UAE’s ADCB denies merger with FAB

Abu Dhabi Commercial Bank (ADCB) on Wednesday denied a media report that it plans to merge with the UAE’s largest lender First Abu Dhabi Bank (FAB).

In a statement issued to media, ADCB said the report, which was not published by Khaleej Times, was ‘unsubstantiated and unfounded”.

“ADCB is successfully implementing a five-year strategy and has been updating the market through regular disclosures, including the Bank’s website, annual report and quarterly reports. In line with our commitment to best practice governance and transparency, ADCB publishes all material information related to the Bank through the Abu Dhabi Securities Exchange in a timely manner,” it said in a statement on Wednesday.

The UAE’s banking sector has been performing very well, even during the pandemic period.

Professional services firm Alvarez & Marsal (A&M) on Wednesday said the profitability of the UAE’s banking sector recovered significantly in 2021 as the economy continued to bounce back from Covid-19. Overall, the banks have performed well on key income categories related to the markets, which continue to show elevated activity.

The UAE Banking Pulse for FY 2021 released by A&M noted that aggregate net income increased substantially by 48.6 per cent year-on-year to Dh37.8 billion, mainly driven by higher operating income along with lower impairments.

“However, the UAE banks remained cautious in originating new loans in 2021, despite higher liquidity. It is likely that the banks are holding reserves considered too high for the risk profile of their portfolio, given recent credit trends,” it said.

waheedabbas@khaleejtimes.com

• Abu Dhabi