Investment Dar to Sell Cham Bank June 3, 2008
Posted by mylastresort in analysis.Tags: banking, Central Bank, Cham Bank, Commercial Bank of Kuwait, investment, Investment Dar, Syria
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As previously reported as a rumor but now confirmed, Investment Dar has agreed with Commercial Bank of Kuwait (CBK) to sell its 12.5% stake in Syrian lender Cham Bank for $7 million. The deal was done but still pending approval by the Central Banks of Kuwait and Syria.
Interesting Notes from previous posts:
- In the previous unsourced statement Dar Investment was was said to gain KD 2 million on the sale
- Commercial bank of Kuwait showed intent of raising its stake in Cham bank to 30% from 10%
- CBK has raised its stake to 27%, this year, buy purchasing shares from Syrian & Kuwaiti investors
Comparisson of KFH expansion to others May 29, 2008
Posted by mylastresort in analysis.Tags: al-Tijari, banking, CBK, Commercial Bank of Kuwait, Competition, Expansion, KFH, Kuwait Finance House
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Kuwait Finance House (KFH) said it plans to add more branches this year. The bank plans to have 50 branches in Kuwait, 113 in Turkey and the rest in Bahrain and Malaysia by year-end. In all, it plans 175 branches by December 31. The bank currently operates 42 branches in Kuwait. The expansion plan is always beneficial to banks as long as they do not pursue the same strategy as Commercial Bank of Kuwait (CBK). al-Tijari has the reputation of having branches EVERYWHERE except for one problem, the company expanded quicker than the employees hiring and training, thus creating a rift between branches and employees. I have on numerous occasions been to branches with two employees and a tea boy! Just for the sake of quantity over quality… The lack of employee awareness and professionalism when working with customers needs to be trained and enhanced in order for banks to be competitive in the Gulf. As the competition grows fierce and the market saturates, greater influence needs to be placed on customer service and employee retention since these are the only two factors that are nonexistent in the Gulf region.
Investment Dar confirms sale offer for Cham Bank May 8, 2008
Posted by mylastresort in analysis, rumors.Tags: Aquisition, CBK, Cham, Cham Bank, Commercial Bank of Kuwait, Investment Dar, Syria
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Following rumors from last week Commercial Bank of Kuwait (CBK) officially announced its offer to boost its stake in Syria’s Cham Bank by buying the Investment Dar shares. On Sunday a newspaper said that Investment Dar had agreed to sell its 12.5% stake in Cham to CBK, which offered 700 lira ($15.32) per share. Commercial Bank of Kuwait already owns 27%.
“These are all speculation. There’s still no fixed price nor details… We have an offer (from CBK) yes… but there’s no price or details yet… Now it is at the studying stage. I expect within two weeks to reach a ground we can decide on… They are very preliminary talks, might happen, might not happen. We might get other offers… but because CBK has the biggest stake (in Cham), they could be more interested.”
CBK to take over Egyptian Gulf Bank May 5, 2008
Posted by mylastresort in analysis, rumors.Tags: CBK, Commercial Bank of Kuwait, Expansion, kuwait, National Bank of Kuwait, NBK, Takeover
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Rumors have spread that Commercial Bank of Kuwait is planning a takeover bid to take Egyptian Gulf Bank. The information comes at a time when investments in North Africa are expected to continue their remarable returns.
Although it seems that CBK is in the news daily in talks about expansion, its just that investors are betting when and where it will be. The National Bank of Kuwait is taking over the Alwatany Bank of Egypt plus the large share for the Kuwaiti side in the Arab African Internationl Bank.
CBK shares have remained unchanged by the news, investors seem to be awaiting official statements.
