Following the completion of transfer of shares process required by the State Bank of Pakistan, Al Baraka Bank Pakistan Limited (ABPL) has become the largest Islamic bank in Pakistan.
The merger of Al Baraka Islamic Bank Pakistan (AIBP) and Emirates Global Islamic Bank (Pakistan) had created a mega Islamic bank ABPL with total assets worth over Rs.50 billion.
“The shares transfer process which initiated in October this year with the merger announcement has been completed which was a major legal procedure required by the State Bank of Pakistan,” President and CEO of the Al Baraka Banking Group Adnan Ahmed Yousif in an interview said.
“With the completion of the legal formalities, the bank’s shareholders will meet on December 28 during the extra ordinary general meeting (EGM) to ratify the new enhanced board of directors with total 11 members,” he added.
ABPL had commenced operations on 29th of October 2010 and consequently, all branches of AIBP and Emirates Global Islamic Bank have been re-branded as ABPL.
ABPL has assets in excess of Rs 50 billion, a workforce of 1400 professionals and a network of 89 branches in 36 cities and towns across the country.
“Al Baraka Islamic Bank Pakistan (AIBP), the branch operations of Al Baraka Islamic Bank (AIB) Bahrain and was a majority owned subsidiary of Al Baraka and Emirates Global Islamic Bank (Pakistan) which had successfully merged their operations in Pakistan under the name ABPL. The head office of the new entity will be located in Karachi,” he said.
The merger, he added, is a first in the Islamic banking sector in Pakistan, positions ABPL to play an important role in further growing an industry which has witnessed tremendous growth over the last five years.
Substantial capital resources, combined with a nationwide branch network will enable ABPL to provide a full range of Islamic banking services, supported by the experience and expertise of the parent company, ABG.
The operations of AIBP dates back to 1991, and at the time of merging its operations it had 29 branches across Pakistan, an asset base of Rs. 31billion and profit before tax of Rs.168million.
Emirates Global Islamic Bank began its operations in Pakistan in 2007 with principal shareholders being Emirates Investment Group (through Emirates Financial Holding Company) and Al Rajhi Investment Group (through Mal Al Khaleej Investment Company).
ABG is a Bahrain Joint Stock Company listed on Bahrain and NASDAQ Dubai stock exchanges. It is a leading international Islamic bank with Standard & Poor’s long and short-term credit ratings of BBB- and A-3 respectively. The Group offers retail, corporate / investment banking and treasury services strictly in accordance with the principles of the Islamic Shari’a. The authorised capital of ABG is $1.5 billion, while total equity amounts to about $1.7 billion.