IslamicFinance.de

Kuwait Finance House (KFH) is looking to merge with Bahrain's Ahli United Bank. The Gulf's banking sector is in consolidation as three years of low oil prices squeeze deposits and push up bad loans. KFH Chief Executive Mazin Al-Nahedh said the merger was currently only under study and there has been no agreement so far. In other regional bank mergers, First Abu Dhabi Bank was recently created in the United Arab Emirates after a tie-up between two Abu Dhabi lenders, while mergers are under way in Qatar and Saudi Arabia. KFH said in the statement that it was looking at a range of alternatives to boost its profitability, adding that such decisions require approval from regulators, including the central bank.

Kuwait Finance House (KFH) has ruled out a sale or merger for its Malaysian unit, its chief executive said on Tuesday. Mazin al-Nahedh added the lender, the largest Islamic bank in the Gulf Arab state, will begin restructuring the unit with immediate effect. The disclosure from KFH comes after a source familiar with the matter said last week that Qatar National Bank had bid to buy the unit, with the Qatari lender later acknowledging it was in early talks about an acquisition.