The new bank created after the merger of Abu Dhabi’s biggest lenders – National Bank of Abu Dhabi and First Gulf Bank – has been named First Abu Dhabi Bank, according to a statement on Sunday.
The combined entity has capital of Dhs10.9bn, total assets exceeding Dhs670bn, shareholders’ equity of Dhs98bn and a market capitilisation of around Dhs111bn, the statement added.
The legal completion of the merger between the two banks took place on April 1 after FGB shareholders received 1.254 new NBAD shares for each FGB share.
The new bank began trading on the Abu Dhabi Securities Exchange on Sunday and has created one of the largest lenders in the Middle East.
Abdulhamid Saeed, group CEO of First Abu Dhabi Bank, said: “This is a transformational moment for Abu Dhabi, the region and beyond and is an extension of the legacy of both banks, which spans over a period of 50 years.
“As one stronger and larger bank, we will have the financial strength, expertise and international connectivity to put our customers first through an expanded range of products, services and solutions, drive strong profitability and deliver significant value for shareholders.”
He added: “Our exceptionally strong consumer franchise has the scale and expertise to establish First Abu Dhabi Bank as the dominant banking player in the UAE. We are also focused on becoming the regional wealth advisor of choice for our customers.”
The new bank – which operates in 19 countries – also aims to strengthen its partnership with its corporate and investment banking clients, it said.
The FGB and NBAD merger was first announced on July 3, 2016, and the integration has been “running smoothly and according to the timelines set”, the statement added.
The new bank is expected to produce cost savings of Dhs500m a year from 2019, primarily through the closure of overlapping branches and duplicated administration, according to Egypt’s EFG Hermes.
The estimated one-time business unification cost of the merger has been estimated at Dhs600m.