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Faysal Bank acquires RBS Pakistan

17 June 2010

Faysal Bank Limited (FABL) on 16 June announced that it has entered into an agreement to acquire 99.37% interest in the Pakistan franchise of Royal Bank of Scotland (RBS Pakistan) for a cash consideration of EUR41 million. (Rs 4.298 billion – Rs 2.52 per share).
The sale of RBS Pakistan has been expected since February in the wake of the announcement that RBS would dispose of its retail and commercial businesses across Asia along with the decision to exit its wholesale banking businesses in Vietnam, the Philippines, Taiwan (except the securities business) and Pakistan in an effort to realign its geographic reach across a smaller number of key markets.
Naveed A Khan, President and CEO of FABL said “The acquisition will significantly contribute to FABL’s development and will be a major catalyst in achieving our growth strategy. Whilst expanding our geographical footprint, touch points, customer base and product portfolio, this acquisition will boost our ability to raise the bar of our service levels. Further, employees of the combined entity could have potentially greater career opportunities and development options.”

FABL is the 12th largest bank in Pakistan based on asset size as at March 2010. The acquisition will significantly enhance the scale of FABL Pakistan as the merged entity will have an asset base of over Rs 250 billion ranking it amongst the top 10 banks in Pakistan with over 200 branches.

Muhammad Aurangzeb of RBS Pakistan said, “We delighted to confirm that we have successfully entered into a sale agreement with Faysal Bank for RBS Pakistan which comprises of retail, commercial, Islamic and onshore GBM and GTS businesses in Pakistan. Faysal Bank will be an excellent owner of the strong customer franchise we have established here in Pakistan.”

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