The National Bank of Abu Dhabi's (NBAD) shareholders have approved distribution of a cash dividend of 40 per cent and a stock dividend of 10 per cent for the financial year ended December 31.

They also voted in favour of issuance of a Tier 1 perpetual bond programme at a maximum amount of $2 billion at the annual ordinary general meeting (AGM) and the extraordinary general meeting (EGM) held yesterday (March 10) in Abu Dhabi.

Shareholders registered in the bank’s share book on March 22 shall be eligible to receive the dividends approved by the annual general meeting, a statement said.

The AGM, convened under the chairmanship of Nasser Ahmed Alsowaidi, chairman of NBAD, reviewed and approved the directors’ report, auditor’s report and the financial statements for 2014.

The annual general meeting also elected five members for the Board of Directors including two independent directors.

“In a year characterised by significant global economic challenges, NBAD delivered strong revenue and earnings growth whilst maintaining a solid balance sheet and strong capital position, and the Bank continued to execute against its ambitious 5-year growth strategy,” Alsowaidi said.

“We are proud of our disciplined approach to balance sheet management and our strong capital position.  The Bank now ranks 25th, up from 35th, among the “World’s 50 Safest Banks” as ranked by Global Finance magazine.

“Furthermore, NBAD continues to be highly rated by all three major credit rating agencies, with long-term debt ratings of AA- by Standard & Poor’s (S&P), Aa3 by Moody’s and AA- by Fitch,” he added.

“NBAD is well-capitalised with a capital adequacy ratio of 16.4 per cent and a Tier-I ratio of 15.0 per cent, and we are not planning to issue any capital-boosting bonds. We think it is good governance to have backstops in play in the event that we might need to access capital markets at some point in the future,” said Alex Thursby, Group chief executive officer of NBAD.

“NBAD is well positioned to continue our successful growth trajectory by focusing on our mission to be “core to our chosen customers” and capitalising on our balance sheet strength and geographic positioning,” he added.

“2014 has been a transformational year for NBAD, and I am proud of the progress we have made toward becoming a client-focused bank.  We have continued to strengthen our position in the UAE by enhancing our client service, product offerings and capabilities across all of our businesses,” Thursby concluded. – TradeArabia News Service