Merger gains are showing through for Abu Dhabi Commercial Bank, which has reported profits of Dh4.8 billion. Image Credit: Gulf News Archive

Dubai: Abu Dhabi Commercial Bank (ADCB) reported Dh4.8 billion in net profit for 2019, following nearly flat year-on-year growth after its merger with Union National Bank and Al Hilal Bank earlier in the year.

The board of directors recommended a cash dividend of Dh0.38 per share, translating to a payout of Dh2.6 billion in total – or 50 per cent of net profit.

The results for the full-year combine the financials of all three, which now operate as part of the ADCB Group. ADCB acquired Al Hilal in May, and merged with the now-dissolved UNB. In a statement, ADCB said that it is making “rapid progress” to realise its synergy target of Dh840 million by the end of 2021.

“The bank, which now serves over one million customers, benefits from resilience and scale necessary to navigate continued challenges, and the financial strength to take advantage of new growth opportunities,” said Eissa Al Suwaidi, chairman of ADCB Group.

The results show “that the benefits of the merger are already coming through,” the chairman added.

In 2019, ADCB saw a Dh7.3 billion increase in customer deposits, benefiting from lower interest rates in the UAE. Total interest and Islamic financing income also grew by 28 per cent year-on-year to Dh9.2 billion.