NBAD approves 30% cash dividend

The National Bank of Abu Dhabi's (NBAD) annual general meeting (AGM), held on Sunday at Emirates Palace in Abu Dhabi, approved the distribution of 30 per cent cash dividend and 20 per cent bonus shares to shareholders listed in the share register held with Abu Dhabi Securities Exchange (ADX) as at 23 March 2011.

The meeting, convened under the chairmanship of Nasser Ahmed Khalifa Al Suwaidi, Chairman of the NBAD Board, reviewed and approved the directors' report, auditor's report and the financial statements for the year ending 31 December 2010.

Addressing NBAD's shareholders, Al Suwaidi said: "Global economic activity continued to recover in 2010 supported by accommodative monetary and fiscal policy around the world. Economic activity in the United Arab Emirates rebounded modestly reflecting global trends. NBAD continues to perform strongly in challenging local and international operating conditions. The Group's business model has been the underlying strength to its sturdy and consistent performance."

The Chairman shared the aspirations of the Bank for 2020 with the shareholders. NBAD's vision is to be recognised as the World's Best Arab Bank and in line with that objective it has outlined its broad strategy to achieve a target of Dh16 billion in net profits by 2020. The Bank shall continue to invest into the key elements of its business - talent, information technology, brand and network, capital and funding and focusing on customer satisfaction. The Bank's strategy is aligned with the Abu Dhabi Vision 2030 and the growth of the country.

In 2010, NBAD achieved a 22 per cent increase in net profits to Dh3,683 million for the year ended 31 December 2010 compared with Dh3,020m for the corresponding period of 2009. This represents diluted earnings per share (EPS) of Dh1.40 for the year compared with Dh1.18 for 2009.

Total assets reached Dh211.4bn as at 31 December 2010, 7.4 per cent up on 31 December 2009. Deposits stood at Dh123.1bn on 31 December 2010, up 6.5 per cent on previous year. Loans and advances to customers increased by 3.5 per cent to Dh136.8bn compared with Dh132.3bn as at 31 December 2009 reflecting our prudent lending policies.

The quality of the loan book remains good with non-performing loans of Dh3,249m representing 2.3 per cent of our portfolio. Net impairment charges of AED 1,207 million for the year consist of collective provisions of Dh288m, net specific charges of Dh826m and other provisions on land and investments of Dh93m. In line with UAE Central Bank directives to banks to raise the level of collective provisions from 1.25 per cent to 1.5 per cent of credit risk weighed assets by 2014, the bank increased collective provisions by Dh288m in 2010 to Dh1,892m representing 1.39 per cent of credit risk weighted assets.

"2010 was not the easiest year for banking and we have continued to make substantial provisions for non-performing loans. Notwithstanding this, the robustness of our business model has been demonstrated in a 22 per cent increase in net profits, which, for the first time in the history of NBAD, reached the equivalent of $1bn," said Michael H. Tomalin, the Group Chief Executive of NBAD.

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