Bank Leumi (TASE: LUMI) is considering acquiring a US bank. Leumi, under the management of CEO Galia Maor, believes that the credit crisis has slashed prices for financial institutions, thereby creating opportunities for strong banks with stamina to expand their business by buying up assets.
Bank Leumi intends to acquire either a small bank of financial company, which will be merged into Bank Leumi USA. Bank Leumi has $300-500 million available for this purpose.
Bank Leumi said in response that it constantly examined available options in the domestic and international arenas.
Bank Leumi reevaluated its international strategy last year. In contrast to Bank Hapoalim (TASE: POLI; LSE:80OA), which is expanding in emerging markets and has acquired banks in Turkey, Kazakhstan, Russia, and Ukraine, Bank Leumi has decided on a different strategy. Instead of creating new activity in emerging markets, it prefers to deepen its presence in markets where it already has a presence, such as Romania (where it acquired a bank in 2006), Switzerland, Luxembourg, the UK, and the US.
Bank Leumi has long sought to expand the business of Bank Leumi USA, and it believes that it can do so on the basis of this platform without incurring heavy costs. The CEO of Bank Leumi USA is Uzi Rosen. It posted a net profit of $30.5 million in 2007, up about 20% from $25.8 million in 2006, and its shareholders' equity was $455 million at the end of 2007.
Bank Leumi USA is a commercial bank and member of the Federal Deposit Insurance Corporation (FDIC). It mainly provides financing for mid-sized and larger US companies, international banking services, and private banking services for US and non-US residents. The bank has branches in New York, Illinois, California, and Florida, and owns a brokerage, Leumi Investment Services Inc.
Published by Globes [online], Israel business news - www.globes-online.com - on March 24, 2008
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