Capital Bank and Bank Audi Sign Definitive Agreements for the Sale of the Assets and Liabilities of Bank Audi Branches in Jordan and Iraq
Capital Bank Group and Bank Audi Group have announced the signing of the definitive agreements for the acquisition by Capital Bank of the operations of Bank Audi's Jordan Branch Network, and the acquisition by the National Bank of Iraq - a subsidiary of Capital Bank Group - of the operations of Bank Audi's Iraq Branch Network, including the purchase of the assets and liabilities of these branches.
The completion of these transactions remains subject to the receipt of the final approval of the related supervisory and regulatory authorities.
The agreements were signed by H.E. Mr. Bassem Khalil Al-Salem, Chairman of Capital Bank Group, and Mr. Samir Hanna, Chairman and Group CEO of Bank Audi, who both confirmed that the acquisitions were achieved after an in-depth due diligence exercise conducted in accordance with the applicable legislations, and after obtaining the preliminary approvals of the Central Bank of Jordan and the Central Bank of Iraq.
Al-Salem stated on this occasion that:
"This agreement is in line with Capital Bank's expansion strategies regionally and locally, ultimately strengthening its competitive position. This acquisition is a first in the Iraqi banking sector, and will only serve to support the National Bank of Iraq even further.
"The move will also enhance the steadfastness of Capital Bank Group's financial indicators, allowing it to continue providing innovative and efficient banking services to corporate and individual customers, as well as the continued development of products and solutions supported by the Bank's bold digital transformation policy."
Commenting on the agreement, Hanna explained that:
"These transactions further reinforce our Bank's role in facing the considerable challenges Lebanon has been exposed to for over a year now.
"The selection of Capital Bank as exclusive bidder on this transaction was made taking into account the business continuity of Bank Audi's entities in Jordan and Iraq, and the interests of their stakeholders, employees and customers alike, in addition to the beneficial impact which the transaction is expected to have on their future business development."
In turn, Mr. Dawood Al Ghoul, Capital Bank's Chief Executive Officer, assured that all of Bank Audi client's accounts would be retained along with its staff. "We will honor all commitments towards clients that were contracted by Bank Audi's units in Iraq and Jordan as they are", he said.
Both Messrs. Al Salem and Hanna seized this opportunity to thank the Central Bank of Jordan represented by its Governor, H.E. Dr. Ziad Fariz Al Akram, the Central Bank of Iraq represented by its Governor, H.E. Mr. Mustafa Ghaleb, as well as the Central Bank of Lebanon represented by H.E. Governor Riad Salameh, and their deputies, for their unwavering support of the operation.
Pursuant to these agreement, Capital Bank Group acquires the operations of Bank Audi - Jordan Branch Network and Bank Audi Iraq Branch Network encompassing14 branches in Jordan and 5 branches in Iraq, which brings the total number of Capital Bank's branches to 28 in Jordan and the total number of National Bank of Iraq's branches to 18.
At end-September 2020, Bank Audi's assets in Jordan reached JD 506 million, while those of its Iraq branches reached IQD 275 billion. Accordingly, these acquisitions will contribute to increasing the consolidated assets of Capital Bank to JD 3.6 billion, while its shareholders' equity will reach JD 400 million.
The acquisition of Bank Audi's operations in Jordan and Iraq falls within Capital Bank Group's development and expansion strategy, as well as within its plans to develop its digital performance and transformation, which guarantees the highest levels of speed, accuracy and customer satisfaction.
(Source: Bank Audi)