Abu Dhabi Islamic Bank (ADIB)

Abu Dhabi Islamic Bank says its ramping up spending on digital technologies

Abu Dhabi Islamic Bank (ADIB) is planning to spend significant financial resources on digital technology this year. The lender is not rushing to downsize its branch network, as clients continue to value human interaction. According to Phil King, head of retail banking at ADIB, the bank is also planning to open three to five branches across the UAE next year. King noted that while mobile banking transactions at ADIB rose 49% in the first half of the year, there was a 10% drop in visits made by customers to the bank’s branches in the same period. He added that new branches would be smaller in size, ranging between 35 to 70 square meters versus the larger ones of the past. As a result of the bank’s increase in consumer lending, ADIB’s retail staff has grown 7% so far this year to 247 employees compared to a year-earlier period. ADIB's second-quarter net profit rose 8.7%, beating analyst forecast, thanks to a drop in provisions, gains in income from credit cards and other fee products.

Abu Dhabi Islamic Bank joins local #fintech hub

Abu Dhabi Global Market (ADGM) marked a new partnership with Abu Dhabi Islamic Bank (ADIB) to promote the growth and development of the FinTech ecosystem in the UAE. The Memorandum of Understanding (MoU) was signed by Sagheer Mufti, CEO at ADIB, and Richard Teng, CEO of the Financial Services Regulatory Authority of ADGM. ADIB and ADGM participate in joint innovation projects on digital and mobile payments, blockchain and distributed ledgers and artificial intelligence. Both entities will also seek to develop local FinTech entrepreneurship through mentorship and knowledge transfer across incubation, accelerator, academic and internship programmes. ADIB continues to integrate pioneering FinTech solutions into its banking services. The bank has partnered with Fidor to launch the region’s first community-based digital bank. This year, ADIB launched its new generation of digital branch called ADIB Express and has revamped its internet banking platform to enable an intuitive online banking experience.

Abu Dhabi Islamic Bank invests heavily in digital services

Abu Dhabi Islamic Bank (ADIB) plans to continue its current strategy based on prudence in risk management, coupled with innovation in customer experience and products. This approach is working: over the past two years, ADIB has attracted more than 100,000 new retail customers, taking its total to more than 950,000. In the first half of 2017, net profits rose more than 14.1% year-on-year to $307m. Total revenues reached $757m, up 4.1%. CEO Khamis Buharoon says the bank has now a balanced customer base, across Abu Dhabi, Dubai and the northern emirates, comprising UAE nationals, as well as Arab, Asian and Western expatriates. A number of new additions to ADIB’s range of retail and wholesale banking services are planned. According to Buharoon, ADIB's individual and corporate customer base will continue to grow and key factors remain digitisation and automation in branches.

ADIB recognised for CSR initiatives from UN Global Compact subsidiary

Abu Dhabi Islamic Bank (ADIB) has been awarded for its commitment to corporate social responsibility (CSR) from the regional CSR Network Consultancy, a member of the United Nations Global Compact initiative. The award was presented to Mohammed Al Fahim, Regional Head of Corporate Banking at ADIB. ADIB has a proven track record of CSR initiatives, including launching blood donation campaigns, sponsoring mass weddings and organising a range of activities during Ramadan. The bank adopted design principles aimed at minimising both energy and water inputs and waste outputs. In addition, ADIB Future’s Champions League was a recipient of the Gold Prize for the Best Sports CSR Initiative, and Bronze winner in the Youth Development Project of the Year at the 2017 Sports Industry Awards. ADIB also maintained its commitment to recruit, develop and promote local talent through its youth development programme.

Married banker from Norbiton takes Abu Dhabi Islamic Bank to employment tribunal after she was 'pimped out' to secure Arab client worth £25m

A married senior banker was "pimped out" by her boss in a bid to get a wealthy Arab client to open an account with £25 million. Suemaya Gerrard, a relationship manager at the Abu Dhabi Islamic Bank, claimed the client bombarded her with love songs and inappropriate text messages. She added that bank CEO Jawdat Jawdat put pressure on her to go out to dinner with the man and she was threatened to lose her job if she did not go. Suemaya Gerrard resigned from the bank last November and is now suing it for sexual discrimination, sexual harassment and constructive dismissal. The bank and Mr Jawdat deny all the allegations. Mr Jawdat claimed it was normal practice to entertain clients and dine with customers.

BRIEF-Abu Dhabi Islamic Bank appoints Khamis Buharoun as acting CEO

On March 15 Abu Dhabi Islamic Bank appointed Khamis Buharoun as acting CEO. The appointment of acting CEO Khamis Buharoun is in context of CEO Tirad Marouf Al Mahmoud's medical leave.

