Abu Dhabi Merger Seen Just the Start as Banks Face Slower Growth - Bloomberg

Abu Dhabi Merger Seen Just the Start as Banks Face Slower Growth - Bloomberg:

"A potential merger between two of Abu Dhabi’s biggest banks may just be the start of consolidation in the industry.

That’s according to analysts from EFG-Hermes Holding SAE and Emirates NBD PJSC, which say the United Arab Emirates needs more tie-ups because too many banks are serving a relatively small population of 9 million and growth prospects are limited. About 50 local and international lenders face declining government spending, slowing economies and falling asset quality after a slump in oil, the region’s principal export.

In what would be the country’s first major banking merger in almost a decade, National Bank of Abu Dhabi PJSC and First Gulf Bank PJSC said on Sunday that they’re in talks on a potential deal. Senior executives from the two banks are reviewing the commercial, structural and legal aspects of a possible combination, according to a statement. "



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