United Arab Bank AGA and EGA approve the distribution of cash and scrip dividends

SHARJAH: United Arab Bank, UAB, yesterday in Sharjah held its 40th Annual General Assembly, AGA, and an Extraordinary General Assembly, EGA, under the chairmanship of Sheikh Faisal Bin Sultan Bin Salem Al Qassimi, Chairman of the Board of Directors. The AGA adopted the consolidated financial statements for the year ended 31st December 2013, the distribution of cash dividend and bonus shares, and re-appointed KPMG as the external auditors of the Bank for 2014. The AGA was followed by an EGA meeting which approved the amendment of the Articles of Association of the Bank, subject to the approval of the Central Bank.

The AGA approved a cash dividend of AED 149.5 million (being 15% of the paid up share capital) and a scrip dividend of AED 149.5 million (being 15% of the paid up share capital).

This was considered to be in the best interests of the Bank and its shareholders but is subject to obtaining the final approval of the Central Bank, by no later than Sunday, 9 March 2014. Should the Central Bank approval not be obtained, then a lower distribution of 15.06% of the Bank’s paid up capital as cash dividend amounting to AED 150 million, and 10% of the Bank’s paid-up capital as bonus shares, amounting to AED 99.6 million, will be paid according to a pre-approved amount by the Central Bank. The final dividend proposal and the full set of the financial statements will be disclosed following the Central Bank’s approval.

The record date for the entitlement to the dividend was set as Thursday, 13 March 2014. The dividend cheques will be sent to shareholders by registered post within 30 days from the AGA date, in accordance with the local applicable laws.

The Board of Directors Report addressed by Sheikh Faisal Bin Sultan Bin Salem Al Qassimi, Chairman of the Board, highlighted the Bank’s activities and financial position in 2013. The report comprised a summary of the strategic directions of the Bank as well as the financial outcome of the full year 2013.

During the meeting, the shareholders considered and adopted the External Auditors’ Report on the Bank’s balance sheet and financial position for the year ended 31 December 2013. The results showed a full year operating profit of AED 721 million before provisions, a 36% increase over 2012 operating profits of AED 531 million.

Shareholders who attended UAB’s Extraordinary General Assembly approved the proposed amendments of the Articles of Association of the Bank, subject to the prior regulatory approval of the Central Bank; and authorized the Board of Directors to implement EGA resolutions after obtaining all regulatory approvals, after which the amended Articles of Association will be published in the official gazette.

The meeting was attended by the Chairman, members of the Board of Directors and Paul Trowbridge, CEO of UAB, as well as other senior Bank officials. The External Auditors and representatives of the Emirates Securities and Commodities Authority and the Economic Development Department of the Government of Sharjah were also present at the meeting.

Commenting on the 2013 results, Sheikh Faisal Bin Sultan Bin Salem Al Qassimi, Chairman of the Board of Directors said: “with net profits reaching AED 552 million, the Bank continued its upward trajectory and further capitalized on the solid platform laid down in recent years. UAB’s customer-centric strategy delivered growth across all business units and increased the Bank’s market share”.

He added: “Commercial Bank of Qatar’s (“CBQ”) continued partnership and strategic guidance, and the professionalism and commitment of the management team and staff, helped make 2013 a truly outstanding year for the Bank.” The Bank’s Chief Executive Officer, Paul Trowbridge, commented on the meeting and the year’s performance, saying: “The meeting was successful and we took a number of decisions against the backdrop of 2013, which proved to be another landmark year for UAB. All key Income Statement and Balance Sheet metrics recorded growth in excess of 30% versus 2012, an excellent achievement and one the Bank can be extremely proud of. The Bank continues to benefit from a range of synergies and business opportunities, in light of its strategic alliance with CBQ, and the growing alliance that now includes Turkey’s Alternatifbank and National Bank of Oman.”