National Bank of Abu Dhabi and First Gulf Bank have held preliminary discussions on a possible merger of the Abu Dhabi-based lenders, two sources with knowledge of the matter said on Thursday.
“There’s a proposal to merge the two to create one champion bank,” one of the sources said.
The second source said a formal announcement on the possible merger could be made as soon as this month.
Both sources spoke on condition of anonymity as the information isn’t public.
Spokespeople for NBAD and FGB, Abu Dhabi’s largest and third-largest banks by assets respectively, didn’t immediately answer calls seeking comment.