The National Bank of Fujairah, NBF, today approved a distribution of profits of 15 percent of paid-up capital. This took the form of cash dividends of 7.5 percent, AED102.5 million, and bonus shares of 7.5 percent, AED102.5 million, of paid-up capital.

The bank’s shareholders also approved the Chairman’s and Directors’ Reports, and the Sharia Supervisory Board report for NBF Islamic, the Islamic banking window of NBF. They also discussed the bank’s Corporate Governance Report and the consolidated financial statements for the year ended 31st December 2017.

The shareholders confirmed the appointment and remuneration of the bank’s external auditors and the Sharia supervisory board members for NBF Islamic for 2018. The Board of Directors’ remuneration proposal of 0.64 percent of the net profit, after deducting all depreciation and reserves, for its members was also approved.

Through a special resolution, the shareholders approved an amendment to the terms of the bank’s first tranche of Tier 1 perpetual capital notes of AED500 million allowing the future conversion of the notes into shares. They also approved the Board of Directors’ recommendation to increase paid up capital of the Bank through such a conversion by AED175,438,596 to AED1,541,965,159 at a conversion factor of AED2.85 for each note, subject to the approval of the Securities and Commodities Authority and the UAE Central Bank.

In addition, the shareholders considered and approved the increase in ceiling of non-convertible additional Tier 1 capital instruments by US$500 million for the purposes of strengthening the Bank’s capital base, taking the Tier 1 capital to US$636.1 million.

Sheikh Saleh bin Mohammed bin Hamad Al Sharqi, NBF Chairman, said, "The Board is pleased with NBF’s results during this challenging period of unprecedented change. We believe they are a testament to the bank’s agile business model and exceptional customer service. NBF delivered strong core performance through its renewed focus on being the financial partner for business, and meeting its customers’ professional and personal needs. The Board recognises the importance of dividends to shareholders, and believes in balancing such returns with ongoing investment in the brand to support future growth and preserving strong capital ratios. The approved changes in the capital will further strengthen NBF’s position to navigate through the current market conditions and support its growth strategy."

Easa Saleh Al Gurg, Bank's Deputy Chairman, said, "2017 ends on a positive note, with a strong set of results, supported by high standards of corporate governance, compliance and risk management. Our relentless focus on our customer’s needs and building an engaged and enabled work force, augur well for the effective delivery of our strategy for 2018. NBF is well positioned to capitalise on market opportunities and strengthen its client partnerships."

We accept Guest Posts