approve appropriation of profits to further bolster resilience as economic uncertainty rises

Manama, Bahrain:  Bank ABC (Arab Banking Corporation B.S.C) held its Annual General Shareholders’ Meeting virtually on April 19, 2020, under the chairmanship of HE Saddek El Kaber. All resolutions submitted to the vote were adopted by the shareholders.

The Bank delivered a resilient performance in 2019, despite the challenging market conditions and global slowdown. It recorded a robust 6% growth in headline total operating income, spread across a broad base of its businesses and 4% on an underlying basis. Headline net profits were consequently slightly lower by 4%, but increased by 2% on an underlying basis. The balance sheet remains strong with Tier 1 Capital Ratio at 16.9%, NSFR at 115% and LCR above 300%.

The shareholders approved, among other resolutions, the consolidated financial statements for the financial year ended 31 December 2019. They also approved the recommendation of the Board for the appropriation of profits for the financial year ended 31 December 2019; to transfer US$ 19,364,900 to the legal reserve and cash transfer of the remaining balance of US$ 174,284,100 to the retained earnings.  

Indeed, the Board withdrew its earlier dividend recommendation proposal to the AGM, as part of the Bank’s comprehensive action plan in light of the unprecedented and rapidly evolving challenges as a result of COVID-19 outbreak.

While the Board recognises the importance of dividends to shareholders, the AGM felt that such a prudent move is sound and necessary to ensure continued balance sheet strength in these times of heightened uncertainty.

The AGM also took note that in a bid to safeguard its employees, clients and business, the Bank has been steadfast in enforcing effective measures to minimise the impact of the COVID-19 global outbreak. Although it is early to quantify ultimate financial impact, the Bank’s funding and capital position is resilient enough to withstand the impact of this crisis, while maintaining the strategic direction with distinct focus on digitization and the transformation of its wholesale bank.

Group Chairman HE Saddek El Kaber said, “Our platform is strong and can absorb sever stress. We will continue to proactively monitor, respond and prepare to adjust to the headwinds of COVID-19; we have delivered robust results in 2019 and made good progress on our strategic transformation. With the crisis of COVID-19, the wellbeing of our employees and serving the interests of our customers remain front and centre. While the outlook for 2020 is uncertain, we are determined and better prepared than ever to tackle the challenges that lie ahead.” ​