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KHCB announces the distribution of 10% Dividends


Khaleeji Commercial Bank (“KHCB”), today announced that the shareholders approved the recommendation of the Board of Directors to distribute 10% dividends, in the form of bonus shares (One share for every 10 shares) at the annual and extraordinary general meetings held today at Ritz Carlton Hotel. The EGM approved the increase of the paid up capital of the Bank by 104,923,735 additional shares as a result of the bonus shares and authorized the management to take necessary action to effect the increase in Capital and amend the Articles of Association. The AGM approved the appropriation of BD310,000 (10% of Net Income) to Statutory Reserve, and allocation of BD150,000 for the charity fund.

Key highlights of the AGM agenda included the approval of the financial statements for the year ended December 31 2009, as well as the presentation of the reports of the External Auditors and Shari’a Supervisory Board. The AGM also approved the election of Mr. Yousif Saleh Khalaf to the Board of Directors (subject to regulatory approval), in place of Mr. Talal Al Ghalib who has resigned recently. The shareholders expressed their gratitude to Mr. Al Ghalib for his contributions to KHCB during his membership.

Making an official statement at the Bank’s AGM, Dr. Fuad Al Omar, Chairman of KHCB said: “Against the backdrop of global financial crisis and difficult regional environment, we are pleased with the results of the Bank, which is in line with the long term objectives. The Bank continued to execute a business strategy based on a hybrid business model leveraging its investment banking capabilities while growing its commercial banking business. During the year, KHCB expanded and diversified its business and customer base while ensuring strong liquidity and capital position is maintained. We have also been prudent in increasing the Bank’s provisions significantly during the year to strengthen the bank’s position further”.

KHCB reported a net income of BD3.1 million, for the year 2009. Compared to 2008, financing assets grew significantly by 26.5% to BD200.6 million and Unrestricted Investment Accounts also showed a growth of 25% to BD203.6 Million. KHCB continues to maintain a strong liquidity and capital position reflected in liquid asset ratio of 30.5% and capital adequacy ratio of 34%.

“As we look to 2010, we foresee a challenging year ahead although there are opportunities for growing the Bank’s business especially in the retail banking segment. The Bank is well positioned with strong balance sheet and liquidity position to capitalize on available opportunities. We will be offering wider range of products including Trade Finance and will grow our retail banking business by expanding our branch network, electronic distribution channels and offering several new consumer finance products during the year” added Dr. Al Omar.

The AGM also expressed its appreciation to the contribution made by the Board of Directors, as well as the teamwork and dedication of the Executive Management and staff of the Bank in achieving these results. They also expressed their confidence that the incumbent Board is capable of seeing through the current financial turmoil and achieving more success.