UAE-listed banks to distribute $4.98bln dividends for 2018

Dubai: Nine listed banks on the twin UAE stock markets recommended distributing cash dividends worth a combined AED 17.59 billion ($4.98 billion) to shareholders for the full-year 2018.

The amount of cash dividends is positive in view of mounting challenges faced the banking sector on the local and global landscape, along with their commitment to Basel III capital regulations, brokers told Mubasher.

They affirmed that cash dividends of banks operating in the UAE helped in stepping up purchasing deals on bank shares in the long term.

First Abu Dhabi Bank (FAB) has recommended distributing total dividends worth AED 8.06 billion, or 74 fils per share, acquiring around 44.06% of overall dividends distributed by the nine lenders.

On the other hand, Abu Dhabi Commercial Bank (ADCB) recommended around AED 2.39 billion in cash dividends for the year ended 31 December 2018, representing 13.06% of total dividends.

As for Dubai Islamic Bank (DIB), the board of directors recommended distributing AED 2.3 billion, or 35 fils per share, making up almost 12.6% of the sector’s total distribution, followed by Emirates NBD, which recommended cash dividends of AED 2.23 billion, forming 12.14% of the total dividends.

Abu Dhabi Islamic Bank (ADIB) also recommended AED 994.4 million in cash dividends for 2018, recording 5.4% of the total distributions, followed by Mashreq Bank that recommended cash dividends of AED 710 million, or 3.85% of the total dividends.

Brokers said that UAE lenders are enjoying high liquidity, adding that recommended cash dividends for 2018 declined in comparison with the previous year due to high restrictions imposed on banks regarding a commitment to liquidity standards.

Translated by: Kholoud Mohamed Hussein