Dubai-based Emirates NBD announced that its shareholders had approved the distribution of a 20 per cent cash dividend for 2011 during its annual general meeting (AGM). The lender, which made a net profit of Dhs2.5 billion last year- up six per cent from 2010, will pay a dividend of 20 fils per share, it said in a statement on Monday.
“We have taken a more conservative approach to strengthen the bank’s position to meet the challenges reflected in the broader global financial markets,” ENBD’s chairman, Sheikh Ahmed bin Saeed Al Maktoum said in the statement.
Last month, the bank reported that net profit during the fourth quarter of 2011 fell by 62 per cent to Dhs152 million from Dhs403 million during the same period a year ago, due to additional conservatism applied to provisioning. The total income during the period increased by 10 per cent year-on-year to reach Dhs2.49 billion, it said.
For the full year period, total income amounted to Dhs9.9 billion, an increase of two per cent compared with Dhs9.72 billion in 2010. Earnings per share for the year also rose nine per cent to Dhs0.41, the lender said.
The bank’s results also included the financial results for Dubai Bank, which ENBD took over in October 2011. “The takeover did not impact Emirates NBD’s net profit or non-performing loans ratio as on the date of acquisition,” the bank said.