Chairman’s Letter
On behalf of ADCB’s Board of Directors,
I am pleased to present ADCB’s annual report for 2011.
I am pleased to present ADCB’s annual report for 2011.
Eissa Mohammed Al Suwaidi
Chairman
During 2011, global economic development was constrained by escalating concerns about sovereign debtors in the Eurozone and elsewhere. In the UAE and the region, the banking environment remained challenging, particularly in view of ongoing regional political uncertainty. The Bank’s profitability was impacted by regulatory changes and continued efforts to restructure its asset book. Despite these challenges, ADCB delivered a very strong performance, including record net profits.
The most significant development in 2011 was the sale of the Bank’s interest in RHB Capital Berhad. The disposal realised a healthy profit, improved capital levels and enabled the Bank to focus on its core UAE market. In addition, among other achievements, the Bank continued to improve its liquidity levels and funding profile and restructure its asset book, conducted a profit improvement programme, reviewed and renewed its risk appetite aspirations, conducted its first Islamic bond (Sukuk) issuance, and launched its offshore banking services through its Jersey branch. More detail about these developments and the Bank’s financial performance in 2011 is set out in the ‘CEO’s Report’ and ‘CFO’s Report’ sections of this report. The developments mentioned here were in line with the strategy set by the Board over recent years (see inset ‘Strategic pillars’) and are described in more detail in the ‘Operational Review’ section of this report.
At the end of 2011, the Board and management began the process of refining ADCB’s strategy for 2012 and beyond. This was due for completion in early 2012.
Meantime, the Board and management have continued to focus their efforts on building a strong governance culture across the Bank. At Board level, there has been continued focus on engagement and effectiveness, through various efforts including regular evaluations, professional development, and improving boardroom procedures and practices.
Management has focused on strengthening and improving its governance structures, and information flow to and from the Board. Continued efforts have been made to build risk management capabilities, including, in particular, a programme to develop and instil a ‘unified credit culture’ among the Bank’s Board and management. More details of these efforts are described in the ‘Corporate Governance’ section of this report.
I express the Bank and its Board’s sincerest gratitude and appreciation for the continued support from the Government during 2011. The achievements set out here would not have been possible but for the wise leadership of HH Sheikh Khalifa bin Zayed Al Nahyan, the President, and HH Sheikh Mohamed bin Zayed Al Nahyan, the Crown Prince. Thanks are also due to HH Sheikh Mansour bin Zayed, the Ministry of Finance,
the UAE Central Bank, the Department of Finance, and ADCB’s majority shareholder, Abu Dhabi
Investment Council.
I also express gratitude for the support and loyalty shown by the Bank’s customers and clients throughout the year, and to ADCB’s Board members, senior management, and staff for their continued dedication
and commitment.
Eissa Mohammed Al Suwaidi
Chairman
The most significant development in 2011 was the sale of the Bank’s interest in RHB Capital Berhad. The disposal realised a healthy profit, improved capital levels and enabled the Bank to focus on its core UAE market. In addition, among other achievements, the Bank continued to improve its liquidity levels and funding profile and restructure its asset book, conducted a profit improvement programme, reviewed and renewed its risk appetite aspirations, conducted its first Islamic bond (Sukuk) issuance, and launched its offshore banking services through its Jersey branch. More detail about these developments and the Bank’s financial performance in 2011 is set out in the ‘CEO’s Report’ and ‘CFO’s Report’ sections of this report. The developments mentioned here were in line with the strategy set by the Board over recent years (see inset ‘Strategic pillars’) and are described in more detail in the ‘Operational Review’ section of this report.
Strategic Pillars
• Growth through a UAE-centric approach and controlled ‘internationalisation’
• Sustainability through liability growth
• Maintaining a culture of service excellence and efficiency
• Managing ADCB’s risks in line with a predefined risk strategy
• Attracting, developing, and retaining the best talent with incentives aligned with the strategic objectives
At the end of 2011, the Board and management began the process of refining ADCB’s strategy for 2012 and beyond. This was due for completion in early 2012.
Meantime, the Board and management have continued to focus their efforts on building a strong governance culture across the Bank. At Board level, there has been continued focus on engagement and effectiveness, through various efforts including regular evaluations, professional development, and improving boardroom procedures and practices.
Management has focused on strengthening and improving its governance structures, and information flow to and from the Board. Continued efforts have been made to build risk management capabilities, including, in particular, a programme to develop and instil a ‘unified credit culture’ among the Bank’s Board and management. More details of these efforts are described in the ‘Corporate Governance’ section of this report.
I express the Bank and its Board’s sincerest gratitude and appreciation for the continued support from the Government during 2011. The achievements set out here would not have been possible but for the wise leadership of HH Sheikh Khalifa bin Zayed Al Nahyan, the President, and HH Sheikh Mohamed bin Zayed Al Nahyan, the Crown Prince. Thanks are also due to HH Sheikh Mansour bin Zayed, the Ministry of Finance,
the UAE Central Bank, the Department of Finance, and ADCB’s majority shareholder, Abu Dhabi
Investment Council.
I also express gratitude for the support and loyalty shown by the Bank’s customers and clients throughout the year, and to ADCB’s Board members, senior management, and staff for their continued dedication
and commitment.
Eissa Mohammed Al Suwaidi
Chairman