Banking shares in Abu Dhabi fell sharply yesterday as ADCB, ADIB and UNB distanced themselves from talks of further consolidation within the sector.
Shares rallied last week following a report by Bloomberg News that ADCB and UNB may join forces, with ADIB and Al Hilal Bank considering a similar tie-up.
The speculation came in the wake of the announcement in June of a merger between FGB and NBAD, which will create the Middle East’s largest bank by assets. ADCB, ADIB and UNB distanced themselves from the reports, sending their shares sharply lower.
“The bank has no knowledge of the news circulating on media channels and such news has not been discussed at the bank,” ADIB said in a stock market disclosure yesterday.
ADCB followed suit later in the morning, stating that “the bank’s executive management has no knowledge of any initiatives related to said subjects”.
UNB said in a statement yesterday afternoon that it was not pursuing a merger. “We have not received any information from any official entity on this subject and that said subject was neither presented to nor discussed with executive management at the bank,” it said in a statement.
UNB’s shares were among the worst performers on the Abu Dhabi stock exchange, closing down by 5.2 per cent at Dh4.23 after being suspended during the morning.
ADCB’s shares fell by 2.7 per cent to Dh5.88, with ADIB closing 0.8 per cent lower at Dh3.57
Other banking stocks were dragged lower. FGB and NBAD closed down by 2.9 per cent and 1 per cent respectively. Abu Dhabi’s headline index closed 1.7 per cent lower at 4,221.01.
jeverington@thenational.ae
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