Chairman & Non-Executive Director
Non-Executive Director
Non-Executive Director
The ADCB Board discusses some of the key issues that influence the performance of the Bank and how they manage them.
Last year was a challenging one when it came to the economy, oil prices and regional differences. The introduction of some new taxes also had an impact. Of course, people knew that these issues would affect performance. But despite these issues, it was a good year for ADCB in terms of financial performance.
Now we have entered 2018 with optimism. Given that oil prices have shown signs of recovery and the government’s fiscal position is stronger, we see growth in our operations and a rising demand for credit. These factors are encouraging and we are facing much better prospects this year.
When I joined ADCB two years ago, the Bank was fully aware that 2017 would present challenges. So, what we experienced was not surprising and the Bank managed these tests by applying its longstanding strategy and principles to great effect. Having successfully navigated through 2017, we are optimistic about the year ahead, which I think is going to be prosperous.
This year is likely to be better than the past two have been for us. Oil prices have partially recovered, political issues appear to be stabilising – even improving – and public finances are in good shape.
We see digitisation as being synonymous with convenience, satisfaction and ease for the customer. As a bank, we always track developments in technology and ask ourselves: What are other banks doing to improve services using digital technology?
Digitisation is very important. We realised that a long time ago, and we are investing heavily on this front. We need to be a leader in digital banking, with a serious proposition — our clients expect this of us. We want to continue to be the bank of choice, so it is important that we invest and adapt. It is essential.
Our strategy for accelerating ADCB’s digitisation is already delivering great results, not least by providing the business with a cutting-edge core banking system that is driving efficiency and pace.
Digital means three things to me: better customer service; management empowerment at all levels; and gaining an edge over the competition.
We are bringing a range of innovations and digital applications to the market. Our task is to look at what is available, listen to our customers and decide what is going to help them most.
Meanwhile, the advance of digital has enabled managers to make better decisions, faster and that is crucial to helping us become more competitive.
I think the Bank has been in the lead in terms of digitisation, including mobile applications and online services, for some time. Fewer customers now visit branches. More transactions are conducted online and our internal processes are mostly automated. We have invested a lot into IT systems and I think the challenge now is to stay in the lead.
Looking to the future, we must be more sophisticated internally but at the same time simplify ADCB’s offers to customers. We must make our digital services accessible to the mass market. This is an ongoing task and we have no option but to excel. The whole of ADCB is collaborating to achieve this. So, the Board is closely following the progress of management and tracking the execution of our digital strategy.
I agree, the digital transformation exercise must involve the whole Bank equally — it is a collaborative effort that cuts across every part of the business, bringing greater agility and efficiency.
As a Board, we have a responsibility to foster a healthy culture, where innovation and success can thrive. Our values and culture set the tone of the Bank and help drive that success. They also form a key part of the management’s KPIs and influence their remuneration and incentives.
Integrity, Care, Ambition, Respect and Discipline are not just words to us: they are embedded in our culture, a guide to every action we take and every decision we make.
This is exactly right. At every Board meeting, some of the most distinguished employees come and meet us, regardless of their level. Those employees are chosen because they have performed well and because they have demonstrated our culture and values. This helps to nurture our culture and to cascade knowledge and ideas both up and down through the business.
The ADCB values are set out on the iCard carried by every ADCB employee. Walking around any of our buildings with the Chairman during our regular tours, it is heartening to see how much the employees follow the ADCB values and reflect them in their behaviours.
Above all, we prize transparency, good governance and open interaction with management, and cherish the fair and clear behaviour that distinguish ADCB. We have encouraged these practices for many years. Sitting together in this boardroom, management and the Board speak very clearly, very transparently, very directly. That is how we maintain our values.
Summarising ADCB’s values in a few statements and launching iCard was a fantastic idea.
Employees can see them at all times while working. We have zero tolerance towards any violations of these values. And that helps to determine the decisions and performance of our people and, ultimately, drives success.
