Bank ABC Shareholders Approve $93.3 Million Dividend Payment and a Market Making Arrangement to Support Liquidity in ABC Share Price

Press release
Published March 26th, 2018 - 06:30 GMT
Khaled Kawan, Group CEO of Bank ABC
Khaled Kawan, Group CEO of Bank ABC

Bank ABC shareholders approved at the annual general meeting today the Bank’s 2017 financial statements. Consolidated net profit, attributable to the shareholders of the parent, for the year 2017 was US$193 million, 6% higher compared to US$183 million reported for the previous year.  

The shareholders also approved a cash dividend distribution of 3% of the issued share capital (US$0.03 per share), translating to approximately 48% of the net profit for the year, attributable to the shareholders of the parent, amounting to US$93,300,000.

Furthermore, the Bank’s shareholders approved the appointment of the Securities and Investment Company BSC (“SICO”) as the designated market maker with respect to Bank ABC’s ordinary shares listed on the Bahrain Bourse. This market making arrangement aims to inject more market liquidity, thereby assisting any shareholders who want to buy or sell Bank ABC shares to do so.

According to this arrangement, Bank ABC can repurchase a percentage of its own shares not exceeding 3% of the total and can resel them, via the designated market maker, with a view to enhancing the liquidity of the Bank’s shares in the market.

“Over time, this increased liquidity shouldresult in the intrinsic value of Bank ABC being better reflected in its share valuation,” explained Dr. Khaled Kawan, Group CEO of Bank ABC.

The market making programme with SICO will be in effect for an initial 12-month period following its establishment, so as to enable Bank ABC to gauge the success of the arrangement, but it may be extended thereafter if the Board of Directors considers it appropriate.

The Bank ABC Group has had a longstanding issue in that the intrinsic value of Bank ABC is not fully reflected in its Bahrain Bourse share price. A number of factors have contributed to this, including the low trading volume of Bank ABC’s ordinary shares on the Bahrain Bourse,” Dr. Kawan pointed out.

Bank ABC is a leading player in the region’s banking industry and provides innovative wholesale financial products and services that include corporate banking, trade finance, project and structured finance, syndications, treasury products and Islamic banking. It also provides retail banking services through its network of retail banks in Jordan, Egypt, Tunisia and Algeria.

Background Information

Bank ABC

Bank ABC (incorporated as Arab Banking Corporation B.S.C) is an international bank headquartered in Manama, Kingdom of Bahrain. Our network spreads across five continents, covering countries in the Middle East, North Africa, Europe, the Americas and Asia. 

Bank ABC, founded in 1980, is listed on the Bahrain Bourse and our major shareholders are the Central Bank of Libya and Kuwait Investment Authority. 

Bank ABC is a leading provider of Trade Finance, Treasury, Project & Structured Finance, Syndications, Corporate & Institutional Banking as well as Islamic Banking services. We are also expanding our retail banking network in the MENA region.

Bank ABC is licensed as a conventional wholesale bank by the Central Bank of Bahrain.

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