UAE-based lender First Abu Dhabi Bank (FAB) has confirmed that it is in talks to acquire Egyptian subsidiary Bank Audi Egypt.

The discussions are in initial phases and may not materialise into any a deal.

From a three-branch operation in 2005, Bank Audi Egypt has grown into 50 branches with assets worth of $4.4bn at the end of September.

Lebanon-based Bank Audi acquired Cairo Far East Bank in 2006, and subsequently, its name was changed to Bank Audi Egypt.

Reuters citing sources said that Bank Audi CEO Samir Hanna had meetings with FAB group chief executive Abdulhamid Saeed on the divestment of the Egyptian unit.

According to the sources, a non-disclosure agreement was also signed.

In the third quarter, Bank Audi Eygpt posted a 6.6% increase in net profit due to an increase in net interest income.

The discussions come as the banks as well as the economy of Lebanon are facing challenges amid a shortage in dollar.