Doha, Qatar- Following the acquisition of a 70.84% stake in Turkey's Alternatifbank ("ABank") from Anadolu Endustri Holding A.S. ("Anadolu") earlier this year, The Commercial Bank of Qatar ("Commercial Bank") has outlined its future role in the Turkish banking sector at a gala reception recently held in Istanbul, Turkey.
Attended by prominent members of the Turkish and Qatari business communities, the reception was hosted by His Excellency Abdullah bin Khalifa Al Attiyah, Chairman of Commercial Bank and Mr Tuncay Özilhan, Chairman of Anadolu Group. Approximately 100 businessmen from Qatar and Turkey were also invited to join a networking dinner cruise aboard the Swissotel Boat on the Bosphorus. Leading businessmen had the opportunity to discuss growing links and business ties between Turkey and Qatar, and how this latest international expansion by Commercial Bank into Turkey has created a unique access point to increase investments/trade flows between both countries.
The acquisition of ABank in July from Anadolu Group represents Commercial Bank's first investment in Turkey, and its first majority stake in another bank. Anadolu Group, one of the leading industrial conglomerates of the Turkish economy, will remain a significant shareholder and will be represented on the board. ABank is a mid-sized Turkish bank that predominantly caters for SMEs through a network of 69 nationwide branches and as of December 2012, had total assets of TL 7.9 billion ($4.4 billion).
Speaking at the reception, His Excellency Abdullah bin Khalifa Al Attiyah, Chairman of Commercial Bank said: "We are delighted with our acquisition of ABank and our continued relationship with Anadolu Group. Turkey is a key growth market for Commercial Bank and ABank represents a strategic entry-point to Turkey's fast-expanding banking sector." He added, "ABank is a model of efficiency and good management; it is ambitious and profitable and we believe it has the potential to be a strong contributor to the future growth of the Commercial Bank Group."
Mr Hussain Alfardan, Managing Director of Commercial Bank said: "ABank extends our existing regional Alliance with banks in the UAE and Oman to outside the GCC region." He added: "Turkey has been identified as an exciting emerging market and trade between the GCC countries and Turkey is becoming increasingly active. Through ABank, we intend to capitalise on these increasing economic links to strengthen our position as one of the leading full service banks in the region."
Commenting on the move into the Turkish banking sector with ABank, Mr Andrew Stevens, Group Chief Executive Officer of Commercial Bank said: "ABank was the obvious partner for us on a strategic level, a cultural level, and, importantly, on a personal level. We see this partnership as an exciting opportunity to further develop the deep and growing ties that exist between Qatar and Turkey, and the other Gulf States."
He added: "The fact that we are in Istanbul today demonstrates the management teams from Commercial Bank and ABank are committed to working together for the benefit of all the Alliance customers, shareholders and employees. Commercial Bank's international banking expertise, combined with ABank's extensive knowledge of the Turkish market, will play an important role in ABank's growth prospects that will benefit all stakeholders across the Alliance banks in Qatar, UAE, Oman and Turkey.
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About Commercial Bank
Commercial Bank has total assets of QAR 85.4 billion as at 30 June 2013. As a full service commercial bank, the Bank offers a full range of corporate, retail and investment banking services as well as owning and operating exclusive Diners Club franchises in Qatar and Oman. The Bank's countrywide network includes 29 full service branches and 151 ATMs.
Profitable every year since incorporation in 1975, continual investment in technology and human capital, together with a strong capital base, provides a solid foundation for continued growth. A successful diversification strategy has expanded Commercial Bank's GCC footprint through strategic partnerships with associated banks, the National Bank of Oman (NBO) in Oman and United Arab Bank (UAB) in the UAE. NBO, the second largest bank in Oman with total assets of OMR 2.8 billion as at 30 June 2013, has 66 branches in Oman and 1 branch each in Egypt and in Abu Dhabi. UAB is headquartered in Sharjah, with total assets of AED 18.4 billion as at 30 June 2013, and operates 18 branches across the emirates in the UAE.
Commercial Bank enjoys strong credit ratings of (A) from Fitch, (A1) from Moody's and (A-) from Standard & Poor's. The Bank is listed on the Qatar Exchange and was the first Qatari bank to list its Global Depository Receipts (GDRs) as well as bonds on the London Stock Exchange. Additionally, Commercial Bank's Swiss Franc bond issuance in December 2010, listed on the SIX Swiss Exchange, was the first public bond issuance by a Qatari bank in Switzerland.
The Bank is dedicated to supporting Qatar's community and social infrastructure through Corporate Social Responsibility programmes and sponsorship of various events. Title sponsorship of the Commercial Bank Qatar Masters and the Grand Prix of Qatar Moto GP reflects the Bank's promotion of excellence in sports and its keen interest in enhancing Qatar's international sporting reputation. To reinforce Qatar's flourishing cultural environment, Commercial Bank is the strategic partner of the Katara Cultural Village. This collaboration symbolises the Bank's commitment to supporting cultural activities in Qatar and making the country a regional arts and cultural hub.
www.cbq.qa
About ABank
ABank was established in 1991. Commercial Bank became a majority shareholder in ABank in 2013 following the acquisition of 70.84% of ABank's shares from Anadolu Group. Anadolu Group remains a significant shareholder.
ABank is a mid-size Turkish bank that predominately serves medium-sized companies through a country-wide network of 69 branches in 25 cities (as of 30 June 2013). ABank provides commercial/corporate banking services and products, with a special focus on the growing segment of Small and Medium-Sized Enterprises. The Bank's main product ranges cover trade finance instruments, working capital finance, cash management, and portfolio management. The Bank has also recently made a strategic decision to re-enter Retail Banking, targeting "mass affluent segment" in terms of customer profile with tailor made products.
At the end of December 2012, ABank had total assets of TL 7.9 billion ($ 4.4 billion), total loans stood at TL 5.1 million, customer deposits of TL 4.2 million and shareholders' equity of TL 601 million.
www.eng.abank.com.tr/
For more information, please contact:
Qatari media
Mona Abdallah
Head of Corporate Communications
Commercial Bank
Tel: +974 4449 0169
Email: m.abdallah@cbq.qa
© Press Release 2013
