Kuwait Finance House Expands with Ahli United Bank Egypt Acquisition
Deal News | Feb 03, 2025 | Zawya
Kuwait Finance House (KFH) has launched its operations in Egypt following the acquisition of Ahli United Bank Bahrain in 2022. The rebranding of Ahli United Bank Egypt to KFH Egypt signifies full integration into KFH's broader strategy, emphasizing Islamic banking. KFH Chairperson Hamad Al-Marzouq highlighted the bank's entry into Egypt as a strategic move, aiming to rank among the world's top banks while enhancing the local Islamic banking sector. The acquisition represents KFH's commitment to its global Islamic finance vision underpinned by digital transformation. KFH Egypt, under CEO Hala Sadiq, is poised to drive financial inclusion and expand its market presence by leveraging KFH Group's financial strength. The transformed institution reported a remarkable financial performance in 2024, indicating a 65% rise in net profits and a 29% increase in total assets. The initiative underscores KFH's ambition to lead Islamic banking in Egypt, reinforced by a robust branch network and advanced digital services.
Sectors
- Islamic Banking
- Financial Services
- Digital Transformation
Geography
- Egypt – Egypt is the geographical focus of the article as the market where Kuwait Finance House has launched new operations with KFH Egypt.
- Kuwait – Kuwait is relevant as the headquarters of Kuwait Finance House, which is expanding its operations into Egypt.
Industry
- Islamic Banking – The article focuses on the expansion of Kuwait Finance House into the Islamic banking sector in Egypt, following its acquisition and rebranding of Ahli United Bank Egypt.
- Financial Services – The article highlights Kuwait Finance House's operations, financial growth, and strategic expansion in the financial services sector.
- Digital Transformation – KFH's commitment to digital banking innovations is tied to its expansion strategy, emphasizing the adoption of digital tools to enhance customer experience.
Financials
- EGP 5.5bn – Net consolidated profits for KFH Egypt in 2024, up from EGP 3.3bn in 2023.
- EGP 144bn – Total assets of KFH Egypt in 2024, reflecting strong liquidity and asset quality.
- EGP 7.6bn – Net income from returns for KFH Egypt.
- EGP 999m – Fee and commission income of KFH Egypt.
- EGP 117bn – Customer deposits for KFH Egypt, representing a 30% increase.
- EGP 85.3bn – Total financing portfolio for KFH Egypt, expanded by 26%.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Kuwait Finance House (KFH) | Acquirer | Company | A leading Islamic bank headquartered in Kuwait, expanding its operations into Egypt. |
| Ahli United Bank Egypt | Target Company | Company | Acquired by Kuwait Finance House and rebranded as KFH Egypt. |
| Ahli United Bank Bahrain | Vendor | Company | Former owner of Ahli United Bank Egypt, acquired by KFH in 2022. |
| Hamad Al-Marzouq | Chairperson of KFH | Person | Chairperson of Kuwait Finance House and spokesperson for the expansion into Egypt. |
| Hala Sadiq | CEO of KFH Egypt | Person | Chief Executive Officer of KFH Egypt, overseeing the integration and rebranding process. |