Commercial Bank eyes growth opportunities in Turkey

Doha, Qatar: Following the acquisition of a 70.84% stake in Turkey’s Alternatifbank (“ABank”) from Anadolu Endustri Holding A.S. (“Anadolu”) earlier this year, The Commercial Bank of Qatar (“Commercial Bank”) has outlined its future role in the Turkish banking sector at a gala reception recently held in Istanbul, Turkey.

 

Attended by prominent members of the Turkish and Qatari business communities, the reception was hosted by His Excellency Abdullah bin Khalifa Al Attiyah, Chairman of Commercial Bank and Mr Tuncay Özilhan, Chairman of Anadolu Group.  Approximately 100 businessmen from Qatar and Turkey were also invited to join a networking dinner cruise aboard the Swissotel Boat on the Bosphorus. Leading businessmen had the opportunity to discuss growing links and business ties between Turkey and Qatar, and how this latest international expansion by Commercial Bank into Turkey has created a unique access point to increase investments/trade flows between both countries.

 

The acquisition of ABank in July from Anadolu Group represents Commercial Bank’s first investment in Turkey, and its first majority stake in another bank. Anadolu Group, one of the leading industrial conglomerates of the Turkish economy, will remain a significant shareholder and will be represented on the board. ABank is a mid-sized Turkish bank that predominantly caters for SMEs through a network of 69 nationwide branches and as of December 2012, had total assets of TL 7.9 billion ($4.4 billion).

 

Speaking at the reception, His Excellency Abdullah bin Khalifa Al Attiyah, Chairman of Commercial Bank said: “We are delighted with our acquisition of ABank and our continued relationship with Anadolu Group. Turkey is a key growth market for Commercial Bank and ABank represents a strategic entry-point to Turkey’s fast-expanding banking sector.” He added, “ABank is a model of efficiency and good management; it is ambitious and profitable and we believe it has the potential to be a strong contributor to the future growth of the Commercial Bank Group.”

 

Mr Hussain Alfardan, Managing Director of Commercial Bank said: “ABank extends our existing regional Alliance with banks in the UAE and Oman to outside the GCC region.” He added: “Turkey has been identified as an exciting emerging market and trade between the GCC countries and Turkey is becoming increasingly active. Through ABank, we intend to capitalise on these increasing economic links to strengthen our position as one of the leading full service banks in the region.”

 

Commenting on the move into the Turkish banking sector with ABank, Mr Andrew Stevens, Group Chief Executive Officer of Commercial Bank said: “ABank was the obvious partner for us on a strategic level, a cultural level, and, importantly, on a personal level.  We see this partnership as an exciting opportunity to further develop the deep and growing ties that exist between Qatar and Turkey, and the other Gulf States.”

 

He added: “The fact that we are in Istanbul today demonstrates the management teams from Commercial Bank and ABank are committed to working together for the benefit of all the Alliance customers, shareholders and employees. Commercial Bank’s international banking expertise, combined with ABank’s extensive knowledge of the Turkish market, will play an important role in ABank’s growth prospects that will benefit all stakeholders across the Alliance banks in Qatar, UAE, Oman and Turkey.