Bank of Sharjah announces capital increase
Bank of Sharjah has announced an increase in share capital from AED 750 million to AED one billion through a rights and equity share issue.
The capital increase will be funded in the form of a 13.33 percent bonus issue, equivalent to AED 100 million, and a rights issue for AED 150 million with a premium of AED 1 per share. The bonus issue represents AED 0,73 gain per share for existing shareholders. The bank, Sharjah’s largest private company, has also reported a net profit of AED 137 million for 2004, 57 per cent increase over 2003.
“The increase in paid-up capital is in line with our aggressive development and expansion strategy for 2005,” said Ahmed Al Noman, Chairman, Bank of Sharjah. “The bank has achieved record growth in the last few years at all levels reflecting a significant balance sheet increase – the bank’s assets grew to AED 3, 412 million in 2004.”
“Today’s announcement reinforces Bank of Sharjah’s position as Sharjah’s largest private company and the emirate’s number one financial institution in terms of capital, quality and range of services offered,” Noman added.
The capital increase is in line with the long-term growth plans of the bank, reinforcing the bank’s role as a niche-orientated, conservatively minded institution. The bank’s share capital was trebled in 2002 from AED 260 million to AED 750 million in preparation for Basle II Accord Regulations to achieve high performance standards.
Bank of Sharjah is exploring opportunities for organic and growth through acquisitions, while retaining its core philosophy of conservative management and personal service.
“We believe this capital increase further confirms our determination to create a dynamic structure that offers regional clients state of the art financial opportunities along with high service standards. The successful implementation of our strategic plans and the growth in our core business has enabled us to maintain our growth momentum in 2004. We will continue to focus on expanding our corporate and other banking business within the region.”