First Abu Dhabi Bank is UAE’s largest lender
The largest bank in the UAE was born on April 1 as Abu Dhabi-based National Bank of Abu Dhabi (NBAD) and First Gulf Bank (FGB) completed their widely discussed merger.
The new combined bank has been named First Abu Dhabi Bank and it will have assets in excess of $180 billion, according to a statement on Sunday.
Both the banks announced in July last year that they will merge to create one of the largest lenders in Middle East and Africa via a share swap agreement which would result in shareholders of FGB receiving 1.254 new NBAD shares for every one FGB share they currently hold.
FGB shareholders will control nearly 52 per cent of the combined bank, with the Abu Dhabi government and related entities holding 36.9 per cent in total.
The merger will deliver cost savings of around AED500 million annually, with the benefits to be realised over three years. There will be one-off integration costs of around AED600 million, according to a joint statement by the duo last year.
The bank will have shareholders’ equity of AED98 billion ($26.7 billion) and a market capitalization of nearly AED111 billion, Abdulhamid Saeed, Group CEO said.
“I am remarkably proud to announce the successful completion of the merger of FGB and NBAD, which have combined their strengths to create the UAE’s largest bank and one of the world’s most prominent financial institutions,” Saeed said.
“As these two successful Abu Dhabi institutions unite to form one stronger and combined bank, today marks the start of another historic chapter in the story of the UAE. Embodying the UAE’s vision for growth and prosperity, we are confident that, “First Abu Dhabi Bank” will create new opportunities for our nation and support the growth ambitions of our shareholders, customers and employees, around the world,” Sheikh Tahnoon Bin Zayed Al Nahyan, Chairman of the new bank, said while commenting on the completion of merger.
Financial services leader
Saeed said the bank’s strategy will be focused on “establishing itself as a financial services leader that puts its customers first, delivers top shareholder value and drives individual and institutional prosperity.”
“We are also focused on becoming the regional wealth advisor of choice for our customers”.
He also added that the bank aims to further strengthen its partnership with its corporate and investment banking clients, across a variety of products and across geographies.
“With its global network across 19 countries, the bank will strengthen and facilitate the trade flows and financial links between the UAE and its trading partners.”
In October the banks said that they had finalised the senior management team to run the combined bank but they did not provide details.
According to the latest statement, under the CEO, Abdulhamid Saeed and Deputy CEO and Acting Group Head of Corporate and Investment Banking, André Sayegh, senior management includes:
Hana Al Rostamani, Group Head of Personal Banking
Arif Shaikh , Group Head of International
Karim Karoui, Group Head of Subsidiaries, Strategy and Transformation
James Burdett, Group Chief Financial Officer
Khalaf Al Dhaheri, Group Chief Operating Officer
Shirish Bhide, Group Chief Credit Officer
Abhijit Choudhury, Group Chief Risk Officer
P K Medappa, Group Chief People Officer
Malcolm Walker, Group Chief Audit Officer
Zulfiqar Ali Sulaiman, Group Chief Integration Officer
Shares of the First Abu Dhabi Bank on local stock exchange were up 1.0 per cent in early afternoon trade on Sunday.