Group Strategy

Our Corporate Strategy provides focus and direction for our Group, enabling every individual across our Bank and subsidiaries to pull together as one and deliver sustainable growth and profitability.

Group Strategy banner

In 2020, we successfully delivered on our strategy and its five strategic pillars, which were supported by our key enablers and brought to life each day through our shared values, to create a more resilient organisation that continuously strives for excellence, innovation and outstanding customer service.

With the introduction of our new five-year strategy, we will build on this strong foundation to accelerate growth, drive digital transformation and unlock increasing value for our shareholders.

STATEGIC PILLARS HOW WE ACHIEVE IT WHAT WE DID IN 2020
GENERATE SUSTAINABLE PROFIT GROWTH THROUGH A UAE-CENTRIC APPROACH We are committed to the UAE and its economy. It provides a dynamic, growing market with great ambition and significant long-term business potential as it continues to diversify. Dedicating ourselves to this one market enables us to deeply understand our customers and focus on their developing needs.
  • Growing customer base with more than 1 million customers
  • Reduced branch network to pre-merger footprint of 54 branches in prime locations in the UAE
  • 93% of gross loans were in the UAE
  • Delivered a return on average tangible equity of 8.3%
SUSTAINABILITY THROUGH LIABILITY GROWTH AND FUNDING DIVERSIFICATION We have a diversified liability base with increasing customer deposits. Loan growth is funded through increases in customer deposits, which resulted in a significant improvement in our loan to deposit ratio since the launch of our strategy.
  • Customer deposits of AED 251 billion comprised 71% of total liabilities
  • CASA deposits of AED 127.5 billion, an increase of 25% vs. 2019
  • Wholesale funding comprised 20% of total liabilities, providing further diversification
SUPERIOR CUSTOMER EXPERIENCE THROUGH SERVICE EXCELLENCE By providing exceptional service and ensuring a consistent cross-platform experience, we anticipate the changing needs of our customers and set ourselves apart from our competitors.
  • Improved NPS scores
  • 30% of every employee’s performance objectives are measured against customer service
EFFECTIVE RISK-TAKING AND MANAGEMENT IN LINE WITH PRE-DEFINED RISK APPETITE Our disciplined approach to risk management is fundamental to protecting the Bank’s long-term financial strength and has given us the flexibility to adjust to the challenges of the operating environment.
  • Cost of risk at 1.45%
  • Enhanced bank-wide controls and security
  • Introduced a new framework for setting credit limits following an all-inclusive review of the Bank’s loan portfolio and activities across key economic sectors
EXPLOITATION OF DIGITAL FOR GROWTH AND EFFICIENCY — LEVERAGING DATA ANALYTICS Simplify the client experience and improve ecosystems for all our customers. Using technology in the right way helps us to serve our customers better, enabling faster, more secure and efficient banking.
  • Significant increase in the use of digital channels by customers
  • Launched 62 digital releases, double the total in 2019
KEY ENABLERS HOW WE ACHIEVE IT
ATTRACTING AND REWARDING THE BEST TALENT WITH INCENTIVES ALIGNED TO STRATEGIC OBJECTIVES Our long-term success depends on our people. Channelling their ambition is critical to the successful realisation of our strategic aspirations.
AGILE ORGANISATION AND INNOVATIVE CULTURE We continually enhance our ways of working. We are improving our culture by being nimbler, offering greater empowerment at all levels and reducing the number of siloes across the business.

Our Key Performance Indicators

KPI/ STRATEGIC AIM HOW WE MEASURE IT 2020
MOST VALUABLE BANK IN THE UAE Total shareholder return (TSR)

Calculated as the growth in share price, plus dividends paid to shareholders during the year. TSR is recognised as one of the best measures of shareholder returns.
370%
10-Year TSR
MOST PROFITABLE Return on average tangible equity (ROATE)

Calculated as the profit attributable to equity shareholders as a percentage of average shareholders’ equity, excluding intangible assets and Tier 1 capital notes

To increase ROATE, we focus on growing our business where risk adjusted returns are maximised and capital is efficiently deployed.
8.3%
MOST EFFICIENT Cost to Income Ratio

Calculated by dividing operating expenses by operating income.

We are re-engineering our operational processes and increasing automation in order to do more with less. We are becoming more efficient, which provides greater scope to invest in our businesses.
35.1%1
MOST RESILIENT Basic Earnings Per Share (EPS)

Calculated as profit attributed to equity shareholders, divided by the weighted average of the shares in issue during the year.
AED 0.51
BEST CUSTOMER SERVICE Net Promoter Score (NPS)2

NPS is based on the likelihood that customers will recommend ADCB to family or a friend. NPS is calculated as the percentage of customers who are promoters, rating ADCB a 9 or 10 on a 0 to 10-point scale, minus the percentage who are detractors, rating it 6 or lower.
NPS OF 67%, AN INCREASE
OF 27 NPS POINTS OVER 2014

1  Excludes integration related costs.
2 In line with our digital transformation strategy and the impact of COVID-19, NPS methodology was changed to digital channels in H2’20, therefore reported NPS scores are for Q1’20 only.