I Middle East Banking M&As

4. Agricultural Bank of China

Country: China 2022 Global 2000 rank: 8 Total assets: $4.6 trillion

The Chinese government owns the majority of the Agricultural Bank of China via state-controlled investment firm Huijin and the Ministry of Finance, which held 40.03% and 35.29%, respectively, as of the end of Q1 2022. In addition to corporate and retail banking services, China’s third-largest bank supports the grains industry with agro-related offerings such as microfinancing to farmer households and personal business loans for farmers, among others. In Q1 2022, the bank’s net profit grew by 6.7% to $10.5 billion. Shares of the company fell by 7.04% this year as of July 15, down to $0.32 closing stock price.

5. Bank of America

Country: U.S. 2022 Global 2000 rank: 9 Total assets: $3.2 trillion

Bank of America is the world’s ninth largest public firm and the secondlargest bank in the U.S. this year. In Q1 2022, profit declined fell 12.3% to $7.1 billion. The company’s consumer banking segment, which provides credit, banking, and investment products and services to consumers and small businesses, recorded a net income surge of 11% to $3 billion, or nearly half of its overall Q1 profits. The strong growth in the bank’s consumer business overshadowed the 21% net income drop in its global banking segment as investment banking fees fell 35% as a result of an industry-wide slump in underwriting activity. Bank of America’s share price fell 30.16% this year as of July 15, down to $32.25 per share. Banking

Middle East Banking M&As

M&A activity in MENA increased 11% in Q1 2022, reaching a total value of $21.1 billion, according to data from Refinitiv. The most active was the U.A.E., which saw a 5% increase in M&A activity to reach a total of $4.3 billion. Here are four of the most notable Middle East M&As in banking in H1 2022.

• Kuwait Finance House (KFH) and Ahli United Bank (AUB)

In July 2022, almost four years after the transaction was first announced, KFH received the approval of the Central Bank of Kuwait to buy Bahrain’s AUB for about $11.6 billion. KFH will offer one share for every 2.695 AUB shares, which implies an offer price of over $1 per share, according to the revised terms filed on the Bahrain Bourse. The acquisition was first announced in 2019, with a value that stood at about $8.8 billion, according to Bloomberg. The deal was paused the following year during the Covid-19 outbreak when Kuwait’s central bank told KFH to reassess the agreement. • Arab Jordan Investment Bank (AJIB) and National Bank of Kuwait (NBK) in Jordan

In May 2022, AJIB announced it had completed its acquisition of NBK’s banking operations in Jordan for an undisclosed sum as part of the bank’s expansion strategy. The acquisition will allow NBK Jordan customers to benefit from the banking services offered by AJIB internationally.

• Capital Bank and Société Générale Bank Jordan (SGBJ)

Jordan’s Capital Bank said in February 2022 that it had agreed to acquire 100% of SGBJ in its second regional and domestic expansion within a year. The deal also includes the acquisition of SGBJ’s financial brokerage firm, whose clients are expected to join Capital Invest, Capital Bank Group’s investment arm. The move will raise the value of Capital Bank’s assets to approximately $8.5 billion, the group said in a statement. In December, Capital Bank’s board of directors approved a mandatory offer to buy SGBJ, which is controlled 87.7% by Société Générale de Banque au Liban.

• Ahli United Bank (AUB) and Citi Bahrain

In April 2022, AUB agreed to acquire Citi’s consumer banking business in Bahrain. The transaction, which is subject to regulatory approval, is expected to close by the end of Q2 2022. Citi had previously announced that it would be releasing approximately $7 billion of allocated tangible common equity over time by exiting its consumer franchises in 13 markets in Asia Pacific, Europe, and MEA.