ADIB denies potential #Sukuk issuance this year

Abu Dhabi Islamic Bank (ADIB) has issued a statement clarifying that the story issued by Reuters about a US dollar Sukuk issuance in the next few months is incorrect. Reuters had recently reported that ADIB is planning to make a US dollar-denominated Sukuk issue in May this year. ADIB said that it has no immediate plans to issue any Sukuk and this has been clarified in an official statement to Reuters.

Abu Dhabi Islamic Bank considering dollar #sukuk issue -sources

Abu Dhabi Islamic Bank (ADIB) is considering to make a U.S. dollar-denominated sukuk issue over the next few months. The Islamic lender would join a number of Gulf Cooperation Council banks raising debt internationally through both Islamic and conventional bonds to improve their liquidity. Bahrain-based Gulf International Bank was the first regional lender to raise debt internationally this year with a $500 million bond sale in January. It was followed by a $1 billion sukuk sale by Dubai Islamic Bank, a $500 million conventional bond by Ahli Bank Qatar and a $500 million bond by the United Arab Emirates’ Bank of Sharjah.

ADIB dismisses Al-Hilal #merger talk as ‘rumour’

Abu Dhabi Islamic Bank dismissed reports that it may merge with Al-Hilal Bank as consolidation takes hold in the emirate’s financial-services industry. Abu Dhabi is combining National Bank of Abu Dhabi and First Gulf Bank and two sovereign wealth funds as it seeks to cut costs and merge firms with overlapping assets. The next step could be a tie-up between ADIB with Al-Hilal and a combination of Abu Dhabi Commercial Bank and Union National Bank. Tirad Mahmoud said ADIB plans to stick to its core markets and strengthen its presence. He also said that mergers were a shareholder issue and there might be 'some pressure' on net interest margins this year. ADIB posted a 1% rise in 2016 net profit to Dh1.95 billion ($530 million) on Tuesday as provisions rose to Dh970 million from Dh820 million.

ADIB issues capital-protected equity #investment structured note

Abu Dhabi Islamic Bank (ADIB) has launched its First Shari'ah compliant equity investment structured note of the year 2017. The note is linked to a basket of undervalued blue chip companies from diversified sectors including healthcare, technology & telecommunications. The investment note has a maturity of one year and minimises investment risk by providing 100% capital protection to the capital invested. The note is currently open for subscription until 22 January, 2017 with a minimum investment requirement of $30,000. ADIB’s last three matured equity investment notes have yielded returns of 4.2%, 4.8% and 6.2%, respectively.

Meydan receives AED 1 billion in Islamic financing

Abu Dhabi Islamic Bank (ADIB) has acted as the sole bookrunner on a AED 1 billion Islamic financing facility for the Meydan business group. Dubai Islamic Bank and Al Hilal Bank were both mandated lead arrangers for the financing, which matures in December 2018. The deal was structured to meet Meydan’s financing objectives, on the back of its ongoing District One Project, a master-planned luxury residential neighbourhood in Mohammed Bin Rashid City in Dubai. Commenting on the transaction, ADIB's CEO Tirad Al Mahmoud said this deal demonstrates ADIB's ability to bring together diverse elements with a particular focus on high-growth companies and the real estate sector. Earlier this year, Meydan raised AED 1 billion Islamic financing through a dual tranche offering, comprising a AED 700 million Sukuk issue and a AED 300 million term facility, both maturing in 2024. ADIB acted as the sole coordinator of the transaction.

Ethics key to sustainable businesses — ADIB CEO

The UNEP Finance Initiative Global Roundtable 2016 was held at the Grand Hyatt Hotel in Dubai. The panel of Islamic bankers and investors highlighted that the heart of sustainability lies in ethical business practices such as those espoused by Islamic financing. The experts mentioned that most Islamic institutions were under increasing pressure to integrate environmental impact and sustainability into their decision-making process. CEO of Abu Dhabi Islamic Bank, Tirad Al Mahmoud, said ethics themselves were the answer to everything. He added that financial regulators often failed to properly apply incentives and disincentives, and suggested ethical investments could be rewarded by discounts on capital. Panellist Nida Raza, Director of Advisory Services at the Islamic Centre for Development of the Private Sector, said she believed Islamic finance bodies must become more inclusive.

ADIB latest #UAE bank to see profit hit by bad loan rise

Abu Dhabi Islamic Bank (ADIB) reported nearly flat third quarter net profit, thus being the latest bank in the United Arab Emirates to suffer from a rise in bad loans as a result of the economic impact of lower oil prices. ADIB made a net profit of 508.9 million dirhams ($139 million) in the three months ending Sept. 30, compared to 503.2 million dirhams in the same period a year ago, up 1.1%. Earlier this month, ADIB chief executive Tirad al-Mahmoud said the bank's earnings in the second half would be similar to the opening six months of 2016. ADIB booked credit provisions and impairment charges totalling 267.7 million dirhams in the third quarter, compared to 193.0 million dirhams in the year-ago period. Net revenues in the third quarter were up 7%, reaching 1.37 billion dirhams compared to 1.28 billion dirhams in the prior-year quarter.

