NBAD to swallow First Gulf Bank and become giant

Merger1The National Bank of Abu Dhabi (NBAD) says it will become the largest bank in its region by merging with First Gulf Bank in the first quarter of next year. Abdulhamid M Saeed, currently managing director of First Gulf Bank, is in line to become chief executive of the merged company, which will retain the name NBAD, once the merger is complete. The combined business will have assets of $175 billion and a presence in 19 markets outside its home country, the UAE, according to a letter to partners signed by Alex Thursby, NBAD's chief executive. He wrote, "our combined size, diversified assets and superior technology will provide a competitive advantage to lead the industry in the new banking environment of more stringent regulation, digitalisation and demand for personalised services". Tahnoon Bin Zayed Al Nahyan, First Gulf Bank's chairman, is in line to become chairman of the combined entity, with NBAD's chairman, Nasser Ahmed Alsowaidi, taking on the vice-chairman role. Thursby did not say what role he or First Gulf Bank's chief executive, Andre Sayegh, would play after the merger, only that they would continue in their positions until then. Commentators said the merged business would realise significant cost savings that would put pressure on other banks in the region to consolidate. ©2016 funds global mena

Executive Interviews

INTERVIEW: Protecting the investment

Nov 23, 2017

Rasmala’s trade finance fund recently passed $100 million in assets. Doug Bitcon, head of credit strategies, explains why he has to be hands-on.

EXECUTIVE INTERVIEW: A natural interest in the topic

Mar 08, 2017

Since 2016, Guillermo Ortiz has been a chairman of Latin America’s BTG Pactual. The former central banker of Mexico talks to Nick Fitzpatrick.

Roundtables

ROUNDTABLE: Charting the pace of reform

Nov 23, 2017

Saudi Arabian index inclusion, the onset of taxes and the Dana Gas controversy were among the issues discussed by our cross-industry panel. Chaired by George Mitton in Dubai.

SOUTH AFRICAN ROUNDTABLE: Spirit of Ubuntu

Mar 08, 2017

The move to a three-day settlement cycle, the appearance of new stock exchanges, and recent rules on hedge funds were discussed by our panel in Cape Town. Chaired by George Mitton.