Abu Dhabi Commercial Bank recommends Dhs1.878bn in cash dividends for 2020

Abu Dhabi Commercial Bank (ADCB) has recommended a cash dividend of Dhs0.27 per share, translating to a pay-out of Dhs1.878bn, or 49 per cent of the net profit for 2020.

“As the new chairman of ADCB, I am honoured to participate with the various stakeholders in building on the bank’s strengths to capitalise on the fundamental transformation we see taking place across many sectors of activity,” said Khaldoon Khalifa Al Mubarak, chairman of the board of directors, at the lender’s 36th Annual General Assembly held virtually.

“Despite the complex operating environment of 2020, the merger with Union National Bank and Al Hilal concluded successfully. Moreover, and to accompany the transformation we see in both the business and consumer segments, ADCB has adopted a five-year development strategy that aims to broaden the bank’s product offering and coverage, and at the same time strengthening its financial performance.

“During April 2020, the eleven-month integration process with Union National Bank and Al Hilal Bank concluded. The merger establishes ADCB as the third-largest financial institution by assets in the UAE, with over one million customers.

“ADCB is now entering its next phase of development, focusing on digital transformation, delivering sustainable growth and continuously improving and innovating our customer experience.

The attendees approved the appointment of Ernst & Young as the external auditors for the year 2021 and authorised the Board of Directors to determine their fees for the same year, official news agency WAM reported.

Earlier this month, ADCB signed an agreement to acquire a portfolio of approximately 1,000 mortgages from Abu Dhabi Finance (ADF).

Read: ADCB expands mortgage business, acquires portfolio from Abu Dhabi Finance

The transaction offers further growth for ADCB’s retail and SME businesses in line with its strategy and risk management framework, scales the bank’s home finance business and introduces more customers to its wide range of products and services.

ADCB posted a net profit of Dhs3.8bn for the year 2020, dropping 20.66 per cent from Dhs4.79bn in 2019.