Dubai Islamic Bank (DIB) has completed the integration of Noor Bank with the successful migration of all banking relationships, enhancing its position as one of the largest Islamic banks in the world with total assets exceeding AED 300 billion ($81.7 billion).
The entire integration was achieved in record time despite unfavorable circumstances, as majority of the teams involved worked remotely due to COVID-19 restrictions, the largest Islamic bank in the UAE, informed Dubai Financial Market.
"A key element of the project was the engagement with the market, customers as well regulators that allowed us to effectively manage any situation that could unfold, and to keep our customers abreast of the same. The transition was smooth and the project concluded successfully and all service restored prior to scheduled resumption with minimal customer impact," Group Chief Executive Officer, Dr. Adnan Chilwan said.
It is not yet clear how many jobs have been lost in the integration process. However, Reuters reported in February that DIB could slash more than half the workforce with a planned 500-plus job cuts at Noor Bank as part of cost cuts across both lenders.
The banking sector in the UAE is going through a wave of mergers mainly due to tough competition and revenue pressures.
According to Moody's Investors Service, banks in the GCC will increase M&A activity as they look to gain scale to offset the impact of lower oil prices and the pandemic on profit margins.
Badis Shubailat, an analyst at Moody's, said: “The banks now face larger cost adjustments as low oil prices and the coronavirus fallout constrain growth opportunities. This is prompting a new wave of mergers as banks seek ways to combat revenue pressure.”
(Reporting by Seban Scaria; editing by Daniel Luiz)
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