Shareholders of Abu Dhabi Islamic Bank (ADIB) have approved the distribution of a cash dividend of AED20.58 fils per share, representing 46.6 percent of net profits for the fiscal year ending 31st December, 2020, as well as the Board of Directors Report, the Auditors Report and Financial Statements for the year.
In its 2020 annual report, ADIB stated that despite the challenging operating environment caused by COVID-19, the bank’s robust capital and liquidity position enabled it to provide continuous support to customers, employees, and the community.
The bank saw a sharp rebound in its H2 2020 performance, a testament to its resilience, digital capabilities and the flexibility and dedication of its employees.
Commenting on the bank’s financial performance in the annual report, Jawaan Awaidah Al Khaili, Chairman of ADIB, said, “ADIB demonstrated its strength, resilience and adaptability in 2020 delivering encouraging results amidst unprecedented challenges. The bank’s recovery in the second half of the year was particularly pleasing and represented an immediate return to our long-term trajectory of delivering strong operational and financial performance.”
ADIB reported a net profit of AED1.6 billion for the full year 2020. The bank demonstrated a strong recovery of 73 percent growth in net profit in H2 2020 compared to H1 2020 despite the lingering effects of the COVID-19 pandemic. This was driven by an increase in revenues due to a rebound in the UAE economic activity and an improvement in business momentum.
Throughout 2020, ADIB employed a rigorous approach to cost management, which resulted in a reduction of 7.7 percent year on year in operating expenses, achieved through the successful implementation of technology-led initiatives that reduced the cost of sales and customer acquisition while also streamlining internal processes.
As of 31st December, 2020, ADIB continues to maintain a robust capital position with Common equity Tier 1 ratio 12.94 percent and Capital adequacy ratio of 18.80 percent after the dividend adjustment, comfortably above regulatory requirements.
In 2020, ADIB raised the percentage of foreign ownership limit from 25 percent to 40 percent of its issued capital in response to heightened interest from international investors in the bank, and in line with the ADIB’s efforts and commitment to diversifying the bank’s investor base.