By Allah’s Grace and Mercy and with the collaborated efforts of the Higher Management and all team members of Abu Dhabi Islamic Bank, along with the sublime directives of His Highness Sheikh Khalifa Bin Zayed Al Nahyan, President of the U.A.E., General Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and their Highnesses Rulers of the Emirates, ADIB today announced its year-end financials reflecting the Bank’s growth succession at both a social and an economical level, achieving the best returns for Shareholders and Depositors where the net profit –after distribution to depositors- amounted to AED 571 million, i.e. a 38% of the paid-in capital with a remarkably outstanding growth of 66% in comparison to the AED 345 million profit at year-end 2005.
On the other hand, profit distributions to depositors and Sukuk-holders reached an amount of AED 1.4 billion recording an increase of 94% over the AED 721 million profits distributed in 2005.
Despite the market value drop for most of the shares in the Gulf Capital Markets, ADIB still managed to hit a growth of 60% in total Operating Income, an AED 2.4 billion by year-end 2006 opposing the AED 1.5 billion in 2005.
As for the Shareholders’ Equity which had valued AED 2 billion in 2005, it has now reached AED 2.8 billion by the closing of 2006, achieving by that a growth rate of 40%, and hence driving the share book value to AED 18.5 per share, despite the Capital Increase that had taken place during the year 2006.
It also must be mentioned that ADIB Management has not overlooked the significance of the expansion and variability of its asset base, reflecting by that the bank’s growth in all types of financing and investing raising the total asset base to AED 36 billion; an increase of 63% and AED 14 billion over the AED 22 billion in 2005.
ADIB had also adopted an ambitious expansion plan for 2006 varying around increasing the branch network from 24 branches in 2005 to 36 branches by year-end 2006, in addition to Murabaha Financing and various other Financing which have made 63% growth from AED 19 billion in 2005 to AED 31 billion in 2006 for total Financing activities.
Taking the Liabilities into consideration, the Customers’ Deposits have amounted to AED 24 billion in 2006 recording an increase of 33% and AED 6 billion since year-end 2005.
As for Earnings per share, which were recorded in 2005 at AED 2.42, have now increased by 61% reaching AED 3.89 per share in retrospect to incorporate the increase in Share Capital as per International Accounting Standards.
Working hard on creating the best qualitative returns, 2006 had witnessed the real strike of ADIB’s subsidiaries in Real Estate Investment and Islamic Financial Services. Burooj Real Estate sets an example of such by achieving a 10% return on the AED 500 million paid-in capital of the company, under the leadership of qualified UAE- Nationals in its very first year of operations. It has gained a net profit of AED 50.3 million, while the Abu Dhabi Islamic Financial Services (ADIFS) has made a net income of AED 18.7 million in its first operating year… all to be added to the ADIB portfolio of success and accomplishment.
Coming to the Emiratization plan, ADIB has managed to close a 30% UAE-National employment of its staff members, and has successfully prepared them to take the lead on fully managing various projects, branches, and central managements. ADIB has also taken part in sponsoring group wedding ceremonies, seminars and forums, in addition to several sports, cultural and religious activities, all triggered by ADIB’s keenness on fulfilling its social responsibility towards the Islamic and the UAE.
It is of significance to note as well the remarkable success ADIB has achieved in its Euro-Medium Term Notes (EMTN) program launched late in 2006 for an amount of US$ 800 million, considered the first of its kind and the largest in size as part of Islamic Sukuk issuance worth US$ 5 billion listed on the London Stock Exchange in the UK. Surely, the interest shown by investors from all over the world and markets in the first Sukuk issuance was a very positive indicator of ADIB’s success in achieving Strategic targets, strengthening financial position, and increasing profits, particularly subsequent to the rating of “A” and “A2” ADIB has gained by both Fitch and Moody’s respectively in 2006.
The table below indicates the Financial results as extracted from the Financial Statements as of 31/12/2006 in comparison to the same as of 31/12/2005, taking into consideration that the following are only preliminary results till the Central Bank approval comes through:
AED billion
Abu Dhabi Islamic Bank As of 31/12/2006 As of 31/12/2005 Growth (%)
Total Assets 36 22 63%
Customers’ Deposits 24 18 33%
Shareholders’ Equity 2.8 2.0 40%
Islamic Financing 31 19 63%
Total Operating Income 2.4 1.5 60%
Total Operating Expense 0.439 0.385 14%
Net Income before Distribution to depositors
1.9
1.1
73%
Distribution to Depositors 1.4 0.721 94%
Net Income for the period 0.571 0.345 66%
Earning per share (AED) 3.896 2.42 61%
Number of Operating Branches 36 24 50%
Number of ATMs 74 44 68%
To sum up, the ADIB board of Directors would like to emphasize their constant approach towards improving the Bank’s performance and taking a further step of expansion and growth at each stage all to achieve stability, profit growth, enhancing its competitive position, and taking its full responsibility in developing the Economic, Social, and Cultural sectors in the UAE, effectively participating in the plans designed for the growth of this nation by His Highness Sheikh Khalifa Bin Zayed Al Nahyan, President of the U.A.E.
