DUBAI: National Bank of Kuwait has sold its 30 percent stake in unlisted International Bank of Qatar for 155m dinars ($538m) after being unable to secure a controlling stake, the Kuwaiti lender said yesterday. The largest bank in Kuwait said it would book a profit of 25m dinars in its 2014 accounts from the deal.
Gulf banks have been seeking opportunities outside their home markets in recent years due to high competition.
Qatari banks have been particularly active in chasing expansion, using the country’s hydrocarbon wealth to go on an acquisition spree. However, that wealth has also allowed them to consolidate their positions domestically, at the expense of other regional lenders with holdings in Qatar.
“We have decided to exit this partnership as we saw limited opportunity to increase our 30 percent ownership in IBQ,” NBK Chairman Nasser Al Sayer said in a statement.
Sayer said the bank was getting “an attractive price” for its investment, which it entered 10 years ago, and that the capital generated from the sale would be reinvested in its business. It is the second time in two years that a minority shareholder in a Qatari bank has sold out to local investors.
Reuters
