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Top 1000 World Banks - FAB’s arrival turns Middle East table on its head

A bank formed by a mega-merger in 2017 has moved the Middle East’s centre of gravity to the UAE. James King reports. 
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The balance of power in the Top 1000 World Banks Middle East regional table has shifted. After a period of sustained Saudi Arabian and then Qatari dominance, an Emirati lender, First Abu Dhabi Bank (FAB), has scooped the number one spot, following the merger of the National Bank of Abu Dhabi and First Gulf Bank in April 2017. With Tier 1 capital of $20.5bn, FAB just beat Qatar National Bank (QNB), which came in second with Tier 1 capital of $20.1bn.

That QNB was beaten to the number one spot is all the more impressive given that the Qatari lender registered a 16% increase to its Tier 1 capital over the review period. In the coming years, the two lenders are likely to be the sole contenders in the fight for the top regional spot: their nearest competition is Saudi Arabia’s National Commercial Bank, with Tier 1 capital of $17bn.

Beyond the arrival of FAB, there have been a handful of smaller movements in the top 10 regional banks. This includes the arrival of the Saudi British Bank (SABB) in 10th place with $8.9bn in Tier 1 capital. But the May 2018 announcement of a merger between SABB and fellow Saudi lender Alawwal Bank could position the new entity much higher in the regional table following the completion of the deal.

Elsewhere, Al Rajhi Bank and Emirates NBD have both moved up one position, occupying fourth and fifth places, respectively. Saudi Arabia’s Riyad Bank has dropped one spot to eighth, with Israel’s Bank Hapoalim climbing one place to reach number seven.

The Middle East’s highest movers’ table is a diverse affair, with three Israeli lenders making the cut and two banks each from Bahrain, Oman and Qatar. Iran’s Bank Keshavarzi (Agri Bank) scoops the top spot with Tier 1 capital growth of 156.5%.

The top five banks by return on capital (ROC) table is a largely Levantine affair. Lebanon’s Blom Bank comes out on top with an ROC of 22.7%, while its compatriot Bank Audi is in second with an ROC of 19.7%. Two Jordanian banks and Qatar National Bank round out the table.

Top 25 Middle East ($M)

Regional  Rank World Rank Bank Country Tier 1 capital
1 81 First Abu Dhabi Bank United Arab Emirates 20,508
2 82 Qatar National Bank Qatar 20,108
3 94 National Commercial Bank Saudi Arabia 17,020
4 104 Al Rajhi Bank Saudi Arabia 14,867
5 109 Emirates NBD United Arab Emirates 14,029
6 124 Samba Financial Group Saudi Arabia 11,899
7 133 Bank Hapoalim Israel 10,894
8 142 Riyad Bank Saudi Arabia 10,299
9 146 Bank Leumi le-Israel Israel 9,986
10 164 Saudi British Bank (SABB) Saudi Arabia 8,892
11 165 Abu Dhabi Commercial Bank United Arab Emirates 8,768
12 167 National Bank of Kuwait Kuwait 8,717
13 171 Banque Saudi Fransi Saudi Arabia 8,506
14 193 Dubai Islamic Bank United Arab Emirates 7,072
15 205 Kuwait Finance House Kuwait 6,441
16 208 Arab National Bank Saudi Arabia 6,325
17 225 AlInma Bank Saudi Arabia 5,493
18 234 Mashreqbank United Arab Emirates 5,391
19 239 Qatar Islamic Bank (QIB) Qatar 5,114
20 243 Union National Bank United Arab Emirates 5,045
21 244 Arab Bank Jordan 5,028
22 249 Israel Discount Bank Israel 4,868
23 257 Commercial Bank Qatar 4,672
24 267 BankMuscat Oman 4,328
25 272 Abu Dhabi Islamic Bank United Arab Emirates 4,269

Highest Movers: Middle East

Regional  Rank World Rank Bank Country Tier 1 capital % change Tier 1 capital $m
1 596 Bank Keshavarzi (Agri Bank) Iran 156.52 1,436
2 727 Bank Sohar SAOG Oman 43.80 992
3 610 GFH Financial Group Bahrain 29.46 1,348
4 449 Al Baraka Banking Group Bahrain 24.77 2,197
5 516 Barwa Bank Qatar 19.52 1,764
6 279 Mizrahi Tefahot Bank Israel 19.41 4,131
7 267 BankMuscat Oman 18.14 4,328
8 146 Bank Leumi le-Israel Israel 17.99 9,986
9 838 Union Bank of Israel Israel 17.57 752
10 82 Qatar National Bank Qatar 16.58 20,108

New Entrants: Middle East

World Rank Bank Name Country USD Tier 1 capital
81 First Abu Dhabi Bank United Arab Emirates 20,508

Top Five ROC: Middle East

Regional  Rank World Rank Bank Country Return on capital (%)
1 376 BLOM Bank Lebanon 22.71
2 314 Bank Audi Lebanon 19.77
3 637 HBTF Jordan 19.61
4 82 Qatar National Bank Qatar 19.2
5 965 Bank of Jordan Jordan 18.45

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