Emirates NBD closes $2.8b DenizBank buy

Emirates NBD said on Wednesday it has completed the purchase of 99.85 per cent of the shares in DenizBank of Turkey from Russia's Sberbank.
The transaction is valued at $2.8 billion as per the revised sale price as the lira depreciated in April.
Emirates NBD CEO Shayne Nelson said the Dubai-based bank would support Denizbank if it needed a capital increase. Speaking at the signing ceremony of Sberbank's sale of its shares in Denizbank to Emirates NBD, Nelson said that NBD is a long-term investor in Turkey.
In April, Emirates NBD said it was buying Denizbank from Sberbank for 15.48 billion lira ($2.8 billion), lower than a previously agreed price. Turkey's BDDK banking watchdog approved the transaction in June and the sale was completed on Wednesday.
Hesham Abdulla Al Qassim, Vice Chairman and Managing Director, Emirates NBD, said the lender is proud to mark a new chapter in its growth journey by welcoming DenizBank to its family.
Herman Gref, CEO, Chairman of the Executive Board of Sberbank, said since 2012, DenizBank has made meaningful progress across all key areas, delivering growth in sales of products and services via digital channels, implementation of advanced risk management practices and risk culture improvement, and the ability to shape a unique customer experience, maintain a balanced financial structure and meet the external challenges with confidence.
Gref said number of DenizBank clients more than doubled during seven years and the assets increased more than 3.5 times. "With the sale of DenizBank, Sberbank has completed a key stage in their international strategy change that will allow the bank to concentrate on the further development of Sberbank's ecosystem in Russia," said Gref.
Al Qassim said while there is considerable cross-border trade and business activity across the Menat region, only few banks can claim to have a strong pan-regional presence.
"Emirates NBD is now looking to change this with DenizBank, and we are pleased to have found a partner that has built a strong franchise and reputation as a leading banking group," said Al Qassim.
He said the bank is confident this partnership would unlock a host of benefits for our customers, investors, and stakeholders across all the markets we operate in. "We look forward to working together to leverage our shared expertise, resources, and human capital to build a banking powerhouse that will lead the Menat region in innovation and service delivery, while ensuring that our customers remain at the heart of our journey."
Emirates NBD, Dubai's largest bank by assets, said last week that it would open 20 additional branches in Saudi Arabia in line with its expansion plans across the region. The lender recently reported a 49 per cent jump in net profit to Dh7.5 billion for the first half on the back of loan growth, higher foreign exchange income, gain on disposal of a stake in Network International and increased investment banking activity. - issacjohn@khaleejtimes.com

Issac John

issacjohn@khaleejtimes.com