According to sources, Abu Dhabi Commercial Bank PJSC is exploring the possibility of selling more distressed assets, following a trend among Middle Eastern banks to clean up their balance sheets.

The second-largest bank in Abu Dhabi may plan to sell a bundle of non-performing loans by the end of 2025, with insiders mentioning that it is still in the early stages of considering such a move.

In 2023, ADCB made significant transactions by selling distressed debt to Davidson Kempner Capital Management LP and Grant Thornton. The bank has not yet finalized details regarding the timing or size of the potential upcoming sale, but insiders suggest it could be similar to the previous Grant Thornton deal.

ADCB declined to provide any comments on this matter. The bank recently received a credit rating upgrade from S&P Global Ratings, attributing its strengthened resilience to strategic balance-sheet derisking efforts in recent years.

Selling off problematic loans is a common strategy for banks to enhance their financial positions and manage risks effectively. Such practices are becoming more common in the Middle East, with instances like Deutsche Bank AG acquiring soured loans from First Abu Dhabi Bank PJSC and reports of similar transactions being considered by Saudi National Bank in Saudi Arabia.