Interpol issues warrant for Abu Dhabi bank CEO

An Interpol arrest warrant for the chief executive of Abu Dhabi Commercial Bank ADCB.AD is a personal matter relating to his divorce and not connected to the bank's operations, the bank said on Thursday.

The emirate's third-largest bank by market value said it supported Eirvin Knox, a 59-year-old American, who has headed ADCB since 2003.

"This is a personal matter linked to his personal divorce case and is not linked in any way to the bank's activities," the bank said in a statement.

The warrant was issued in the Philippines, where Knox once worked as the head of a major bank, and relates to "a violation of an early 2004 (Philippine) act pertaining to violence against women and their children," Interpol sources told Reuters.

The Interpol warrant is classified as a "red notice" which seeks the arrest of a wanted person with a view to extradition, they said.

"He was married to a Filipina and she is a very well connected person," a senior official at ADCB told Reuters, declining to be identified.

ADCB said Abu Dhabi courts had already ruled in favour of Knox and the "current matter is linked to the implementation of a sentence between him and his divorcee".

Knox did not respond immediately to calls for comment. The UAE Interior Ministry and police officials declined comment.

"MANAGEMENT ADJUSTMENT"

"I don't know the extent of what the legal difficulties are but there certainly seems to be a possibility that it will require some management adjustment," said Raj Madha, director of equities research at EFG-Hermes.

"If so, that would be disappointing particularly as it follows the departure of the CFO in August 2007."

Knox joined ADCB having come from Ahli Bank of Kuwait, according to a biography on Global Real Estate website (www.globalrealestate.org).

Knox was a country chief executive for 24 years with Standard Chartered Bank and Continental Bank of Chicago, having started his career in the United States with earlier assignments including Wells Fargo Bank and Continental Bank, the website said.

According to World Trade Markets country guide, which contains information provided by the U.S. Department of Commerce, Knox was previously the chief executive of Standard Chartered in the Philippines.

Knox graduated from the University of California.

The Government of Abu Dhabi, through Abu Dhabi Investment Council, holds 65 percent of ADCB's capital while the rest is held by various UAE institutions and nationals, according to a company statement.

Since joining the bank in 2003, Knox has overseen a near 400 percent growth in net profit to 1.98 billion dirhams ($539 million) last year from 405 million in 2003, according to Reuters data.

ADCB -- which agreed to buy Malaysia's fourth-largest lender RHB Capital last month -- plans to double profit during the next two years by making acquisitions in countries such as Malaysia and entering the Islamic finance industry, Knox said in April.

Shares in ADCB closed up 0.95 percent on Thursday and are down 1.48 percent this year. In contrast, National bank of Abu Dhabi NBAD.AD and First Gulf Bank FGB.AD are up 11.01 percent and 18.18 percent this year.

/Reuters/

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First Gulf Libyan Bank given green light

The Central Bank of Libya announced today that it had granted the First Gulf Libyan Bank (FGLB), owned equally between First Gulf Bank and the Economic and Social Fund of Libya, each holding a 50% share stake, the approval on the memorandum and articles of association and the permission for FGLB to start its operations in Libya.

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Tamweel closes syndicated bank facility

Tamweel has closed a $235 million syndicated bank facility, which was subscribed to by both regional and international financial institutions, including some from the Far East.

“In this period of marked global financial instability, the international financial services community is more eager than ever to tap opportunities in high-growth emerging markets, especially the UAE,” says Vishnu Deuskar, Head of Global Markets at ABN Amro’s UAE operations.

ABN Amro and Noor Islamic Bank served as lead arrangers and joint book-runners for the transaction, priced in both dollars and dirhams and reaching maturity in three years.

This financing facility comes close to Tamweel’s closure of a $300 million exchangeable sukuk issue, whose order book was oversubscribed within hours of announcing in January. “The pricing, tenor and coverage of this facility are all extremely competitive, especially considering today’s challenging global economic environment,” notes Gaurav Agarwal, Chief Financial and Support Services Officer at the mortgage company.

The funds will come in handy for Tamweel’s overseas expansions, expected to contribute 30 per cent of total revenues by 2011. in February, it formalized plans to launch operations in Egypt by receiving a license from the Egyptian Mortgage Financial Authority. The launch of full-scale operations is set for the second quarter.

Tamweel already has a joint venture agreement with the Al Oula Development Co in Saudi Arabia.

Tamweel has recorded net profits of Dh176.34 million in the first three months of 2008, which represents a 246 per cent increase on the Dh50.47 million recorded last year. Islamic financing and investing assets rose to Dh6.63 billion from Dh3.01 billion a year before.

