Nasser Alsowaidi, Chairman of NBAD
The National Bank of Abu Dhabi's (NBAD) annual general meeting (AGM), held today at the Emirates Palace in Abu Dhabi, approved the distribution of 30% cash dividends and 20% bonus shares to shareholders listed in the share register held with Abu Dhabi Securities Exchange (ADX) as at 23 March 2011.
The meeting, convened under the chairmanship of Mr. Nasser Ahmed Khalifa Alsowaidi, Chairman of the NBAD Board, reviewed and approved the directors’ report, auditor’s report and the financial statements for the year ending 31 December 2010.
Addressing NBAD’s shareholders, Mr. Nasser Ahmed Khalifa Alsowaidi said: “Global economic activity continued to recover in 2010 supported by accommodative monetary and fiscal policy around the world. Economic activity in the United Arab Emirates rebounded modestly reflecting global trends. NBAD continues to perform strongly in challenging local and international operating conditions. The Group’s business model has been the underlying strength to its sturdy and consistent performance.”
The Chairman shared the aspirations of the Bank for 2020 with the shareholders. NBAD’s vision is to be recognised as the World’s Best Arab Bank and in line with that objective it has outlined its broad strategy to achieve a target of AED 16 billion in net profits by 2020. The Bank shall continue to invest into the key elements of its business – talent, information technology, brand & network, capital and funding and focusing on customer satisfaction. The Bank’s strategy is aligned with the Abu Dhabi Vision 2030 and the growth of the country.
In 2010, NBAD achieved a 22% increase in net profits to AED 3,683 million for the year ended 31 December 2010 compared with AED 3,020 million for the corresponding period of 2009. This represents diluted earnings per share (EPS) of AED 1.40 for the year compared with AED 1.18 for 2009.
Total assets reached AED 211.4 billion as at 31 December 2010, 7.4% up on 31 December 2009. Deposits stood at AED 123.1 billion on 31 December 2010, up 6.5%* on previous year. Loans and advances to customers increased by 3.5% to AED 136.8 billion compared with AED 132.3 billion as at 31 December 2009 reflecting our prudent lending policies.
The quality of the loan book remains good with non-performing loans of AED 3,249 million representing 2.3% of our portfolio. Net impairment charges of AED 1,207 million for the year consist of collective provisions of AED 288 million, net specific charges of AED 826 million and other provisions on land and investments of AED 93 million. In line with UAE Central Bank directives to banks to raise the level of collective provisions from 1.25% to 1.5% of credit risk weighed assets by 2014, we increased our collective provisions by AED 288 million in 2010 to AED 1,892 million representing 1.39% of credit risk weighted assets.
“2010 was not the easiest year for banking and we have continued to make substantial provisions for non-performing loans. Notwithstanding this, the robustness of our business model has been demonstrated in a 22% increase in net profits, which, for the first time in the history of NBAD, reached the equivalent of US$ 1 billion,” said Michael H. Tomalin, the Group Chief Executive of NBAD.