Bank of Beirut buys
Assets of acquired bank total $291 million
Bank of Beirut (BoB) has signed an agreement to acquire Fortuna Bank, a Luxembourg retail financial institution with total assets of €257.1 million ($290.5 million) as of the end of 2017. Fortuna’s portfolio of loans to customers increased six percent to nearly $229 million last year.
The conclusion of the deal requires the approval of the Central Bank (BDL) and of European regulators, according to a joint statement released by the two banks.
Fortuna Bank’s top management and employees will remain in their jobs, and personnel will be increased in the future for organic growth purposes, the statement said. The bank has 26 employees.
Salim Sfeir, Chairman of BoB, said that they will preserve Fortuna Bank’s established practices while providing it with the means and know-how to develop its operations and explore new prospects.
The move is part of BoB’s international expansion strategy. BoB operates subsidiaries and branches in the U.K., Germany, Cyprus, and Australia, as well as representative offices in the United Arab Emirates, Nigeria, and Ghana. BoB’s total assets stood at $18.5 billion at the end of the third quarter of 2018, up six percent compared with a year earlier.
Fortuna Bank’s total assets grew five percent in 2017 while its net profit fell three percent to around $542,000.
Jerry Grbic, General Manager of Fortuna Bank, said that BoB intends to boost the bank’s activity in the Luxembourg area and expand its base of international associates.
Reported by Shikrallah Nakhoul
Date Posted: Nov 13, 2018