Al Baraka Banking Group approves $54.7 million in cash dividend, bonus shares

Al Baraka Banking Group B.S.C held its Ordinary and Extra-ordinary General Meetings on 23rd March 2015 in Manama. The Group's shareholders reviewed in relation to the financial year ended 31 December 2014 the report of the Board of Directors on the Group's activities, the Auditors' report on the financial statements and the report of the Unified Shariah Supervisory Board. The consolidated financial statements for the financial year ended 31 December 2014 were also reviewed and approved.
The meeting approved, upon the recommendations of the Board of Directors, the transfer of 10 percent of the net income amounting to $15,173,115 to the statutory reserve, the distribution of $32,816,061 as cash dividend to the shareholders registered as of the date of this meeting and amounting to 3 cents for each share equal to 3 percent of the par value of the share, the transfer of $103,741,971 to the retained earnings, and approval of the proposed distribution of one bonus share for every 50 fully paid up shares to the shareholders registered as of the date of this meeting amounting to $21,877,374 and equal to 2 percent of the issued and paid up capital from the retained earnings subject to the obtaining of the required official approvals.
The AGM also approved a remuneration of $1.5 million to the Members of the Board of Directors and the recommendation of the Board of Directors to reappoint Messrs. Ernst and Young as Auditors for the Financial year ending 31/12/2015, and to authorise and empower the Board of Directors or its delegate to fix their remuneration, after the approval of the Central Bank of Bahrain (CBB). The recommendation of the Board of Directors with regard to the Variable Remuneration Policy as per the CBB guidelines including the Share Incentive Scheme was also approved.
The AGM then reviewed the Corporate Governance Report as per CBB guidelines, which include the evaluation of Al Baraka Banking Group's Board, Members and Committee and the percentage Report of Board of Directors attendance at Board Meetings for 2014.
The Extraordinary General Meeting was then held and it approved the increase of the issued and paid up share capital from $1,093,868,695 to $1,115,746,069 by transferring $21,877,374 to the Share Capital and the issue of bonus shares of one share for every 50 fully paid up shares to the shareholders registered as of the date of this meeting.
The meeting also approved the amendment of the Memorandum and Articles of Association to increase the capital as above, the amendments of the Articles of Association as per the Law No. 50 for the year 2014 amending the Commercial Companies Law No. 21 for the year 2001 and the authorisation and empowerment of the Board of Directors or its delegate to take the necessary action, to effect amendment to the Memorandum and Articles of Association for the purpose of publicising the increase in the share capital, and attesting the necessary amendment to the Memorandum and Articles of Association.
Commenting on the results for 2014, HE Sheikh Saleh Abdullah Kamel, Chairman of Al Baraka Banking Group said "We consider the outstanding results achieved during year 2014 as a clear embodiment of the success of the business model that we have followed since the inception of the Group, and insightful business strategies coupled to the excellent managerial and technical expertise available to the Group which enabled it to translate these plans and strategies into achievements. These strategies not only enabled us to deal in a prudent manner with the repercussions of the global economic and financial crisis and the fluctuated political and economic regional conditions, but also to further expand our business, markets and branches as well as enhance our human and technical capabilities".
Abdulla Al Saudi, Deputy Chairman of Al Baraka Banking Group, stressed that "The economic and financial developments witnessed during the year 2014, especially during the latter part of the year, which saw sharp decline in oil prices, further compounded the adverse conditions. Because of this crisis, financial institutions all over the world were forced to adopt conservative and cautious business strategies. In view of this, the financial and operating results achieved by the Group in 2014 can be viewed as excellent by all standards. These results reflect the success of the business strategies that we at the Board of Directors of the Group have put in place, based on the points of strength that we possess and the opportunities generated in the markets in which we operate".
Adnan Ahmed Yousif, member of the Board of Directors and President & Chief Executive of Al Baraka Banking Group, said that "The cash dividends and bonus shares distributed to the shareholders reflect the outstanding results that we achieved in 2014."