Abu Dhabi Commercial Bank (ADCB) today announced its financial results for the first half of 2019.

The following financial results are based on initial financial statements for the first half of 2019 for the merged entity after completion of the merger between ADCB and Union National Bank and subsequent acquisition of Al Hilal Bank on May 1, 2019, The merger resulted in the creation of a new banking group, the third largest banking institution in terms of assets in the UAE, with a broader business scope, stronger capabilities, greater flexibility and a proven record of success in conventional and Islamic banking sectors.

According to the Bank's statement, the merger is being carried out smoothly to ensure sustainable growth by providing a strong and good governance environment and a strong corporate governance framework to effectively manage risks and cope with rapid changes and regulatory requirements.

In the year 2019 and 2020, ADCB will focus on maximizing value added and taking advantage of all opportunities and opportunities for the three integrated institutions.

The Group is currently streamlining processes, adapting financial products, banking services, banking channels, policies and regulations, as well as implementing initiatives to achieve targeted savings.

The Bank is also developing and promoting a good corporate culture within a strong framework of governance.

Mergers

- The merger process is proceeding rapidly and according to the specified timeframe, with the merger expected to be completed by the end of 2020.

- The governance structure of the merged entity has been developed according to best international practices.

- Savings on the cost of integration, where savings of AED 69 million have already been achieved, representing 11% of the target AED 615 million by 2021.

- Credit policies have been consolidated at the Abu Dhabi Commercial Bank Group.

- All treasury operations have been consolidated for the three integrated institutions and the liquidity and financing management has been centralized.

- The Abu Dhabi Commercial Bank Group (ADCB) branches will be fully operational in the fourth quarter of 2019, which will see the launch of ADCB Banking Group's identity across all branches and digital banking channels.

- The restructuring of Al Hilal Bank has been completed almost entirely.

Strong growth

- Total interest income and Islamic finance increased by 11% to AED 9.611 billion, mainly due to the higher standard of interest rates prevailing in the markets.

- Net interest income and Islamic financing amounted to AED 5.219 billion, a decrease of 6%, mainly due to the harmonization of liquidity management standards for the integrated entity and strong competition in loan yields.

Non-interest income was AED 1.428 billion, a decrease of 6% as a result of lower net income from fees and commissions and lower income from foreign exchange which was compensated by higher turnover of derivatives.

- Operating expenses amounted to AED 2,671 billion, an increase of 6% due to merger expenses and continued investment in the transformation of digital banking. Excluding the one-time consolidation cost of AED 87 million, operating expenses were $ 2.584 billion, up 3%.

The cost to income ratio was 38.9% (excluding consolidation costs) compared to 35.6% at the end of the first half of last year.

- General provisions amounted to AED 1.174 billion, a decrease of 6%.

- Net profit reached 2.782 billion dirhams, down 15%.

- Return on equity reached 12.2% YoY compared to 12.9% at the end of the first half of last year.