The deal, which is subject to regulatory approval, will be the first acquisition of an international bank’s retail banking franchise in the UAE by a local bank and, said ADCB, will provide it with an opportunity to add significant scale and momentum in the consumer banking market.
The ADCB said the deal, which will cost around $100m, will be financed entirely from its cash position.
The announcement follows news last week that Spanish bank Santander has tended an offer to buy RBS subsidiary Williams & Glyn’s from RBS. The British bank, which is 84% owned by the UK government, was ordered last year by the European Commission to sell a number of its assets as a condition of being bailed-out by the government.
Arup Mukhopadhyay, head of consumer banking at ADCB, said: “The RBS retail business in the UAE is an ideal strategic fit for the consumer banking business of ADCB, which has witnessed dramatic growth over the last five years and remained resilient through the economic downturn.
“This acquisition adds significantly to the two strategic growth engines of ADCB’s consumer banking franchise – credit cards and the mass affluent wealth management business – and the combined entity provides a perfect platform for building a consumer banking powerhouse in the UAE.”
