First Abu Dhabi Bank, the UAE’s largest lender by assets, has mutually agreed to suspend acquisition talks on the proposed acquisition of the Egyptian subsidiary of Lebanon's Bank Audi.
“This is due to the unprecedented circumstances and the uncertain outlook relating to the Covid-19 pandemic, and is in the best interests of our shareholders, customers and employees,” First Abu Dhabi Bank said in a statement to the Abu Dhabi Securities Exchange, where its shares trade.
The Covid-19 pandemic has hit the global economy, which is set to contract 3 per cent this year and is projected to slide into the deepest recession since the Great Depression, according to the International Monetary Fund. The outbreak has hindered international trade and paralysed a number of industries. Globally, banks' profits are being squeezed as they make more provisions for potential bad debts.