UAE’s First Abu Dhabi Bank and ADCB deny report of potential merger

UAE lenders First Abu Dhabi Bank (FAB) and the Abu Dhabi Commercial Bank (ADCB) have both denied a media report that speculated on a potential merger between them.

The banks issued separate filings to the Abu Dhabi Securities Exchange (ADX) denying the report.

“First Abu Dhabi Bank is aware of recent media speculation reported by Al Arabiya of a potential merger with ADCB. Whilst the bank does not typically comment on speculation as a matter of policy, FAB strongly denies the report issued by Al Arabiya and currently has not entered discussions with ADCB to pursue any merger activity. Any rumour to the contrary is unfounded and false,” FAB said in a statement to ADX.

FAB has previously reported a group net profit of Dhs12.5bn for 2021, up 19 per cent year-on-year. Its net profit for Q4 2021, however, totaled Dhs3.3bn, up 3 per cent year-on-year.

Read: First Abu Dhabi Bank reports 19% rise in group net profit for 2021

Meanwhile, ADCB too reiterated that there were no plans drawn up for a merger.

“In response to the unsubstantiated and unfounded news published by Al Arabiya.net on March 8, 2022, Abu Dhabi Commercial bank categorically denies the false content of the article about a potential merger with First Abu Dhabi Bank. 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,” ADCB said in its filing to ADX, signed by Ala’a Eraiqat, group CEO of ADCB. “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.”

ADCB which is the UAE’s third-largest lender has reported a 38 per cent increase in its 2021 net profit. The total profit attributable to equity holders of the bank rose to $1.43bn. Its net fees and commission income reportedly grew more than 22 per cent to $517m.

Also, Brookfield Asset Management signed an agreement to buy 60 per cent of the payments business of First Abu Dhabi Bank at a $1.15bn valuation, it was announced last month.

Read: Brookfield to buy 60% of First Abu Dhabi Bank’s payment arm