Insurance company Eurosig announced that it has received the controlling package of the United Bank of Albania (UBA Bank), with a 51% stake.
In August 2019, Eurosig first entered as a shareholder in UBA bank, which until that time was 100% with foreign capital, where most owned Islamic Development Bank. At that time Eurosig bought a 21% stake in UBA bank, while Eurosig already announced that it had received the controlling package.
The transaction has not yet been registered with the National Business Centre and has not yet received the approval of the Bank of Albania. The latter said that currently, approved by BSH, Eurosig has a 21.2% stake.
UBA Bank has entered the Albanian market since 1999, but its weight in the Albanian market has remained modest. It has acted on the principles of Islamic banking. According to Bank Association data, in June 2021, UBA bank was the smallest in the domestic market, with an active total of 10.9 billion dollars, or 0.7% of the total banking system. The bank has 1.1% of the stock of loans given by the system and 0.7% of deposits.
In recent years, the interest of Albanian entrepreneurs has increased to invest in the banking financial market. After taking a majority from Eurosig, UBA bank becomes the fifth majority controlling by Albanian shareholders. Credins Bank is the second-largest bank in the country, with 15.7% of the total amount of seats. Tirana Bank, owned by the Balfin group, owned 5.54% of the market at the end of June 2021, according to Bank Association data. The American Investment Bank has 5.5%. Union Bank owns 4.6% of the market. In total, banks owned by Albanian capital account for nearly 32% of the system’s total active assets.