ADIB board recommends 20.58 fils per share dividend for 2020

The lender reported a strong recovery in the second half as economic activity resumed

Abu Dhabi Islamic Bank reported a full-year net profit of Dh1.6bn in 2020. Mona Al Marzooqi / The National

Abu Dhabi Islamic Bank's board recommended a cash dividend of 20.58 fils per share for 2020 financial year.

The payout is pending shareholders' approval at the company's annual general meeting on April 4, the lender said in a statement on Thursday to the Abu Dhabi Securities Exchange, where its shares trade.

Abu Dhabi's biggest Sharia-compliant lender reported a full-year net profit of Dh1.6 billion in 2020, down from Dh2.6bn in the prior year period as the coronavirus pandemic disrupted economic activity globally. However, net profit in the second half rose 73 per cent to Dh1bn compared to the first half of 2020 on the back of higher revenue as economic activity rebounded in the UAE following the easing of coronavirus-related restrictions.

Operating expenses in 2020 dropped 7.7 per cent year-on-year to Dh2.45bn as the lender implemented technology-led initiatives to reduce the cost of sales, it said in the statement.

Investment income during the period rose 15 per cent to Dh791m, while income from fees and commissions dropped 8 per cent to Dh992m.

Total assets grew 1.5 per cent year-on-year to Dh127.8bn as loans to customers grew 2.8 per cent to Dh83.4bn, fuelled by an 8.6 per cent growth in corporate funding.

In 2020, ADIB also raised the percentage of foreign ownership limit from 25 per cent to 40 per cent of issued capital to diversify its investor base.

“In an incredibly challenging year brought upon by the global Covid-19 pandemic, ADIB demonstrated strength, resilience and adaptability," chairman Jawaan Al Khaili said last month.

The bank also signed a preliminary agreement with Israel’s second-largest lender Bank Leumi after the UAE and Israel normalised relations last year.