Bank of Sharjah approved an increase in the amount of stock available to expatriate investors at its Extraordinary General Assembly yesterday.
From today, non-UAE National investors will be able to own up to 30 per cent of the bank’s total shares, an increase of 10 per cent. The move is expected to lift the bank’s share price, and enhance the value of its AED500 million bond issue when the bonds are listed on the Abu Dhabi stock exchange.
Addressing shareholders and board members at Sharjah’s Radisson SAS Hotel, Mr. Ahmed Al Noman, Chairman of Bank of Sharjah, said: “The decision to improve access for foreign investors reflects market trends and is a healthy sign for the profitability of the bank. Bank of Sharjah was one of the UAE’s most profitable banks last year, and we are expecting to meet if not exceed our profit targets for 2006.”
Bank of Sharjah’s excellent performance in recent times has been underpinned by sound investments in telecommunications and energy, and more acquisitions are planned going forward.
Mr. Varouj Nerguizian, General Manager of Bank of Sharjah, said: “The increased share activity generated by this decision will enable the bank to demonstrate its true value in the market, allow existing expatriate shareholders to consolidate their stake, and attract new customers.”
He said: “The move reflects the bank’s modern outlook while also appreciating that Bank of Sharjah’s success has been rooted in its years of experience and commitment to prudent yet profitable financial management.”
Analysts have responded positively to the bank’s attractive bottom line results, with emerging markets credit rating agency Capital Intelligence upgrading the bank’s long-term foreign currency rating to BBB+ in July.
Bank of Sharjah’s half-year profits were AED126 million, and its assets in the year to July 2006 grew nine per cent to AED6.24 billion. Nerguizian said the bank would continue to explore investment opportunities in the Arab world while maintaining its core philosophy of conservative management and personal service.
He said: “For Bank of Sharjah to maintain an impressive level of profitability despite the volatility of regional stock markets in recent months vindicates its track record and peerless knowledge of the local banking environment.”
Established in 1973, Bank of Sharjah is the largest financial institution in Sharjah in terms of capital and equity, and Sharjah’s biggest private company. It has three branches in the UAE: Sharjah, Abu Dhabi, and Dubai.
