MANAMA: Ahli United Bank (AUB) shareholders have approved the distribution of a cash dividend of 20 per cent, or five cents per share, totalling $438.7 million, together with a bonus share issue of 10 per cent (one share per 10 ordinary shares) in respect of fiscal 2019.
The announcement follows the annual and extraordinary general meetings of the bank yesterday.
The proceedings were attended by shareholders representing 78.25pc of the bank’s total issued shares.
The shareholders also ratified the reduction of the number of directors from 11 to 10.
The EGM saw shareholder approval for the amendment of AUB’s memorandum and articles of association to increase its capital by 877,444,428 shares, to cover the issuance of the approved 10pc bonus shares distribution for 2019.
They also approved the extension, for a further two years, of their standing authorisation for the board of directors to decide on the timing, pricing and other terms of issuance of up to $4 billion in bonds, loans and other subordinated or capital equivalent financial instruments, as necessary to support the funding and capitalisation plans of the bank.
Addressing shareholders, AUB chairman Meshal Alothman said: “2019 was a very successful year for AUB. Despite the challenging and highly volatile operating environment, I am pleased to report another year of record net profit, capping a long and uninterrupted streak of year-on-year growth since 2009.
“The group’s net profit climbed to $730.5m on the back of broadly diversified operating income of $1,235.5m, as we continued to deepen our client focus and engagement by sector and geography, to accelerate our digital transformation initiatives and to press ahead with better positioning AUB for the future.
“This robust financial performance also reflects the resilience of the bank’s business model and reaps the benefits of our investing over the years in building a strong and synergistic regional network of banks to serve our targeted markets.”
“This AGM also marks AUB’s 20th anniversary, and there is much to celebrate. AUB today is well recognised as a strong, established bank with a unique regional banking vision. AUB is very proud of its outstanding financial track record, one of the most consistent and successful in the industry. It has rewarded its shareholders’ confidence and support with market leading returns on a sustained annual basis. Since 2008, we have increased our equity by $2.3bn while returning $3bn in cash dividends to our shareholders, including $1.8bn in the last five years.”
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