Abu Dhabi Commercial Bank (ADCB) has signed an agreement to acquire a portfolio of approximately 1,000 mortgages from Abu Dhabi Finance (ADF).
The transaction provides further growth for ADCB’s retail and SME business in line with its strategy and risk management framework. It also scales the bank’s home equity business and introduces more customers to ADCB’s wide range of products and services.
The assets, with a gross book value of Dhs1.13 billion as of 31 January 2021, are comprised of approximately 76 percent residential mortgages and 24 percent commercial mortgages. All mortgages are conventional, with just under half of the portfolio secured by properties in Abu Dhabi and the remainder spread across Dubai and other emirates in the United Arab Emirates.
ADCB expands mortgage business through acquisition
of Abu Dhabi Finance’s portfolio. Learn more at https://t.co/d4ezg8xviJ pic.twitter.com/3u20yGT88B— ADCB بنك أبوظبي التجاري (@OfficialADCB) February 28, 2021
ADF customers are expected to migrate to the ADCB banking platform in the first half of 2021, subject to the approval of the transaction by the UAE Central Bank and other relevant authorities.
Arup Mukhopadhyay, Head of Consumer Banking Group at ADCB, commented: “The acquisition of this secured portfolio expands our mortgage portfolio and improves the diversification of our assets and client base. The bank continues to invest heavily to offer a leading real estate financing offering. We have expanded our digital capabilities and formed partnerships with leading real estate companies to offer attractive and comprehensive home purchase packages.”
“Abu Dhabi Finance has been a leader in mortgage finance in the UAE for over a decade and has built an impressive portfolio of assets,” said Chris Taylor, Chief Executive Officer of Abu Dhabi Finance. “This achievement is a testament to our exceptional customer service and robust approach to risk management.”
