DFM-listed Dubai Islamic Bank (DIB) raised its shareholding in Turkey’s TOM Group offinancial services companies, according to a disclosure to the exchange. The group comprises Turkey’s first licensed digital retail bank TOM Katılım Bankası (TOM Bank), e-payments company T.O.M. Pay, and fintech player T.O.M. Finansman, along with their subsidiaries.

The details: DIB raised its stake in the group to 25%, up from 20%. The acquisition comes just 16 months after DIB’s initial investment in the group, which included an option to bump up its holding within 12 months of the transaction.

The pitch: The transaction was driven by TOM Group’s strong market performance and the successful launch of its digital bank, Group CEO of DIB Adnan Chilwan said, adding that “the increased shareholding not only solidifies DIB's position as a key stakeholder in Turkey’s thriving digital banking sector but also underscores our deep-rooted belief in the country’s strategic intent around tech-based economic development.”

A snapshot of TOM Bank’s 1H 2024 earnings: The digital bank recorded a net loss of TRY 209.8 mn during the first half of 2024 down from a net income of TRY 88.8 mn in 1H 2023, according to its latest financial statement (pdf).

Other Emirati players have an appetite for Turkey’s banking sector: In October 2024, Abu Dhabi sovereign wealth fund ADQ inked a definitive agreement with a consortium led by Lebanese lender Bank Audi to acquire 96% of Odeabank, currently Bank Audi’s subsidiary in Turkey. Additionally, First Abu Dhabi Bank (FAB) was also reportedly close to finalizing talks to take a 61.2% stake in Yapi Kredi, but negotiations were terminated as seller Koc sought a higher price. Emirates NBD fully acquired Denizbank from Sberbank for TRY 14.6 bn in 2019.

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