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The Kuwait-listed Gulf Bank has received initial approval from the country’s Central Bank to convert its operations to an Islamic banking institution.
The news comes even as Gulf Bank is exploring a potential merger with the Kuwait-based Warba Bank.
The move by Gulf Bank is being seen by many as a percussor to its merger with Warba Bank, which could lead to the creation of one of the largest Shariah compliant banks in Kuwait.
Warba Bank, which is Gulf Bank’s largest shareholder with a stake of 32.75%, initiated talks for a feasibility of a potential merger between the banks earlier this year, which was later approved by the Gulf Bank board.
A merger between Gulf Bank and Warba Bank would create the third largest financial institution after KFH and NBK, with total assets reaching 13 billion Kuwaiti dinars ($42.5 billion).
(Writing by Bindu Rai, editing by Seban Scaria)
