KHALEEJ TIMES, Tuesday, Apr 6, 2021 | Shaaban 23, 1442
ADIB’s shareholders approve cash dividend of 46.6% of net profits for 2020
Emirates:
Shareholders of Abu Dhabi Islamic Bank (ADIB) have approved the
distribution of a cash dividend of Dh20.58 fils per share, representing 46.6
per cent of net profits for the fiscal year ending December 31, 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 Dh1.6 billion for the full year 2020. The bank
demonstrated a strong recovery of 73 per cent 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 per cent 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 December 31, 2020, ADIB continues to maintain a robust capital position
with Common equity Tier 1 ratio 12.94 per cent and Capital adequacy ratio of
18.80 per cent 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
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