Consumer Banking Group (CBG)

As a retail banking business, our success is driven by our customer-centric approach, where we aim to provide the best customer experience at every interaction. Despite the sustained downturn, with uncertainty in the jobs market and a cautious consumer attitude to spending, ADCB remains the leading retail asset player in the market.

Consumer Banking Group reported a net profit of AED 1.198 billion, 12% higher than prior year. Operating income for the Group stood at AED 3.918 billion and accounted for 43% of total operating income in 2018. Deposits from customers increased by 2% over 2017 to AED 52 billion. Meanwhile, low-cost retail current and savings account (CASA) deposits constituted 71% of total Consumer Banking deposits as at 31 December 2018. Net loans to customers fell by 4% to AED 70 billion, primarily on account of the continued de-risking of the unsecured retail portfolio, while we maintained our focused approach to growing the UAE national segment.

CHANNEL CONVENIENCE

Our investment in, and focus on, digital transformation is part of our strategic drive to simplify the client experience. It has given customers greater control over their money and made banking faster, easier and more secure. It also helps to secure our position as a leader in the digital banking space, creating a stronger, more agile business able to swiftly take advantage of opportunities in the UAE.

We are in pilot stage with ADCB Hayyak — a platform which significantly enhances the onboarding process for new customers, reducing the time to open an account from 3–4 days to about 10 minutes.

The launch of our MoneyBuddy app was another hit with customers. The personal finance management tool allows customers to analyse their spending, manage expenses, and set savings goals. Uptake for this application has already been strong.

We also created a bespoke banking platform called MyChoice. Customers can create tailored banking packages to best suit their needs. Each MyChoice package is built with unique preferential benefits and is already driving a strong revenue stream for the Bank.

Meanwhile, better use of data analytics across the Bank in our decision-making processes is helping to create and develop more refined products and services that fit perfectly with customer needs.

By digitising the entire banking process, we are driving greater efficiency and saving valuable time for customers. More than 95% of our retail financial transactions are electronic and the vast majority of our customers now use our mobile apps or online portals to cater for their everyday banking needs. More than 70% of our retail customers use our digital platforms, with mobile banking the strongest and continuing to grow ahead of those who opt for internet banking.

As a consequence, we are continuing to refocus the scope of our branches. Customers have heartily embraced our uBank proposition and this year. In 2018, we opened one more digital centre, taking the number to four across the UAE. In each digital service centre customers can instantly open an account, get a new credit card, replace a credit or debit card and print cheque leaves. The process is paperless and uses digital biometric authentication and digital signatures, with assistance from ‘virtual’ relationship officers by video-link.

We also launched Apple Pay for Credit and Debit cards and added Debit cards to already launched Samsung Pay. 39% of ADCB’s card transactions are now contactless as compared to a market average of 22%.* Similarly e-commerce spends on ADCB cards have grown 47%, which is ahead of the market by 10%.*

While these huge technological advances support greater efficiency and even better customer service, ADCB is a bank with a strong human touch. That is why those who prefer face-to-face transactions will always get a warm welcome in any of our 49 branches or will be able to talk to one of our experts at our contact centre.

_{*Master and Visa Card Data (2018)}

UNIQUE UAE NATIONAL PRODUCTS

With the goal of supporting upcoming and current Emirati generations and to further contribute to the growth of the UAE, we launched two unique and bespoke banking segments exclusively for UAE nationals, under the brand name Emirati and Emirati Excellency available in both conventional and Shari’ah-compliant solutions. These flagship segments of ADCB are carefully crafted to offer comprehensive banking and lifestyle experiences that range from exclusive products, including priority processing at various customer touch points, to discounted rates and fees, and handpicked partners to promote relevant offers.

The two new segments were supported with the launch of the Betaqti credit card, designed exclusively for UAE Nationals. A one-of-its-kind card product in the country, Betaqti card members can have their own name or favourite phrase laser etched on a metal card, thereby giving their card a touch of their own identity. The card also puts the customer in total control with seven key customisable card control features accessed through the new ADCB Mobile App, and comes with a range of benefits and rewards.

