MENA’s leading international bank reflects on its
remarkable performance in 2021; shareholders approve the issuance of US$390
million AT1 securities and an increase in authorised share capital to US$4.5
Manama, Bahrain: Bank ABC (Arab
Banking Corporation B.S.C) held its Annual Ordinary General Meeting (AGM)
virtually on 23 March 2022. In addition to the AGM, the Bank held an
Extraordinary General Meeting (EGM) this year, both chaired by the Chairman of
the Group Board, Mr. Saddek Omar El Kaber.
During the AGM, the shareholders approved, amongst
other resolutions, the consolidated financial statements for the financial year
ended 31 December 2021, with a net profit attributable to shareholders of
US$100 million, underpinned by excellent revenue growth and normalised ECL
charges. They also approved the recommendation to distribute a dividend of
US$31 million, approximately 30% of the Group’s annual profits, ensuring 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 US$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 US$3.5 billion to US$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.
Bank ABC’s Chairman, Mr. Saddek Omar El Kaber,
remarked, “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 US$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.”