Burgan Bank, Kuwait's third-largest lender by assets, reported a 31 percent rise in fourth-quarter net profit on Sunday. A unit of Kuwait Projects Co. (KIPCO), Burgan made a net profit of KD17.1 million ($56.88 million) in the three months to 31 December, up from KD13.1 million in the prior-year period, it said in a bourse statement.
An analyst at HSBC forecast the Kuwaiti lender would make a quarterly net profit of KD18 million. Burgan announced on 30 December it was selling a controlling stake in Jordan Kuwait Bank to another subsidiary of parent firm KIPCO, in a transaction it later disclosed was worth KD191.1 million.
The impact of the sale was due to be included in its fourth-quarter numbers. Burgan's 2015 annual profit was KD76.1 million, up from KD61.8 million in the previous year. The lender has proposed paying a 2015 dividend of KD0.018 per share. This compares with a KD0.015 cash dividend and a 5 percent stock dividend for 2014.
The lender in January said it was in the final stages of selecting banks to arrange a KD100 million bond issue. The statement came two days after sources told Reuters that it had picked NBK Capital and KIPCO Asset Management to manage the bond sale.