AED 2.78 billion for the commercial bank of Abu Dhabi

Union

Abu Dhabi Commercial Bank

Abu Dhabi (Al Ittihad)

The Abu Dhabi Commercial Bank (ADCB) reported net profit of AED 2.78 billion in the first half of this year, compared to AED 3.299 billion in the same period in 2018.
ADCB's total interest income and Islamic financing increased by 11% to AED 9.611 billion, mainly due to higher interest rates prevailing in the markets.
Net interest income and Islamic financing amounted to AED 5.29 billion, a decrease of 6%, mainly due to the harmonization of the combined entity's liquidity management standards and the competition for loan performance.
General provisions amounted to 1.174 billion AED, down 6%.
Return on equity was 12.2% year-on-year, compared to 12.9% at the end of the first half of last year.
Total badets reached AED 417 billion, down 2%, while loans and advances amounted to AED 251 billion, down 4% from the end of the previous year, mainly because of the repayments made by the companies.
Customer deposits were AED 273 billion, down 4% from the end of last year.
"The merger, which is still in its infancy between Abu Dhabi Commercial Bank and Union National Bank and the acquisition of Al Hilal Bank on May 1, 2019, is a landmark transaction for the Emirates economy," he said. said Essa Mohammed Al Suwaidi, chairman of the ADCB group. This has resulted in the creation of a more robust and flexible banking group to play a key role in economic development over the coming years, which will also significantly contribute to the support and strengthening of the financial sector in the UAE. United Arab Emirates.
Alaa Erekat, chairman and CEO and board member, said: "I am pleased to announce the first consolidated financial results of the Abu Dhabi Commercial Bank Group after the merger, reflecting the size and strength of its balance sheet., The new banking group is well positioned to grow and thrive in a competitive banking environment and deliver greater value to our shareholders through increased efficiency and new business opportunities. "
"The Bank made the wise decision not to renew long-term deposits while continuing to focus on the growth of current account deposits and savings accounts, which accounted for 36% of total deposits. total customer deposits at the end of June 2019, compared with 33% at the end of last year ".
"Since the completion of the legal merger process, the Group has been able to implement initiatives to reach more than a third of the target rate in order to reduce the costs of integration. implement the process of integration accurately and achieve the desired goals. "

Completion of the merger
The Abu Dhabi Commercial Bank Group has made significant progress in achieving the integration process at all levels, including the consolidation of governance, organizational structure, institutional culture, operational systems and Customer service on time.
The Group is currently working to unify all of its activities to provide a complete banking experience that will enhance customer convenience and meet their banking needs under the Abu Dhabi Commercial Bank brand by the fourth quarter of 2019.
All systems and operations should be fully integrated by the fourth quarter of 2020.
The Bank has launched cost savings initiatives of AED 222 million a year and AED 615 million by 2021.
Savings of AED 69 million, or 11% of the target, have already been achieved. The cost of the consolidation of the single operations is AED 87 million to date, which corresponds to the consolidation and completion project of the 800 million AED merger. The Commercial Bank Group of Abu Dhabi has already well prepared the integration of the systems, ATMs and ATMs at the branches of ADCB and National Union. Bank by the fourth quarter of 2019. This coincides with the launch of the private label. In Abu Dhabi Commercial Bank in all branches and all channels of digital banking.