Ahli United Bank’s AGM approves 18% cash and 10% bonus shares distributions
Ahli United Bank B.S.C has today held its Annual General Meeting and its Extraordinary General Meeting at the Bank’s headquarters in Seef District, Kingdom of Bahrain. The meetings were presided over by AUB’s Chairman Mr. Hamad Al-Humaidhi and were attended by shareholders representing 80.57% of Bank’s shares.
The AUB AGM approved the distribution of a cash dividend of 18%, amounting to US$ 4.5 cents per share (similar to fiscal 2015) and totaling US$ 309.1 million, and an increased 10% bonus share issue (ten shares per 100 ordinary shares) to shareholders registered as of 29 March 2017.
AUB’s shareholders have also agreed the appointment of Mr. David Hodgkinson as an expert independent director to the Board. Mr. Hodgkinson enjoyed a longstanding and prestigious career in international and regional banking, mostly with the HSBC group where he held a number of senior positions; including Group Managing Director & Chief Operating Officer and Chairman & Chief Executive of HSBC Bank Middle East Limited.
At their Extraordinary General Meeting held on the same day, AUB’s shareholders have voted to increase the Bank’s authorized capital from US$2 billion to US$2.5 billion divided into 10 billion shares of US 25 cents par value each to provide room for future capital increases. They also resolved to extend by two years their standing authorization for the Board of Directors to decide on the timing, pricing and terms of the issuance of up to US$ 4 billion in bonds, loans or other similar subordinated financial instruments, as necessary to support the growth plans of the Bank.
Reporting to shareholders, Chairman Al-Humaidhi said: “Despite the continuing economic and security challenges in some of our key operating markets, I am pleased to report another excellent performance in 2016. Consolidated net profit grew by 6.2% to US$ 570.6 million, on the back of sustained strong and broad-based earnings momentum, with total operating income increasing by 5.2% to US$ 1,149.0 million for 2016”.
“In March 2016, the AUB Group launched its banking operations in the Dubai International Financial Centre (DIFC), UAE through incorporating Ahli United Bank Limited (AUBL), a 100% subsidiary of AUB. This launch, pursuant to a Category 1 license granted by the Dubai Financial Services Authority (DFSA), enables AUB Group to offer corporate banking, private banking, wealth management, trade finance, treasury and cross-border financial products and services to clients based in the UAE as well as in the wider Middle East region. The expansion into the UAE market is in line with AUB Group’s strategy to develop integrated banking presences in all the Gulf markets and to act as a preferred regional intermediary for its clients particularly in terms of arranging their cross border banking needs”.
“We are also very pleased that AUB was named ‘Bank of the Year, Middle East, 2016’ for the second time by The Banker magazine, a subsidiary of the UK-based Financial Times Group, in recognition of the Bank’s strong financials as well as of the wide range of initiatives it undertakes across the region”.