First Abu Dhabi Bank (FAB), one of UAE’s leading banks, has approved the dividend distribution of 70% of paid-up capital for the financial year ended December 31, 2021 (or AED 0.70 equivalent per share), split into 49 fils in cash and 21 fils in the form of shares in lieu of cash, for a total of AED7.64 billion ($2.1 billion).

 

Owners of FAB shares registered on March 10, 2022 (i.e. buyers on 08 March, 2022) are entitled to the dividends, said FAB in a statement.

 

All items on the agenda were discussed and approved, including the amendment to the bank’s Articles of Association to increase the share capital to AED11.05 billion through the issuance of 127.61 million new shares, subject to regulatory approvals.

 

Announcing the 2021 dividends, Chairman Sheikh Tahnoon Bin Zayed Al Nahyan said: "2021 was a year of strong economic rebound despite uncertainties and an uneven global recovery. First Abu Dhabi Bank has achieved a solid performance and has maintained its commitment towards achieving the highest value for its shareholders, and as such, I am pleased to announce dividends totalling AED7.64 billion for 2021, split into AED 5.35 billion in cash and AED 2.29 billion equivalent in new shares."

 

"Our dividend structure for the year reflects our focus on preserving capital to drive future growth, and is the highest dividend distribution amongst UAE banks, in addition to the 46% return generated by FAB’s share price in 2021," he stated. 

 

"As an engine for economic growth, FAB is dedicated to supporting our clients and communities to prosper and thrive in 2022 and beyond. We have generated significant value over the years, and we are deeply committed to sustaining our track record of delivering superior and sustainable shareholder returns over the long term," he added.

 

Group CEO Hana Al Rostamani said: "FAB’s record performance in 2021 demonstrates the strength of our diversified business and our ability to capitalise on market opportunities in an improving economic backdrop, creating value for all our stakeholders."

 

"Our robust foundation and strategic focus position us very well to build on this momentum of sustainable growth and transformation, to strengthen our competitive position in the UAE and our targeted markets, and to create a future-proof bank. As we continue this journey together, I would like to thank our employees, clients, partners, regulators and our shareholders for their continued trust and confidence in FAB," he added.-TradeArabia News Service