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RBS sets deadline for customers
DUBAI – Royal Bank of Scotland, or RBS, has set an August 25 deadline for its clients in the UAE to transfer details of their accounts to Abu Dhabi Commercial Bank, or ADCB.
On June 16, ADCB announced that it had signed an agreement to acquire the retail banking business of RBS in the UAE. The acquisition remains subject to UAE Central Bank approval and is expected to be completed in the fourth quarter, but RBS cardholders can now access over 181 ADCB ATMs free of charge.
“As part of the transfer to ADCB, we wish to notify you of the proposed transfer of your UAE account[s], credit card[s] and/or loans to ADCB, who look forward to servicing your banking needs,” RBS said in a letter to its clients in the UAE.
“In accordance with the terms and conditions of your account[s], and conditional upon central bank approval, we will be transferring our contractual relationship with you in respect of the account[s] to ADCB with effect from completion of the sale and purchase, which will be no earlier than August 25, 2010. Following the transfer, ADCB will continue the processing of data associated with your account[s] within and outside the UAE, including in the Netherlands,” according to the letter, which was issued last month.
RBS, through the letter, asked its UAE-based clients to reply in writing by August 25, if they do not wish to transfer their accounts otherwise all contract information will be transferred to ADCB with effect from completion date.
RBS on its website said it has applied to the UAE Central Bank for approval of the sale of its Retail Banking business to ADCB and the application is currently pending. “We will update this page as soon as the Central Bank has advised us of its decision,” the bank said.
This would be the first acquisition of an international bank’s retail banking franchise in the UAE by a local bank and would provide ADCB with an opportunity to add significant scale and momentum in the strategically important consumer banking business.
The acquisition would provide opportunities for the Bank doubling ADCB’s credit card business and significantly improving its market share to become one of the top three credit card players in the country and creating one of the largest mass affluent businesses in the UAE.
ADCB, with a total capital ratio of 17.5 per cent as at 31st March 2010, would finance this acquisition from internal cash resources. The total cash consideration is equal to the next asset value of UAE RBS retail banking business at completion plus $46 million
abdulbasit@khaleejtimes.com
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