Abu Dhabi Commercial Bank (ADCB) made big moves over the weekend to consolidate and diversify its business. The UAE’s third-largest lender acquired a portfolio of roughly 1,000 mortgages from Abu Dhabi Finance (ADF) in an effort to expand its business into the country’s home finance sector.
The portfolio, with a reported gross book value of AED 1.13b as of January 31st, is comprised of 76% residential mortgages and 24% commercial mortgages. All the mortgages are conventional, with a little less than half collateralized by real estate in Abu Dhabi and the rest spread out across the country’s other emirates.
A little diversification is always a good idea, right? Shares of ADCB have risen over 1% on the news.