, with no expectation of any of external or internal credit challenges to result in any downward changes to the ratings over the next 12 months. The Bank’s BSR and CFS ratings are supported by good asset quality, solid credit loss absorption capacity, and sound capital adequacy, whereby non-financial supporting factors include Burgan Bank’s good business model and franchise, particularly in Kuwait, and majority ownership by the well-regarded KIPCO group.

CI also commented on Burgan’s business strategy which emphasizes cautious growth paired with strategic priorities – including transforming its retail banking business. CI further added that the Bank’s main focus is Kuwait, followed by a number of international subsidiaries. The proportion of Kuwait-based assets was 77 percent of the balance sheet at the end of 2023, noting that the remaining assets include the Bank’s subsidiaries in Turkey, Algeria, and Tunisia. Burgan’s previous Iraqi subsidiary, Bank of Baghdad (BoB), was sold in February 2023. The sale was in line with the Bank’s pursuance of strategic asset reallocation.

Commenting on Capital Intelligence Ratings’ announcement, Khalid Al-Zouman, Chief Financial Officer at Burgan Bank, said: “We are very proud to receive CI’s affirmation of our solid financial standing for yet another year. Our sound credit ratings are a reflection of the Bank’s stable financial core and our steady growth momentum.


This success is greatly owed to Burgan’s vision, which centers on strategic priorities such as asset reallocation, digital transformation, human capital development, and sustainability. Furthermore, presenting good overall asset quality confirms our strategic success and cements Burgan’s leading position in the domestic banking sector.

As we continue to embark on our transformational journey, we are building on our robust financial base while accelerating growth plans; meticulously balancing market risk with growth potential and progress momentum.” Established in 1977, Burgan Bank is a Kuwait-based conventional bank with a significant focus on the corporate and financial institution sectors. From its earliest days, the Bank has significantly sought to diversify its offering to cater to its growing retail and private banking customer base.

Burgan Bank has majority-owned subsidiaries, collectively known as the “Burgan Bank Group”, in the MENAT region. This Group is supported by one of the largest branch networks across the region and includes: Gulf Bank Algeria – AGB (Algeria), Tunis International Bank – TIB (Tunisia), and Burgan Bank Turkey. Furthermore, Burgan Bank has a presence in the UAE through its corporate office, Burgan Financial Services Limited.

The Bank has continuously improved its performance over the years, through an expanded revenue structure, diversified funding sources, and a strong capital base. The adoption of state-of-the-art services and technology has positioned it as a trendsetter in the domestic market and within the MENA region. Moreover, Burgan Bank’s brand has been built on a foundation of real values - trust, commitment, excellence, and progression - which serve as a reminder of the high standards to which the Bank always aspires. In fact, the Bank’s core philosophy of ‘Driven by You’ is the foundation on which its products and services are continuously developed.

Our hearts ache as we think about the tragic incident that took the lives of 49 residents in Mangaf. It’s devastating to imagine the pain and sorrow their families and communities are going through right now. The victims had journeyed far from the...
A war has begun in some Gulf countries and has spread to other Arab nations — a war against the Arabic language. Commercial outlets and restaurants do not display even a single Arabic word in their names, whether projected or hidden. If an America...