ADCB inks MOU with Banco Santander
ABU DHABI
Abu Dhabi Commercial Bank (ADCB) and Banco Santander, Europe’s largest bank by market capitalisation, have signed a memorandum of understanding early this month to extend greater services to Banco Santander’s clients in the UAE and for ADCB’s clients in overseas markets.
According to a statement by ADCB: “The MoU aims to provide integrated comprehensive financing solutions for clients of both the banks in countries where the Banks are not mutually present and for enhancement of business flows between the institutions.”
Waddah Taha, chief analyst and economist at Zaroouni Group, told that signing such an agreement is a smart step. “This expands the number of clients of ADCB in Europe. The timing is very accurate and suitable as the Spanish economy is in recess. The Spanish bank seeks to increase its businesses overseas, particularly in the Middle East and the UAE banks want to benefit from the recessed economies such as the Spanish,” explained Taha. He added that the risks for such an agreement are very low and opportunities in the Spanish market are lucrative. “Risks resulting from such an MoU are very low. The agreement gives various options for clients and customers, for companies and businesses to grab opportunities in the Spanish market as assets of some sectors have slumped by more than 50 per cent,” remarked Taha.
Ala’a Eraiqat, ADCB’s CEO, said: “This agreement with Banco Santander marks only the beginning of our long-term partnership together. ADCB is delighted with this collaboration and is looking forward to providing comprehensive financing support to clients of both the Banks.”
Eraiqat stressed that the bank is committed to the development of the Abu Dhabi economy and the UAE overall.
“Through this initiative we want to play an even greater role in bringing together domestic and international companies,” he added.
Emilio Botin, Chairman of Banco Santander, commented on the signing of the MoU, and expressed his happiness over this agreement as the Middle East market forms a key source of finance for clients worldwide.
“With banks in the Middle East emerging as important sources of financing for global clients, we recognise that there is an increasing need for stronger collaboration with strong financial institutions in the region,” added Botin. He voiced his confidence that the MoU would open a new frontier for future collaboration and accelerate cooperation between Banco Santander and ADCB.
Colin Fraser, Executive Vice President and Head of Wholesale Banking Group at ADCB, considered the MoU as a strategic alliance that will help clients of both the banks trade together through the provision of combined expertise, financial strength and connectivity in the market.
Since Banco Santander, a leading international bank that has presence in key markets including Europe and Latin America, this MoU is a tie-up that will benefit ADCB’s clients on their overseas ventures.
“ADCB has invested heavily in its capabilities in cash management and corporate banking and is keen to help international companies grow in the UAE market and we look forward to working with clients of Banco Santander to help them prosper here,” Fraser pointed out.
Spain-based Banco Santander has achieved profits of €8.2 billion in 2011 and its total assets amounted to €1.3 trillion, total equity €81 billions and the number of employees standing at 195,000 throughout the world.