Shareholders of Abu Dhabi Islamic Bank (ADIB) have approved the distribution of cash dividends of 28.87 per cent for 2017 at the bank’s Annual General Meeting (AGM). The cash dividend represents 39.76 per cent of full year net profits for 2017.
The Board of Directors Report, the Auditors Report and Financial Statements for 2017 were also approved at the AGM.
“Adhering to our disciplined, long-term growth strategy allowed ADIB to take advantage of a more stabilised operating environment in 2017. Firmer oil price and burgeoning confidence in the global economy, combined with opportunities to introduce new digitally-enabled products and services, provided a tailwind for ADIB to execute its strategy. Amid this backdrop, the bank delivered strong operational and financial performance, achieving a 4.6 per cent year-on-year growth in revenues and a 17.7 per cent increase in net profit to AED 2.3 billion, a record figure for ADIB. During the year, we welcomed approximately 62,000 new customers with a strong offering of products and services, easily accessed through digital platforms,” said Khamis Buharoon, ADIB’s vice chairman and acting CEO, who presented the bank’s Board of Directors’ Report on behalf of ADIB’s chairman.
During his speech, Buharoon commented on ADIB’s successful implementation of a new points-based system approved by the UAE Central Bank to promote the entry of Emiratis into the financial sector while also enhancing career development opportunities. ADIB remains one of the leading banks in advocating the recruitment, development and promotion of local talent. The Bank now employs 757 Emiratis, one of the highest ratios amongst UAE banks.
ADIB reported a record net profit of AED 2.3 billion for 2017, up 17.7 per cent from 2016, driven by higher income from fees, foreign exchange, investments and reduction in cost of credit. Revenue increased by 4.6 per cent to AED 5.6 billion, while the bank also benefited from lower credit provisions and impairments in 2017 decreasing by 18.5 per cent from a year earlier.
ADIB continued to focus on innovation and automation, and to maintain its market leading position in digital banking in 2017. ADIB’s digital agenda is about enhancing the customer experience, making it simpler, faster and more cost effective to access high quality financial services, while ensuring that customers continue to receive a highly-personalised service. Over 95 per cent of financial transactions were carried out on ADIB’s digital platforms during 2017, including an average of two million mobile transactions every month. The bank’s investment in digital platforms, to complement an extensive branch network, helped to achieve customer growth of 6.7 per cent year-on-year to over 982,000.