First Gulf Bank and National Bank of Abu Dhabi completed a merger to create the UAE’s biggest bank with assets of $180bn, with the new entity to be called First Abu Dhabi Bank.
The lender began trading on the Abu Dhabi Securities Exchange yesterday under the ticker NBAD, with shares up 1.5% to 10.40 dirhams at 12.15pm. Nearly 2mn shares had changed hands by then, according to Bloomberg data.
“This is a transformational moment for Abu Dhabi, the region and beyond,” Abdulhamid Saeed, group chief executive officer of the new combined bank, said in an e-mailed statement yesterday. The new bank’s key priorities have been established in line with the vision and growth ambitions of Abu Dhabi and the UAE, it said.
Abu Dhabi, holder of about 6% of the world’s oil reserves, combined its two largest banks to better compete with rivals and bolster its ability to lend and secure funding as the emirate grapples with low oil prices. The merger may lead to further consolidation in the UAE’s financial services industry where about 50 lenders compete in a market of about 9mn people, according to analysts.
Apart from André Sayegh, deputy CEO and acting group head of corporate and investment banking, senior management at the new bank includes Hana al-Rostamani, group head of personal banking; Karim Karoui, group head of subsidiaries, strategy and transformation and James Burdett as group chief financial officer. Khalaf al-Dhaheri will be group chief operating officer and Shirish Bhide the group chief credit officer.
FGB and NBAD were Abu Dhabi’s two biggest banks by market value before the merger, which was originally announced in July. The new bank will be the second-biggest in the six-nation Gulf Cooperation Council after Qatar National Bank with a presence across 19 countries.
FGB and NBAD were Abu Dhabi’s two biggest banks by market value before the merger, which was originally announced in July. The new bank will be the second-biggest in the Gulf Cooperation Council after Qatar National Bank
