General Assembly of Bank of Sharjah Approves distribution of 12% Cash Dividends & 5% Bonus Issue

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The Ordinary General Assembly of the Shareholders of Bank of Sharjah approves during its 36th annual meeting, the proposal of the Board of Directors to distribute 12% cash dividend equivalent to AED 240 Million and 5% Bonus issue equivalent to AED. 100 Million.

Mr. Ahmed Al Noman, Chairman of the Board of Directors, said in his welcoming address that the Bank was able to achieve excellent results in 2009 in terms of profitability and growth in the various items of its balance sheet despite the unfavorable environment in the local and regional financial markets.

He stated that Bank of Sharjah realized AED 475 Million Net Consolidated Profits for the period ending 31/12/2009 registering 16% increase over the AED. 410 Million figure for the year ending December 31, 2008.  Moreover, the improvement witnessed by the U.A.E financial markets has increased the cumulative changes in the fair value of available for sale investments. This was translated into a 51% increase in Total Comprehensive Income for the period which reached AED 514 Million compared with AED 341 Million for the year ending 31st December 2008.

He added that the Bank was able to improve its profitability and Balance Sheet structure, with Total Revenues for the year reached AED 1,169 Million an increase of 26% over the 2008 figure of AED 928 Million. This increase was mainly driven by the 50% increase in net interest income which compensated for the decline in the commission and trading income.

Total Assets reached AED 18,062 Million an increase of 14% compared to 2008 balance of AED 15,820 Million. The increase in total assets was mainly due to the increase in Loans book and Interbank placements.

Total Deposits stood at AED 12,113 Million, an impressive 20% increase over the December 2008 figure of AED 10,118 Million.

Total Loans and Advances reached AED 11,450 Million for the period, an increase of 11% over the December 2008 figure of AED 10,340 Million.

The Loans to Deposits Ratio improved to 0.95 compared to 1.02 as at December 31st, 2008.

Net liquidity for the period has remarkably improved by 34% to reach AED 2,912 Million compared to the December 2008 figure of AED 2,177 Million. This increase was mainly driven by the increase in deposits.

Net Consolidated Profits for the year increased by 16% to reach AED 475 Million compared with AED 410 Million for 2008. Moreover, total Comprehensive Income surged by more than 51% to reach AED 514 Million compared to AED 341 Million, due to unrealized gains of AED 47 Million, on available for sale investments that are included directly in equity.

The improved performance during the period was reflected in the earnings per share that increased by 8% to reach AED 23.4 fils when compared with the last year corresponding figure of AED 21.6 fils.

The Capital Adequacy ratio as per Basel II guidelines stood at 23.6%, versus a minimum of 10% required by the UAE Central Bank.

Mr. Varouj Nerguizian, Executive Director & General Manager, declared that Bank of Sharjah performed extremely well in a very challenging global economic context. During 2009 Bank of Sharjah managed to increase its profitability and strengthen its balance sheet, despite additional collective impairment provisions against the credit portfolio constituted during the current year to reach AED 140 Million. and considered prudent within the current challenging market environment.

He added that the Bank have succeeded in overcoming economic, thanks to the quality of its assets, its strong balance sheet along with the expertise of its clients to deal with such crisis.