Abu Dhabi: The ADIB (Abu Dhabi Islamic Bank) has declared a substantial dividend payout increase following a year of exceptional financial performance. The bank’s General Assembly approved a cash dividend of AED2.595 billion, amounting to 71 fils per share for the fiscal year ending December 31, 2023, up from 49 fils per share in 2022. This dividend represents 49 percent of ADIB’s net profit for the year, indicating a strong year-over-year growth.
ADIB reported a significant Return on Equity (ROE) of 27.1% for 2023, reflecting the bank’s robust operational momentum and the resilience of the local economy. This achievement is also a testament to ADIB’s commitment to strategic, transformative initiatives.
The General Assembly ratified the Board of Directors’ report, auditors’ report, and financial statements for 2023. Jawaan Awaidha Suhail Al Khaili, ADIB’s Chairman, highlighted the bank’s surpassing of the AED5 billion net profit milestone in 2023, attributing this success to ADIB’s strategic focus on income diversification, expansion into new market segments, and maintaining asset quality. He also emphasized the bank’s commitment to Environmental, Social, and Governance (ESG) principles, aligning with the UAE’s sustainability goals.
Key Highlights:
- Dividend: Shareholders approved a cash dividend of AED 2.595 billion (71 fils per share), representing a 49% increase from 2022 and nearly half of the bank’s net profit.
- Strong Financials: ADIB achieved a record Return on Equity (ROE) of 27.1%, showcasing the bank’s robust core operations and benefiting from a resilient local economy.
- Customer Growth: Over 206,000 new customers joined ADIB in 2023, reflecting the bank’s strong market position and digital initiatives.
- Expansion: Customer financing increased by AED 8 billion, demonstrating ADIB’s commitment to market share growth.
- Sustainability: The bank strengthened its ESG strategy and governance framework, emphasizing its dedication to sustainable banking practices.
Nasser Al Awadhi, ADIB’s Group Chief Executive Officer, noted the bank’s net profit soared by 45% to AED5.25 billion, with revenue growth of 36%, driven by increased transaction volumes, improved margins, and digital initiatives that attracted over 206,000 new customers. The bank also expanded customer financing by AED8 billion, in line with its growth strategy.
Looking ahead, despite global economic uncertainties, ADIB is confident in its financial strength and innovation focus to drive future growth. The bank has seen significant business expansion, enhanced digital engagement, and a commitment to sustainable banking practices, setting a solid foundation for continued success and innovation.
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