ADIB recommends cash dividend of 46.6% of net profits for fiscal year 2020

ADIB reported a net profit of $435.6mln for the full year 2020

  
The corporate logo of Abu Dhabi Islamic Bank is seen in Dubai, United Arab Emirates, December 31, 2018.

The corporate logo of Abu Dhabi Islamic Bank is seen in Dubai, United Arab Emirates, December 31, 2018.

REUTERS/Hamad I Mohammed

ABU DHABI - Abu Dhabi Islamic Bank (ADIB) has announced that its Board of Directors recommended a cash dividend of 20.58 fils per share which represents 46.6 percent of net profits for the fiscal year ending 31st December, 2020.

The dividend distribution is pending shareholders' approval at the bank's general assembly meeting, which is scheduled for 4th April, 2021.

ADIB reported a net profit of AED1.6 billion for the full year 2020. Throughout 2020, ADIB employed a rigorous approach to cost management, which resulted in a reduction of 7.7 percent year on year in operating expenses, achieved through the successful implementation of technology-led initiatives that reduced the cost of sales and customer acquisition while also streamlining internal processes.

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

In 2020, ADIB raised the percentage of foreign ownership limit from 25 percent to 40 percent of its issued capital in response to heightened interest from international investors in the bank, and in line with the ADIB’s efforts and commitment to diversifying the bank’s investor base.

© Copyright Emirates News Agency (WAM) 2021.

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