New board being set up for combined bank

dubai — The new board and management of a financial powerhouse being formed after a merger between three UAE banks will assume their roles when the merger is expected to be effective from May 1.

In a joint statement, the banks said on Monday they had reported to the Abu Dhabi Securities Exchange the final list of names of the new 11-member board and management of the combined bank.

The merger, as part of the latest round of banking sector consolidation in the country, involves ADCB, Union National Bank and Al Hilal Bank, will result in the creation of the third largest banking group in the UAE and the fifth largest in the GCC.

The merged entity, carrying the ADCB identity, will be the second largest retail lender in the UAE by assets, with 21 per cent share of retail loans as well as a strong Islamic banking platform as the third largest Islamic banking franchise in the UAE. The merged entity is expected to own Dh423 billion in assets, with total deposits valued at Dh285 billion.

“The merger is likely to be effective from May 1. The dates will still depend on a range of factors, including the results of the shareholder meetings held by ADCB and UNB,” the banks said in a joint circular posted to the Abu Dhabi Securities Exchange website.

ADCB Chairman Eissa Mohamed Al Suwaidi becomes Chairman designate of the new banking group and Mohamed bin Dhaen Al Hamli vice chairman designate. ADCB CEO Alaa Eraiqat becomes the group CEO designate. A joint letter from the chairmen of ADCB and UNB said the two banks believe the merged entity is “well positioned to provide support for UAE’s economic vision, and to actively participate in the country’s growth and diversification.”

The chairmen urged shareholders to vote in favour of the merger at the upcoming meetings.