Tuesday 21 January 2020

Mohammed Qasim Al Ali

National Bonds sees 20pc rise in regular savers

DUBAI, April 18, 2018

National Bonds Corporation (NBC), a leading Sharia-compliant savings and investments company in the UAE, has announced a 20 per cent increase in regular savers during 2017.

Based on the company’s latest profit results, National Bonds has also reported up to four per cent returns for National Bonds savers for a second year in row.

Mohammed Qasim Al Ali, chief executive officer at NBC, said: “We are delighted to report strong returns for our customers for a second year in row. We are passionate about increasing savings across the UAE and we measure our success on the number of savers year on year.”

“We incentivise customers to save with us through competitive returns and we are very pleased to report an increase in regular saving by 20 per cent in 2017. This is reflective not only of the growing confidence in National Bonds, but also the growing appetite among UAE residents to invest in their future.

“At National Bonds, we are committed to helping UAE residents save and as the latest results highlight, it pays to save with us. In fact, bondholders who have invested with us since inception have seen nearly 52 per cent in total returns to date - a significant return on investment,” he added.

Looking at annual returns, including annual profits and donated rewards, holders of Saving Bonds valued at more than Dh50,000 ($13,610) received on average return of 1.64 per cent, while those with bonds valued at Dh150,000 or more benefitted from an average return of  2.43 per cent.

Customers who had a balance of over Dh350,000 in their accounts were rewarded with an average return of3.62 per cent. National Bonds’ Term Sukuk also reported strong results for customers last year, with returns ranging from 1.75 per cent up to 4 per cent for customers with a three-year term. Additionally, holders of Regular Saver Bonds saw an average annual return of 2.82 per cent.

National Bonds also reported, in line with the overall growth of private wealth in the UAE, an increase to the numbers saving with their Prestige Programme. As private wealth continues in the UAE and wider region, 2017 saw an eight per cent increase in the account balance of Prestige customers. Interestingly, there was a 23 per cent increase in customers who joined Prestige last year, 5 per cent of which were new to National Bonds.

“Last year was a great year for our business. Not only did we witness an increase in returns for a second consecutive year, but we also witnessed stable growth across our business. In 2017, we remained bullish in our investment strategy, but always with our stakeholders’ interest in mind. This, in turn, produced strong results which we look forward to continuing into 2018,” said Al Ali.

National Bonds’ investment strategy remained robust in 2017, with a continued focus on capital preservation for customers and the long-term economic development of the UAE. Low-risk investments remained a key priority in 2017, with the aim of protecting the interests of bondholders and shareholders. This approach has ensured year-on-year increases in shareholder equity.

“Despite challenging market conditions, I am pleased to say that we recorded strong growth and were able to provide strong results for UAE savers, as well as National Bonds stakeholders,” said Al Ali.

“This is a clear testament to the company’s robust financial strategy, clear vision for the future, as well as the hard work and dedication of our people. We have a number of exciting launches and investment opportunities in the pipeline and I am personally excited for what 2018 has to offer.” – TradeArabia News Service

Tags: National Bonds | Shariah |

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