The Bank’s approach towards risk and risk management has been exemplified by what we have seen in 2017. The geopolitical issues that developed were not expected, but their potential risks were absorbed by our disciplined risk-management approach. We will build on this resilience which will help us to be more prosperous in 2018, given the economy’s improving growth prospects.
The Bank is continually looking to strengthen risk management — it’s a process of continuous improvement. The management and the Board always keep a close eye on risk, making use of modern, in-depth, risk reporting and processes.
ADCB is known for being focused on risk analysis and risk awareness, and that approach is shared by the Board and management. This is our collective responsibility. The management presents on risk during both the committee meetings and the full Board meetings, and the risk framework is under constant review and renewal. We pride ourselves on ADCB’s strong risk management culture.
The Board ensures ADCB has a strong governance culture. This starts with being transparent; information is shared and communication channels between Board and management are clear. Both sides are engaged and collaborative. In addition, we hold regular Board and committee meetings, and have appointed an external advisor to assist the Board. We also all share one priority: the interests of the Bank and its stakeholders.
From time to time, we might adjust our guidance to management, such as encouraging a more conservative approach, or suggest that they evaluate different opportunities. We have an open culture that has been in place for many years, and that makes everything easy to monitor. Everything is accessible. There are no limits to what can be discussed. That sets ADCB’s governance apart.
When you look at best-practice in governance, you will see that ADCB is a great example. We set a standard, I think, globally; our benchmark is set against international standards. And, despite the difficulties of setting up these high standards of governance, I think we have done so with relative ease.
We have clear guidelines and principles for our activities, which is a fundamental part of our culture. We communicate these guidelines to everybody within the institution, which contributes to our healthy governance culture.
In every topical area of governance in banking, internationally or locally, we make sure that we are the benchmark for others to aspire to. Whether it is compliance, or changes in regulations, everyone discusses the issues in the Board and committee meetings. We also have regular sessions with the management. I think that is the only way you can ensure everyone is aligned.
Our ambition is to see the Bank and its stakeholders flourish. And our discipline is to make sure that we are delivering this within acceptable risk parameters.
We carefully balance risk with reward in an ambitious yet disciplined way. We also service our customers with discipline, because we need to make sure that everything is deliverable and that we always maintain high standards of customer service.
When it comes to discipline, we stick to our values. All the parameters are set by the Board and management. Our ambition is to improve our products and services, as well as ADCB’s financial results for the long-term benefit of all stakeholders.
ADCB’s main distinguishing factor is the unrelenting focus on its core market and customers. The UAE is the country where we know how to serve our customers better than others, and that makes our task easier than other banks that are stretched across different geographies.
Because we only operate in this country, we know that we cannot afford to be bad at what we do. We must be the preferred bank. Perhaps this focus has helped us to avoid what has been happening in other countries and protect us from damaging currency exposures.
The UAE is at the forefront of economic growth compared to the rest of the region. So, we are fortunate to have a domestic focus on which we can capitalise.
ADCB is also distinguished by its social contributions and its sponsorship of cultural attractions. We support initiatives that promote positive social and economic development in our communities, which reinforces UAE values, supports national causes and celebrates our heritage.
I think in many ways it is our knowledge and our people that differentiate us. We leverage what we know best, or what we have been successful at in the UAE, such as supporting SMEs and mid-sized corporates and remaining committed to providing the best customer experience. We will continue to serve our clients in thoughtful ways that make their lives easier.
ADCB is creating something for the present and for the future. We are establishing something which will last and be sustainable. That is one of the factors that motivates us and sets us apart from our competitors.
We are always challenging ourselves. You think that you have done everything you are supposed to do. But every time you meet the Board you notice new challenges that need new and inventive solutions. This is what is driving our digital transformation, which also sets us apart from our peers.
We must find lasting solutions that make the business sustainable. We must — and do — think differently. And that is what you see the Board and the committees doing.
We deliver great results for our customers, who then go and tell everybody about the positive experience they had with ADCB. We also provide great results for our stakeholders, who value our resilience and stability.
