2019 Annual Report

With a full-year pro forma net profit of AED 5.244 billion, we delivered a double-digit return on average tangible equity of 11.2% and a dividend pay-out equivalent to 50% of pro forma net profit. These figures are only part of our story in 2019. We began the year merging with Union National Bank. Together, the combined entity acquired Al Hilal Bank, which has allowed us to build an even stronger Islamic banking franchise in the UAE.

We appointed a new CEO at Al Hilal Bank and activated a detailed strategy to create a leading digital-first Islamic retail bank. As part of this strategy, the migration of Al Hilal Bank’s Wholesale Banking and SME portfolios was fast-tracked into the ADCB Islamic Wholesale Banking platform in just a few months.

We worked on a bank-wide seamless integration process, rapidly moving ahead of schedule and driving substantial cost synergies along the way. Meanwhile, we continued to provide exceptional service standards to a growing customer base, while continuing to develop our people, businesses and technology.

The enhanced strength and scale we now have empowers us to do more to support the ambitions of the UAE and our stakeholders. It means we can provide customers with more support through our range of products and services, we can do more to help businesses to thrive, we can invest more in our people and technology, and we can deliver stronger returns to our investors.

I am proud to have been part of such a tremendous journey undertaken at such a powerful pace. It is a true demonstration of what can be achieved through a clear strategy, hard work and ambition.

EMIRATI EXCELLENCE

Empowering UAE Nationals is a top priority at the Bank. We are dedicated to making our organisation a centre of excellence for Emiratis, providing a pathway to senior leadership positions. Today, the ADCB Group employs 1,479 UAE Nationals, who occupy roles at every level. Meanwhile, at Al Hilal Bank, 48% of the staff are Emirati — the highest among all UAE banks.

ADCB has consistently exceeded the Emiratisation targets set by the UAE Central Bank. We believe that by nurturing our national talent, we are also nurturing the Bank and the UAE economy.

UNIFIED AND ENHANCED

The integration process that followed our merger in May set new records compared to regional peer benchmarks. Working together, we achieved branch interoperability and completed a significant rebranding exercise in just five months. It was a stellar performance.

Through detailed planning and preparation, we were able to seamlessly combine and optimise the entire ADCB and UNB branch and ATM networks in early October. We also rolled out the ADCB brand across all physical and digital channels. This was achieved in a window of just 40 hours, enabling us to provide a unified and enhanced experience to more than one million customers.

The speed and efficiency of the transition were helped by strong collaboration between teams and disciplined governance. It was empowered by our people and a deep-seated commitment to our exceptional culture and strong values of integrity, care, discipline, respect and ambition. Teams from across the Bank came together like never before, smashing silos and overcoming each new challenge that came their way.

We all had a role to play. For some, it was about calling on their considerable skills and experience to manage unprecedented change at a rapid pace. For others, it was about harmonising systems, processes and policies to pave the way for a flawless integration process. For others still, it was about ensuring that no matter what else was happening, it was business as usual for all our customers who have come to expect exceptional service as standard.

EMPOWERING SUSTAINABLE GROWTH

Our success has been driven by our commitment to a strategy that remains consistent, clear and compelling. Our five powerful strategic pillars support our enduring growth. ADCB remains a UAE-centric Bank, providing long-term sustainability through liability growth and an outstanding customer experience.

This is reflected in the AED 7.3 billion increase in our current and savings account (CASA) deposits over 2018, which totalled AED 102 billion in 2019. In a highly-competitive market with declining interest rates, this was a significant achievement, and testament to the confidence that customers continue to place in ADCB.

By continuing to be risk-aware and harnessing the power of digitisation, we will create the most valuable and resilient bank in the UAE and achieve our ambition of becoming the number-one bank of choice.

CUSTOMER EXCELLENCE

We lead the way in our collective passion for customer experience, delivered through service excellence. That is one of the reasons that, despite the enormous challenges the integration process brought, we never lost sight of our customers and their needs.

It is important to acknowledge that while the Bank has relished and embraced the multitude of changes that have come with transformation, some things remain the same.

Our ambition to continue to do more for our customers and to make banking simpler, easier and more secure remains unchanged. We are committed to helping them by delivering outstanding customer service, world-class products and cutting-edge digital access.

DIGITAL STRENGTH

A core pillar of our successful strategy is to exploit digital for growth and efficiency. The progress of our transformation remains strong, and we continued to enhance existing platforms as well as launching new initiatives in 2019.

We unveiled Hayyak, our intuitive onboarding app that makes account opening simpler and faster. We were the first bank in the UAE to introduce a Virtual Accounts service to help companies reduce the costs and complexities of cash management, and the first to run an end-to-end blockchain trade finance transaction in the country.

Our collaboration with a range of fintechs and their ecosystems has also stimulated digital innovation, helping us to bring added value and efficiencies through these strategic partnerships.

ETHICAL AND SOCIAL BANKING

As a responsible bank, we believe in clear communication and being open and honest with our customers and our staff. Our group-wide ethical banking initiative has delivered greater clarity and transparency in areas such as terms and conditions, fees and charges, and our processes.

This has already changed the way we communicate with customers. Many physical letters were replaced with more concise and tailored emails and SMS messages, which bring greater transparency for customers to enable faster and easier banking.

We are committed to raising financial literacy and awareness amongst young adults in the UAE, encouraging the adoption of responsible lending and sound fiscal management practices. In doing so, we hope to ensure a stronger economic future for generations to come. Our longstanding partnership with local organisations continues to support this vital objective, as does the success of our MoneySense programme.

FUTURE READY

This year was a powerful demonstration of what we can achieve by working together, and I am proud of our accomplishments. We are now better placed than ever to meet the challenges and to capture the opportunities that the future holds.

The long-term outlook for the UAE economy is positive and will be driven by continued investment in social and economic initiatives to promote sustainable growth. As a significant financial institution in the UAE, ADCB fully supports these developments to create lasting positive change for the benefit of our stakeholders and the wider community.

I want to thank the Chairman, members of the Board and the executive management team for their support this year. I also want to acknowledge all of our employees who have worked so hard at every level to achieve our success.

IN MEMORY OF SIDDIQA ABBAS

It is with great sadness that I also report our colleague Siddiqa Abbas, Group Chief Operations Officer, passed away in February 2020. She was a key member of the senior leadership team, who made a significant contribution to ADCB for more than 15 years. During her time with the Bank, she served in a variety of roles and was an inspiration to everyone she worked with. We all pray for the eternal peace of her departed soul.

Ala’a Eraiqat
Group Chief Executive Officer
Member of the Board of Directors