Bugan Bank S.A

Burgan Bank K.P.S.C. (Burgan Bank) is a pioneer in Kuwait's financial markets, with a customer-driven and sustainability-driven philosophy that excels in retail, corporate, private and digital finance. Founded in Kuwait City in 1977 by a joint venture between the Kuwaiti government and private investors, the headquarters is located at Abdullah Al Ahmad Street (Burgan Bank K.P.S.C. Building, Block 1, Al Sharq Area, Plot 21) in the Shalk district of Kuwait City. Listed on the Kuwait Stock Exchange (ticker symbol: BURG) and serving more than 2 million customers, Burgan Bank is the second largest bank in Kuwait and a major financial force in the Middle East thanks to its solid financial performance and innovative capabilities.

basic bank information

Burgan Bank is a commercial bank, privately owned, founded in 1977 and headquartered in Kuwait City, Kuwait. Founded by the Government of Kuwait in partnership with private investors, the bank was privatized in 1997 and became a subsidiary of the Kuwait Project Company (KIPCO), one of the largest investment holding companies in the MENA region with operations in 24 countries. KIPCO holds approximately 65% of Burgan Bank's shares, with the remainder held by institutional investors and public shareholders, with KIPCO at its core. Banks are strictly regulated by the Central Bank of Kuwait (CBK) and are required to comply with the Kuwait Banking Act and international financial standards to ensure operational transparency and the safety of customer funds. Its deposits are protected by the Kuwait Deposit Insurance Scheme, with a maximum of KWD 300,000 (approximately US$1 million) per depositor. The SWIFT code for the bank is BBKUKWKW and the Legal Entity Identifier (LEI) is 5493003NOCSC6LUWUF03. Burgan Bank has about 160 branches and 360 ATMs in Kuwait and is present in Algeria (Gulf Bank Algeria), Iraq and Lebanon (Bank of Baghdad), Tunisia (Tunis International Bank), Turkey (Burgan Bank Turkey) and the United Arab Emirates (Burgan Financial Services). Limited) has branches and representative offices, with a total of about 5,000 employees in 2024.

Deposits & Loans

Burgan

Bank offers a wide range of deposit products to meet the savings needs of individual and corporate customers:

• demand deposits: including checking accounts and savings accounts, such as "Classic Account" and "Al Thuraya Salary Account", with a minimum account opening amount of KWD 0 and an APY of approximately 0.1%-0.5%, subject to confirmation of the latest interest rate through branch or online banking. With flexible deposits and withdrawals, no monthly fees, and day-to-day money management, the Al Thuraya account is designed for payroll clients with an added bonus (deposit service).

• Fixed Deposits: Support Kuwaiti dinar, US dollar, euro and other currencies, deposit terms from 1 month to 5 years, the minimum deposit is KWD 1000. In 2025, the fixed deposit interest rate will vary according to the maturity, such as 1.5% for 1 month, 2.0% for 3 months, 2.5% for 6 months, 3.0% for 12 months, and 4.0% for 2-5 years (fixed deposits).

• Featured Products:

  • High Yield Savings Accounts: such as "Kanz Account", which offers up to 2.0% APR and a cash prize of KWD 2,000 through monthly sweepstakes, with a balance of KWD 200 or more for one week, No monthly fees (Kanz accounts).

  • Large Certificates of Deposit (CD): Support flexible tenors, suitable for large amount of money customers, the interest rate needs to be queried through the branch or app, and the early withdrawal penalty is 90 to 180 days of interest.
    Customers can check interest rates through the "Burgan Mobile" app or online banking, deposit products can be opened instantly and interest rate calculations, and some accounts offer free transaction fees.

Loans

Burgan Bank offers a comprehensive range of loan products to meet diverse financing needs

• Mortgages: Fixed- and variable-rate mortgages with a loan amount of up to 80% of the value of the property and a repayment period of up to 30 years. In 2025, the fixed interest rate will be as low as 3.5% (3 years, with a credit score of 700 or more), and the floating interest rate will be based on the benchmark rate of the Central Bank of Kuwait (about 4.0%), and green mortgage discounts will be provided (energy-efficient properties), and the application will require an annual income of more than KWD 5,000 (mortgage services).

• Car Loan: Support new and used car financing, the loan amount is up to KWD 25,000, the term is up to 7 years, the annualized interest rate (APR) is about 4.0%-7.0%, and the credit score is 660 or more (car loan service).

• Personal Line of Credit: The loan amount ranges from KWD 1,000 to KWD 25,000, the term is 1 to 5 years, the APR is about 5.99%-10%, the application threshold is an annual income of KWD 3,000 or more and a good credit history, and the customer needs to be at least 21 years old (personal loan).

• Flexible repayment options: Mortgages and personal loans offer no penalty for prepayment, monthly or bi-weekly payment plans, and a revolving line of credit for flexible debt management.
  All loans are subject to bank approval, and customers are required to provide credit history, proof of income and asset information, subject to the terms of the loan agreement. Banks' corporate financial services (e.g. letters of credit, bill discounting, syndicated loans) provide additional support to SMEs and large enterprises (commercial banks).

digital service experience

Burgan Bank's mobile banking app "Burgan Mobile" is the core of its digital services, available for download on iOS 14.0 and above and Android 9.0 and above, with an App Store rating of about 4.7 and a Google Play rating of about 4.5, with users praising its quick launch (in less than 2 seconds), intuitive interface and multi-language support (Arabic, English). Powered by Clayfin, the app has attracted millions of users and increased customer engagement by 8x in 2023, with core features including:

• Face recognition: Supports biometric authentication (such as Face ID and Touch ID), combined with 256-bit end-to-end encryption to ensure transaction security.

