Ahli United Bank, formed by the merger of Al Ahli Commercial Bank (ACB) and Commercial Bank of Bahrain (CBB), starts operations in Bahrain from today. The new entity will control 21 per cent of Bahrain's banking sector.

The branch network of the two banks have now been integrated to the present 13 branches and 17 cash machines. Further branch openings are planned later this year.

"The merger between ACB and CBB has been a great success and further strengthens our position as one of the leading retail banks in Bahrain," said Mohammed Jalal, chairman of AUB.

"It will allow is to combine complementary skills and financial strengths, and quickly allow us to better serve the diverse and growing banking needs of private and public sector enterprises in the country."

It was in June that AUB announced the merger of ACB with CBB, which was formerly Grindlays Bahrain Bank.

"The merger has created a bank with national branch coverage and a wider range of products and services, including access to London-based account services, for the benefit of new and existing customers," added Jalal.

AUB's shares have been listed on the Bahrain Stock Exchange since August 2000.

For the first half of 2001, the AUB group had reported consolidated profits of $27.66 million, an increase of 12 per cent over the corresponding period in 2000. Total assets increased 16 per cent to $4.1 billion.

In March, AUB had acquired a significant minority share in bank of Kuwait and the Middle East.