^{Leadership Messages} Group CEO’s Message

A REIMAGINED FUTURE

Empowered by an ambitious strategy and personal connection with our customers, ADCB produced a strong operating and financial performance in 2021. We expanded and rebalanced our loan portfolio, increased fee income and accelerated digital transformation—generating greater efficiencies and an enhanced customer experience.

Our major subsidiaries, Al Hilal Bank and ADCB Egypt, also made substantial progress towards becoming important engines of growth for the Group.

The Bank reported a full-year net profit of AED 5.247 billion, an increase of 38%, delivering a return on average tangible equity of 11.4%. This was a remarkable achievement against a backdrop of low-interest rates and subdued credit growth in the UAE banking industry.

As the UAE’s economy made a steady recovery from the global pandemic, ADCB’s strong franchise is evident in all aspects of our business. It is demonstrated in our ability to attract customers through our digital platforms, the significant increase in CASA deposits, and growth in our rejuvenated capital markets advisory business. Our franchise also has wider appeal, fuelling the strong financial performance of ADCB Egypt and its emergence as a key facilitator of trade and investment flows between the UAE and Egypt. Importantly, our reputation is a defining factor in making ADCB an employer of choice for talented UAE nationals.

As an organisation, we are inspired by the resilience and the ambition shown across the UAE through challenging times. This is a country that has implemented effective strategies to combat the health and economic impacts of Covid-19 while pressing ahead with a programme of economic and social reforms that make it one of the best places in the world to do business.

The Expo, held in Dubai, embodies this confident, forward-looking spirit. The event showcases our country’s capacity to deliver complex projects and our open, tolerant and welcoming culture. It also provides us with an exciting vision of a sustainable, technology-enabled future that gives opportunity to our communities.

STRONGER CONNECTIONS AND NEW OPPORTUNITIES

The theme of ‘reimagined future, delivered every day’ resonates with us at ADCB because we see it running through many strategic projects in the UAE, including Expo in Dubai and Abu Dhabi’s initiatives to create business and lifestyle destinations. Our collective purpose is to contribute to this transformation, improving lives for individuals and businesses by building better connections in our communities.

A key component of our five-year strategy is to accelerate the digital transformation that underpins our commitment to service excellence and efficiency, which brings us closer to our customers. The results have been impressive. We have launched over 90 new digital service enhancements, and more than 860,000 customers are now subscribed to our mobile app. Digital is also spurring growth, with our onboarding app ‘Hayyak’ registering over 165,000 new customers in 2021. Furthermore, we introduced WhatsApp banking, adding another channel for customers to connect with us in real time, while our social media platforms have become important channels for authentic engagement.

While these are real gains delivered today, in parallel, we are working hard across the ADCB Group to reimagine the banking landscape of tomorrow. We have already started introducing advanced data analytics and artificial intelligence to make our services even more personalised. The Bank is also creating digital ecosystems with a wide range of partners and businesses to drive new opportunities for our customers.

Al Hilal Bank, our Shari’ah-compliant retail-focused subsidiary, is breaking new ground in this area with the launch of an innovative banking application scheduled for early 2022. The platform goes far beyond banking by providing families with a wide range of services, including an online marketplace and gamified financial education tools for children. Meanwhile, ADCB’s successful relationships, such as with Bayut’s home buying platform and Zomato, provide a flavour of more ambitious projects currently underway.

ENDOWING OUR FUTURE

As a major financial institution in the UAE, we are focusing on sustainability in its broadest sense—ensuring that our organisation remains robust and future-proof, serving the interests of all our stakeholders, including our communities.

Maintaining a resilient and healthy organisation with strong external relationships is at the core of our approach. That is why we have always focused on demonstrating leadership in corporate governance and operational excellence, while placing a high value on engagement among employees and with our customers. In 2021, the Bank continued to improve its net promoter score (NPS) to 66, and an in-depth organisational health index (OHI) survey on culture placed ADCB in the top decile of global companies.

ADCB’s response to the global pandemic epitomises our level of commitment. Not only were we the first bank in the UAE to roll out a comprehensive support package for those impacted economically, but we have also continued to work closely with customers to navigate their path to recovery. The Bank also delivered innovation to help microbusinesses, stepped up digital enhancements for easier access to banking services, and helped fund a programme to support remote learning for school children.

To ensure a consistent approach across the Group, we are now building a robust ESG strategy embedded in all aspects of our operations, from governance and risk management to our products and services. This will reinforce relationships with all customers, whether in Consumer or Wholesale Banking and support the UAE’s Net-Zero by 2050 strategic initiative.

LEADER IN EMIRATISATION

While technology is driving new opportunities for the Bank and its customers, ADCB remains a people business at its heart. We recognise the importance of a highly motivated, accomplished, and engaged employee base and seek to empower our people to lead successful careers in a rapidly evolving sector.

Through significant investment and commitment, ADCB has built a strong reputation for professional advancement, backed by a nurturing culture conducive to diversity and inclusion.

Over 80 nationalities are represented in our employee base, and we continue to attract growing numbers of highly talented UAE nationals. In 2021, ADCB recruited 477 Emiratis, continuing our record as a preferred employer, particularly among high-calibre graduates. With 1,854 Emiratis now working at the Bank and benefitting from our dedicated training and career development programmes, we are proud to have attracted one in every five UAE nationals employed in the country’s banking sector.

LOOKING AHEAD

We are embracing the future by preparing for it. That is why we will maintain the rapid pace of our digital transformation and innovation as we continue our ambitious growth journey. We have a clear roadmap for the future and the opportunity to drive long-term, sustainable growth for all our stakeholders.

I would like to take this opportunity to thank our Chairman, H.E. Khaldoon Al Mubarak, and the members of our Board and our executive management team for their leadership and continuous support. My gratitude also goes to all our customers for their trust and loyalty and to our employees for their professional excellence, unwavering commitment, and personal drive. Each and every person at ADCB Group has made an important contribution, energised by the central role that banking plays in our communities, supporting individuals and companies as they reach for their ambitions.