Mar 03 2012
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National Bonds announces 2% profit rate for 2011
Customer base rose by 7.3 per cent to 655,000
The company had announced a profit rate of 3.78 per cent for 2010 and 3.54 per cent for 2009.
In a statement, Mohammed Qasim Al Ali, CEO, NBC, said: "The year passed posed many challenges for investors as the global economy struggled to recover from the crippling effects of the financial crisis and regional unrest destabilized many economies.
He added: "What we offer is currently unrivalled and unmatched as a savings experience preposition."
Sales crossed the Dh2.39-billion mark, registering a 23 per cent growth while repeat purchases rose to 79 per cent in 2011.
Cumulative return offered since inception of the scheme reached 30.68 per cent.
The company had amended its profit distribution calculation methodology for 2011 onwards with a view to reward its loyal customers.
Under the new tier system, a person holding bonds for less than three months will get only 0.8 per cent as profit rate for 2011; three months and less than six months will get 1.2 per cent; six months and less than one year will be entitled for 1.6 per cent rate, while those holding for the full year will get 2 per cent.
When contacted by Emirates 24|7, AS, a bondholder, said: "I was hoping that the company will announce a profit rate similar to the last year. Profit has been declining every year."
Seema K, an Indian, said: "I was expecting a decent profit rate announcement this year. May be a bit higher or close to last year's. Though now my investment in quite low as I had redeemed my saving when the rupee was trading at its lowest."
In total, 15 new institutions joined the employee saving scheme, allowing their employees the chance to automatically save a portion of their monthly salary in the form of bonds.
Ali said: "The prospects for National Bonds remain strong. The scheme is well positioned across a diversified range of asset classes whilst it provides the bondholders with the liquidity feature necessary to meet any of their emergencies requirements.
"We also see significant opportunities in our core market of the UAE and are confident that the investments we are making will lead to continued strong growth in the assets under management leading to further improvements in Mudaraba fund mobilisation efficiency," he stated.
© Emirates 24|7 2012
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