National Bank of Kuwait (NBK), the largest Bank and the highest-rated in the Middle East, signed an agreement to buy a 40% Stake in Turkish Bank (A.S.). The signing ceremony was held recently in Istanbul, Turkey and attended by the top executives of the two banks.
Ibrahim Dabdoub, Chief Executive Officer of NBK, said that “this is a significant milestone in NBK’s regional expansion strategy and also reflects NBK’s increasing interest in the growing Turkish banking sector. NBK believes that the Turkish economy will continue its strong growth over the long term on the back of continued economic reforms, political stability and favorable demographic trends; this will have a positive effect on the banking sector in the coming years”.
Established in 1982, Turkish Bank enjoys a unique position in the Turkish banking sector and has been rated as the 12th fastest growing bank in Europe by “The Banker” magazine. With its 20 branch network, its long-term client relationships, and exceptional service offerings, NBK believes that Turkish Bank will provide a solid platform for future expansion.
Tanju Ozyol, Chairman of Turkish Bank Group, said that “this acquisition brings significant added value to Turkish Bank particularly given NBK’s experience in regional and international markets. Turkish Bank will work closely with NBK in growing its franchise in retail banking across Turkey as well as enhancing its market share through an expanded branch network.”
This transaction is subject to the final approval of both the Banking Regulation and Supervisory Agency in Turkey and the Central bank of Kuwait. NBK capital, the investment and merchant banking arm of the NBK Group, acted as the exclusive financial advisor to NBK on this transaction.