Burgan Bank reported a 18.5 percent fall in first-quarter net profit on Saturday, according to Reuters calculations, as Kuwait's third-largest lender by assets secured less income from foreign exchange. A unit of Kuwait Projects Co (KIPCO), Burgan made a net profit of 14.3 million Kuwaiti dinars ($47.66 million) in the three months to the end of March, it said in a statement.
Burgan did not provide a comparable figure for the corresponding period of last year. However, the bank previously reported it made 17.54 million dinars. HSBC forecast the Kuwaiti lender would make a quarterly net profit of 12.68 million dinars. Burgan's earnings were hit by a 77.9 percent reduction in non-interest income, which fell to 1.7 million dinars. The bank said the decline was due to the reduction of net gains from foreign exchange. The fall offset a 7.4 percent increase in net interest income, which rose to 40.6 million dinars, according to the statement.