The following section is a discussion exploring how the Board and the MEC work together to continue to successfully lead the Bank through challenging times.

Resilience in the Face of the Low Oil Price Environment and the Changing Landscape

Mohamed Sultan Ghannoum Al Hameli
The low oil price environment has affected the sentiment of the business community. It has not diminished our confidence in the UAE and in ADCB. The diversified economy remains a strength.

We are fortunate as a bank to be operating in the Emirates. The Government has a long-term vision of diversifying away from oil, investing in and supporting industries such as tourism, hospitality, logistics, education and healthcare. They have opened opportunities for the banking sector to participate in this growth.

Mohamed Ali Al Dhaheri
Unfortunately, low oil prices have dampened growth across the region and created a liquidity squeeze in the financial sector. This has resulted in an uptick in a number of costs, particularly the cost of funds.

Mohamed Sultan Ghannoum Al Hameli
Managing risk remains a high priority. The Bank has been very selective about the kinds of loans to take on board. We believe this has made ADCB more resilient than other institutions.

Aysha Al Hallami
As you mentioned, this is a very disciplined bank when it comes to taking on risk. Even with this tough cycle, the Bank has a loan book of very high quality. The Bank's cost of funds is generally low because of the strategic focus on low-cost CASA deposits (Current Accounts and Savings Accounts). These factors keep ADCB safe in times of crisis. We are well-prepared to succeed in this environment. ADCB is a very well established bank with strong management, a strong core business and loyal customers.

Sir Gerry Grimstone
The world is very uncertain at the moment. There is a global revolution manifesting itself in different ways. You have the rise of populism. You have Britain voting to leave the European Union. There is the election of Mr. Trump, and the continuing low price of oil.

The safe way of acting in uncertain times is to be very responsive to changes in your environment. A bank like ADCB, a one-country bank in a country still partly dependent on oil and gas revenues, cannot escape that volatility. The job of the Board and management is to steer ADCB through these difficult times as the safe, responsive and resilient bank it has become.

Mohamed Sultan Ghannoum Al Hameli
The landscape of the UAE banking sector also continues to change. There has been a mega-merger. We see this as an opportunity. Whilst key competitors are focused on consolidation, ADCB has an opportunity to grow. ADCB thrives amongst healthy competition.

Aysha Al Hallami
Fewer banks in the UAE would be good for us. We can increase our market share.

Mohamed Ali Al Dhaheri
If you look at the UAE in general, it is over-banked. Small banks have been operating in the shadows of large banks. Having one large bank is not something that threatens any other bank. Prior to this merger, the largest bank in the UAE was twice the size of ADCB. There was no issue. It depends on the way you manage the business. You can attract customers even if you are operating in this kind of environment.

Sir Gerry Grimstone
ADCB is very nicely placed as a powerful number three in the marketplace, having to be more nimble, substituting brain power for sheer financial power. ADCB is a very agile bank, with tight chains of command and few layers of management between the chief executive and the staff.