Abu Dhabi Islamic Bank shareholders approve lifting foreign ownership cap

Shareholders also approve a dividend of 27.38 fils a share for 2019

ADIB on Sunday said its group chief executive Mazin Manna has stepped down. Dana Smillie / The National

Abu Dhabi Islamic Bank secured shareholders’ approval to raise its foreign ownership limit to 40 per cent, up from the current 25 per cent, as the lender looks to expand its investor base.

Shareholders also approved a dividend of 27.38 fils per share for 2019 at its annual general meeting, the bank said in a statement on Sunday.

“2019 marked another successful year for ADIB with a healthy increase of profit and revenues across key businesses,” Mazin Manna, ADIB group chief executive, said.

“This has been complemented by our discipline in managing costs across the bank by implementing a number of optimisation initiatives, resulting in a flat expense base. In addition, our investment into digital transformation has proven successful, enabling us to maintain a seamless service to customers at a time when we are all trying to limit our movement.”

ADIB saw a 4 per cent rise in the full-year net profit in 2019, as revenue climbed and income from investments rose.

Net profit for the 12-month period ending December 31 reached Dh2.6 billion. Operating profit increased 4.4 per cent to Dh3.26bn, boosted by a 30.7 per cent increase in investment income. A 23.6 per cent rise in foreign exchange income also contributed to a rise in annual operating profit.

ADIB’s move to increase its foreign ownership limit is in line with other financial institutions that are raising ownership caps on their stocks to attract more global investors, after the UAE eased restrictions last year.

In March, Dubai Islamic Bank secured shareholders’ approval to raise its foreign ownership limit to 40 per cent

First Abu Dhabi Bank and Emirates NBD have also sought shareholder approval to lift their ownership limits.