FS Q3 2021

BURGAN BANK GROUP

INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION

30 SEPTEMBER 2021 (UNAUDITED)

REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION TO THE BOARD OF DIRECTORS OF BURGAN BANK K.P.S.C.

Introduction

We have reviewed the accompanying interim condensed consolidated statement of financial position of Burgan Bank K.P.S.C. (the "Bank") and its subsidiaries (collectively the "Group") as at 30 September 2021, and the related interim condensed consolidated statement of income and the interim condensed consolidated statement of comprehensive income for the three month and nine month periods then ended, and the interim condensed consolidated statement changes in equity and interim condensed consolidated statement cash flows for the nine months period then ended. The management of the Bank is responsible for the preparation and presentation of this interim condensed consolidated financial information in accordance with the basis of preparation set out in Note 2. Our responsibility is to express a conclusion on this interim condensed consolidated financial information based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim condensed consolidated financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial information is not prepared, in all material respects, in accordance with the basis of preparation set out in Note 2.

Report on other Legal and Regulatory Requirements

Furthermore, based on our review, the interim condensed consolidated financial information is in agreement with the books of account of the Bank. We further report that, to the best of our knowledge and belief, we have not become aware of any violations of the Companies Law No. 1 of 2016, as amended, its executive regulations, as amended, or of the Bank's Articles of Association and Memorandum of Incorporation, as amended, during the nine months period ended 30 September 2021 that might have had a material effect on the business of the Bank or on its financial position.

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REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION TO THE BOARD OF DIRECTORS OF BURGAN BANK K.P.S.C. (continued)

Report on other Legal and Regulatory Requirements (continued)

We further report that, during the course of our review, to the best of our knowledge and belief, we have not become aware of any violations of the provisions of Law No. 32 of 1968, as amended, concerning currency, the Central Bank of Kuwait and the organisation of banking business, and its related regulations, or of the provisions of Law No. 7 of 2010 concerning Capital Markets Authority and its related regulations during the nine months period ended 30 September 2021 that might have had a material effect on the business of the Bank or on its financial position.

DR. RASHEED M. AL-QENAE		NAYEF M.AL BAZIE
LICENSE NO. 130 - A		LICENSE NO. 91 - A
OF KPMG SAFI AL-MUTAWA & PARTNERS		RSM Albazie & Co.
MEMBER FIRM OF KPMG INTERNATIONAL
Kuwait: 2 November 2021

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Burgan Bank Group

Interim Condensed Consolidated Statement of Income

Period ended 30 September 2021 (Unaudited)

		Three months ended		Nine months ended
		30 September		30 September
	Notes	2021	2020	2021	2020
		KD 000's	KD 000's		KD 000's	KD 000's
Interest income		65,052	62,479	190,655	208,978
Interest expense		(33,244)	(28,499)	(97,348)	(101,040)
		──────	──────		──────	──────
Net interest income		31,808	33,980	93,307	107,938
Fee and commission income		10,102	9,391	31,640	29,370
Fee and commission expense		(1,319)	(1,201)	(4,309)	(4,232)
		──────	──────		──────	──────
Net fee and commission income		8,783	8,190	27,331	25,138
Net gain from foreign currencies		2,805	4,660	10,117	8,409
Net investment income		8,213	7,241	22,158	11,786
Dividend income		155	505	901	1,576
Other income		2,821	2,381	12,795	9,699
		──────	──────		──────	──────
Operating income		54,585	56,957	166,609	164,546
Staff expenses		(12,739)	(10,169)	(35,379)	(33,934)
Other expenses		(12,498)	(12,035)	(34,785)	(35,003)
Operating profit before credit losses and		──────	──────		──────	──────
other provisions		29,348	34,753	96,445	95,609
Provision for credit losses		(8,501)	(22,230)	(47,608)	(53,839)
Provision (release) charge for other financial assets		144	524	433	(547)
		──────	──────		──────	──────
Profit before taxation		20,991	13,047	49,270	41,223
Taxation	7	(3,065)	(1,351)	(6,183)	(5,411)
		──────	──────		──────	──────
Profit for the period		17,926	11,696	43,087	35,812
		═════════	═════════		═════════	═════════
Attributable to:
Equity holders of the Bank		16,256	9,829	40,276	32,575
Non-controlling interests		1,670	1,867	2,811	3,237
		──────	──────		──────	──────
		17,926	11,696	43,087	35,812
		═════════	═════════		═════════	═════════
Basic and diluted earnings per share -
attributable to the equity holders of the			3.9			9.7
Bank (Fils)	8	5.8	13.4
		═════════	═════════		═════════	═════════

The attached notes 1 to 14 form an integral part of this interim condensed consolidated financial information.

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