Al Ahli Bank of Kuwait (ABK) and Gulf Bank have decided not to proceed with an acquisition plan following a feasibility study conducted by management consultancy firm McKinsey & Co.
The study was carried out after Gulf Bank received approval from the Central Bank of Kuwait with the aim of creating added value for shareholders of both banks. The recommendation made by McKinsey was not disclosed by the banks.
Gulf Bank reported a net profit of $56.2 million for Q1 2023, a 15% increase from the same period last year, while ABK posted a net profit of $35.1 million, a 29.7% growth. The banking industry has recently seen other major deals, including the merger of National Commercial Bank and Samba Financial Group in Saudi Arabia and the consolidation of First Abu Dhabi Bank's market position in Egypt.