Also in the first quarter, Tamweel booked Dh2.54 billion in financed properties, while the accumulated financing assets has totaled Dh11.52 billion.

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FGB's first wealth partners with Salama to offer Takaful products

First Gulf Bank (FGB), one of the UAE's leading financial institutions, has announced a strategic partnership with SALAMA- Islamic Arab Insurance Company, the largest Takaful and Re-Takaful group in the world.

The partnership will offer FGB's First Wealth customers access to a range of individual Family Takaful solutions across the region.

First Wealth was set up to target primarily the UAE's and the region's High Net worth Individuals (HNWI) and mass affluent segments. It provides a comprehensive range of investment products and services tailored to the financial planning needs of local and expatriate clientele.

"We continue to deliver products and services that meet customers' requirements, said Mufazzai Kajiji, head of Wealth Management, FGB. By partnering with SALAMA, we provide First Wealth customers the access to quality and affordable family Takaful solutions. We are pleased to partner with SALAMA".

Noel D' Mello, head of Family Takaful, SALAMA said "At SALAMA, we pride ourselves in creating one of the most comprehensive range of Individual Family Takaful solutions in the region with an aim to offer high quality, yet affordable products that can be tailor made to suit every individual's need, be it savings or protection, or a combination of both. We are delighted to have entered a strategic partnership with First Gulf Bank to offer Bancatakaful".

SALAMA enjoys both Arab and international presence. The company embarked from Dubai on its quest for expansion through acquisitions and participation in a number of Takaful and Re-Takaful companies in many Arab and Islamic countries.

"By 2015, it is believed that the total value of the global Takaful market will be around $15 billion. The Islamic insurance market is one of the fastest growing in the financial services industry," concluded Kajiji.

FGB's First Wealth continues to attract the UAE's and the region's High Net Worth Individuals (HNWI), thanks to the comprehensive range of investment products and services tailored to the financial planning needs of local and expatriate clientele. First Wealth also oversees clients' other investment portfolios such as wealth protection, investment-based retirement planning, health plans, savings and insurance, offering a holistic personal finance management service ensuring unparalleled efficiency. WAM

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Land sales, loans drive UAE's NBAD record Q1 profit

National Bank of Abu Dhabi NBAD.AD (NBAD), the Gulf emirate's biggest lender, posted a record profit in the first quarter after it boosted lending and made a gain from the sale of land.

NBAD's net income rose 45.5 percent to 875 million dirhams ($238.3 million) in the three months to March 31, compared with 601.3 dirhams a year earlier, the second-biggest bank in the United Arab Emirates said in a statement.

Annualised earnings per share of 1.81 dirhams in the quarter compared with 1.25 dirhams in the same period in 2007, the lender added.

The earnings, the highest on record according to Reuters data going back to 2004, topped the forecasts of Cairo-based investment bank EFG-Hermes and Dubai's Shuaa Capital in a Reuters net profit survey last month.

Forecasts were for quarterly profit of 659 million dirhams and 699 million dirhams respectively, according to the survey. [ID:nL31466795]

NBAD said it booked a 165 million dirham gain from the sale of land in the UAE, the second-largest Arab economy.

Loans and advances grew 51 percent to 93 billion dirhams, while customer deposits rose 29 percent to 92 billion dirhams, the bank said, without providing details of net interest income.

NBAD Chief Executive Michael Tomalin said the bank strived to achieve average growth of 20 percent this year and had benefited from a "rapidly expanding UAE marketplace during a period of serious global financial turbulence".

Gulf Arab lenders have ridden a wave of regional economic growth driven by a more than five-fold rise in oil prices in the last six years.

Operating income hit 1.29 billion dirhams, up 53 percent, while expenses climbed 46 percent to 328 million dirhams, the bank added. Total assets grew 41 percent to 157 billion dirhams.

Shares of NBAD, which is controlled by the government of Abu Dhabi, are up more than 8 percent this year, compared with more than 10 percent for the main index.

Abu Dhabi's main stock index .ADI traded around 4,600 points in the first quarter, compared with 3,000 in the year-earlier period, according to Reuters data.

Goldman Sachs this month started coverage of nine UAE lenders, making a "neutral" recommendation for NBAD stock and a price target of 27.54 dirhams [ID:nBNG157270]. The stock last traded at 20.65 dirhams. (Reuters)

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ADCB Q1 Profit of AED 517 Million up 10%

Abu Dhabi Commercial Bank (ADCB) announced Wednesday net profit of AED 517mn for the first quarter of 2008 against AED 470 million for the same period in 2007, reflecting an increase of AED 47 million ( +10%).

