Bank ABC, a leading Mena bank, has received shareholders’ approval for a total dividend cash payout of $70 million (30% of net profits) and Additional Tier 1 (AT1) capital issuance of up to $400 million to support future growth.

 

Cash payment of a 2.25% dividend of $2.25 cents for each outstanding share (net of treasury shares) for approximately $70 million, a 50% year-on-year increase from the 2022 dividend of $1.5 cents per share, was set at Bank ABC’s 2024 AGM and EGM. During the meetings, shareholders approved the bank’s consolidated financial statements for the year ended December 31, 2023.

 

The bank had posted impressive financial results for 2023 including a number of records in the group’s history, with revenue at its highest ever level of $1.3 billion and assets reaching a record high of almost $44 billion. 

 

Strong business growth

Alongside this, net profits had shown an exceptional 53% YoY growth reaching $235 million and RoE improving by over 2% YOY to reach 5.8%. This performance was driven by strong business growth across core markets, a solid capital funding base, tailwinds from rising interest rates, and the successful delivery of its strategic objectives aimed at building ‘Mena’s International Bank of the Future.’

 

Shareholders also approved transfer of $23.5 million to the legal reserve and transfer of the remaining balance of $142.3 million to the retained earnings. 

 

Bank ABC Group Chairman, Saddek Omar El Kaber, remarked: “2023 marked a year of exceptional growth for the bank, as it continues to move towards the future with agility and ambition while navigating market challenges. The strength of our financial performance affirms that the group’s strategy is delivering on its intent to create greater value for our shareholders, illustrated by the 50% increase in dividends. Supported by disciplined governance, the group is well positioned to continue a trajectory of fast paced profit growth, while maintaining its strong balance sheet.”

 

New strategy

Group CEO, Sael Al Waary, added: “We are grateful to our shareholders for their confidence in the bank’s strategy and capabilities and to our Board of Directors for their continued support and guidance. We must also thank Bank ABC staff worldwide for spearheading the execution our new strategy.

 

“The bank’s exceptional performance, amid challenging geopolitical and economic conditions, is testament to the resilience of our global operations and our commitment to deliver on our aspirations for accelerated earnings growth and increasing returns to our shareholders in 2024 and beyond.”--TradeArabia News Service