Majority ownership by and privileged relationship with the government of the Emirate of Abu Dhabi. Solid domestic commercial position, translating into above-average operational efficiency. Strong capitalization and high quality of capital. Structural funding advantage given its very well-established access to long-term overseas funding programs, as well as Abu Dhabi government-related deposits. Large concentration risks on both sides of the balance sheet, like other Gulf Cooperation Council banks. Similar to its peers, we expect the bank's earnings generation to decline over the next two–to-three years given the deteriorating operating conditions in the United Arab Emirates. National Bank of Abu Dhabi (NBAD) and First Gulf Bank (FGB) announced on July 3, 2016, that they have agreed to merge. We understand that if
