The shareholders of National Bank of Abu Dhabi’s has approved Tier -1 perpetual bonds programme at a maximum value of $2 billion.
At the annual general meeting the shareholders also approved distribution of a cash dividend of 40 per cent and bonus shares of 10 per cent for the financial year ended 31 December 2014.
The AGM, convened under the chairmanship of Nasser Ahmed Alsowaidi, the Chairman of NBAD, reviewed and approved the directors’ report, auditor’s report and the financial statements for the year ending 31 December 2014 and elected five members for the Board of Directors including two independent directors. Addressing the shareholders, Alsowaidi said: “In a year characterised by significant global economic challenges, NBAD delivered strong revenue and earnings growth whilst maintaining a solid balance sheet and strong capital position, and the Bank continued to execute against its ambitious 5-year growth strategy”.
“NBAD continues to be highly rated by all three major credit rating agencies, with long-term debt ratings of AA- by Standard & Poor’s (S&P), Aa3 by Moody’s and AA- by Fitch,” the Chairman of NBAD said.
“NBAD is well-capitalised with a capital adequacy ratio of 16.4 per cent and a Tier-1 ratio of 15 per cent, and we are not planning to issue any capital-boosting bonds. We think it is good governance to have backstops in play in the event that we might need to access capital markets at some point in the future,” said Alex Thursby, Group Chief Executive Officer of NBAD.
“NBAD is well positioned to continue our successful growth trajectory by focusing on our mission to be “core to our chosen customers” and capitalising on our balance sheet strength and geographic positioning,” Thursby said.
“2014 has been a transformational year for NBAD, and I am proud of the progress we have made toward becoming a client-focused bank. We have continued to strengthen our position in the UAE by enhancing our client service, product offerings and capabilities across all of our businesses,” he added.
NBAD which is the second biggest lender by assets’ earnings rose 28 per cent year-over-year to Dh5.579 billion in the year 2014, driven primarily by strong fee income growth across all lines of business, solid loan growth, increases in deposits and solid gains in the investment portfolio.
Year-over-year results reflected healthy loan and deposit growth, including strong continuation of growth in CASA.
Net loans and advances were Dh194 billion were up six per cent year-on-year.Customer deposits were Dh243 billion, and up 15 per cent year-on-year.