Bank of Sharjah has announced that it has received regulatory approvals from the UAE Central Bank and Abu Dhabi Securities Exchange for its AED100 million ($27 million) bonus share issue.
The receipt of all necessary approvals is a firm endorsement, by shareholders and regulators alike, of the bank’s strong underlying profitability and operational performance, said chairman Sheikh Mohammed Bin Saud Al Qasimi.
The 4.76 percent bonus share issue follows a resilient 2020 when the bank delivered profits (before exceptional items) of AED176 million against a challenging market backdrop, including the global pandemic and the continuing hyperinflation affecting its Lebanese subsidiary.
The UAE performed particularly strongly, achieving a net profit of AED309 million.
The bank also grew net equity to AED3.165 billion and the bonus share issue is a further demonstration of its focus on creating long-term sustainable value for shareholders, added Al Qasimi.
Following the bonus share issue, the bank’s total capital will reach AED2.2 billion.
Al Qasimi (pictured above) said: “The AED100m bonus share issue was proposed in recognition of our business strength and underlying profitability even in times of unprecedented challenges. I am therefore delighted that this has now been endorsed by the Central Bank and Abu Dhabi Securities Exchange as well as our shareholders, enabling us to complete the process and reward our loyal investors.
“Looking ahead, we remain focused on driving operational excellence, underpinned by our market-leading products and services, in order to enhance our profitability and thus continue to create value for our shareholders.”
The bonus share issue will be paid to shareholders on the register as at June 13, the bank said in a statement.
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