Emirates NBD in takeover talks with Blom Bank for Egypt operations

Dubai’s largest bank Emirates NBD on Tuesday confirmed that it was in discussion with Lebanon’s Blom Bank for potential acquisition of its Egyptian subsidiary.

“Due diligence is still ongoing and there is no certainty that any transaction will be completed,” the UAE lender said in a statement posted on the Dubai Financial Market, where it is listed. Its shares slumped 1.37 per cent to Dh9.33 on Tuesday, broadly in line with the market trend.

“Emirates NBD routinely evaluates potential opportunities in different markets and a further announcement will only be made if there is a material development,” said the statement.

The bank posted 69 per cent slump in quarterly profit, as bad debt charges rose due to the Covid-19 crisis, while earnings suffered in comparison with last year, when they were swelled by an asset sale.

Net profit for the third quarter fell to Dh1.56 billion from Dh5 billion last year when the bottomline was boosted by a stake sale in payments processor Network International.

— waheedabbas@khaleejtimes.com