The Bank of Beirut (BoB) and the Beirut Riyadh Bank recently received approval from the Lebanese Central bank to go ahead with their merger plans, in a move that is expected to raise the banks’ asset ranking, confirmed an official statement. The consolidated financial institution will keep BoB’s name.
The merger is expected to take several weeks to complete, during which BoB will be awarded a $150 million loan from the Central Bank, increasing its capital and profits. BoB will appoint a temporary general manager to run Beirut Riyadh Bank, which will have a network of 43 branches in the country.
Beirut Riyadh Bank’s worth is currently estimated at around $30 million. The institution has not recorded any profits for the last three years, due to the increase in provisions for bad loans reaching $100 million, a relatively high figure compared to its $700 million assets.
BoB is 10 percent owned by Emirates Bank and was one of the few Lebanese banks not to report a fall in profits last year. The Bank's principal banking activities consist of retail banking services, commercial banking services and products to medium-sized and large businesses and trade finance. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
