United Arab Bank lowers cash dividend to 15%

The general assembly of the shareholders of United Arab Bank (UAB) approved the revised proposal of cash dividend from 22 per cent to 15 per cent, according to a statement from the bank.

UAB's board of directors had initially proposed a 22 per cent cash dividend that was subsequently reduced to 15 per cent due to a recent Central Bank regulation, which restricted that all local banks are required to limit the cash dividend to a maximum of 50 per cent of the net achieved profit.

The AGM approved the directors' report to shareholders and the audited financial statements for the year ended December 31, 2009.

The extra general meeting (EGM) shareholders of the bank held yesterday approved the amendment of the bank's Article of Association by adding a new Article under No 81 in accordance with the Rules and Regulations of Corporate Governance and Institutional Code of Conduct following the issuance of Resolution No 518 of 2009 by the Securities and Commodities Authority (SCA) on the same.

UAB's Chairman Sheikh Faisal bin Sultan bin Salem Al Qassimi stated UAB was able to achieve satisfactory results for the year ended December 2009, considering the downturn and market conditions.

"The bank continued to adopt a cautious approach to business in the light of the challenging economic situation. UAB's focus on consolidating and maintaining high quality assets and improving quality of service continued," said the statement.

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