Masraf Al Rayan is in the final stages of due diligence to acquire a stake in a Libyan lender, Qatar’s second-largest bank by market value said after posting a 13% jump in first-quarter profit.
“We are in the final stages of preparing the required studies. This will be followed by the signing of a memorandum of understanding with our partners before we proceed to secure the required approvals from the concerned authorities in both Qatar and Libya,” Adel Mustafawi, the group chief executive at Rayan, said in a statement posted on the Qatar bourse website yesterday.
Shareholders of Rayan had approved in February its plan to buy a stake in a Libyan lender, while also voting to give the board of directors control over a QR1bn ($275mn) war chest to make acquisitions over the next two years.
The bank has also made significant progress in fulfilling the requirements of acquiring a stake in Islamic Bank of Britain, Mustafawi said. “We are at an advanced stage regarding fulfilling the requirements of the concerned authorities in the UK.”
Enjoying strong government support and steady loan growth in their home market, many banks in Qatar are looking to expand by acquiring stakes in other lenders across the region.
Qatar National Bank, the state’s largest lender, in January took full control of the Tunisian Qatari Bank after buying half of it from the Tunisian government. It had purchased part of a Libyan bank last year.
Masraf Al Rayan made a net profit of QR400mn in the first three months of the year, up from QR353.5mn in the year before period, according to the statement. Its shares were last up 0.9% at QR24.90 yesterday.
