NBD shareholders approve cash, stock dividends
Shareholders of National Bank of Dubai (NBD) yesterday approved a 40 per cent cash dividend for 2006 and a bonus issue of two free shares for every 10 held.
The bank, which announced profits of Dh1.1 billion, a figure that matches the record achieved during the previous financial year, said investors holding shares on March 27 will be eligible for the dividend.
At the bank's 43rd Annual General Meeting, Abdullah Mohamed Saleh, Chairman of NBD, said that the result had been accomplished despite costs rising across a number of areas. "Significant investments in strategic initiatives, increasing expenditure on staff, inflationary pressures in the economy and competition for resources have all combined to affect our profitability," he told shareholders. "Nevertheless, the declaration of a dividend of 60 per cent, 40 per cent cash dividend and a scrip dividend 20 per cent equivalent to Dh 0.60 per share, and earnings per share sustained at 0.85 demonstrate the bank's inherent strengths," he said.
In addition, the implementation a number of the strategic initiatives announced in 2005 has contributed significantly to a 34 per cent growth in assets, which have now reached Dh69 billion. As a result, the bank continues to be highly regarded by international credit rating agencies, with Moody's assigning an 'A1' rating while Standard & Poors have awarded an 'A' grade. "Both ratings acknowledge the bank's strong capitalisation and liquidity, and the quality of its assets," said Saleh.
Despite the impact of rising costs, the bank experienced considerable growth in key areas, he continued. "In particular, corporate banking assets increased by 57 per cent and retail banking revenues grew by 78 per cent." In retail banking, growth was driven by the introduction of many new products and product variations, including the NBD Value Account, Universal Investor Plan, NBD Lifeline, Protection Plus and host of others that have widened the choices available to the bank's customers. "In addition, our distribution channels were strengthened with the upgrading of four pay offices, we installed 34 new ATMs and we also received licences to set up 10 more branches, a significant addition to our branch network," he added. Source
The bank, which announced profits of Dh1.1 billion, a figure that matches the record achieved during the previous financial year, said investors holding shares on March 27 will be eligible for the dividend.
At the bank's 43rd Annual General Meeting, Abdullah Mohamed Saleh, Chairman of NBD, said that the result had been accomplished despite costs rising across a number of areas. "Significant investments in strategic initiatives, increasing expenditure on staff, inflationary pressures in the economy and competition for resources have all combined to affect our profitability," he told shareholders. "Nevertheless, the declaration of a dividend of 60 per cent, 40 per cent cash dividend and a scrip dividend 20 per cent equivalent to Dh 0.60 per share, and earnings per share sustained at 0.85 demonstrate the bank's inherent strengths," he said.
In addition, the implementation a number of the strategic initiatives announced in 2005 has contributed significantly to a 34 per cent growth in assets, which have now reached Dh69 billion. As a result, the bank continues to be highly regarded by international credit rating agencies, with Moody's assigning an 'A1' rating while Standard & Poors have awarded an 'A' grade. "Both ratings acknowledge the bank's strong capitalisation and liquidity, and the quality of its assets," said Saleh.
Despite the impact of rising costs, the bank experienced considerable growth in key areas, he continued. "In particular, corporate banking assets increased by 57 per cent and retail banking revenues grew by 78 per cent." In retail banking, growth was driven by the introduction of many new products and product variations, including the NBD Value Account, Universal Investor Plan, NBD Lifeline, Protection Plus and host of others that have widened the choices available to the bank's customers. "In addition, our distribution channels were strengthened with the upgrading of four pay offices, we installed 34 new ATMs and we also received licences to set up 10 more branches, a significant addition to our branch network," he added. Source
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