ABU DHABI, May 6 (Reuters) - Abu Dhabi Commercial Bank , which announced its formal merger with two smaller banks last week, reported a 5 percent drop in first-quarter profit, missing analysts’ forecasts.
The results are on a standalone basis for ADCB, which said the bank’s integration with Union National Bank and Al Hilal Bank will be in phases over the next 18 to 24 months.
ADCB made a net profit of 1.15 billion dirhams ($ 314 million) in the three months ending March 31, 2019 it said in a statement. That compared with 1.21 billion dirhams profit made in first quarter 2018. SICO Bahrain had forecast ADCB would make a fourth quarter profit of 1.29 billion dirhams, while EFG Hermes estimated 1.30 billion dirhams.
ADCB said the merger between the three banks is expected to deliver annual cost synergies of approximately 615 million dirhams. (Reporting By Stanley Carvalho; Editing by Saeed Azhar)