CAIRO: National Bank of Kuwait (NBK) marked its entry into the local market by acquiring Al Watany Bank of Egypt (AWB) for $1 billion. In a statement to the press, AWB Managing Director Yasser Ismail Hassan said that the merger will "hopefully contribute to accelerating the momentum of the Egypt's economic growth and enhance the bilateral relations between Kuwait and Egypt, AWB will retain its name but incorporate NBK branding. Under the acquisition plan, the number of branches in Egypt will double from the current 26 over the next two years. In his welcoming speech, NBK s Vice Chairman Nasser Musaed Al Sayer said he was "extremely satisfied for having the opportunity to enter the Egyptian market through AWB.[and at] being able to provide the best banking services to our clients in the largest and most important market in the Arab world. NBK has been on an aggressive expansion plan, having recently bought a 40 percent stake in Turkish Bank and increased its ownership of the International Bank of Qatar to 30 percent. The bank has an international network with branches, subsidiaries and representative offices in Jordan, Lebanon, Qatar, Bahrain, Saudi Arabia, UAE, Egypt, Iraq, Turkey, in addition to London, New York, Paris, Geneva, Singapore, Vietnam and China. "We are counting on the significant market prospects that Egypt offers and will endeavor to develop and promote the bank and make it a significant player in the market, the Kuwaiti bank said in a statement carried on its website. NBK won the tender over joint bid by Commercial Bank of Kuwait and Al Noor Financial Investment Company, paying 4.16 times book value and 17 times earnings. The announcement comes just days after the bank said it wishes to arrange sales of Islamic bonds worth up to $700 million in 2008 to fund expansion throughout the region. In 2007, AWB made a net profit of LE 243.6 million ($44.6 million), a 157 percent jump on its 2006 profits. The bank made LE 94.6 million in 2006. The deal is expected to be finalized by the end of 2008 pending regulatory approval from both Egyptian and Kuwaiti authorities.
