Kuwait, (Business News Report)|| The Kuwaiti Al-Ahly Bank and Gulf Bank are planning a deal to acquire one of the other, according to two separate statements issued by them.
Al-Ahly Bank and Gulf Bank said that one of the two banks will acquire the other, while the second will turn into a Sharia-compliant bank.
The statement was published by Boursa Kuwait, and stated that the two chairmen of the board of directors would present the matter to the two councils, to decide on the issue.
The banks indicated that the matter requires approvals from the Central Bank of Kuwait, the regulatory authorities and the general assembly of both banks.
In a separate context, Al-Ahli Bank of Kuwait (Egypt Branch) announced an increase in net profits during the first quarter of this year to reach 551 million pounds.
According to the branch in Egypt, the financial results during the period ending on March 31, 2022 showed an increase in net income from the return to reach 603 million pounds, compared to 490 million pounds in the same period last year to record an estimated growth of 23% during the quarter.
As for the bank’s net operating profit, it rose by 33% to 478 million pounds, compared to 360 million pounds during the same period last year.
The profits of the bank in Egypt during the first quarter of this year before tax amounted to 698 million pounds.
On the other hand, the loan portfolio increased by 10% to reach 30 billion pounds, compared to 27.4 billion pounds at the end of 2021, and total customer deposits increased by 7% to reach 51 billion pounds, compared to 48 billion pounds at the end of 2021.
The total assets of the branch in Egypt also increased at the end of the first quarter of the year by 7% to reach 61 billion pounds, compared to the bank’s budget for last year, which amounted to 57 billion pounds in December 2021.
The bank’s statement warned that it had succeeded in “doubling its market share since the completion of the acquisition in 2016.”
Commenting on this, Ali Marafie, Chairman of the Board of Directors of the Bank said that the bank’s strategy relies on “achieving sustainable and balanced growth in the Egyptian market, which we are working to maintain by strengthening and developing our banking services and the efficiency of our employees to ensure a distinctive banking experience for our customers.”