DOHA: Discussions on the proposed merger between two prominent Qatari banks Al Khaliji Commercial Bank (al khaliji) and International Bank of Qatar (IBQ) have failed, a joint release yesterday said.
The banks have decided to end negotiations for the proposed merger as final terms could not be agreed. As a result, the existing governing, operational and financial structures in place at the Banks will remain unchanged.
Earlier last year, the Board of Directors of al khaliji approved the initiation of merger talks with IBQ.
The planned merger was seen as beneficial to all stakeholders and the market giving improved depth of product ranges, high profits for shareholders, improved services for customers and greater competitiveness in the market place.
"Our Board and Management are committed to delivering on our shareholders' expectations and sustaining growth in profitability which we have delivered through a focus on a wholesale-led strategy. We are confident that today's announcement will not affect the bank's performance going forward," said al khaliji Chairman and Managing Director Sheikh Hamad bin Faisal bin Thani Al Thani.
In April, al khaliji announced a significant 105 percent uplift in net profit for the first quarter of 2011, with net operating income increasing 40 percent year on year to QR231m.
Robin McCall, Acting Chief Executive Officer, said: "al khaliji has experienced outstanding growth, in particular over the past 12 months. We recently announced strong first quarter results in which we more than doubled net profit and earnings per share year on year. Such results reaffirm that as an organisation we have the right strategy in place to deliver the returns our investors expect. Central to this strategy is our commitment to supporting corporate, SME and government entities.
"Our customers will also continue to benefit from al khaliji's proven ability to bring strong, compelling products and services to market, as well as the Bank's continued commitment to unparalleled customer service.
"I would like to reassure shareholders that we are fully focused on the consistent implementation of our successful strategy which will ensure continued growth and a prosperous future. We will remain committed to providing the same level of excellence in our operations and delivery that we have come to be associated with.
"I would like to thank our employees for their unwavering support and hard work and ensure them that their future with al khaliji is bright. We will continue to encourage the open communication that that has been a feature of our approach during this process," McCall ended.
Al khaliji was incorporated on January 9, 2007, as a Qatari Shareholding Company under Commercial Registration No. 34548, with its registered headoffice in Doha.
The shares of al khaliji are listed on the Qatar Exchange in August, the same year. al khaliji and its subsidiary (the 'Group') are engaged in commercial and Islamic banking activities.
al khaliji is one of Qatar's leading banks and a member of the Qatar Exchange 20 Index, with QR22.01bn in total assets and QR9.64bn in customer deposits as of March 31, 2011. It is active in retail and corporate banking, as well as Islamic finance.
The Group operates from its head office and three branches in Qatar, one branch in France and four branches in the United Arab Emirates.
Kuwait National Bank undertakes the management of IBQ and possesses 30 percent of its capital. In June 2009, ibq was recognised as 'the fastest moving bank' in the Middle East and North Africa region and the 26th fastest mover globally in The Banker magazine's Top 1,000 World Bank survey 2009.
© The Peninsula 2011
