Recently, ADCB (Abu Dhabi Commercial Bank), UNB (Union National Bank), and Bank Al Hilal have revealed a major three-sided merger deal that will establish the fifth-biggest lender in North Africa and the Middle East with total assets of $114 Billion. The pact—which was verified at the close of business—spots the second bank joint venture in Abu Dhabi in last few years and follows a gesture of consolidation endeavors in the sector. The new-fangled banking group is anticipated to have around 1 Million clients, with a noteworthy share in the UAE market: 15% share of total possessions, 21% share of retail loans, and 16% of deposits.
In a statement, Eissa Mohamed Al Suwaidi—Chairman of ADCB—stated, “This is a very buzzing transaction that will form a preeminent, larger, and elastic banking group. It is a milestone arrangement for the UAE that would contribute considerably to our national goals.” A press release from ADSM (Abu Dhabi Securities Exchange) reported, “The new banking group would carry the ADCB individuality and will persist to benefit from solid institutional support, with the Government of Abu Dhabi’s majority ownership.” Reportedly, Al Hilal Bank will keep its present name and brand, functioning as an individual Islamic banking entity within the cluster.
In recent time, ADCB was in news as the bank’s fourth-quarter net profit surged by 27%, beating the estimates. ADCB is the second-biggest banking entity in the capital and reported a growth of 27% in the fourth quarter’s net income, surpassing analysts’ predictions. The net profit for the 12 Month reached Dh1.36 Billion, the bank stated in a statement. Three analysts survey by Bloomberg had estimated median net proceeds of Dh1.1 Billion for the same period. Reportedly, the full-year net profit was increased by 13% year-on-year to Dh4.84 Billion.