Three finalists announced for ADIB-Thomson Reuters ethical finance awards

Abu Dhabi Islamic Bank (ADIB) and Thomson Reuters have announced the three finalists for their Ethical Finance and Innovation Challenge and Awards (EFICA). The three finalists will present their entries at the fourth edition of the awards ceremony that will take place on 26th of October, 2016 in Dubai. The Ethical Finance Initiative Award carries a $100,000 prize, and is for innovative solutions or initiatives that promote ethical practice in the financial services industry. The three finalists are: EthisCrowd, as the world’s first Islamic Real Estate Crowdfunding platform, LaunchGood, as the world’s leading crowdfunding site for Islamic Finance and the Islamic Finance Institute of Southern Africa’s micro finance initiative in Indonesia. The EFICA Lifetime Achievement Award will also be presented at the event.

ADIB Bank enters into a multi-year data centre co-location services agreement with du

UAE-based telecommunications provider 'du' has been selected by Abu Dhabi Islamic Bank (ADIB) to deliver opex-driven co-location services in the UAE. ADIB will be able to develop its operations with a foundation in secure data centre infrastructure as well as flexible and scalable network options. Fahad Al Hassawi, CEO of du, said the company's Data Centre and Managed Services are designed to enable rapid growth. ADIB will drive new cost-efficiencies while benefiting from infrastructure that is ready to scale and adapt as its business grows. du provides an ecosystem of network infrastructure to give customers easy access to Cloud service providers and markets across the MENA region. du’s data centre services won the best Enterprise Service award at Telecoms World Awards 2016.

Islamic finance enters the digital service era

The recent announcement of Abu Dhabi Islamic Bank (ADIB) to enter the #fintech era through a partnership with a digital-only bank is a good example how the times in the banking industry are changing. ADIB partnered with Fidor Bank to launch what it calls the GCC’s first 'community based digital bank', targeting the region’s 'millennials', or 'Generation Y', who are looking for digital banking offerings matching their life- and working style needs. Tirad al-Mahmoud, CEO of ADIB, said the bank's proposition would allow users to completely change the way they bank and manage their finances using digital technology to serve all their banking needs. For every financial transaction there are new digital services in development and the Islamic finance industry will have to follow suit. According to EY consultancy, it is not enough for Islamic banks to introduce new digital channels, they must completely reinvent their customer processes to offer technology-enabled, simple end-to-end experiences.

Fidor to provide digital backbone for ADIB

Abu Dhabi Islamic Bank (ADIB) has partnered with Fidor Bank to launch the region’s first 'community based digital bank'. The new platform is designed to fit the lifestyle of millennial consumers also known as Generation Y. Fidor Bank is Europe’s original digital challenger bank. The bank centres around an online community, where users can exchange financial advice and also help co-create banking products. According to CEO of ADIB, Tirad Al Mahmoud, the new platform will allow users to completely change the way they bank and manage their finances using digital technology to serve all their banking needs. The 'new digital bank' will be available for existing and new customers to sign up to in the upcoming months.

ADIB shareholders approve over 24% dividend

Abu Dhabi Islamic Bank said on Sunday its shareholders have approved the decision to pay more than 24 per cent, or Dh0.2427, per share for the year. The annual general assembly also approved the financial statements for the year to December 2015. The bank posted an 11 per cent increase in net profit in 2015. The bank recorded a net profit of Dh1.943 billion compared with Dh1.75 billion in the same period in the previous year.

To promote financial education ADIB partners with UAE Ministry of Social Affairs

Abu Dhabi Islamic Bank (ADIB) has signed a partnership agreement with the UAE’s Ministry of Social Affairs and will thereby support the "Tejuri" initiative. H.E. Naji Al Hai Mubarak strongly believes in the importance of strengthening the cooperation between the governmental and the private sector, in order to provide the best services. The banks will also offer cash prizes to encourage children to open long-term savings accounts. He believes that providing children with financial literacy will play a key role in their future financial decisions and will build a sense of responsibility which will contribute to a strong national economy.

World's first Basel III Tier 1 Sukuk may boost supply - Fitch

Fitch Ratings claims that after Abu Dhabi Islamic Bank's (ADIB) hybrid Tier 1 Sukuk further UAE banks are likely to follow their example and issue Basel III-compliant bonds. Both conventional and Shari’ah-compliant banks are expected to issue Tier 1 products in the coming year. Fitch also noted that relatively high levels of capital are a necessity for banks in the Gulf region in order to deal with the difficulties in the operating environment. Moreover, hybrid Tier 1 instruments are believed to be a cost-effective means of accessing a wider investor base.

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