Dubai Islamic Bank and Noor hire advisers for merger talks

14/05/2019

Dubai Islamic Bank hired HSBC Holdings to advise on its possible acquisition of smaller rival Noor Bank, according to people with knowledge of the matter.

Noor Bank is working with Barclays on the deal, the people said, asking not to be identified because the discussions are private. An acquisition would create a lender with Dh278 billion in assets.

The Middle East’s financial-services industry is witnessing a wave of consolidation as banks seek ways to improve competitiveness and boost capital amid slowing economic growth. Abu Dhabi has merged three of its banks after combining two of its biggest lenders in 2017. Banks in Saudi Arabia, Kuwait and Bahrain are also holding merger talks.

DIB and Noor Bank declined to comment, while HSBC and Barclays did not immediately respond to requests for comment.

Investment Corporation of Dubai, the emirate’s main state-owned holding company, is the largest shareholder in DIB Bank with a 28 per cent stake. It is also one of the biggest investors in Noor Bank, a lender set up in 2008. DIB had assets of Dh227bn at the end of March compared with Noor Bank’s Dh51bn in December, according to data compiled by Bloomberg.

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