First Abu Dhabi Bank is studying expanding into Saudi Arabia, either through acquisitions of existing banks or by obtaining a new banking license, Al Khaleej newspaper reported, citing Abdulhamid Saeed, chief executive officer of the bank.
First Abu Dhabi Bank was created with the merger of National Bank of Abu Dhabi PJSC and First Gulf Bank PJSC, the United Arab Emirates’ two largest lenders by market value. It launched its new brand identity on Monday that includes a new logo with the slogan “Grow Stronger” and the acronym, FAB.
Meanwhile, Saeed said the bank is seeking to have more than 30 percent of the market share through regional and international expansions, as its strategic goal is to be an international bank as well as a regional one.
Currently, the bank’s external operations account to 20 percent of its total daily revenue, and it is looking at having a foot print in 19 markets globally, he added.
The lender is eyeing the Asian market for its high potential, while it already has branches in some North African countries.
A single digit growth is expected for 2017, as the AED 1 billion one-time cost of the merger will be distributed over three years. However, the bank is likely to save around AED 1 billion worth of expenses over the next few years, he said.
“Regarding acquisitions of other banks in the United Arab Emirates, all options are open to buy national banks, as the banking sector in UAE is expected to witness more mergers, especially with Basel III requirements putting pressure on banks,” Saeed was quoted as saying.
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