ABU DHABI - The merger of three banks in Abu Dhabi is at an early stage, the United Arab Emirates central bank governor said on Tuesday.

Abu Dhabi Commercial Bank, Union National Bank and Al Hilal Bank are in talks for a deal that could form a lender with $113 billion in assets.

Mubarak Rashed al-Mansoori told reporters on the sidelines of a conference in Abu Dhabi that he expected more consolidation in the future.

(Reporting by Saeed Azhar and Stanley Carvalho, writing by Davide Barbuscia) ((Davide.Barbuscia@thomsonreuters.com; +971522604297; Reuters Messaging: davide.barbuscia.reuters.com@reuters.net))