National Bank of Fujairah to distribute 15% cash dividend
AGM approves cash dividend of 15%; 2007 bank profits rise to AED.323.8 million, up 36.3% from the previous year
National Bank of Fujairah (NBF) announced the approval of a 15% cash dividend by the Bank’s shareholders at the Annual Ordinary General Meeting (AGM) held yesterday (Monday 24 March) in Fujairah. The dividend shall be distributed to the shareholders recorded in the Share Register as on Thursday, 3rd April 2008.
“NBF continues its journey to new heights by registering sustained growth as demonstrated over the last three years. 2007 was the fourth consecutive year where the Bank saw a net income growth in excess of 35%,” said H. H. Sheikh Saleh Bin Mohammed Al Sharqi, NBF’s Chairman. NBF will continue to strengthen its brand into ‘Best in class full service financial institution’ by pursuing its two-pronged ‘build and diversify’ strategy and by distinctly focusing on taking its service quality and customer experience to the next level”.
The AGM also considered and approved the Chairman’s report on the Bank’s activities and its financial statements for the year ended 31 December 2007. The NBF Board of Directors was also elected for another three-year term.
The Bank experienced another strong year where profits jumped to AED 323.8 million, up 36.3% from profit of AED 237.6 million in 2006. Net interest rose by 32.9% fueled by sustainable growth in volumes. Fee income saw a growth of 23.2% on the back of strong performance from Wealth Management and Financial Institution group coupled with diversification into syndication businesses.
Total assets and liabilities grew by 42.5% and 48.8% respectively to AED 12.3 billion and AED 10.5 billion over 31 December 2006. Earnings per share increased to AED 0.29 for the year from AED 0.22 in 2006. Return on average equity rose from 16.0% in 2006 to 19.2% while return on average assets stood marginally lower at 3.1% for the year as opposed to 3.2% in 2006. Total shareholders’ equity as of 31 December 2007 stood at AED 1.8 billion and the Bank’s capital adequacy ratio at year end stood at 14.69% against the Central Bank minimum of 10% and compared to corresponding year end ratio of 18.94% which reflects the Bank’s growth and expansion.
H. H. Sheikh Saleh Bin Mohammed Al Sharqi finally noted that “the Bank is revitalizing its strategic direction and vision for the next three years and the Board is committed to augment the Bank’s capital base to support the envisaged growth plans by following a two-pronged approach of retention of profits in the form of various reserves and diversifying capital sources. The Bank has plans to generate supplementary capital during 2008.”
