ADIB Shareholders Greenlight Dividend Hike To 71 Fils Per Share In 2023

Abu Dhabi Islamic Bank (ADIB) has recently made headlines with its announcement regarding the approval of a substantial cash dividend for the fiscal year ending 31st December 2023. The General Assembly has sanctioned a cash dividend of AED2.595 billion, translating to 71 fils per share. This marks a significant increase from the previous year's 49 fils per share, accounting for 49 percent of the bank's net profit for the year.

ADIB's financial performance in 2023 has been noteworthy, achieving a record Return on Equity (ROE) of 27.1%. This figure not only highlights the bank's strong operational momentum but also reflects the robust and resilient nature of the local economy. The bank's commitment to strategic initiatives has played a crucial role in this achievement.

During the General Assembly meeting, several key documents were approved, including the Board of Directors' report, the auditors' report, and the financial statements for 2023. Jawaan Awaidha Suhail Al Khaili, ADIB's Chairman, expressed his gratitude towards shareholders for their continuous support and confidence in the bank's vision. He remarked on the exceptional results of 2023, where ADIB surpassed the AED5 billion milestone in net profit, attributing this success to strategic initiatives such as income diversification and expansion into new segments.

Nasser Al Awadhi, ADIB's Group Chief Executive Officer, shared insights into the bank's remarkable financial outcomes in 2023. With a net profit increase of 45% reaching a historic high of AED5.25 billion and a 36% revenue growth, ADIB's success was driven by increased transaction volumes and improved margins. The bank attracted over 206,000 new customers, thanks to its strong market position and digital initiatives.

Looking ahead to 2024, amidst global economic uncertainties, ADIB remains confident in its financial stability and innovation focus. The bank plans to continue identifying new growth areas and maintaining income momentum across the group. Additionally, ADIB has made significant strides in enhancing its digital presence and actively engaging digital customers through its mobile app improvements.

In alignment with sustainability goals, ADIB has also fortified its ESG strategy and governance framework. This initiative is part of the bank's commitment to integrate sustainability into its operations fully, following the UAE's Year of Sustainability extension. Through these efforts, ADIB aims to pioneer innovative solutions that foster economic and sustainable development for a prosperous future.

ADIB's record-breaking performance in 2023 is a testament to its growth across all businesses, market share expansion, customer finance increase, and income growth. The bank's dedication to growth, performance, and innovation is evident through its strengthened ESG strategy and governance framework, setting a solid foundation for sustainable banking over the next three years.

With inputs from WAM