The shareholders during the Annual General Meeting (AGM) led by the ABC’s Chairman, Saddek El Kaber held at the bank’s HQs in Manama ratified the board’s recommendation for a cash dividend distribution of 5% of the issued share capital (US$0.05 per share), amounting to US$155,500,000.
The bank earlier reported Group’s consolidated net profit for the year ended 2014 was $256 million, a 7% increase when compared to $239 million for 2013. Net profit for the fourth quarter was US$59 million as against $61 million reported in the previous year.
Total operating income rose to US$888 million from US$857 million in 2013 with broad based growth in revenues across all geographies and products contributing to the US$31 million increase, after absorbing the negative impact of the stronger dollar against the domestic currencies of some subsidiaries. Operating expenses amounted to US$439 million, a slight saving on the US$440 million reported in the previous year reflecting the interplay of cost saving initiatives combined with investments for future growth. Cost to income ratio improved to 49.4% from 51.3% in 2013, mainly from revenue growth. Net impairment provision charge of US$64 million, was US$15 million higher than in the previous year, which had benefited from some exceptional recoveries. Although the provision charge was higher, the ratio of NPLs (non-performing loans) to gross loans declined to 2.4% from 3.0% at 2013 year-end.
The AGM also approved the appointment of two new members to ABC’s Board of Directors: Dr. Farouk El Okdah and Dr. Tarik Yousef.
Dr. El Okdah is the former Governor and Chairman of the Central Bank of Egypt. He holds a PhD in Business and applied Economics from Wharton School, University of Pennsylvania. Dr. El Okdah has more than 35 years of banking experience.
Dr. Yousef is a member of the Board of Directors of the Central Bank of Libya and the CEO of Silatech, an innovative regional organization that promotes economic empowerment of Arab youth through employment. He holds a Ph.D. in economics from Harvard University with specialisation in development economics.
“We are delighted to see ABC distribute dividends to shareholders as a result of its strong performance in 2014. This dividend payment follows a similar payment to shareholders last year,” Dr. Khaled Kawan, Group Chief Executive Officer, in a statement said.
“ABC will continue its drive to develop new initiatives that will enhance earning capabilities and ensure sustainable growth in the coming years, while at the same time continue to strengthen compliance and risk management frameworks,” Dr. Kawan, added.
ABC is a leading international bank in the MENA region and provides innovative wholesale financial products and services that include corporate banking, trade finance, project and structured finance, syndications, treasury products and Islamic banking. It also provides retail banking services through its network of retail banks in the region.