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Sun 22 Nov 2009 12:45 PM

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The Middle East’s 25 smartest banks-Abu Dhabi Commercial Bank

The Middle East’s 25 smartest banks-Abu Dhabi Commercial Bank

In October Capital Intelligence (CI), the international credit rating agency, announced that it has affirmed
Abu Dhabi Commercial Bank's (ADCB)

foreign currency ratings at ‘AA-' Long-term and ‘A1' Short-term with a Stable Outlook.

The agency said that the ratings reflect the majority shareholding by the government of Abu Dhabi as well as the bank's systemic importance given its large size and significant domestic presence.

ADCB

is the third largest bank in the country with total assets of AED147bn ($40bn) at end 2008. The bank has a moderately large network of 39 branches, five kiosks and cash offices and 138 ATMs spread across the emirates. Around half the branches are located in Abu Dhabi.

ADCB

offers a comprehensive range of retail and corporate banking products and services and over the years has built a strong customer franchise. Overseas operations, meanwhile, are limited to two branches in India and a 25 percent stake in RHB Bank, Malaysia.

CI believes that the bank would receive substantial support in case of need.
Abu Dhabi Commercial Bank

was created in 1985 by the government of Abu Dhabi through the merger of three distressed retail commercial banks. The government, through the Abu Dhabi Investment Council, owns 65 percent of the bank.

CI said the bank is confident of maintaining its margins this year, which could offset the fall in non-interest revenues.

However, earnings are likely to remain under pressure due to increased provision charges for loans and investments, including provisions on exposures to two large Saudi business groups which are currently experiencing financial difficulties.

NPLs have risen substantially over the end 2008 level, but the NPLs to gross loans ratio is still at a manageable level.

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