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FAB sets sights on Bank Audi’s Egypt subsidiaryMENA

FAB sets sights on Bank Audi’s Egypt subsidiary

First Abu Dhabi Bank (FAB) has agreed to purchase 100% of the Egyptian business of Lebanon’s Bank Audi (AUDI), making FAB one of Egypt’s largest foreign banks.

FAB expects to increase its Egyptian business’s balance sheet to $8b in assets.

And what would have been the driving factor for Bank Audi to make the sale? The proceeds are expected to assist it in its capitalization and financial resiliency efforts.

why it matters
Egypt has a large, unbanked population; therefore, it is a prime market for banks to grow their consumer businesses. And so, it seems that several GCC banks have their sights set on expanding into Egypt. Recently, for example, the Bahrain ABC acquired the Egyptian subsidiary Blom Bank (BLOM) for $427m.