CUSTOMER REWARDS

Some 58% of our retail customers have been with us for more than four years, a strong reflection of the levels of service and trust we have built — especially given the proportion of the transient population in the region.

Creating lasting loyalty is a priority and our focus is on continually enhancing customer experience across every touchpoint of the Bank. We do this through outstanding customer service, great products, innovative technology and a comprehensive loyalty programme.

TouchPoints, our Bank-wide loyalty programme, rewards customers with points that can be redeemed with a growing number of suppliers across the region and beyond. More than 94% of our TouchPoints are redeemed digitally — either at point of sale or online. In 2018, we began a pilot programme to partner with a number of third-party providers to expand the programme.

Our highly-successful Traveller credit card, in collaboration with MasterCard, also rewards those who travel frequently, providing a range of discounts and rewards designed to enhance the travel experience. The Etihad Guest Above credit and debit cards also benefit customers with Etihad Airways’ miles.

These partnerships, alongside the growth of our SimplyLife cards portfolio, have helped us to double the size of our credit card book in the past five years. SimplyLife, our mass- market banking operation contributed AED 3.2 billion to the retail asset book in 2018. Our alliances with Etihad and Lulu Hypermarkets have also helped deliver greater value to customers through a growing range of rewards.

MERCHANT SERVICES

When we launched a new merchant acquiring business last year, we quickly gained almost 450 new customers in its first few months. Since then, we have experienced rapid growth and now support almost 2,350 merchants, from SMEs to large- scale supermarkets, with nearly 7,600 terminals in almost 3,600 locations across the UAE.

We have continued to invest in the service that offers highly secure, end-to-end solutions for merchants of all sizes with a broad range of products and services across sectors, including education, transportation, government and retail.

This success has been driven by leveraging the breadth and depth of our banking offering and providing a one-stop solution for merchants in the areas of acquiring, cash management and financing.

ADCB PRIVATE BANKING

ADCB Private, our private banking business, has once again delivered a strong performance, exceeding AED 11 billion in total assets under management at the end of 2018, as a growing number of high-net-worth individuals and families continued to benefit from the expert knowledge and insight we provide.

Our specialist wealth management strategies are carefully developed by our highly-skilled management team with an unrivalled knowledge of both the local and international marketplaces. This significant advantage, combined with the exceptional personal support we give to every one of our customers through our concierge service, is one of the reasons we continue to stay ahead of the market and remain so resilient.

In 2018, ADCB was the first local bank to establish a presence in the Abu Dhabi Global Market (ADGM), Abu Dhabi’s International Financial Centre, by opening our private banking centre and asset management subsidiary. As a leader in the banking industry, we join an increasing number of important global institutions that have already established a presence at the ADGM. This enables us to enhance our platform for high-net-worth clients with bespoke, complex and more sophisticated requirements.

ISLAMIC BANKING

Islamic banking remains a key driver of growth in the Bank as it continues to grow revenue and attract customers who want high-quality, Shari’ah-compliant, financial solutions that meet a range of banking needs, consistent with their values and traditions.

In 2018, total net interest income and Islamic financing income grew by 15% to AED 1.107 billion over the prior year. As at 31 December 2018, net financing assets were at AED 21 billion and deposits grew by 15% to AED 17 billion year-on-year. Our results illustrate the central role we play in the Bank and our contribution to driving sustainable growth.

As elsewhere in ADCB, we are investing in digital as we continue to transform the banking landscape, enhancing our Islamic products and services, ranging from bespoke Wholesale Banking solutions to pioneering retail financial products. This year the Bank was recognised by the Global Islamic Finance Awards, winning Best Islamic Wholesale Banking Solutions.

Our experienced Islamic banking team benefits from an extensive training and development programme. ADCB’s Islamic Banking Academy enrolled more than 1,553 employees in classroom and online courses in 2018. This training helps staff to educate customers about Shari’ah-compliant structures and to promote the benefits of Islamic banking.