Al-Watany Bank denies rumors of A&M talks with Egyptian American Bank
Al-Watany Bank of Egypt (AWB) has informed the Cairo and Alexandria Stock Exchanges (CASE) that there are no negotiations for a merger taking place with the Egyptian American Bank (EAB).
Market rumors began circulating recently concerning merger and acquisition activity between the two banks, following Egypt’s newly passed banking law. In late May 2002, Kuwait’s Burgan Bank announced the withdrawal of its offer to purchase a 40 percent stake in AWBs $34 million capital.
Traditionally focusing on providing commercial banking services to the SME market, AWB is a small private sector bank that has seen rapid growth during the past few years. Over the past year however, concern was raised over AWB's weakening profitability, asset quality and capital adequacy trends.
Ranked 17th in Egypt in terms of total banking system assets, AWB has market shares of sector deposits and loans of just above one percent each. — (menareport.com)
© 2003 Mena Report (www.menareport.com)