Baghdad, Kuwaiti Burgan Bank announced that it has concluded an agreement to sell the bank’s 51.8% ownership interest in the Baghdad Bank to United Gulf Holding Company (an associate company).
The bank said in a statement to the Kuwaiti Stock Exchange that the sale comes in line with the bank’s strategy, in order to improve revenues on risk to the shareholders of the bank.
He added: The sale process would provide the opportunity for Burgan Bank to focus on the bank’s main market in Kuwait and integrate and cooperate more with the subsidiary banks operating in Turkey, Algeria and Tunisia.
The bank stated that the completion of the transaction is subject to obtaining the necessary approvals from the relevant regulatory authorities in Iraq.
It pointed out that although this deal may have a negative one-time effect of 9 million Kuwaiti dinars ($ 29.8 million) on net income in 2019, it is expected to reverse part of this one-time negative impact of 4 million Kuwaiti dinars almost after the deal is completed.
It continued: Despite the negative impact, Burgan Bank expects to maintain a good level of profits for 2019.
Source: National Iraqi News Agency