The merger will lead to the emergence of a bank that has assets in excess of $582 million and a network of 89 branches covering cities and towns in Pakistan. Obtaining necessary approvals from regulatory authorities and official bodies in Bahrain and Pakistan is presently under way.
Saleh Abdullah Kamel, chairman of ABG, said the merger between the two banks reflects the group's strategy to expand in the Pakistani market as part of its strategies to strengthen its presence and operations in promising Islamic markets. The merger will create a high value-addition not just for the merged financial institutions, but also for the banking and financial market in Pakistan which is considered to be one of the most important markets in the Muslim world.
Khalid Al-Zayani, chairman of Al-Baraka Islamic Bank, said that the new bank, which will carry the name of Albaraka Bank Pakistan and be managed by ABG Group, will have substantial capital resources and a wide branch network that would enable it to play a truly leading role in the Pakistani banking market and provide a full range of Islamic banking services, supported by the extensive resources and expertise of the well established parent company ABG and its 12 subsidiary banking units in various parts of the world, as well as a solid and wide presence in the Pakistani market.
Adnan Ahmed Yousif, president and chief executive of ABG, said the presence of ABIB in the Pakistani market dates back to more than 20 years ago. It currently has 29 branches that offer all types of Islamic banking products and services, which in turn had earned the bank a high standing in Pakistan and the trust of Pakistani businessmen and investors.
He added that the operations of ABIB in Pakistan had achieved excellent results during the past years.
"This requires that we continue efforts to achieve further expansion in these operations given the huge size of the Pakistani market. For this reason, we see the best choice for us now to achieve our goal in expansion is to merge with EGIB, which in turn had enjoyed a significant and successful presence since it was established in Pakistan. We are confident that this merger will benefit the shareholders of both banks as well as the Pakistani economy," Adnan added.
"Our merger with the branches of ABIB in Pakistan falls within our ambitious goals for expansion in the Pakistani market by consolidating the expertise and resources of two of the most important financial institutions in Pakistan. Behind the two banks stand fully committed shareholders who have substantial financial, human and technical resources and a far-sighted banking vision that prepares for meeting the challenges of the future by taking a sure and firm step by the establishment of an Islamic bank between them capable of meeting the needs of growth and expansion in this friendly Muslim country, a bank that offers all types of banking products and services to meet the different needs of its individual and corporate customers and investors."
The operations of ABIB in Pakistan dates back to 1991. The bank has 29 branches in different cities of Pakistan, its assets increased by 20 percent to $348 million and it made operating profit of about $2.3 million.
