FINANCIAL INSTITUTIONS REPORT

Financial Institutions Report

Financial Institutions Report

Background

Abu Dhabi (ABCD) is a commercial bank that runs its operations in United Arab Emirates. The bank is public Ltd. bank that was established in 1985. The bank provides a variety of services to its customers like wholesale banking, consumer banking, treasury services related to the investment, trade services, and cash management services and financing facilities. Apart from a wide range of services the bank also provides several kinds of products in order to facilitate their customers for example credit cards, debit cards, account deposits, treasury, security deposits and etc.

Currently Abu Dhabi Commercial Bank is running its 43 branches in UAE and is also operating two branches in India. Apart from providing commercial bank services the Abu Dhabi Bank is also have the license of providing Islamic Finance to the customers. The Bank has a subsidiary company that is Islamic Finance PSC and also has its stakes in the RHB Capital Berhad which is one of the leading financial institutions in Malaysia. The main markets where Abu Dhabi Commercial Bank is providing its financial services are UK, USA, India, Malaysia and Luxemburg. By operating in more than one country the bank has diversified its investments in order to avoid the intensity of risk present in the UAE banking sector.

The financial background and key shareholders in the Abu Dhabi Commercial Banks include:

Company Overview

Stock Market

Abu Dhabi Securities Exchange

Paid up Capital

5595597381

Par Value of Shares

AED 1.00

Outstanding shares

5595597

Key Shareholders:

Abu Dhabi Investment Council

58.08%

Tasameem Real Estate Company

5.97%

Thus the above information summarizes the shareholders; size of the bank and estates the line of business followed by Abu Dhabi Commercial Bank.

Banking Environment in UAE

According to the Report conducted on the banking sector of UAE it has been found that till the year 2013 among all the middle- east countries, UAE banking sector is the fastest growing sectors of the world. The report also mentioned that Islamic Banking also was able to create its niche market and was able to contribute in the growth of the banking sector.

Positive Factors

There were a number of factors that have contributed towards the success of the banking sector. The positive factors that have an impact on the growth in the banking sector are: firstly the interest rate scenario in UAE has been favourable for the banking sector and thus all the banks including Abu Dhabi Commercial Bank was able to attract more and more customers in the commercial and Islamic bank sectors of the banking industry. The second factor that led to the positive impact in the UAE banking industry is due to maintenance of favourable macroeconomic environment established by the UAE government which supported all the banks and helped them in increasing the profitability of the organization. The other factor that contributed towards the positive outcome in the UAE banking industry was the fact that like many other banks present in the banking industry Abu Dhabi Commercial Bank was able to respond to the growing credit card market, ATMs and POS terminals ...