DIB acquires minority stake in Türkiye’s T.O.M. Group

UAE’s Dubai Islamic Bank (DIB) has acquired a 20 per cent stake in Türkiye’s TOM Group of Companies, marking the shariah-compliant bank’s entry into the country’s banking sector.

The investment gives the banking group a significant minority shareholding in TOM Group.

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.

DIB said it has an option to increase its shareholding to 25 per cent within 12 months. Aydın Group, TOM Group’s founding shareholder with its new partner DIB, aims to make the group a national leader with an aspiration to grow regionally in the digital banking and financial technology sector.

“Our entry into the Turkish banking sector through the investment in a digital financial group represents this dynamic approach to an ever-evolving market environment,” said Dr. Adnan Chilwan, DIB’s group CEO.

“DIB is of the view that digital banking propositions in Türkiye and other markets will enhance our efforts to provide financial services to mass population segments, including the underbanked and non-banked segments.”

The shareholders’ core mandate is to promote financial inclusion by facilitating, easing, and enhancing access to digital financial services in Türkiye.

“DIB has long held the view that Türkiye was an attractive investment destination for a financial services institution, particularly for an Islamic bank over the medium to long term,” the shariah-compliant lender said in a statement.

The bank said the deal underscores its increased commitment and trust in Türkiye’s financial service sector and represents a compelling opportunity to tap into fast scaling digital banking and financial technology sector.

“We have been operating in Türkiye for more than 15 years as one of the largest lenders from the GCC. This investment in TOM Group reiterates our commitment to the country and more so to the consumer banking sector,”

The transaction has been approved by the Banking Regulation and Supervision Agency, the Central Bank of the Republic of Türkiye and the regulatory authorities in the UAE. It will be formalised after the clearance of the Turkish Competition Authority.

DIB doubles down on digital banking

Meanwhile, driven by its continuous quest for digital excellence and in line with its ambitious transformation strategy, DIB unveiled DIB alt – a full-fledged digital brand that houses the Islamic bank’s digital offerings and capabilities under one roof.

DIB ‘alt’ integrates DIB’s extensive range of digital offerings and capabilities into one platform, providing customers with a seamless and hassle-free banking experience.

The platform brings together more than 135 digital services via the DIB Mobile App, Online Banking, WhatsApp, and ATMs. The bank unveiled its digital spinoff rabbit in December 2021.

rabbit was launched to establish new standards for innovation in financial services, with a mission to make banking effortless and fun for everyone. It offers current accounts, globally accepted debit cards as well as payments and money transfer services.

The bank’s second-quarter net profit surged by 15 per cent year-on-year to reach $844m (Dhs3.1bn), compared to Dhs2.7bn for the same period a year ago. Its total income reached Dhs9.3bn during the quarter, up 49 per cent from Dhs6.22bn the same period a year earlier.

Read: DIB’s Q2 net profit surges to $844m on higher revenue