Is BLOM bank leaving Egypt?

A Saudi bank is negotiating with BLOM to acquire its unit in Egypt: Sources

Prominent sources expect BLOM Bank to leave the Egyptian market in the coming period, in the context of the crisis experienced by Lebanese banks, and its disposal of its foreign investments, to provide liquidity to support its mother centres in Lebanon.

In this context, sources close to the BLOM Bank said that the bank received an offer from one of the major Saudi banks to acquire BLOM Egypt Bank, and the offer is currently being studied, provided that this step is followed by the bank’s due diligence to determine the value of the deal.

The sources confirmed that the matter so far is only in negotiation and has not been activated yet.

The due diligence of BLOM Egypt requires the approval of the Central Bank of Egypt, which has not been discussed until now.

This comes as the BLOM BANK Group confirmed that the group is committed to working in the Egyptian market and making further expansions during the coming period.

The group added in press statements, last week, that it excludes any intention of exiting against the background of the financial crisis currently facing Lebanon, as their unit in Egypt is one of its most lucrative subsidiaries.

The capital of BLOM Bank Egypt reaches about EGP 2bn and the bank has 42 branches that include Greater Cairo ,Alexandria, Hurghada, Sharm El Sheikh, Damietta, Port Said, Mansoura, Ismailia, Tanta, Suez, Dakahlia, and Minya.

BLOM Bank Egypt is one of the largest units of Blom Bank Group outside Lebanon.

The bank enjoys the widest external penetration among the Lebanese banks, and it is currently present in 12 countries: Lebanon, Jordan, the United Arab Emirates, France, the United Kingdom, Switzerland, Romania, Cyprus, Egypt, Qatar, Iraq, and the Kingdom of Saudi Arabia. It also conducts operations around the world through a network of 226 financial and banking service units directly, or through subsidiaries.