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Ammon News - Jordan’s Capital Bank Group on Tuesday finalized a deal to acquire Lebanese lender Bank Audi’s businesses in Iraq and Jordan in a move Capital Bank said was aimed at diversifying its operations and expanding its regional foothold.

Under the deal, the value of which was not disclosed, Capital Bank will acquire Bank Audi’s assets in Jordan, which include 14 branches, while the National Bank of Iraq, a subsidiary of Capital Bank, will acquire Bank Audi’s 5 branches in Iraq.

The deal will bring Capital Bank’s branches in Jordan to 28 and the branches of the National Bank of Iraq to 18.

The deal was signed by Bassem Khalil Al-Salem, Chairman of Capital Bank Group, and Samir Hanna, Chairman and Group CEO of Bank Audi.

According to a Capital Bank statement, both men stressed that the acquisitions were achieved after an in-depth due diligence 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 said the deal "is in line with Capital Bank’s expansion strategies regionally and locally, ultimately strengthening its competitive position."

He added that the 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, he indicated.

In turn, Hanna said: "These transactions further reinforce our Bank’s role in facing the considerable challenges Lebanon has been exposed to for over a year now."

He added: "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."

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.

By the end of September 2020, Bank Audi’s assets in Jordan reached JD 506 million, while those of its Iraq branches stood at IQD275 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.