Chairman’s Letter
On behalf of ADCB’s Board of Directors,
I am pleased to present ADCB’s annual report for 2012.
I am pleased to present ADCB’s annual report for 2012.
Eissa Mohammed Al Suwaidi
Chairman
During 2012, conditions remained challenging as uncertainty continued in the global economic environment and regional politics. Despite these challenges, ADCB delivered a good performance, including net profits of AED 2,810 mn. Excluding the non-recurring gain achieved in 2011 (disposal of the Bank’s interest in RHB Capital Berhad), net profits in 2012 were 62% higher than in 2011.
The Board of Directors and management remain focused on maximising shareholders’ value and returns. As a result of the Bank’s healthy financial position and capital base, and the good performance of the Bank’s core businesses in 2012, the Board has recommended that, in addition to the ordinary dividend, a special dividend be paid. Further details of this special dividend and the Bank’s operational performance in 2012 are set out in the Chief Executive Officer’s report.
The Board believes that the Bank’s strategic pillars and business model continue to provide a solid foundation to implement the Bank’s objectives, and have enabled the Bank to generate steady returns in 2012. During 2012 the Board and management defined the Bank’s risk appetite and developed a detailed set of strategic plans that will enable each of the Bank’s businesses to achieve the Bank’s strategic pillars in the period to 2016.
Meantime, the Board and management have continued to focus their efforts on building a strong governance culture across the Bank:
More details of these efforts are described in the ‘Corporate Governance’ section of this report. As a result of its governance efforts, the Bank won the 2012 Hawkamah award for corporate governance, as assessed by an independent committee of academics following a rigorous assessment process.
The Bank devised its corporate sustainability policy in 2012 and has published a sustainability report setting out its sustainability objectives for the coming years. In connection with these efforts, in 2012 the Bank signed a memorandum of understanding with the UAE Nationals Defaulted Debts Settlement Fund and waived 100% of receivables from 184 debt-burdened UAE nationals, at a total cost of AED 22.7 mn.
During 2012 the Bank continued to focus on attracting, training, and retaining highcalibre UAE national talent across all levels of the Bank. As at the end of 2012, 41% of the Bank’s staff were UAE nationals.
The Bank remains committed to contributing to the development of the UAE banking sector, and on behalf of the Board I extend our most sincere appreciation and gratitude to His Highness Sheikh Khalifa Bin Zayed Al Nahyan, the UAE President and Ruler of Abu Dhabi; to His Highness Sheikh Mohamed Bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces; to His Highness Sheikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs; and to the UAE Central Bank for continued support for ADCB and the future development of the UAE economy. I also extend the gratitude and appreciation of the Board to our shareholders, valued customers, and the ADCB executive management team and employees for their continued dedication and commitment.
Eissa Mohammed Al Suwaidi
Chairman
The Board of Directors and management remain focused on maximising shareholders’ value and returns. As a result of the Bank’s healthy financial position and capital base, and the good performance of the Bank’s core businesses in 2012, the Board has recommended that, in addition to the ordinary dividend, a special dividend be paid. Further details of this special dividend and the Bank’s operational performance in 2012 are set out in the Chief Executive Officer’s 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
The Board believes that the Bank’s strategic pillars and business model continue to provide a solid foundation to implement the Bank’s objectives, and have enabled the Bank to generate steady returns in 2012. During 2012 the Board and management defined the Bank’s risk appetite and developed a detailed set of strategic plans that will enable each of the Bank’s businesses to achieve the Bank’s strategic pillars in the period to 2016.
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 process and practices. An externally facilitated evaluation was commissioned at the end of 2012.
- The Board appointed a new advisor, Mr Gerry Grimstone, whose experience will be valuable to the Board in 2013 and beyond.
- Efforts were made to improve risk and remuneration governance.
- In 2013, the Board’s Corporate Governance Committee will develop an agenda to embed the governance culture across the Bank.
- The Bank’s Board is highly engaged, having met (either in full Board or Committee meetings) more than 50 times in 2012. In 2012 the Board visited several branches and operations functions, including the Bank’s branches in India, and held offsite strategy sessions.
More details of these efforts are described in the ‘Corporate Governance’ section of this report. As a result of its governance efforts, the Bank won the 2012 Hawkamah award for corporate governance, as assessed by an independent committee of academics following a rigorous assessment process.
The Bank devised its corporate sustainability policy in 2012 and has published a sustainability report setting out its sustainability objectives for the coming years. In connection with these efforts, in 2012 the Bank signed a memorandum of understanding with the UAE Nationals Defaulted Debts Settlement Fund and waived 100% of receivables from 184 debt-burdened UAE nationals, at a total cost of AED 22.7 mn.
During 2012 the Bank continued to focus on attracting, training, and retaining highcalibre UAE national talent across all levels of the Bank. As at the end of 2012, 41% of the Bank’s staff were UAE nationals.
The Bank remains committed to contributing to the development of the UAE banking sector, and on behalf of the Board I extend our most sincere appreciation and gratitude to His Highness Sheikh Khalifa Bin Zayed Al Nahyan, the UAE President and Ruler of Abu Dhabi; to His Highness Sheikh Mohamed Bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces; to His Highness Sheikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs; and to the UAE Central Bank for continued support for ADCB and the future development of the UAE economy. I also extend the gratitude and appreciation of the Board to our shareholders, valued customers, and the ADCB executive management team and employees for their continued dedication and commitment.
Eissa Mohammed Al Suwaidi
Chairman