Bahrain's ASBB shareholders approve 8% dividend payout for 2019

The bank’s net profit recorded a significant increase of 14%

  

Bahrain - Shareholders of Al Salam Bank-Bahrain (ASBB) have approved a dividend distribution of eight per cent of the paid-up share capital, amounting to BD17.727 million, for the year December 2019.

The announcement follows an annual general meeting (AGM) yesterday, which saw approval of the consolidated financial statements for 2019.

The dividend distribution comprises 4pc cash dividends equating to BD8.863m and 4pc bonus shares equating to 88.634m shares (one share for each 25 shares in ASBB).

The bank’s net profit recorded a significant increase of 14pc to BD21.1m in 2019.

Correspondingly, earnings per share increased significantly to 9.8 fils for 2019, compared with 8.7 fils per share for the year 2018.

The extraordinary general meeting, which was also held yesterday, approved an amendment to the memorandum and articles of association of the bank to reflect the increase in the bank’s paid-up share capital arising from the issuance of bonus shares, as well as amendments to reflect the new provisions of Bahrain Commercial Companies Law.

ASBB chairman Khaleefa Al Muhairi commented: “The robust performance of 2019 enabled the bank to steadily increase its dividend distribution for the year. We are committed to continuing our efforts to generate valuable returns to shareholders.”

Mr Al Muhairi added, “During 2019, we reported significant growth in market share, net profit, total deposits and financing facilities. The strong performance reflects the bank’s ability to tactically address market challenges and navigate towards achieving the targets set by the board of directors. Going forward, we will continue to execute our strategy which is designed to implement holistic enhancements and growth initiatives to improve market standing and optimise our business model.”

Commenting on the strong performance and dividend distribution, group chief executive Rafik Nayed said: “Our transformation strategy, which focuses on strengthening core banking activities and digitising the bank’s operations, is positioning us well for future growth. Although only the maiden year of strategy implementation has concluded, we are already witnessing the strength of a more diversified business model, a robust approach to capital deployment, and rigorous risk management.”

Mr Nayed added, “We are pleased with the strong performance reported in 2019 and we look forward to building on these results to put the bank in a strong financial position to face the global economic challenges of 2020 associated with coronavirus while capturing the range of new opportunities that maintain the momentum of successes from the first year of implementation of our transformation strategy.”

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