DIB bumps up stake in Türkiye’s T.O.M. Group to 25%

The group includes TOM Katılım Bankası – Türkiye’s first licensed digital retail bank; TOM Pay Elektronik Para ve Ödeme Hizmetleri and TOM Finansman

Dubai Islamic Bank (DIB) said on Monday that it had increased its shareholding in T.O.M. Group to 25 per cent, following its initial acquisition of a 20 per cent stake in the digital bank in September 2023.

The group includes TOM Katılım Bankası – Türkiye’s first licensed digital retail bank; TOM Pay Elektronik Para ve Ödeme Hizmetleri – a licensed e-money company; and TOM Finansman – a licenced financing company specialised in developing innovative digital products.

Türkiye continues to be a pivotal market for DIB, given its sizeable population, rapidly expanding digital infrastructure and impressive economic growth trajectory.

“This decision comes on the back of a market-beating performance and incredible take-up of the recently launched digital bank,” said Dr Adnan Chilwan, group CEO of DIB.

“The increased shareholding not only solidifies DIB’s position as a key stakeholder in Türkiye’s thriving digital banking sector but also underscores our deep-rooted belief in the country’s strategic intent around tech-based economic development.”

Founded in 1975, DIB’s nine-month profit rose by 13 per cent year-on-year to $1.48bn (Dhs5.44bn) while revenues rose by 6.3 per cent YoY to reach Dhs9.1bn compared to Dhs8.5bn for the same period a year ago.

Meanwhile, Fitch Ratings said last July that banks in the GCC region are strongly interested in expanding their presence in major regional markets, particularly Turkey, Egypt, and India, driven by improved economic conditions and growth opportunities in target markets.

ADQ, the smallest of Abu Dhabi’s three sovereign wealth funds, agreed to acquire 96 per cent shareholding in Turkish lender Odeabank from Lebanon’s Bank Audi. Under the deal, Bank Audi and other investors, including the International Finance Corporation, IFC FIG Investment Company Sàrl, and the European Bank for Reconstruction and Development, will sell their stakes in Odeabank to ADQ.