ADCB inks MOU with Banco San­tander

The Pak Banker - - Front Page -

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.

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