Commenting on ADCB Group’s 2019 performance, Eissa Mohamed Al Suwaidi, Chairman, said:
“2019 was a transformational year for the ADCB Group. The merger with Union National Bank and subsequent acquisition of Al Hilal Bank provided the enlarged group with the scale and efficiency required for a major UAE financial institution. The Bank, which now serves over 1 million customers, benefits from resilience and scale necessary to navigate continued challenges and the financial strength to take advantage of new growth opportunities.
The Bank’s robust fundamentals have been established through our commitment to best-practice governance, a proactive risk and compliance culture, and a high-performance environment. These have also contributed to an efficient and diligent approach to integration, which has already exceeded expectations in terms of timescale and synergies.
ADCB Group’s continued success remains closely aligned with the UAE’s economic development. Our UAE-centric strategy supports UAE’s vision for development. ADCB has consistently met Emiratisation targets set by the UAE Central Bank and UAE National staff continue to occupy key roles within the Bank’s senior management.
I would like to take this opportunity to thank His Highness Sheikh Khalifa Bin Zayed Al Nahyan, the UAE President and Ruler of Abu Dhabi, His Highness Sheikh Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, His Highness Sheikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, and the UAE Central Bank for their continued support for ADCB and the future development of the UAE economy. I also extend my gratitude and appreciation of the Board to our shareholders, our valued customers, and the ADCB executive management team and employees for their continued dedication and commitment.”
Commenting on the Bank’s financial performance and strategic outlook, Ala’a Eraiqat, Group Chief Executive Officer and Board Member said:
“At the end of a momentous year, the ADCB Group has emerged as a larger and stronger bank, that has once again delivered a robust set of results amid a soft operating environment. The Bank has reported a full year net profit of AED 5.244 billion, delivering a return on average tangible equity of 11.2%.
Following the landmark combination between ADCB, UNB and Al Hilal Bank in May, we have moved ahead with an ambitious schedule for integration, while continuing to develop our people, businesses and technology, to ensure consistently high quality service for our customers.
We have created a high-performance platform that provides opportunities for UAE National talent and the Bank is committed to providing a pathway for Emiratis to senior leadership positions. The ADCB Group employs 1,479 UAE Nationals who occupy key roles at every level. The Bank has consistently exceeded the Emiratisation targets set by the regulators. The 48% Emiratisation rate at Al Hilal Bank is a reflection of our sustained commitment to achieve these goals.
Within only five months of legal completion of the merger, we rolled out the ADCB brand across all physical and digital channels, and optimised the combined network to provide 72 branches and over 450 ATMs across the UAE. Preparations for full systems integration are now at an advanced stage, which will allow the Bank to migrate all UNB customers to the ADCB platform by the end of the second quarter of 2020. Through meticulous preparation and effective implementation, we have met all our integration milestones so far and surpassed our efficiency targets. This
progress resulted in the upward revision in October of our full run-rate synergy target to AED 840 million, of which AED 350 million has already been realised.
The Bank is delivering excellent and seamless customer service throughout the merger and integration process. The AED 7.3 billion increase in CASA deposits over the year to AED 102 billion in a declining interest-rate and highly competitive environment is a significant achievement, and testament to the confidence that customers continue to place in ADCB.
Our fourth quarter results show that the benefits of the merger are already coming through in our financial performance, and the impact of synergies will increase as we complete full integration. The Group has achieved a significant improvement in its cost to income ratio, which decreased by 440 basis points (4.4%) year on year to 35.1% in the fourth quarter of 2019. The Bank continues to retain tight control of one-off integration costs.
Our balance sheet remains resilient, with strong capital and liquidity positions. The post-merger reaffirmation of our credit ratings, of A+ and A by Fitch and Standard & Poor’s respectively, is a reflection of the Bank’s strong fundamentals and ability to navigate through the evolving banking and regulatory landscape.
The past year is a powerful demonstration of what the ADCB Group can accomplish with a clear strategy, a robust governance framework, and close collaboration. The Bank is future-ready, better placed than ever to rise to tomorrow’s challenges, and grasp the opportunities we are seeing in a rapidly transforming UAE economy.”
© Press Release 2020