By Staff writer
Merger of banks is one of two significant consolidation efforts currently underway in the emirate as it reacts to the lower oil price environment
Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, has said the merger of First Gulf Bank (FGB) and the National Bank of Abu Dhabi (NBAD) will benefit the UAE in the long term by "creating high-value opportunities" for the country and further the emirate's aim to be more competitive internationally.
The boards of directors at FGB and NGB recommended merging the two lenders in a joint statement said on Sunday, with the deal now expected to be completed in the first quarter of 2017.
Retaining the brand name National Bank of Abu Dhabi, the merger will create one of the largest banks in the Middle East and Africa, with assets of 642 billion dirhams, a return on equity of 14.1 percent and a market value, as of June 30, of $29.1 billion.
The tie-up is one of two significant consolidation efforts currently underway in the emirate as it reacts to the lower oil price environment. Last week, the government ordered the merger of state investment funds Mubadala and International Petroleum Investment Company.
In a statement to news agency WAM, Sheikh Mohammed said, “The continued growth of our nation’s economy relies on an empowered private sector that contributes to the UAE’s dynamic and sustainable business environment.
“The merger of FGB and NBAD will create high-value opportunities for the people of the UAE, and further breadth to be internationally competitive, core aims of Abu Dhabi’s Economic Vision 2030 and in keeping with the UAE’s long term economic ambition.”
Good move !