ADIB’s 2022 SME Financing Hits Dhs1 Billion

Abu Dhabi Islamic Bank (ADIB), a premier Islamic financial institution, has proudly unveiled its second Environmental, Social, and Governance (ESG) report, showcasing the substantial progress made toward its ESG objectives and pledges for 2022. The report further underscores the bank’s commitment to a new three-year ESG strategy integrating ESG risk considerations into its banking framework, supporting the United Arab Emirates’ (UAE) pursuit of a more sustainable economy.

The 2022 ESG report evaluates ADIB’s advancements in multiple environmental, social, and governance-related metrics, revealing considerable improvements over the previous year. The bank’s notable achievements are its Dhs23 million investment in community development initiatives and providing Dhs1 billion in financing to small and medium-sized enterprises (SMEs) in 2022.

Approximately 60% of the bank’s funding portfolio is classified as low or medium risk according to ESG standards, ensuring a stable and secure financial position. ADIB also maintains one of the highest Emiratisation ratios in the sector at 45%, demonstrating its commitment to empowering Emirati talent. Concurrently, the bank has made significant strides in bolstering female representation in executive roles, with women comprising 39.4% of ADIB’s total workforce.

ADIB has consistently prioritized serving UAE nationals and equipping young people with vital financial services. The bank’s Amwali product targets 8 to 18-year-olds, making ADIB the first Islamic digital bank catering to this demographic. As a result, approximately 13,500 new youth accounts were opened in 2022.

Nasser Al Awadhi, Group Chief Executive Officer at ADIB, expressed his pride in presenting the second ESG report, noting that “this report reflects our commitment to enhancing our social and environmental impact and ensuring continued success as a responsible and ethical financial institution.” The new three-year ESG strategy strongly emphasizes accelerating ADIB’s Green Financing and Investing initiatives.

In its pursuit of sustainable growth, ADIB has already allocated $1.7 billion toward sustainable project financing under green financing. The bank also obtained six LEED green building certificates and saved an impressive five million papers through its Al Ghaf paperless program in 2022. Furthermore, ADIB reported a 26% reduction in energy consumption intensity last year, signifying its dedication to reducing its carbon footprint.

ADIB’s General Assembly approved a Dhs1.7 billion cash dividend in March, amounting to 49 fils per share for the fiscal year ending December 31st, 2022. This reflects an increase from 31 fils per share in 2021, representing 49.2% of the bank’s net profit for the year. ADIB also boasted a Return on Equity (ROE) of 21.4%, one of the highest rates in the sector, indicative of the bank’s robust momentum across core businesses and an improved macroeconomic landscape.

During the assembly, members approved the Board of Directors’ report, the auditors’ report, and the financial statements for 2022. ADIB’s Chairman, Jawaan Awaidha Suhail Al Khaili, expressed his gratitude to shareholders for their ongoing support and trust in the bank’s vision. He also highlighted ADIB’s unwavering commitment to the ESG agenda as part of their strategic business plan for the next five years, aligning with the UAE’s declaration of the Year of Sustainability.

Nasser Al Awadhi, ADIB’s Group CEO, further emphasized the bank’s significant progress toward realizing its vision through strong financial performance and transforming to build a resilient bank. He attributed this success to ADIB’s dedication to sustainability.