First Abu Dhabi Bank sells Jordan business to Société Générale

The UAE's biggest lender First Abu Dhabi Bank (FAB) has signed an agreement with French bank Société Générale's Jordan unit, to sell its interests in the kingdom.

The deal will cover the transfer of NBAD Jordan's employees and relevant suppliers' contracts to Société Générale de Banque Jordanie (SGBJ), the firm said in a statement. No financial details were disclosed.

The sale followed a careful review to select a buyer that fit the needs of both employees and customers, FAB said in a statement. The firms received approval for their transaction on Tuesday.

FAB was formed after the merger of First Gulf Bank and NBAD in April last year. The new entity has assets in excess of Dh670 billion, making it the UAE’s largest bank and the second-largest in the Middle East by assets.

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The bank's Jordanian unit sale will have no impact on commitments to FAB's other businesses or locations, the company said. The deal will see the transfer of all existing NBAD clients, employees and branches to SGBJ, with the transaction expected to be completed "over the coming months". The bank added that NBAD Jordan will remain open for business as usual.

NBAD's operating assets would help the Jordanian subsidiary of French lender "accelerate its growth strategy" in the country by enhancing and consolidating its position in the market, following strong growth over the last five years, SGBJ said.

It currently has 17 branch networks across the capital Amman, as well as outlets in other Jordanian governorates, offering banking, retail, corporate, SME, private banking, brokerage and leasing services.

In April, FAB posted a two per cent year-on-year profit increase in the first-quarter, boosted by higher revenue from fees and commissions and a decline in money set aside to cover bad debt.