Abu Dhabi bank shares soar for second day

SHARES SOAR: Speculation over a merger between NBAD and ADCB has send their shares soaring in early trading. (Getty Images)

Abu Dhabi Commercial Bank (ADCB) climbed almost 10 percent in early trade on Monday as speculation grows over a possible merger with National Bank of Abu Dhabi (NBAD).

ADCB had soared 9.85 percent by 10.20am on the Abu Dhabi bourse, while NBAD was up 4.3 percent, having risen as high as 7.1 percent in earlier in the day.

ADCB is down 32.29 percent and NBAD is down 7.6 percent year-to-date.

Abu Dhabi's main index was up 1.48 percent by 10.20am.

Executives at both lenders on Sunday downplayed speculation on Sunday that a big merger was imminent after their shares soared on the back of a report last week in the Arabic Al Khaleej daily that three mergers among major UAE banks and real estate firms are close to being finalised.

There has been talk of a possible tie-up between ADCB and NBAD ever since Emirates Bank International and National Bank of Dubai (NBD) merged last year to form largest Gulf Arab lender by assets, Emirates NBD.

Faced with growing competition from global players, lenders in the world's biggest oil-exporting region have begun to look at consolidating to help them better compete and diversify revenues.

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