Abu Dhabi Commercial Bank

The Abu Dhabi Commercial Bank (ADCB) is organized into two major business segments: commercial banking, which includes retail and corporate banking, brokerage and fund management; and investment banking, which includes management of the bank’s investment portfolio, dealing in derivatives and treasury services. The bank also provides asset management and Islamic finance, indirectly through subsidiaries and associates.

ADCB’s activities are locally originated; operations inside the UAE consisted of 98% of its 2008 operating income.

Its principal activity, commercial banking, contributed AED3.990 billion (USD1.086 billion), which is 90% of the bank’s total operating income, in 2008, an annual increase of 20%. The investment banking division contributed AED479 million (USD130 million), which is 10% of the bank’s operating income and an annual decrease of 10%.

The bank’s 2008 net profit was AED1.23 billion (USD 335 million), a 37% annual decrease. Profits from operations before loan impairments and other impairments grew by 4%, its impairment allowances increased by 113%, in 2008, to AED1.49 billion (USD405 million). ADCB was the UAE’s third largest commercial bank, in 2008, in terms of its AED147.7 billion (USD40.22 billion) in total assets.

Through its subsidiary, ADCB Holdings (Malaysia) Sdn Berhad, ADCB acquired a 25% equity stake in the Malaysia-based RHB Capital Berhard, with a quoted value of the investment amounting to AED2.233 billion (USD608 million), as of December 2008.

In addition, the bank contributed 20% of the share capital of mortgage provider, Abu Dhabi FinanceAbu Dhabi Finance, which was launched with a capital of AED500 million (USD136 million), in November 2008. ADCB issued convertible bonds worth AED4.8 billion (USD1.3 billion), in April 2008, to four strategic investors, including the government of Abu Dhabi.