Leumi's Board of Directors Decides to Merge Arab Israel Bank with Bank Leumi
May 4, 2015
The Board of Directors of Bank Leumi and the Board of Directors of Arab Israel Bank have approved the merger of Arab Israel Bank, part of the Leumi Group, with Bank Leumi. Pursuant to the decision, Arab Israel Bank will commence operating as a part of Bank Leumi from 1.1.2016.
Within the framework of the merger, the branches of Arab Israel Bank will become branches of Bank Leumi as of 1.1.2016. The branches and their employees will continue to serve the same customer population, in the same locations and on the same terms. Following the merger, customers will enjoy a wide range of advanced products and services provided by the Leumi Group. The Bank plans to enhance and further increase its operations within the Arab population. The synergy generated by the merger will allow the Bank to increase its support to the business sector, with emphasis on small businesses.
The process of the merger will be led by the CEO of Arab Israel Bank, Danny Gitter. Upon completion of the merger, Mr. Gitter will manage Leumi Group's operations in the Arab community.
The merger is yet another step in the multi-year streamlining program, led by Leumi CEO Rakefet Russak-Aminoach, which includes consolidating systems and reducing operating costs. This merger constitutes one of a series of mergers and streamlining activities carried out in the Leumi Group in recent years, including the merging of Leumi Mortgage Bank with Bank Leumi, merging the Private Banking business line into the Retail Banking Division, merging the Commercial Division and the Corporate Division into one division, the sale of Bank Leumi Switzerland to Julius Baer, the closing of branches and representative offices abroad, and more.
The Chairman of Arab Israel Bank, Danny Cohen, noted that Leumi is committed to the success of the merger and will allocate all the necessary resources. “I have no doubt that everyone will profit from the move”, said Cohen. “Customers will benefit from an improved customer experience, thanks to our capability to provide them with a comprehensive response to their needs; the Bank will benefit from the synergy that will also improve customer experience; and the employees will benefit from broadening areas of interest and the new career opportunities that will open up for them in the Leumi Group.”
Arab Israel Bank CEO, Danny Gitter, emphasized the advantages of the merger for the customers. “Our customers will continue to receive the same personal service to which they are accustomed, in the same branches, from the same employees they know, and on the same terms. In addition, after the merger of Arab Israel Bank with Leumi, they will benefit from a significant technological leap forward, which will enable them to enjoy the broad range of advanced digital services offered by Leumi. From now on, our customers get a universal, leading bank, but at the same time they will stay with the same well-known family atmosphere.”