NBAD CEO says will not be part of bank’s senior team after FGB merger

The chief executive officer of National Bank of Abu Dhabi Alex Thursby said during an earnings call on Wednesday that he would not be part of the leadership of the bank created after the merger of NBAD and rival First Gulf Bank (FGB).

Merging NBAD and FGB, as recommended by the boards of the two lenders, is expected to create one of the largest banks by assets in the Middle East and Africa.

The deal is expected to be completed in the first quarter of 2017.

NBAD, the emirate’s largest lender by assets, posted a 4.8 per cent fall in second-quarter net profit on Wednesday, broadly in line with forecasts.

NBAD made a net profit of Dhs 1.38bn ($375.8m) in the three months ending June 30, according to a statement. This compared to Dhs 1.45bn in the same period a year earlier, while the average forecast of four analysts polled by Reuters was for a net profit in the quarter of Dhs 1.32bn.

The bank expects low single-digit revenue and earnings growth for 2016, chief financial officer James Burdett said in the same call.