Abu Dhabi Commercial Bank has formally completed its previously announced merger with domestic peers Union National Bank and Al Hilal Bank.

The combination creates the third largest lender in the UAE with around $115bn in assets.

Abu Dhabi banks merger: Details

In January this year, the three banks reached agreement to merge their banking operations.

Under the combination plan, Abu Dhabi Commercial Bank formally merged with Union National Bank. Subsequently, the combined entity was acquired Al Hilal Bank.

The Government of Abu Dhabi owns 60.2% in the group through the Abu Dhabi Investment Council.

Union National Bank has been dissolved with its shares delisted from the exchange. Al Hilal Bank will continue to retain its identity and will operate within the merged bank as separate Sharia-compliant lender.

ADCB Group CEO Alaa Eraiqat was quoted by media sources as saying: “In today’s financial industry, scale is vital for us to operate successfully and achieve our goal of sustainable, long-term growth.

“This merger creates a resilient banking group with the capacity to provide excellent service for our customers in our core market, the UAE.”

The Abu Dhabi banks merger represents the latest consolidation in the Gulf’s banking sector. Currently, multiple lenders are evaluating merger or combination in a bid to strengthen profit margins.

Saudi Arabian lender National Commercial Bank (NCB) is currently negotiating a merger with domestic peer Riyad Bank.