Wednesday, Sep 23, 2020
International Finance
Banking

Emirates NBD in talks to acquire Blom Bank Egypt

Emirates NBD Blom Bank Egypt_IFM_Image
Emirates NBD confirmed about preliminary talks between both parties through a bourse filing

Dubai-based Emirates NBD has revealed that it is holding preliminary talks with Lebanese lender Blom Bank to acquire its business in Egypt, the media reported.

In a bourse filing, Emirates NBD revealed that discussions are ongoing and there is no certainty that any transaction will be completed.

Earlier this month, Blom Bank revealed that it was considering several strategic options, including a sale of its stake in Blom Bank Egypt in response to the depressed outlook for Lebanon’s domestic banking industry.

According to its website Blom’s Egypt unit has 42 branches and is active in retail and corporate banking.

Last month, Emirates NBD, which is Dubai’s biggest bank announced its financials for the second quarter. According to the bank, it recorded a 58 percent drop in profits in the second quarter of 2020.

The bank is expected to let go many of its employees as it prepares to deal with the Covi-19 crisis which has pushed the global economy into a recession.

This is mainly due to the fact that the bank has set aside $1.1 billion to cover bad loans which are anticipated to increase amid the coronavirus pandemic. North Carolina-based Bank of America has acquired a 1.51 percent stake in Emirates NBD-Dubai’s largest bank, the media reported.

In the month of June, Bank of America acquired its stakes in Emirates NBD in a deal that is worth Dh900 million.

According to the deal, Bank of America bought around 100 million shares of Emirates NBD.

Emirates NBD posted a net profit of around Dh14.5 billion and total assets in excess of Dh683 billion in 2019.

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