Burgan Bank and United Gulf Bank (UGB) today 27th June, 2010 announced that Burgan Bank has completed the purchase of Tunis International Bank from UGB. The deal – which is part of Burgan’s regional expansion strategy – first announced in 2008 – involved the purchase of Jordan Kuwait Bank, Gulf Bank Algeria, Bank of Baghdad and Tunis International Bank from UGB for a total of US$ 725 million (KD 194 million).
Burgan Bank Chairman, Majed Al Ajeel, said that “We are delighted to have completed the first stage of our regional expansion strategy by the acquisition of Tunis International Bank. This deal further extends our presence in North Africa and gives us a unique opportunity to develop our banking activity in Tunisia. The deal also marks the completion of the first stage in our aggressive regional expansion strategy and we are delighted with the progress our regional banking network is making.”
UGB’s Chief Executive Officer, David Rhodes, said “The deal will allow us to move forwards with our new business plan and is a catalyst for our development as one of the region’s leading investment banks and asset management companies.
Burgan Bank is a subsidiary of KIPCO (Kuwait Projects Company). The youngest and most dynamic commercial bank in the State of Kuwait, established in 1977, the Bank has acquired a leading role in the retail, corporate and investment banking sector through innovative product offers and technologically advanced delivery channels. It has continuously improved its performance over the years by applying an expanded revenue structure, good asset quality, diversified funding sources and a strong capital base. The adoption of state-of-the-art services and ground-breaking technology has positioned it as a trendsetter in the domestic market. At present it enjoys a wide reach through our network of 22 branches and over 80 ATM’s making it one of the widest ATM networks in the GCC.
The Bank was recertified and is still the only bank in the GCC with ISO 9001:2000 certification in all its banking businesses. It also has to its credit the distinction of being the only bank in Kuwait to have won the JP Morgan Chase Quality Recognition Award, 10th year in succession and was also acknowledged as the ‘Best Local Private Bank’ in Kuwait in the Fourth Annual Euromoney Private Banking Survey 2007. Further, for two consecutive years, it was conferred the COMMERZBANK Recognition Award, for maintaining high standards of quality, efficiency and reliability while processing Euro currency transactions as well. The Bank’s commitment to uphold best practices was recognized when it won the region’s first Hawkamah-UAB Bank Corporate Governance Award 2007 while its marketing excellence was recognized as amongst the best in the region by the Middle East Business Achievement Awards 2007.