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Qatar National Bank might sell freshly acquired NSGB Egypt

Unnamed QNB official says the Qatari bank will sell NSGB Egypt due to political tension between the two countries

Ahram Online, Sunday 13 Oct 2013
Nationale Societe Generale Bank (NSGB)
Views: 14087
Views: 14087

Qatar National Bank (QNB) is negotiating to sell National Société Générale Bank - Egypt (NSGB) only six month after acquiring it, an internal source who requested anonymity told Al-Shorouq daily newspaper. 

The source highlighted the deteriorating relations between Qatar and Egypt as a main factor behind the decision.

The oil-rich Gulf country, which was visibly supportive of former Egyptian president Mohamed Morsi during his one year in office, has faced increasing backlash in Egypt following Morsi's popularly-backed military ouster in July.

According to the source, bank deposits have decreased by almost 25 percent since Morsi's ouster, with a number of clients withdrawing their savings.

Egypt's decision to return $2 billion of Qatari deposits to Egypt's central bank has also raised concerns within QNB, as it is the banking arm of the Qatari government, the source added.

QNB has received two offers, one from Germany and one from a Gulf country. 

At the end of March, QNB acquired 100 percent of the shares of the French NSGB's Egyptian subsidiary, for a total value of LE 16.142 billon.

The share's price was set at LE 35.65 per share. On Sunday, the share closed at LE 27.64.

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