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Sun 20 Mar 2016 09:48 AM

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Kuwait's Burgan Bank Q4 net profit rises 31%

Gulf state’s third-largest lender posts 23% rise in full-year profits

Kuwait's Burgan Bank Q4 net profit rises 31%

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 Dec. 31, 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 Dec. 30 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.

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