Al Baraka AGM gives nod to FY16 dividends

Manama : Al Baraka Banking Group’s  (ABG) Ordinary and Extra-ordinary General Meetings yesterday approved Cash Dividend Payouts and Bonus Shares to Shareholders of US$68.9 million. Consolidated financial statements for the financial year ended 31 December 2016 were also approved.

Financial results for year 2016 showed an increase of 7 per cent in the total operating income to US$1.08 billion, with a 9pc increase in net operating income to US$507 million. 

After a 6pc rise in operating expenses, due to investment in expanding branch network, and increase in provisions, the group achieved a net income of US$268m. Assets totalled US$23.4bn at the 2016-year end, showing a slight reduction from the previous year due to the strong US Dollar. However, in terms of the local currencies total assets grew by 18pc. 

The meeting, held at Al Baraka headquarters in Bahrain Bay, approved the transfer of 10pc of the net income amounting to US$15,154,458 to the statutory reserve, the distribution US$11,396,304 as cash dividend to the shareholders amounting to a 1 US Cent for each share equal to 1pc of the par value of the share, and the transfer of US$ 124,993,819 to the retained earnings.

The ordinary general meeting approved the distribution of bonus shares to shareholders, amounting to 1 share for every 20 fully paid up shares (totaling US$57,460,923 and equal to 5pc of the issued and paid up capital) from the retained earnings subject to the required official
approvals.

The meeting also approved remuneration of US$1.5m to the directors and reappointed Ernst and Young as Auditors for the financial year ending 31 December 2017. 

Approval was given to the payment of the shareholders’ Zakat (on the distributable dividends as of 31 December 2016) of 25.78 US Cents for each 1,000 shares, and authorised the management to pay US$4,021,457 as Zakat on behalf of the shareholders, to be deducted directly from the retained earnings.

The Extraordinary General Meeting (EGM) approved the increase of the issued and paid up share capital from US$1,149,218,451 to US$1,206,679,374 by the transfer of US$57,460,923 to the Share Capital and the issue of bonus shares of 1 share for every 20 fully paid up shares to the shareholders. 

The EGM approved the recommendation of the Board of Directors to issue Sukuk amounting up to US$500m in one or multiple issuances.