The State Bank of Pakistan (SBP) has granted approval to Bank Alfalah Limited (BAFL), one of Pakistan’s leading commercial banks, to initiate due diligence of Samba Bank Limited. BAFL, eyeing a majority stake in Samba Bank, disclosed this development in a notice to the Pakistan Stock Exchange (PSX) on Monday.
The notice stated, “We refer to Bank Alfalah Limited (BAFL) public announcement dated 9 April 2024 in connection with its potential acquisition of 84.51% shares of Samba Bank Limited held by Saudi National Bank. We are pleased to inform you that the SBP has granted its approval to BAFL to commence due diligence of the target company.”
BAFL had previously submitted a public announcement of intention to acquire up to 84.51% shares of Samba Bank Limited, held by Saudi National Bank, through M/s Arif Habib Limited, the manager to the offer.
In 2021, Samba Bank had received a firm intention from a consortium to acquire control of 84.51% of its paid-up capital. However, that deal did not materialize.
Bank Alfalah is one of Pakistan’s largest banks, boasting a network of over 1,024 branches across more than 200 cities in the country, as well as international presence in Afghanistan, Bangladesh, Bahrain, and the UAE.
In a separate development, the SBP has also given approval for the due diligence of Bank Alfalah Bangladesh to Bank Asia.
Despite posting a consolidated profit after tax of Rs36.09 billion in 2023, which marked a significant increase compared to the preceding year, Bank Alfalah witnessed a decline in profit to Rs9.93 billion during the quarter ended March 31, 2024. This decrease in profit-after-tax (PAT) is attributed to lower foreign exchange income, higher operating expenses, and increased taxation, despite higher net income.
