KHALEEJ TIMES, Wednesday, Sep 16, 2020 | Muharram 28, 1442
Israel's Leumi signs deals with UAE's FAB, Emirates NBD banks
Emirates:
Bank Leumi became the second Israeli lender after Hapoalim to have signed
agreements with UAE banking giants to expand their presence in the second
biggest economy of the region.
Israel's second-biggest bank said on Tuesday that it had signed memorandums
of understanding (MoUs) with First Abu Dhabi Bank (FAB) and Emirates NBD to
help strengthen bilateral relations between the UAE and Israel.
Israel's biggest bank Hapoalim signed an MoU with Emirates NDB on Monday.
According to the MoUs, the banks agreed to advance ties with financial
institutions in both countries, providing services such as clearance, credit
lines, and foreign currency trade.
Shmulik Arbel, head of the corporate and commercial division at Israel's
Bank Leumi, is a firm believer on the business potential the UAE presents
for Israel.
"We, at Leumi, believe there is a golden opportunity for collaborations here
and we intend to be an active party," Arbel said at a recent online
conference.
Leumi believes it can help Israeli business clients set up activity in the
UAE and Emirati entities launch operations in Israel.
A symbolic act
Leumi, which was founded on February 27, 1902, in Jaffa as the Anglo
Palestine Company, said its agreements with the UAE banks would help enable
the countries to implement economic relations. In a symbolic act, it said it
had transferred $180 to each bank. The lender said it had been approached in
recent weeks by dozens of clients seeking to transfer funds to and from the
UAE.
"Until now, they had to do this through European banks," Leumi said.
Leumi said its subsidiaries Leumi Partners and Leumi Tech would help forge
ties between Israeli companies and UAE investors and wealth funds.
Bank Leumi recorded significant decline in net income during April-June 2020
quarter as it dropped to $200 million from $266 million in the same period
last year. It posted $133 million during January-June 2020 period compared
to $581 million in the same period last year.
The bank attributed decline in income to a significant increase in the loan
loss expense, which stems primarily from an increase in the collective loan
loss provision and a decrease in non-interest finance income.
Exploring opportunities
Emirates NBD group CEO Shayne Nelson said the MoU with Hapoalim will support
the two countries' shared objective of enhancing economic and commercial
engagement.
"The MoU will open new business and trade opportunities for our clients and
further enhance our leading position as a trusted banking partner to
businesses across the Menat region," he said.
Dov Kotler, CEO of Bank Hapoalim, termed the agreement with Emirates NBD a
breakthrough achievement and said it will allow Israeli clients to transact
directly in the UAE and subsequently in other countries. "It is a great
honour to be the first bank to sign such an agreement that will contribute
to the establishment of the relationship between the two countries."
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