Mortgage News Daily – ADCB expands mortgage business, acquires portfolio from Abu Dhabi Finance
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 businesses in line with its strategy and risk management framework. It also scales the bank’s home finance business and introduces more customers to ADCB’s wide range of products and services.
The assets, with a gross book value of Dhs1.13bn as at January 31, 2021, comprise approximately 76 per cent residential mortgages and 24 per cent commercial mortgages. All the mortgages are conventional, with just under half of the portfolio collateralised by real estate in Abu Dhabi, and the remainder distributed across Dubai and other emirates in the UAE.
ADCB expands mortgage business through acquisition
of portfolio from Abu Dhabi Finance. Learn more at https://t.co/d4ezg8xviJ pic.twitter.com/3u20yGT88B
— ADCB بنك أبوظبي التجاري (@OfficialADCB) February 28, 2021
ADF customers are expected to transfer to the ADCB banking platform during the first half of 2021, subject to the transaction receiving approval from the Central Bank of the UAE and other relevant authorities.
Arup Mukhopadhyay, head of the consumer banking Group at ADCB, commented: “The acquisition of this collateralised portfolio expands our mortgage book, enhancing the diversification of our assets and customer base. The bank continues to invest significantly to provide a leading real estate finance offering. We have enhanced our digital capabilities and partnered with leading property 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 up an impressive portfolio of assets,” said Chris Taylor, chief executive officer at Abu Dhabi Finance. “This achievement is a testament to our exceptional client service and robust risk management approach.”