Bahrain-based investment bank, Bank Al Khair is expected to undergo merger with a local commercial bank. According to a top executive, Bank Al Khair expects collaboration with Khaleeji Commercial Bank to be able to acquire higher revenues. The same executive also said that it will help to provide more retail banking exposure to Khaleeji Commercial Bank.
Both Al Khair and Khaleeji are unlisted Islamic banks. They are to set up a committee that will conduct a feasibility study regarding said merger. Earlier this month, Khaleeji said that any agreement on the subject will depend upon the approvals of its shareholders and regulators.
Acting CEO for Bank Al Khair, Jonathan Holley said on Sunday that the merger will create an entity with paid-up capital of roughly US$500 million. Assets are in the range of between US$600 million to US$1 billion.
In Bahrain, Khaleeji has seven retail branches. Its investments are valued around US$265 million outside the country. khaleeji Commercial Bank has a current market value of roughly US$162 million.
Said merger will also help Khaleeji expand to other regions including Saudi Arabia and Turkey.
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