ADCB to exit its operations in Jersey to focus on home market
The decision will have negligible impact on the bank’s profitability, ADCB said in a statement
Abu Dhabi Commercial Bank (ADCB) will exit its operations in Jersey to focus on its home market in the UAE.
The lender on Tuesday said that it informed the Jersey Financial Services Commission of its decision, and will be communicating with customers and other stakeholders in due course.
“The process of discontinuing our operations in Jersey will be conducted over an extended timeframe, and ADCB's priority remains to provide excellent service to its customers. During the period until discontinuation, there will be no changes to products and services and ADCB will continue to serve its customers requirements,” ADCB said in a statement to Abu Dhabi Securities Exchange, where its shares trade.
The bank also said the move will have negligible impact on its profitability.
ADCB’s Jersey business provided offshore banking to wealthy clients, allowing expatriate workers to house savings in offshore accounts in a range of different currencies.
However, following its three-way merger with Union National Bank and Al Hilal bank last year that created a retail-banking powerhouse in the UAE with Dh423 billion in assets, the lender said it planned to focus on core operations in the UAE. In September last year, it announced plans to sell the majority of its portfolio in India, and in October it said it would exit the Kuwait and Qatar markets.
Last month, the bank reported a 3 per cent rise in fourth quarter operating income due to higher non-interest income.
Operating income for the three months to December 31 jumped to Dh3.2bn whereas non-interest income for the period climbed 31 per cent to Dh583 million. Operating expenses dropped 2 per cent to Dh1.28bn.
The board of directors recommended a cash dividend of Dh0.38 per share, translating to a pay out of Dh2.644bn, equivalent to 50 per cent of net profit.
Published: February 4, 2020 07:01 PM