UAE's new mega bank reports $3.1bn net profit in 2016

National Bank of Abu Dhabi and First Gulf Bank, which are set to merge on April 1, jointly report proforma results

National Bank of Abu Dhabi and First Gulf Bank, which are set to merge, have jointly reported a proforma 2016 net profit of AED11.37 billion ($3.1 billion), according to a bourse statement on Wednesday.

The merger will be official from April 1, with shares in the new company trading from the next day, it was announced earlier this month.

The Abu Dhabi Securities Exchange said that it had completed the procedures for the unification of the records of the stakeholders in both banks.

The total assets of the two banks is estimated at AED665.8 billion ($181 billion) at the end of 2016 while financial statements show combined deposits of AED402.58 billion and combined loans of AED357.2 billion.

The merger will lead to the creation of the largest banking entity in the Middle East and may encourage more mergers in the banking sector in the UAE.

State news agency WAM previiously reported that according to studies, the merger will contribute to reducing the operating costs of the new entity by AED500 million a year.

* With Reuters

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