ADCB expands mortgage business

ABU DHABI: The Abu Dhabi Commercial Bank (ADCB) has signed an agreement to acquire a porfolio of approximately 1,000 mortgages from Abu Dhabi Finance (ADF).

The transaction provides further growth for ADCB’S retail and SME businesses in line with the Bank’s Uae-centric strategy and prudent risk management framework.

The assets, as by January 31, 2021, comprise approximately 76 per cent residential mortgages and 24 per cent commercial mortgages. All the mortgages are conventional, with just under half of the porfolio collateralised by real estate in Abu Dhabi, and the remainder distributed across Dubai and other Emirates in the UAE.

The acquisition of the mortgage porfolio from ADF further increases the scale of the Bank’s home finance business and introduces more customers to ADCB’S wide range of products and services.

ADF customers are expected to transfer to the ADCB banking plaform during the first half of 2021, subject to the transaction receiving approval from the Central Bank of the UAE and other relevant authorities.

In his comments, Arup Mukhopadhyay, Head of the Consumer Banking Group at ADCB, said: “The acquisition of this collateralised porfolio expands our mortgage book, enhancing the diversification of our assets and customer base. The Bank continues to invest significantly to provide a leading real estate finance offering. We have enhanced our digital capabilities and partnered with leading property companies to offer atractive and comprehensive home purchase packages.”