ADCB and NBAD merger ruled out

01 April 2009

Board Chairman of Abu Dhabi Commercial Bank (ADCB) has denied an imminent merger with the National Bank of Abu Dhabi (NBAD).

Addressing the bank's ordinary general assembly yesterday, Essa Al Suwaidi described as "rumour" the talk about merger.

Meanwhile, the bank decided to distribute 10 per cent, or Dh481 million, cash dividend to shareholders.

General assembly members, however, asked for the percentage to be increased to 15. But the request was turned down.

Al Suwaidi said an increase would not be possible under the current circumstances experienced by banks in the UAE.

The general assembly approved, among other issues, the conversion of Ministry of Finance support of Dh6.6bn into Tier II Capital.

Alaa Eraiqat, CEO of the bank, said the quarter one situation is very reassuring, and positive results will be announced within the next two weeks.