Abu Dhabi Islamic Bank posts 38% dip in net profit for 2020; approves 46.6% cash dividend
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Abu Dhabi Islamic Bank posts 38% dip in net profit for 2020; approves 46.6% cash dividend

Abu Dhabi Islamic Bank posts 38% dip in net profit for 2020; approves 46.6% cash dividend

Its revenues also pared to Dhs5.35bn in 2020

Abu Dhabi Islamic Bank (ADIB) reported a net profit of Dhs1.6bn for the full year of 2020, dipping 38.4 per cent from Dhs2.6bn for 2019.

Its revenues also pared to Dhs5.35bn last year, compared to Dhs5.91bn in 2019. Meanwhile, its total assets for 2020 equalled Dhs127.8bn, up slightly from Dhs125.98bn in 2019.

As of December 31, 2020, ADIB continues to maintain a capital position with Common equity Tier 1 ratio of 12.94 per cent and Capital adequacy ratio of 18.80 per cent after the dividend adjustment, above regulatory requirements.

The bank posted a reduction of 7.7 per cent year-on-year in operating expenses, achieved through the implementation of technology-led initiatives that reduced the cost of sales and customer acquisition while also streamlining internal processes.

Shareholders of ADIB also approved the distribution of a cash dividend of Dhs20.58 fils per share, representing 46.6 per cent of net profits for the fiscal year ending December 31, 2020.

In 2020, ADIB raised the percentage of foreign ownership limit from 25 per cent to 40 per cent of its issued capital in response to interest from international investors, and to diversify the bank’s investor base.

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.”

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