ADIB general assembly elects new board of directors

Shareholders of Abu Dhabi Islamic Bank (ADIB) have elected a new board of directors at the annual general meeting (AGM) that took place on March 17, 2022. They also approved the distribution of cash dividends of 31.1155 fils per share, which represents 48.5 per cent of the bank’s net profit for the fiscal year ending December 31, 2021.

During the meeting, ADIB general assembly also approved the board of directors’ report, the auditors’ report, and the financial statements for the year 2021. Serving a three-year term, the newly-elected 2022 board of directors comprises Jawaan Awaidha Al Khaili, Khalifa Matar Al Mheiri, Najib Youssef Fayyad, Abdulla Ali Musleh Al Ahbabi, Faisal Sultan Al Shuaibi, Abdul Wahab Al Halabi and Maha Al Qattan.

“We are pleased to announce the election of a new Board of Directors with a number of prominent leaders in business, strategy, and the financial and banking services sector. We are confident in their ability to support ADIB to further consolidate its position as a leading bank in the Islamic banking sector. I also extend my thanks and gratitude to the previous board of directors that served from 2019 till 2021 for their precious efforts in supporting the bank’s progress over the past years,” Jawaan Awaidha Suhail Al Khaili, ADIB’s chairman, said.

He said ADIB responded to the uptick in commercial activity well, delivering a strong financial performance.

“The prudent provisions we had taken in 2020 were able to be revised downwards by some 27 per cent. We ended 2021 with a regulatory capital position which is strong and resilient, with a Capital Adequacy Ratio of 18.6 per cent, comfortably exceeding Central Bank guidance,” he said.

He added that ADIB was able to grow its balance sheet by seven per cent to Dh137 billion and increase its deposits by eight per cent. This foundation delivered a return on equity of 14.3 per cent, an increase of 463 basis points compared to 2020, which is an outstanding performance that was mainly based on growth in revenues and reduction in costs.

Nasser Al Awadhi, ADIB’s group chief executive officer, said: “A glance at the financials shows that 2021 was a positive year in terms of net profits, revenues, capital and returns. This was achieved through a combination of revenue growth and an effective cost control strategy, coupled with an improving macro environment. Despite a low-rate environment, our net profit margin ‘NPM’ remained market-leading at 3.25 per cent for the period, aided by the low cost of funding that the bank enjoys by virtue of its higher Current and Savings account (CASA) balances.

“The outstanding performance not only reflects solid momentum across our core businesses and an improved macroeconomic backdrop but also was the outcome of our strategic review that was conducted to unlock value, drive growth, and prepare the Bank for the future. ADIB was able to make tangible progress in 2021 against our strategic initiatives to drive business growth where we continued to accelerate investments in products, services, and technology.”

ADIB had reported a 45 per cent YoY growth in its net profit to Dh2.3 billion for the fiscal year 2021. These results were driven by strong revenue growth, continued improvement of cost base and reduction in provisions. The bank’s revenues in 2021 recorded a growth of 4four per cent to Dh5.5 billion driven by an increase in income from non-financing activities by nine per cent. The successful implementation of cost control processes and continuous investment in digital initiatives contributed to a decrease in operating expenses by eight per cent year-on-year, which led to an improvement in the cost-to-income ratio by 5.1 percentage points to 40.7 per cent.

– muzaffarrizvi@khaleejtimes.com