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Dubai: Emirates NBD, the Gulf's largest bank by assets, yesterday held its first annual general meeting (AGM) following the completion of the merger between Emirates Bank and National Bank of Dubai.
Addressing shareholders, Ahmad Humaid Al Tayer, Chairman of Emirates NBD, said the gains form the merger far exceeded the costs.
"The costs of the merger was about Dh55 million, including fees paid to the consultants, advisors, law firms and advertising and public relations agencies, compared with the close to Dh350 million gains from various cost and revenue synergies."
Allaying investor fears about Emirates NBD's exposure to the US subprime crisis, he said the bank's exposure is virtually negligible while the UAE's banking system is more or less insulated from the US crisis. Bank officials have said that the indirect exposure of the group would be less than $8 million.
Updating the shareholders on the merger and the integration, Rick Pudner, CEO of the bank said that a substantial amount of integration in terms of branch operations, treasury operations and human resources integration has been achieved while the bank is hoping to announce its unified branding in the second quarter of this year.
Overall, the bank expects to achieve total integration by the first quarter of 2009.
The AGM approved the annual results and the director board's recommendation to distribute a cash dividend of 35 fils per share and bonus shares of 15 per cent on outstanding shares as at December 31, 2007.
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