Shareholders of Abu Dhabi Islamic Bank (ADIB) have approved the distribution of 24.52 per cent cash dividends for 2016 at the bank’s Annual General Meeting (AGM) held yesterday (April 2).

The cash dividend represents 39.8 per cent of full year net profits for 2016, and is equivalent to Dh780 million ($212 million).

The Board of Directors Report, the Auditors Report and Financial Statements for 2016 were also approved at the AGM.

Khamis Buharoon, vice chairman of ADIB, presented the bank’s Board of Directors’ Report on behalf of ADIB’s Chairman Jawaan Awaidha Suhail Al Khaili.

“ADIB delivered strong results in a challenging operating environment in 2016. Strategic investments in areas that will support the bank’s future growth, including enhancing customer experience and advancing our digital capabilities, led to the bank welcoming 42,000 new customers in the year, bringing the total to over 920,000. This contributed to a robust growth in revenues and, coupled with strong expense discipline, resulted in an increase in profits,” Buharoon said.

Over the past year, the bank has been able to achieve what is considered the highest Emiratisation rate amongst all UAE banks in 2016, with 850 UAE nationals working at the bank across all departments and positions, Buharoon noted.

He continued: “Our prudent and ethical approach to banking has enabled ADIB to navigate macroeconomic volatility over the last year and will underpin our approach for long-term sustainable growth. ADIB remains one of the most liquid banks in the UAE and, led by an experienced senior management team, is well-placed to support the long-term diversification of the economy, and development of a stable banking sector.

“We are prepared for any vital changes in the market’s environment and we still expect modest growth in clients’ financing levels and a rise in provisioning, despite promising economic expectations in the UAE and oil prices recovery.”

ADIB posted an increase in net revenues for 2016 by 4.9 per cent to Dh5.39 billion, with the bank’s total assets rising 3.3 per cent to Dh122.3 billion. ADIB posted a net profit of Dh1.95 billion in 2016, a 1 per cent increase on the previous year. Moreover, in 2016, ADIB focused on strengthening investments in areas that would reinforce future growth, including enriching customers’ experiences and developing digital capabilities, in attempts to become the customers’ favourite digital bank.

Today, the bank has the biggest Internet and mobile phone-operated financial services customer base in the UAE. Also, the number of digital channels doubled in the past 12 months, whereas smartphone-operated transactions increased by 73 per cent per annum. Today, 99 per cent of monetary operations are performed via digital channels, including ATMs, and 25 per cent of all transactions are done via smartphone applications, whereas 48 per cent of all active customers use mobile phone applications.

The bank’s investment in digital platforms, to complement an extensive branch network, helped to achieve 4.9 per cent growth in customer numbers to over 920,000 over the year. – TradeArabia News Service