Bank Alfalah to Acquire Majority Stake in Samba Bank

Bank Alfalah Limited has recently received approval from the State Bank of Pakistan to commence due diligence of Samba Bank Limited, with the intention of acquiring a majority stake in the latter. This move comes as part of BAFL's strategic growth plans in the banking sector. The announcement was made through a notice to the Pakistan Stock Exchange, where Bank Alfalah disclosed its plan to acquire 84.51% of Samba Bank's shares currently held by Saudi National Bank.

Bank Alfalah, a leading bank in Pakistan, boasts a vast network of over 1,024 branches spread across more than 200 cities within the country. Additionally, the bank has established its presence internationally in countries such as Afghanistan, Bangladesh, Bahrain, and the UAE. In the fiscal year 2023, Bank Alfalah reported a consolidated profit after tax of Rs36.09 billion, showcasing a significant increase compared to the previous year. However, the bank's quarterly profit for the period ending March 31, 2024, experienced a slight decline of nearly 8% due to factors such as lower foreign exchange income, higher operating expenses, and increased taxation.

On the other hand, Samba Bank had previously received a proposal from a consortium comprising key stakeholders, expressing interest in acquiring an 84.51% controlling stake in the bank. Bank Alfalah's decision to initiate due diligence of Samba Bank is in line with its strategic objectives for growth and expansion within the banking industry.

The potential acquisition of Samba Bank by Bank Alfalah signifies a significant development in the Pakistani banking sector. If the acquisition is successfully completed, it could lead to a consolidation of resources and expertise, ultimately benefiting customers and stakeholders of both banks. This strategic move reflects Bank Alfalah's commitment to enhancing its market position and offering a wider range of financial services to its clientele.