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Abu Dhabi Islamic Bank’s (ADIB) shareholders have approved an increase in the bank’s foreign ownership limit to 40 percent, from the current 25 percent.
The increase comes as a response to interest from global investors, ADIB said in a statement.
ADIB’s shareholders also approved the distribution of 27.38 fils per share cash dividends for the year 2019, representing a 38.23 percent of the bank’s full year net profits.
The bank’s net profit rose to 2.6 billion dirhams ($707.9 billion) in 2019, up from 2.5 billion dirhams in 2018. ADIB’s net revenues increased by 2.5 percent last year to 5.9 billion dirhams from 5.8 billion dirhams in 2018.
Total assets grew to 125.9 billion in 2019, a 0.6 percent increase from 125.2 billion reached at the end of 2018. Net profit margin was at 4.25 percent last year.
Other banks in the country have also raised the foreign ownership cap on their stocks, after the UAE eased restrictions in 2019.
First Abu Dhabi Bank (FAB), the largest bank in the United Arab Emirates, increased the cap to 40 percent last year, up from 25 percent.
Dubai’s largest bank, Emirates NBD, raised foreign ownership limit in September 2019 to 20 percent from 5 percent previously, and had announced intentions to raise the limit to 40 percent in the future.
Earlier in March, Dubai Islamic Bank’s shareholders voted to raise the foreign ownership limit to 40 percent from 25 percent earlier.
(Reporting by Gerard Aoun; editing by Seban Scaria)
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