Business Review Treasury and Investments Group
Treasury once again demonstrated a strong performance in 2019. Prudent balance sheet management, a healthy investment book and tactical interest rate views served to protect our profitability against a backdrop of falling interest rates and helped us navigate the headwinds of a volatile global marketplace.
The impact of this year’s merger did not distract us from our task. Advanced diligent planning, seamless execution and strong industry expertise meant we were able to integrate the Treasury functions of Al Hilal Bank and Union National Bank (UNB) just days after the legal merger in May. The process, which involved migrating around 30% of UNB’s balance sheet, was seamless with no disruption to business as usual for any of our customers. It also allowed the Bank to achieve greater synergies.
In the capital markets, Treasury celebrated a stellar year recording the highest wholesale funding in ADCB Group’s history with a total of USD 3.8 billion raised in one calendar year. This was achieved by further diversifying funding formats and enlarging the Bank’s geographical coverage. The major deals completed this year were:
- Three Formosa issuances totalling USD 385 million
- First Indonesian Rupiah (IDR) bond issuance cash settled in US dollars (USD 140 million)
- A 5.5-year CHF 200 million bond
- Three five-year bond issuances totalling USD 715 million
- Loan facilities totalling USD 975 million
In 2019, Treasury improved on its Net Promoter Score for the fifth consecutive year, which is a testament to the success of our client-centric culture and our aspiration to provide the best customer experience. In a time of transformation driven mainly by the information technology revolution, digital is one of the ways we are enhancing the customer experience and making banking easier, more efficient, and safer in Treasury. This year we added capabilities to Go Trade, our FX platform, providing clients with greater functionality. The platform continued to attract a growing number of customers, with users increasing by 24% at 31 December 2019. The bulk of transactions — around 95% — are now straight-through processing, reducing time and cost for clients and the Bank.
While plans for the LIBOR transition are likely to be a significant task for banks across the spectrum, our plans are already well-advanced, and we are considering the impact not only from a Treasury perspective but also that of the balance sheet.
As we move into 2020, we will continue to adapt our strategy to navigate the headline-driven volatility from emerging global trends.
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