| 08 Mar 2010 |
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Bank of Sharjah Eyes Private Banking Joint Venture with BNP Paribas; Dividend Approved
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DUBAI/SHARJAH -- The UAE's Bank of SharjahBank of Sharjah
plans to join forces with France's biggest lender BNP ParibasBNP Paribas to tap the fast-growing Middle-Eastern market for the very rich, the company's general manager said on Sunday. The two banks are in the final stages of setting up a joint venture with possibly a 50-50 ownership structure to cover the Middle-Eastern private banking market, Bank of SharjahBank of Sharjah's executive director and general manager told Reuters in an interview.
"To tap the potential of the region (Middle East) you need the local know-how and in order to be credential you need the expertise of a solid bank like BNP ParibasBNP Paribas," said Varouj Nerguizian at the bank's headquarters in Sharjah.
Bank of SharjahBank of Sharjah
made Dh475 million in full-year net profit in 2009. For 2010, Nerguizian expects Dh550 million ($149.7 million) in net profit, although if regional stock markets remain weak, full-year net profit will be around Dh500 million, he said.The bank is also considering establishing a European footprint, either by acquiring a small bank or obtaining a licence.
"I think we are going to pursue that shortly... there is a lot of a business between Europe and the UAE that you can capture through that entity," Nerguizian said.Dividend Approved
Meanwhile, the Ordinary General Assembly of the Shareholders of Bank of SharjahBank of Sharjah approved during its 36th annual meeting the proposal of the Board of Directors to distribute 12 per cent cash dividend equivalent to Dh240 million, as well as a five per cent bonus issue equivalent to Dh100 million.
Ahmed Al Noman, Chairman of the Board of Directors, said ithat the Bank was able to achieve excellent results in 2009 in terms of profitability and growth in the various items of its balance sheet despite the unfavourable environment in the local and regional financial markets.
He stated that Bank of SharjahBank of Sharjah achieved Dh475 million net consolidated profits for the period ending December 31, 2009, registering a 16 per cent increase over the Dh410 million figure the previous year.
He added that the bank was able to improve its profitability and balance sheet structure, with total revenues for the year reaching Dh1,169 million, an increase of 26 per cent over the 2008 figure of Dh928 million. This increase was mainly driven by the 50 per cent increase in net interest income which compensated for the decline in the commission and trading income.
By Staff Report
© Khaleej Times 2010
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