The QNB Group has acquired a 49% stake in the Bank of Commerce and Development (BCD), one of the leading private banks in Libya.
The announcement was made during the extraordinary general assembly of the BCD which was held in Benghazi, Libya on Thursday. It approved the QNB Group as a strategic partner, according to the memorandum of agreement between the two institutions.
The QNB Group – which will be represented in the Libyan bank’s board with a percentage equal to its shareholding as per the agreement – will provide administrative and technical services for the operations of the Libyan lender.
This will strengthen the technical and administrative capabilities of the bank in addition to harmonizing objectives, policies and procedures of both the banks’ operations and standardizing risk management strategy for the benefit of the two institutions.
Ali Shareef al-Emadi, QNB Group CEO, said the partnership came in line with its strategic plan of international expansion in selected promising markets. “The group looks forward to increasing fields in the Libyan market which is anticipated to record healthy growth rates, paving the way for a wide range of banking services in partnership with the BCD,” a QNB spokesman said. Jamal Abdelmalek, chairman of BCD, said this agreement will result in an increase in the bank’s capital, which will support its financial position and its ability to expand in the Libyan market.
It will also allow the bank to benefit from the expertise of the QNB Group as one of the largest and most important banks in the Middle East and North Africa region, he said.
The Libyan bank was established in 1995 and has a network of 32 branches supported by 82 ATMs, with nearly 820 staff. Its total assets are valued at $2bn.
QNB Group will offer its international expertise and specialized services through its Luxembourg-based QNB International Holdings; QNB Capital, registered in the Qatar Financial Centre; QNB Banque Privée; and QNB Financial Services, Gulf Times reported.