The leaders of First Abu Dhabi Bank unveiled today a new logo for the bank, with the motto “Grow Stronger”. The new brand reflects the mission and values of the new entity, and the UAE’s vision for the future.
Abu Dhabi’s two largest banks, the National Bank of Abu Dhabi (NBAD) and First Gulf Bank (FGB), finalized their merger on 1 April 2017, creating the largest bank in the U.A.E. and one of the world’s largest financial institutions with 682 billion AED [$186 billion] in total assets. This combined bank, the National Bank of Abu Dhabi, has 171 branches and 4 representative offices in 19 countries, including the U.S. and the U.A.E.
Following this official merger, the new bank’s Board of Directors, under the leadership of H.H. Sheikh Tahnoon bin Zayed Al Nahyan, proposed changing the name of the bank to First Abu Dhabi Bank. On 24 April 2017, shareholders of the new entity approved this proposal.
Meanwhile, on 19 April 2017, the combined bank reported results for Q1 2017, which demonstrated the strength of the new institution and its continued growth. Highlights of these results, which can be found in the attached presentation, include:
- An 8.5% increase in group revenues and a 12.4% rise in group net profit in Q1 2017 compared to Q1 2016
- Loan growth of 4.6%
- A cost-to-income ratio (ex-integration costs) of 27.3%
- A return on tangible equity (RoTE) of 16%
- A Tier 1 capital ratio of 18%
In addition, the new bank received positive credit ratings from all major credit rating agencies. On 4 April, Moody’s Investor Services affirmed the long and short-term foreign and local currency deposit and debt ratings of NBAD at Aa3/P-1. The bank also enjoys ratings of AA- from Fitch and AA- from S&P, making it the highest rated bank in the Middle East North Africa (MENA) region.
Looking ahead, First Abu Dhabi Bank looks set to leverage its greater efficiencies, scale, and reach to continue its expansion both inside the U.A.E. and internationally. In this vein, it is on track to realize a full annual run-rate of cost synergies of approximately 1 billion AED [$270 million] by 2020.
For more information about this merger, its impact on shareholders, and its importance for the U.A.E., please see the U.S.-U.A.E. Business Council’s primer here.