Investment Dar selling stake in Cham Bank May 4, 2008
Posted by mylastresort in analysis.Tags: CBK, Cham Bank, Commercial Bank of Kuwait, Dar Investment, investment, Stock Market
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Investment Dar is looking to sell its stake in Syrian Islamic lender Cham bank but has yet to reach a deal. An unsourced report surfaced today stating that the firm ‘had agreed’ to sell its 12.5% to Commercial Bank of Kuwait (CBK). Investment Dar was forced to accept or deny the statement prior to this mornings stock market opening, inwhich the company stated, “The issue is still in the process of being studied, submitting requests to regulatory bodies and approval of the firm’s board.” It gave no more details.
Interesting Notes:
- In the previous unsourced statement Dar Investment was was said to gain KD 2 million on the sale
- Commercial bank of Kuwait previously showed intent of raising its stake in Cham bank to 30% from 10%
- CBK has raised its stake to 27%, this year, buy purchasing shares from Syrian & Kuwaiti investors
CBK to buy Bank of Baghdad April 28, 2008
Posted by mylastresort in analysis.Tags: Banks, CBK, Commercial Bank of Kuwait, Expansion, Gulf Bank, Iraq, kuwait, Mergers and aquisitions, Syrian
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Commercial Bank of Kuwait (CBK) is in talks to buy a stake in an Iraqi lender and could finalize the acquisition this year.
“We are in negotiations to buy a stake from an investment company that owns a large stake”
- Abdul-Majeed al-Shatti, Chairman
Some quick facts:
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Iraq Holding Company (Kuwaiti Company) is planning on selling its 20% stake in Bank of Baghdad
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United Gulf Bank (Bahraini Company) is in talks to sell its stake in Bank of Baghdad
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CBK has been expanding in the region to avoid the over saturated Kuwaiti market
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CBK confirmed earlier this month that its in the final stages of buying 70% of Yemen Gulf Bank
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CBK plans to raise its stake in Syrian Islamic lender Cham Bank to 30% (from 10%)
Kuwait’s CBK seeks 70 pct stake in Yemeni bank March 9, 2008
Posted by mylastresort in analysis.Tags: al-Qabas Newspaper, Commercial Bank of Kuwait, kuwait, Yemen, Yemen Gulf Bank
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Commercial Bank of Kuwait (CBK) is seeking to buy 70 percent of Yemen Gulf Bank, al-Qabas newspaper quoted the Kuwaiti bank’s chief executive Jamal al-Mutawa as saying on Thursday.
Kuwait’s Commercial Bank wants to go Islamic March 4, 2008
Posted by mylastresort in analysis.Tags: analysis, Banks, Central Bank of Kuwait, Cham Bank, Commercial Bank of Kuwait, investment, Islamic, Jamal al-Mutawa, kuwait, Kuwait International Bank, news, Reuters, speculation, Stock Market
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(Reuters) – The Commercial Bank of Kuwait was awaiting approval from the central bank to transform into an Islamic lender, a newspaper reported on Tuesday. “CBK has made a request to the central bank to transform all its activities to comply with Islamic law after the central bank gave conventional banks the chance to transform within a limited period,” al-Qabas newspaper quoted Chief Executive Jamal al-Mutawa as saying, paraphrasing his remarks. “The presence of one or two other banking units that operate in line with sharia will not harm the market at all,” Mutawa said. CBK said on Sunday it could raise its stake in Syrian Islamic lender Cham Bank to up to 30 percent from 10 percent.
(Reporting by Rania el-Gamal, Editing by Inal Ersan)
Although it seems as though the decision will be imminent this process will take years upon years for it to be concluded. Kuwait International Bank (KIB) has been awaiting approval since the millennium. The Central Bank has given the banks the right to apply to become Islamic banks and since then the banking sector has flocked to apply to get the ‘approval.’ Awaiting the approval does not nessesarily mean that the banks will transform into Islamic institutions. Once the approval has been granted it will be decided upon based on the markets needs at that time. Expected Central Bank approval will be between 5 to 10 years, if at all. This is all due to the demand of Sharia Compliant banking and the immense growth they are generating when compared to conventional banks.
