Islamic Finance

Abu Dhabi Islamic Bank to seek shareholder approval to increase foreign ownership limit

The board of directors of Abu Dhabi Islamic Bank will propose to its shareholders an increase of the ownership limit of its shares for non-UAE nationals.

The bank will propose to increase the limit to 40%, it said in a bourse filing on Monday (Nov 18).

The current limit for foreign ownership of ADIB shares is 25%, with maximum limit per shareholder at 5%.

ADIB is currently 39.4% owned by Emirates International Investment Company, and 7.62% of its shares are held by Abu Dhabi Investment Council, the investment arm of the government of Abu Dhabi.

ADIB posted a 5.2% rise in third-quarter profit compared to the same period a year earlier, earning 620 million dirhams ($168.82 million) in net profit for the three months ending September 30.

The bank’s assets dipped 0.7% to 124.3 billion dirhams ($33.85 billion) at September 30 from end-December 2018.

ADIB is the UAE’s second largest standalone Islamic bank by assets after Dubai Islamic Bank that reported 229.962 billion dirhams in assets at September 30.

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