Operational Review | Wholesale Banking
Awards endorse market-
leading capabilities

Wholesale Banking delivered a strong franchise performance in 2012. Main highlights this year were a 28% increase in client current account balances with increased CASA (current and savings accounts) granularity and SME performing well with a more than 90% increase in credit approvals. Further highlights included a significant increase in corporate/government transaction banking mandates, record cash fees generated, good traction in trade income, encouraging service scores, and underlying improvement in the loan book and performance of challenged credit exposures.

Costs remained under tight control despite significant investment in the franchise, with the growth in CASA balances contributing to lower cost of funds for the Bank. This came on top of a strong CASA performance in 2011, and included 80 new cash mandates (more than double 2011) from corporate and government clients across the UAE, leveraging our ProCash platform.

Significant enhancements to the functionality of our ProCash cash management platform enabled us to win more new cash management mandates. Our view that this is the market-leading cash management platform in the UAE was borne out by a number of awards last year, such as Best Transaction Bank UAE 2012 by Banker Middle East and ranking third in EuroMoney’s 2012 Middle East/ North Africa cash management – the highest position for any regional bank.

Strategic alliances signed with Kookmin Bank of Korea and Banco Santander now complement our existing successful arrangement with Bank of America Merrill Lynch to benefit international clients and multinational corporate counterparties.

The significant increase in net interest income from a stable asset book reflects the quality of lending discipline and the focus on managing returns, while strong growth in the mid-corporate segment creates a platform for positive revenue traction over the next few years.

The strong lending platform created in the SME sector includes a very significant increase in approved credit facilities, further underlining our commitment to this vitally important part of the UAE’s economy. The SME business continued to launch new products and initiatives in 2012, including the Freezone Platinum current account, Elite and Platinum Call Account, Express Business Finance, Pre-shipment Finance, and a new dedicated SME branch in Jebel Ali Free Zone.

Our Corporate Credit Transformation programme delivered faster credit turnaround times, streamlined processes, and simplified documentation for clients – on average we have roughly halved the lead time between credit application and disbursement. We also doubled headcount in our dedicated service team for transaction banking clients which has strong client affinity. This team is co-located with our Operations teams to maximise the partnership to support the client.

Intensive Credit risk training was completed for all relevant staff – a major undertaking between front line and Risk involving three one-week residential courses supported by Moody’s. Training in sales and negotiation skills across the front line was also intensified.

Transformation of ADCB India was completed, with the implementation of a new core banking system, hire of new Country CEO, full clean-up of the loan book to a position of zero net/gross non-performing loans, strong year-on-year revenue growth, and improved regulatory rating. Implementation of a new core banking system for the India branches replaced the previously obsolete systems, supporting our growth ambitions in the Indian market.

The strong year in investment banking included our pivotal role in the Jebel Ali Free Zone sukuk issue, the Dolphin bond – where ADCB was the only local bank bookrunner – and innovative restructure of the debts of Global Investment House. ADCB was also a mandated lead arranger and bookrunner on the Dubai Duty Free transaction.

The Bank continued to play a key role in supporting the national development and infrastructure goals of the UAE through the provision of funding for key projects by Government and Governmentrelated enterprises, both in debt and capital market transactions and bilaterally, together with the delivery of other banking services to support the operational requirements of these critical clients.

Main highlights this year were a 28% increase in client current account balances with increased CASA (current and savings accounts) granularity and SME performing well with a more than 90% increase in credit approvals.


Significant enhancements to the functionality of our ProCash cash management platform enabled us to win more new cash management mandates.


Strategic alliances signed with Kookmin Bank of Korea and Banco Santander now complement our existing successful arrangement with Bank of America Merrill Lynch to benefit international clients and multinational corporate counterparties.