Abu Dhabi Islamic Bank (ADIB)
ATMS 306 – Strategic Management Allan Gardner
“Banking as it should be”
SUBMISSION DATE: 27-April-2013
STUDENT NAME: Wassim Hamdan
STUDENT ID: 862466
Contents
Executive Summary
Abu Dhabi Islamic Bank was established in 1997 through Emiri Decree and began commercial operations in 1998. All contracts, operations and transactions are carried out in accordance with Islamic Shari’a principles. The Bank is a leading regional Islamic financial services group and has a wide distribution network, with 75 branches in the UAE.
ADIB will continue to focus on its core customer segments to grow its penetration by attracting more customers and cross-selling more products while ADIB’s strong capital and liquidity positions uniquely position it as a top-tier UAE bank that continues to grow faster than the market average.
Despite the challenging conditions, ADIB continued to deliver sound financial results through the effective execution of its strategic vision, with the focus on customers securing the Bank the top ranking in customer service for the second consecutive year. This excellence in customer service continued to be backed by best practice risk management, conservative credit policy and recruitment of world class talent. A further important focus was on laying the foundations of the Bank’s next phase growth strategy with a pivotal part of this being the extremely-successful USD 1 billion Hybrid Tier 1 Capital issue. Moreover, ADIB Group, which includes both the financial services and real estate businesses, reported net profit of AED 1.2 billion for 2012, an increase of 4% over the previous year and Group net revenues for 2012 were AED 3.6 billion, while aggressive cost management meant that expenses increased by only 8.1% year on year, despite investments in 89 new ATMs and six new branches in the UAE, and the expansion of ADIB’s regional and international capabilities. The performance of the main banking business
“Banking as it should be”
SUBMISSION DATE: 27-April-2013
STUDENT NAME: Wassim Hamdan
STUDENT ID: 862466
Contents
Executive Summary
Abu Dhabi Islamic Bank was established in 1997 through Emiri Decree and began commercial operations in 1998. All contracts, operations and transactions are carried out in accordance with Islamic Shari’a principles. The Bank is a leading regional Islamic financial services group and has a wide distribution network, with 75 branches in the UAE.
ADIB will continue to focus on its core customer segments to grow its penetration by attracting more customers and cross-selling more products while ADIB’s strong capital and liquidity positions uniquely position it as a top-tier UAE bank that continues to grow faster than the market average.
Despite the challenging conditions, ADIB continued to deliver sound financial results through the effective execution of its strategic vision, with the focus on customers securing the Bank the top ranking in customer service for the second consecutive year. This excellence in customer service continued to be backed by best practice risk management, conservative credit policy and recruitment of world class talent. A further important focus was on laying the foundations of the Bank’s next phase growth strategy with a pivotal part of this being the extremely-successful USD 1 billion Hybrid Tier 1 Capital issue. Moreover, ADIB Group, which includes both the financial services and real estate businesses, reported net profit of AED 1.2 billion for 2012, an increase of 4% over the previous year and Group net revenues for 2012 were AED 3.6 billion, while aggressive cost management meant that expenses increased by only 8.1% year on year, despite investments in 89 new ATMs and six new branches in the UAE, and the expansion of ADIB’s regional and international capabilities. The performance of the main banking business
References: Chiefly business school – 306 Strategic Management materials http://adib.ae/sites/default/files/Annual_Report_2012.pdf http://adib.ae/sites/default/files/Investor_Presentation_FY_2012.pdf http://www.reuters.com/article/2013/02/13/emirates-banks-geopolitics-idUSL5N0BC5LN20130213 http://gulfnews.com/business/banking/uae-s-new-mortgage-rules-issued-1.1126052 http://dawn.com/2013/02/14/geopolitics-weigh-on-dubai-banking/