The sale of American Bank of Albania on track

TIRANA, Oct.24 – Eighty percent of the American Bank of Albania will be bought from the Italian San Paolo IMI Group, one of the biggest European actors. The Albanian American Enterprise Fund will keep the remaining 20 percent as well as a close working relationship in ensuring that the transfer of ownership is finalized successfully. In a press release the AAEF reported on the negotiations with Sanpaolo Imi. The bank said it would keep the name and the nature unchanged. The capital will remain in the country and the transaction is aimed at increasing the bank’s capacity and the range of the offered services. This transfer of ownership will open up possibilities of further involvemenet of this financial institution in the region. Potential plans include projects in Kosova and Macedonia.
San Paolo IMI Group will provide the American Bank of Albania the specific financial strength and relevant expertise needed in the financing of major infrastructure projects in Albania, an opportunity that has risen recently and that is trying to be exploited by all active actors in the financing sector. It will also launch a significant innovative approach to the process of Bonds issues. San Paolo IMI has an AA rating in the international market. The Group’s rankings include a third position between the largest banks for market capitalization in the Euro zone and the fourth in lending. Its leading position in Italy has been strengthened by its recent merger with Banca Intesa, a transaction resulting in total assets of 550 billion Euro, shareholders equity of 30 billion Euro with over 6,200 domestic branches and Agencies and over 1,000 foreign branches. The Group reported a combined net income 2,6 billion Euro for the first half of 2006. Its spread in the Central and Eastern European region gives San Paolo Group an operative leverage in owned Banks in Hungary, Rumania, Slovenia, Russia, Ukraine, Croatia, Bosnia – Herzegovina, Slovakia and Serbia. Its presence in Albania has started with its ongoing engagement with Banka Italo-Shqiptare (BIA).
Currently the American Bank of Albania serves approximately 67,000 clients and has a staff of trained 370 employees which will not be negatively affected by the Groups’ acquisition of the 80 percent. Its projected net income for 2006 is $9.5 million.