Bank ABC (Arab Banking Corporation) has announced that its shareholders have approved the distribution of cash dividends worth $31 million (30% of the group’s annual profits) for the financial year ended December 31 2021.
The announcement was made at its Annual Ordinary General Meeting (AGM) held virtually today (March 23). In addition to the AGM, the bank had held an Extraordinary General Meeting (EGM) this year, both chaired by the Chairman of the Group Board, Saddek Omar El Kaber.
During the AGM, the shareholders approved, amongst other resolutions, the consolidated financial statements for the financial year ended December 31, 2021, with a net profit attributable to shareholders of $100 million, underpinned by excellent revenue growth and normalised ECL charges.
The distribution of approximately 30% of the Bank ABC’s annual profits will ensure that the group retains sufficient equity to drive future growth without depleting its capital ratios.
During the EGM, Bank ABC obtained the shareholders’ approval for an issuance of $390 million AT1 securities, which will increase the Bank’s Tier 1 capital ratio by approximately 130 basis points, taking it back above 17%.
Additionally, the Bank obtained the shareholders’ approval to increase its authorised share capital from $3.5 billion to $4.5 billion, which will provide for any capital actions necessary to support future growth.
Another key outcome of the AGM was the election and appointment of the members for the Group’s Board of Directors on its 14th term for three years.
Addressing the gathering, Chairman Saddek Omar El Kaber said: “As we welcome the new board of the Bank and we thank the outgoing board for its achievements, we also celebrate the Bank’s robust results, with a net profit of $100 million, which demonstrate the strength and resilience of our ambitious strategy.”
“Moreover, our solid balance sheet and prudent and disciplined governance and risk management approach, together with our investments in building a digitally driven ‘Bank of the future’ and our historic acquisition in Egypt, position us well for significant further growth in 2022,” he added.-TradeArabia News Service