2. Sustainable Growth through liability Growth Page | 10
There key pillar in their strategy is to develop and sustain a resilient liability structure that is based on desirable growth in CASA and time deposits CASA deposits have a strategic advantages over constant deposits as they provide stable low yield cost customers that assist to carry down their overall price of funds. Their award and world class management services will help clients make their businesses more effectively and automated. Also, they deliver CASA balances for ADCB. Over the years, their CASA balances have increased from 25 AED billion in 2010 to 65 AED billion in 2016. Their liability structure remained resilient when they rose up the interest rates with CASA deposits comprising 42 per cent of total clinets deposits. Over 2015 and 2016 the company focused on gathering the time deposits so that they can provide as additional liquidity and a long term deposit to the bank. On 31 December 2016, the time deposits had totaled 90 billion AED. 3. Customer centric ( A culture of service excellence and efficiency) At ADCB, they tend to invest in and concentrate on making the client experience for every customer of the bank. The company continued the investment in technology and simplifying their businesses to enhance their customer centric culture, this led to ADCB to become the acknowledge leader in the market that is on the internet and mobile banking. They have launched the uBank that has a digital center in Yas mall, and in Abu Dahbi which has taken digital banking to a totally new level. The company continued to invest in digitizing and optimizing processes to provide a better banking experience. There customer satisfaction is measured by the use of the Net Promoter Score (NPS), it is a well - recognized measure of customer advocacy that tracks the propensity of customers Page | 11
to recommend a business to their family, friends and associates. This NPS functions as on one of the currency throughout the bank. Each member of their employees a minimum of half hour (30%) of his or her annual performance objectives that is tied to delivering a superior client experience the company tend to be extremely proud that ADCB’s NPS are still high. 4. Risk Aware Strong risk management protocols that are very important to preserve and protect ADCB’s long term financial strength and growth potential. These protocols are designed upon a strict management framework, disciplined risk practices and it has a strong management culture that guides each and every employee. The discipline had prepared the company to change the operating environment which made ADCB’s cost of risk to rise up from 0.29 per cent to 0.83 per cent over the years. The cost of risk has grown across the banking sector because of the macro factors such as the lingering effects of lower oil prices on economic activity and resultant tightened liquidity. ADCB continued to improve and develop their risk management function, corporate governance, and transparency through regular reviews. The company also monitors
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- Fall '19