Ahli United Bank of Bahrain leaves Ahli Bank Oman, sells its entire 35% stake to Omani investors

Ahli United Bank of Bahrain leaves Ahli Bank Oman, sells its entire 35% stake to Omani investors

Ahli United Bank of Bahrain, a part of Kuwait Finance House (KFH), sold all its 822.4 million shares (35% ownership) in Ahli Bank Oman to a group of investors from Oman, as stated in a filing on Tuesday.

Ahli Bank Stake

The deal’s value was not shared, but KFH Group’s future financial reports will show the impact of the sale. However, this impact is expected to be small and will not greatly affect the group’s profits.

In October last year, KFH, also called Baitak, sold all its shares in the UAE’s Sharjah Islamic Bank—588.3 million shares, which was 18.18% of the bank. This sale was also expected to have little effect on KFH’s profits.

KFH made a profit of $382.2 million (KWD118 million) in the last three months of 2024, slightly more than analysts’ predictions of $371.8 million (KWD114.8 million). For the whole year, KFH’s net interest income rose to $3.72 billion (KWD1.15 billion), up from $3.13 billion (KWD965.9 million) the previous year. Net income also grew to $1.95 billion (KWD601.8 million) from $1.89 billion (KWD584.5 million).

Baitak was founded in 1977 and listed on Boursa Kuwait in 1984. The company has an approved capital of about $5.18 billion (KWD1.7 billion).

Kuwait’s Banking Sector

Kuwaiti banks earned more profits during the period of higher interest rates, as they were able to charge more for loans, according to an S&P Global report.

S&P Global expects Kuwait’s banks to remain financially strong in 2025, with good capital reserves and stable funding. The report also predicts that the banks’ asset quality will improve due to a stronger economy and lower interest rates.

Lending is also expected to grow, which will help balance out the lower profits caused by lower interest rates.

Sukuk Issuance

Last month, KFH issued a five-year Islamic bond (sukuk) worth $1 billion. The sukuk will be traded on the London Stock Exchange.

This is the second sukuk issued under KFH’s $4 billion Sukuk Program. It was priced at 95 basis points above US Treasury bonds, with a yearly return of 5.376%.

Published: 5th February 2025

For more article like this please follow our social media Twitter, Linkedin & Instagram

Also Read:

UAE forms Logistics Council, approves National Cyber Strategy
Egypt’s Suez Canal Zone secures $8.1B for 255 projects
Egypt central bank to issue $1B in T-bills for forex