Bank Leumi Might Sell Leumi USA
It may also have it go public.
Israel’s Bank Leumi is considering unloading its American division Leumi USA. The sale could be for as much as $1 billion, according a report in Bloomberg which cited people close to the matter.
According to the report, the Israeli bank which is headquartered in Tel Aviv is working with a financial adviser to find buyers for Bank Leumi USA. There is also the possibility that Leumi USA may be spun off and hold its own initial public offering.
However, the plans are only preliminary and Leumi is far from making any final decisions.
With headquarters in New York, NY, and offices in Chicago, Los Angeles, Palo Alto, and Aventura, Leumi USA has 64 years of experience in the US market. It has specialties in commercial real estate, water, high tech, media and entertainment, healthcare, and the commercial & industrial sector. The bank holds assets of approximately $7 billion.
Bank Leumi calls itself a relationship-driven boutique bank with global ties. It boasts a commitment to excellence and a focus on shared values. Leumi offers a complete range of commercial and private banking solutions for businesses and individuals. Its FDIC-insured, and offers investment and insurance products through our brokerage subsidiary.
Leumi is part of the Leumi Group, one of Israel’s largest banks. The Leumi Group has been a driving force in Israel’s economic and industrial development since the bank’s establishment in 1902 — Bank Leumi even issued Israel’s first banknotes in 1948. Today, more than 60 percent of Israeli startups choose LeumiTech, the Leumi Group’s high-tech banking arm, as their financial provider.
Bloomberg reports that the potential sale comes as U.S. bank consolidation accelerates. This is causing some foreign-owned banks to consider divestment from their American operations. HSBC Holdings Plc is considering its options for its U.S. retail business while Banco Bilbao Vizcaya Argentaria SA agreed last year to sell its U.S. arm to PNC Financial Services Group Inc.
Bank Leumi USA had five branches, $7.2 billion in assets and about $6 billion of deposits as of Dec. 31, according to the Federal Deposit Insurance Corp.
Bank Leumi shares fell 0.3% to 23.56 shekels in Tel Aviv on Tuesday.
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