Burgan Bank missed analyst expectations despite swinging to a third-quarter net profit, according to a bourse statement on Sunday, as growth in its core business helped lift the earnings of Kuwait's third-largest lender by assets.
A unit of Kuwait Projects Company (KIPCO), Burgan said net profit was 15.4 million dinars ($53 million) for the three months to the end of September, compared to a 10.3 million dinar loss in the corresponding period last year.
The bank's third-quarter results in 2013 were impacted by a significant jump in provisions for bad loans, which rose nearly four-fold on the previous year to wipe out its profit.
Despite the return to profit in the third-quarter of this year, the earnings fell short of a Reuters poll of five analysts, which had estimated an average net profit of 17.36 million dinars for the period.
Burgan's results continue a mixed earnings season for Kuwait's largest banks. National Bank of Kuwait and Kuwait Finance House, numbers one and two respectively by assets, reported year-on-year declines in net profit.
Gulf Bank, the fourth-largest by assets, beat estimates with a 11.2 percent profit increase.
Shares in Burgan Bank closed down 1.8 percent on the Kuwait bourse, whose main index was near-flat. The earnings were published after the market close.
Net interest income in the third quarter reached 46.2 million dinars, up 9.7 percent on the same period last year. It contributed 66 percent of its total revenues, which grew 17 percent year on year to 70.3 million dinars, the lender said.
Income from net fees and commission, the second largest contributor to revenue, rose by 16.2 percent to 12.4 million dinars, while other income jumped more than three-fold to 7 million dinars.
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