ID :
128400
Thu, 06/17/2010 - 13:38
Auther :
Shortlink :
https://www.oananews.org//node/128400
The shortlink copeid
ADCB signs agreement to acquire Royal Bank of Scotland's retail banking business
Abu Dhabi Commercial Bank (ADCB) yesterday announced that it has signed an agreement to acquire the retail banking business of The Royal Bank of Scotland (RBS) in the United Arab Emirates (UAE). The acquisition is subject to UAE Central Bank approval.
This would be the first acquisition of an international bank's retail banking franchise in the UAE by a local bank and would provide ADCB with an opportunity to add significant scale and momentum in the strategically important consumer banking business. The acquisition would provide tremendous opportunities for the Bank, doubling ADCB's credit card business and significantly improving its market share to become one of the top three credit card players in the country and creating one of the largest mass affluent businesses in the UAE.
This transaction fits in with the strategic objective of ADCB to focus and grow in the UAE. The Bank remains positive about the long term growth potential of the UAE and believes that this acquisition will offer a solid platform for value creation for the future.
As at March 31st, 2010, ADCB had 49 branches, 175 ATMs and over 340,000 retail customers. The acquisition would further enhance ADCB's franchise by leveraging RBS's established local retail banking presence with an addition of over 250,000 customers, 51 ATMs, 3 new branches and 2 customer service centres along with a world class operations processing and a modern call centre facility based in Dubai. The combined business would benefit from delivering economies of scale, a stronger operating platform and a wider distribution network.
ADCB, with a total capital ratio of 17.5% as at 31st March 2010, would finance this acquisition from internal cash resources. The total cash consideration is equal to the net asset value of UAE RBS retail banking business at completion plus US$46 million. As at 31 December, 2009, the net assets of the business were approximately US$54 million. For ADCB, this amounted to approximately 1.59 multiples of book value. – Emirates News Agency, WAM
This would be the first acquisition of an international bank's retail banking franchise in the UAE by a local bank and would provide ADCB with an opportunity to add significant scale and momentum in the strategically important consumer banking business. The acquisition would provide tremendous opportunities for the Bank, doubling ADCB's credit card business and significantly improving its market share to become one of the top three credit card players in the country and creating one of the largest mass affluent businesses in the UAE.
This transaction fits in with the strategic objective of ADCB to focus and grow in the UAE. The Bank remains positive about the long term growth potential of the UAE and believes that this acquisition will offer a solid platform for value creation for the future.
As at March 31st, 2010, ADCB had 49 branches, 175 ATMs and over 340,000 retail customers. The acquisition would further enhance ADCB's franchise by leveraging RBS's established local retail banking presence with an addition of over 250,000 customers, 51 ATMs, 3 new branches and 2 customer service centres along with a world class operations processing and a modern call centre facility based in Dubai. The combined business would benefit from delivering economies of scale, a stronger operating platform and a wider distribution network.
ADCB, with a total capital ratio of 17.5% as at 31st March 2010, would finance this acquisition from internal cash resources. The total cash consideration is equal to the net asset value of UAE RBS retail banking business at completion plus US$46 million. As at 31 December, 2009, the net assets of the business were approximately US$54 million. For ADCB, this amounted to approximately 1.59 multiples of book value. – Emirates News Agency, WAM
