UAE's Largest Bank Approves Record Cash Dividend

First Abu Dhabi Bank (FAB), the UAE’s largest bank, approved the distribution of 70% cash dividends (AED 0.70 per share), as recommended in their annual results last month.

FAB, the combination of National Bank of Abu Dhabi and First Gulf Bank, said its full-year net profit was AED10.92 billion ($3 billion) compared to AED11.32 billion in 2016. The 3.5 percent profit fall in 2017 was due to costs linked to its recent merger, the bank said.

Excluding integration costs and other merger-related expenses of around AED601 million, adjusted net profit for the year was AED11.52 billion while fourth-quarter profit was up 6 percent from the same period of last year, FAB said.

The record dividend of $2 billion (AED7.6bn) for shareholders was approved at the bank’s annual general assembly meeting held at FAB’s head office in Abu Dhabi.

“2017 was a solid first year for FAB, with the bank’s resilient performance reflecting the strategic rationale of the merger, as well as the trust and confidence our shareholders have in us,” Abdulhamid Saeed, Group CEO of FAB, said, speaking at the annual general assembly meeting.

“In line with our commitment to maximise shareholder value and deliver top returns, we are very pleased to announce the distribution of 70% cash dividends, totalling AED 7.6 Billion. Up by 11% compared to 2016, this is the highest dividend amount distributed by the legacy banks historically,” he added.

In the annual results, FAB said it had achieved around AED500 million ($136m) of cost synergies in the first year of integration, adding that it was evaluating its local activities and branch network.

“With our focus now firmly on 2018, we are looking forward to a year of growth, as we continue to press ahead with our integration journey, leverage synergies, unlock new opportunities and build on our position as a financial services leader,” Saeed told the annual general assembly meeting, which also approved FAB’s financial statements for the year ended December 31, 2017.