26 January 2005
Abu Dhabi Commercial Bank Announces 2004 Results
ADCB reports soaring profits up 98% for 2004 and increases dividend by 80%
Abu Dhabi, 26 January, 2005: Abu Dhabi Commercial Bank (ADCB), one of the UAE's leading financial institutions, today announced a net profit for the year 2004 of AED 801 million against AED 405 million in 2003, an increase of 98 per cent. (Figures are pending Central Bank approval).
The Bank's Chairman and the Board of Directors have proposed a dividend of 45% of the issued share capital consisting of a cash dividend of 25% amounting to AED 312.5 million (2003: 25% of the issued share capital amounting to AED 312.5 million) plus a 20% issue of bonus shares amounting to AED 250 million (2003: zero) out of the profits for the year subject to the approval of the shareholders at the forthcoming Annual General Meeting.
The Bank's total assets rose to AED 38,393 million, loans and advances also increased to AED 25,931 million during 2004, increases of 34% and 35% respectively. The refocused strategy resulted in an increase of 54% in customer deposits. Non-performing loans reduced by AED 5.3 billion to AED 2.2 billion from 18% to 5% of total loans.
"ADCB continues the implementation of the strategic business initiatives begun in early 2003 which are reflected in the improved figures" said Saeed Al Hajeri, Chairman of ADCB. He went on to say "the results we are witnessing are a reflection of the hard work and commitment of everyone at ADCB; the Board, management and staff" "The challenge we gave ourselves to rebuild the foundations of the Bank and build sustainable success is apparent through the Bank's positive performance in 2004 with further positive progress expected in 2005."
"Activity in 2004 has focused on creating new and powerful dynamics through the realignment of the branch network into sales and service outlets, the introduction of new products and services and a new contact centre. We are confident that the results of last year, the business environment and the strong pipeline of new business make the prospects for the future performance of the bank very promising," stated Eirvin Knox, Chief Executive Officer of ADCB.
"The launch of the Bank's new branding and corporate image and significant progress with recoveries of non-performing loans have been highlights of the year. Also, the Bank's investment in people and IT systems continues to be a main focus in order to provide the highest levels of efficiency while significantly increasing customer satisfaction." concluded Mr. Knox.