National Bank of Fujairah Lists Shares on the Abu Dhabi Securities Market

Published October 23rd, 2005 - 12:59 GMT

National Bank of Fujairah (NBF) announced that as of yesterday (Sunday October 23rd 2005), its shares will be listed and traded on the Abu Dhabi Securities Market (ADSM). Senior bank officials stated that the move was aimed at increasing shareholder value and at the same time, increasing transparency by complying with ADSM regulations.

The intention to list NBF’s shares on the ADSM was announced by Shaikh Saleh Bin Mohammad Al Sharqi, Chairman of the Bank, at the annual general meeting held in April earlier this year.

Present at the listing ceremony held at the Abu Dhabi Securities Market were Dr. Sulaiman Al-Jassim, NBF Board Member and the Bank’s General Manager Mr. Asad Aziz Ahmed, while representing the ADSM was Khalid Khalifa Al-Sweidi, Manager of Company Affairs.

Since its inception in 1982, the bank has continued to show all round growth, evidenced recently by NBF assets growing to AED4.23 billion in 2004 from AED3.40 billion in 2003. The Bank had concluded a rights issue, which raised an additional AED225 million of shareholders’ funds. Shares were offered to existing shareholders who fully subscribed to the rights share offering. The bank thus increased its share capital by AED150 million and raised a further AED75 million as share premium, bringing the total raised to AED225 million.

“We welcome National Bank of Fujairah to the Abu Dhabi Securities Market and would like to invite all National Bank of Fujairah share holders to deposit their ownership certificates directly at the ADSM either through banks or certified brokers,” said Khalid Khalifa Al-Sweidi, Manager of Company Affairs at the ADSM.

The shares, which have been traded ‘over the counter’ (OTC) for many years, will now only be available for trading on the ADSM.

Commenting on the move, the Bank’s General Manager Mr. Asad Aziz Ahmed, said: “We are delighted that National Bank of Fujairah shares will now be actively traded on the Abu Dhabi Securities Market, which will greatly benefit our current shareholders. Listing on the ADSM also means that a wider selection of investors will be able to participate in the bank’s growing success.”

NBF has always been a trend-pusher in the regional banking market. In 1990, the company became the first bank in the Emirates to adopt International Accounting Standards. In 1995, NBF doubled its capital by means of a share issue to existing shareholders, which was fully subscribed. Regular capital increases have resulted in paid-up share capital of AED904.73 million and total shareholders’ funds of AED1.2 billion as at 30th June 2005.

“Moving our shares from the OTC market and into the more regulated, transparent setting of the ADSM is a vital element in our long term vision for the bank,” continued Ahmed. “Our strong business growth coupled with our growing array of financial products and services will surely reflect in a positive manner of the value of our shares.”

In the events leading up to the listing on the ADSM, NBF announced a record year in 2004 with net profits increasing to AED125.5 million against AED93 million in 2003, representing a 35 per cent increase. And as of June 2005, bank profits have increased by 35.73 per cent as compared to the same period last year, from AED55.33 million to AED75.11 million.

“In the year 2004, our capital and reserves doubled over the level of 1999. Our balance sheet grew by 1.7 times and our loan book doubled. More notably, our profits have more than quadrupled since 1999. This solid track record has played an undoubted role in raising shareholder confidence in the bank and will be the foundation upon which the future of the bank will be drawn,” added Ahmed.


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