Abu Dhabi Islamic Bank dismissed reports that it may merge with Al-Hilal Bank as consolidation takes hold in the emirate’s financial-services industry. Abu Dhabi is combining National Bank of Abu Dhabi and First Gulf Bank and two sovereign wealth funds as it seeks to cut costs and merge firms with overlapping assets. The next step could be a tie-up between ADIB with Al-Hilal and a combination of Abu Dhabi Commercial Bank and Union National Bank. Tirad Mahmoud said ADIB plans to stick to its core markets and strengthen its presence. He also said that mergers were a shareholder issue and there might be 'some pressure' on net interest margins this year. ADIB posted a 1% rise in 2016 net profit to Dh1.95 billion ($530 million) on Tuesday as provisions rose to Dh970 million from Dh820 million.
Abu Dhabi Islamic Bank (ADIB) CEO Tirad Mahmoud said the bank was seeking to invest in Islamic banking in Morocco. ADIB has applied for approval from the Morrocan Central Bank for approval to invest in participatory banking in Morocco by 2016. Back in March this year, Abdellatif Jouahri, Governor of Bank Al Maghrib, had announced 2016 as the year of commencement of operations of the first participation banks in the Kingdom. ADIB has also filed applications for licenses in Algeria, Libya and Tunisia, said Tirad Mahmoud. Emirates Islamic has also filed an application with the Central Bank while Bahrain-based Al Baraka Banking Group is working in a joint venture with BMCE Bank to offer Shari’ah-compliant financial solutions.
Abu Dhabi Islamic Bank PJSC is planning expansion in Africa markets to tap demand in countries with a large Muslim population. In Africa, the bank has looked closely at Algeria and Morocco, Chief Executive Officer Tirad Mahmoud said. The bank may consider an acquisition next year as part of the plan, he added. The bank also applied for licenses in Algeria and Libya and is considering Tunisia and Morocco. The bank was among lenders that bid to buy the retail banking assets of Citigroup Inc. in Egypt this year, losing out to Commercial International Bank Egypt SAE last month. Mahmoud believes the banking industry is on the cusp of a historic transformation that will see a convergence between conventional and ethical banking.
Abu Dhabi Islamic Bank PJSC is considering entering markets in South East Asia and Africa to tap demand in countries with a large Muslim population. The bank has “looked closely” at Indonesia and Malaysia as well as Algeria, Morocco and Jordan, Chief Executive Officer Tirad Mahmoud stated. The bank may consider an acquisition next year as part of the plan, he said. ADIB in 2014 acquired the retail banking business of Barclays Plc in the U.A.E. for 650 million dirhams ($177 million). The bank was also among lenders that bid to buy the retail banking assets of Citigroup Inc. in Egypt this year, losing out to Commercial International Bank Egypt SAE last month. ADIB expects lending to grow by four percent to six percent this year, Mahmoud added.
Abu Dhabi Islamic Bank PJSC (ADIB), which bought the local retail assets of Barclays Plc (BARC) last month, is weighing whether to change its name as it targets more non-Muslim customers beyond its home market. The lender may change to Abu Dhabi International Bank outside the nation to lure customers drawn to ethical banking, Tirad Mahmoud, chief executive officer of ADIB, said. This could help capture a loan market that’s about 200-times the size of Shariah lending. With 60 percent of U.A.E. residents already holding bank accounts, faster growth opportunities for ADIB may need to come from international markets. The lender’s purchase of the Barclays asset was a rare chance to secure 110,000 new customers at home.
Abu Dhabi Islamic Bank (ADIB) agreed a $2 billion debt overhaul with mortgage company Amlak Finance. ADIB, part of a six-member creditor committee negotiating Amlak's restructuring, signed a tentative agreement that's being considered by the decision-makers on the Amlak side, CEO Tirad Mahmoud said. The prospective accord includes a temporary waiver on a certain part of the principal that you recapture later if Amlak achieves certain targets, he said. Amlak sought an extension on $2 billion of loans after property prices in Dubai slumped during the credit crisis that began in 2008.
Tirad Mahmoud, chief executive of Abu Dhabi Islamic Bank (ADIB), believes the banking industry is on the cusp of a historic transformation that will see a convergence between conventional and ethical banking. Mahmoud argues Islamic banking is only part of a larger move towards ethical banking in the post-crisis world. Earlier in April, ADIB acquired the retail operations of Barclays in the United Arab Emirates for a price tag of $177 million, giving it access to expatriate customers. The purchase will see 110,000 accounts transferred to Sharia-compliant accounts. ADIB has posted a 20.4 percent increase in first-quarter net profit, driven by higher lending. Its stock is up over 40 percent so far this year, outperforming the benchmark Abu Dhabi Securities Exchange (ADX).
Abu Dhabi Islamic Bank plans to branch out in North Africa as the UAE-based lender seeks to reach a larger population. The bank applied for licenses in Algeria and Libya and is considering new operations in Tunisia and Morocco. Chief executive Tirad Mahmoud said the bank is seeking to expand in nations with a critical mass in terms of population and economic activity. Abu Dhabi Islamic Bank has also moved into countries including Saudi Arabia, Egypt and Sudan, Mahmoud said. The bank wants to be better placed to serve companies, such as Dubai-based mall operator Majid al-Futtaim, which operate across the Middle East and North Africa. Banks that comply with Islam’s ban on interest have become increasing popular after the revolts implemented Islamists into power in some North African countries.