• Real-time transfers: Support instant transfers in Kuwaiti dinars through OSKO and SWIFT, with a daily limit of up to 100,000 Kuwaiti dinars, international money transfers covering 25 countries, and low-rate transfers (digital banking) in partnership with Mastercard.

• Bill management: Support online bill pay, automatic debit, and e-statement, classify transactions in real time, and allow up to five bills to be paid at a time.

• Investment Tool Integration: Support stocks, funds, bonds, and ETFs trading through the Burgan Wealth platform, providing real-time market data and investment advisory services (wealth management).
  The online banking platform "Burgan Online" supports multiple browsers and offers similar functions, allowing customers to open an account in less than 5 minutes via the app or the official website (online banking). The app supports accessibility features such as dynamic font adjustment and VoiceOver compatibility for visually impaired and hearing-impaired customers. In 2023, about 60% of customers completed transactions through digital platforms, significantly improving the user experience.

technological innovation

Burgan Bank excels in the fintech sector, driving technological advancement through its Digital Innovation Center:

• AI customer service: Launched voice AI chatbot "Banki" in 2020, based on natural language processing (NLP), supports Arabic and English, analyzes transaction behavior, detects fraud risks in real time, automates 80% of customer inquiries in 2023, plans to launch a virtual assistant in 2025, supports 24/ 7 Inquiries and Personalized Financial Advice (Banki).

• Open Banking API Support: Follows the Central Bank of Kuwait's Open Banking Framework, integrates with third-party service providers, provides account management and financial services interoperability, and supports 35 deposit, credit card, and loan servicing APIs by 2024.

• Blockchain technology: Blockchain-based trade finance will be launched through the iGTB platform in 2023 to simplify the letter of credit process and improve transaction efficiency and security (iGTB case).

• Electronic KYC (eKYC): The introduction of electronic identity verification in 2022, which allows customers to apply for financing, credit cards and new accounts online through the "Apply Now" feature without visiting a branch, is planned to be fully rolled out in 2024 (digital transformation).

• Other innovations: Partnering with TCS to deploy the TCS BaNCS core banking system in 2024 to integrate digital banking, payments, loan origination, and wealth management functions to improve automation and employee productivity; Partnering with AWS to optimize the cloud-based trading system; Invested KWD 100 million to upgrade cloud technology and data analytics platform to improve operational efficiency (TCS BaNCS).

Featured Services & Differentiation

Burgan Bank is known for its localized services and regional internationalization:

• SME support: Provide customized loan and cash management services through Burgan Business Banking, participate in the Kuwait Government SME Financing Guarantee Program, loan approval in as fast as 10 seconds, up to KWD 1 million, SME loan balance increased by 12% in 2023, won by Global Finance "Best SME Bank" (Commercial Bank).

• Green Finance: Issuing green bonds, supporting renewable energy and low-carbon projects, and responding to the United Nations Principles for Responsible Banking, with a total of KWD 500 million in green financing in 2023, won the "Kuwait Green Finance Pioneer Award".

• Kanz Rewards Program: Monthly KD 2,000 raffle rewards through Kanz accounts, with 30% of the retail customer base participating in 2023, significantly increasing customer stickiness (Kanz accounts).

• Regional internationalization services: Supporting cross-border trade and investment through branches in Algeria, Iraq, Lebanon, Tunisia, Turkey and the UAE, with international business accounting for 15% of total revenue in 2023, especially in the Turkish and Algerian markets (international business).

• Community Contribution: Supporting educational, sports and charity projects through the Burgan Foundation, donating KWD 10 million for community development in 2023, holding financial literacy seminars, and improving the financial literacy of young people, won the "Best Corporate Social Responsibility Bank 2023" award (social responsibility).

market position and accolades

Burgan Bank is the second largest bank in Kuwait, with total assets of about KWD 7.2 billion (about USD 24 billion) in 2024 and a market capitalization of about KWD 90 million, ranking high among the 38 banks in Kuwait. With approximately 160 branches and 360 ATMs, the Bank serves more than 2 million customers (including 1.5 million individual customers and 500,000 corporate customers), and has a strong position in retail, corporate and private banking. In 2023, the bank reported an 8% increase in deposit balances, a 6% increase in loan balances, and a non-performing loan ratio remaining below 0.2%, indicating that it is operating soundly. Burgan Bank's innovations in digital services and green finance have enabled it to remain competitive in the regional market. Its international business accounted for 15% of total revenue, with a particularly strong presence in the Middle East and North Africa (MENAT) region. The bank is the only bank in Kuwait to receive the JP Morgan Chase Quality Recognition Award for 20 consecutive years. Key accolades include:

• Global Finance's 2023 "Best SME Bank" award.

• Global Banking & Finance Review 2023 "Best Bank for Corporate Social Responsibility" Award.

• Global Finance's 2022 "Best Mobile Banking Adaptive Website" award.
  Burgan Bank's customer focus and ability to innovate make it the backbone of the financial markets in Kuwait and the region.

With nearly 50 years of history, local services and innovative financial products in Kuwait, Buyan Bank Limited has become a pioneer in the financial markets of Kuwait and the Middle East. It offers a wide range of deposit and loan products to meet customer needs through local branches and digital platforms. At the heart of the digital services is the "Burgan Mobile" app, which provides efficient real-time transfer and investment management functions. Technological innovations include AI customer service "Banki", open banking APIs, blockchain technology, and electronic KYC, demonstrating the forward-looking nature of its digital transformation. With its SME support, green finance, Kanz rewards program, regional internationalization services and a number of industry accolades, Burgan Bank continues to demonstrate strong competitiveness and influence in the Kuwaiti and regional financial markets.

Note:

• specific interest rates and product details may vary depending on market changes, please check the Burgan Bank website or check with the bank directly for the latest information.