Total assets increased by AED 26bn from AED 87.9 billion to AED 114 billion, deposits grew by AED 9.6bn to AED 59.2 billion from AED 49.7 billion and loans and advances increased by AED 15.7bn to AED 80 billion from AED 64.3 billion over the corresponding quarter in 2007.

Reflecting on the results, Eirvin Knox, CEO of ADCB, said: "The good results are attributable to the strategic business initiatives we launched during 2007 and early in 2008. All businesses performed well in the first quarter, despite interest rate cuts of 2%." Mr Knox added "During the first quarter of 2008 ADCB launched services targeted at the UAE's mass affluent, including strong growth in ADCB's retail mortgage business, premium credit cards and the ADCB "Privilege Club". ADCB also targeted small and medium sized enterprises by launching an SME Card. The SME Card is the first of its kind in the UAE and offers easy payment options and a revolving credit facility tailored to small and medium sized businesses. Small and medium sized enterprises comprise the bulk of business operating in UAE." Mr Knox concluded "ADCB's TouchPoints programme won Banker Middle East's awards for the "Best Customer Loyalty Programme" and "Best Advertising and Marketing Campaign". WAM

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ADCB bank plans buyouts to double profit

Abu Dhabi Commercial Bank ADCB.AD (ADCB) plans to double profit during the next two years by making acquisitions in countries such as Malaysia and entering the Islamic finance industry, it said on Monday.

The bank, the third-largest by market value in the United Arab Emirates' Abu Dhabi, also plans imminently to sell as much as 4.8 billion dirhams ($1.31 billion) of bonds to finance acquisitions.

"ADCB plans to double revenue and profits by 2010," Chief Executive Officer Eirvin Knox told shareholders at a meeting in the UAE capital, Abu Dhabi.

"The strategy is built on entering Islamic banking through a separate subsidiary in the third quarter," he said. "We are also looking at inorganic growth in markets that are similar to the UAE, such as Malaysia." Profit last year was 1.99 billion dirhams, according to Reuters data.

Chief Financial Officer Vijay Kasturi said the bank had set aside about 560 million dirhams this year to cover exposure to the U.S. subprime mortgage market and any possible writedowns. Total exposure was 1 billion dirhams, he said.

Like other Gulf banks, ADCB is expanding abroad as competition in its home market intensifies.

The bank said last month it won ministerial approval to buy 25 percent of Malaysia's fourth-largest lender, RHB Capital (RHBC.KL: Quote, Profile, Research), to tap growing Asian demand for Islamic financial services.

ACBD Deputy CEO Ala Eraiqat told Reuters last week the bank plans to set up a unit this year offering services that comply with Islamic law, including arranging the sale of Islamic bonds.

The project is about a year behind schedule. Knox said in July he hoped to get the unit operational by the end of 2007. Operations will now start in the fourth quarter, Eraiqat said.

ADCB said last month it could borrow up to 4.8 billion dirhams by selling bonds to help finance expansion and lending.

Knox said in January the lender expects profit this year to rise by at least 20 percent on higher lending to consumers and projects.

Shares of ADCB fell 1.2 percent on Monday, paring gains this year to less than 6 percent, compared with a near 10 percent advance in Abu Dhabi's main stock index .ADI.

Goldman Sachs last week started coverage of nine United Arab Emirates, recommending a "neutral" rating for ADCB and a price target of 9.41 dirhams. The stock last traded at 6.75 dirhams. (Reuters)

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First Gulf Bank beats profit forecasts

Abu Dhabi's First Gulf Bank posted its seventh consecutive record profit in the first quarter on higher revenue from its lending and non-lending business, beating analysts' forecasts.

Net income in the three months to March 31 surged 66 per cent to Dh675 million, or Dh0.49 per share, the bank said in a statement, without giving comparative data for the year-earlier period.

Net interest income rose 53 per cent to Dh423 million, and non-interest income more than doubled to Dh600 million, it said.

"We remain focused on the planned organic growth of our core banking business and the strengthening of our complementary businesses in merchant banking, equity brokerage, real estate and Islamic finance mortgages," FGB Chief Executive Officer Andre Sayegh said in the statement.



"Subsidiaries and associate companies are becoming fully integrated and represent core income for the entire FGB," Sayegh said.

Forecasts in a Reuters survey of analysts last month ranged from Dh483 million and Dh561 million.

Shares of First Gulf Bank have held steady this year after almost doubling 2007. They closed up 0.25 per cent on Wednesday at Dh20.15.

In contrast, shares of rivals such as National Bank of Abu Dhabi and Abu Dhabi Commercial Bank have risen 5 per cent and 2.3 per cent respectively.

Abu Dhabi's main stock index is up more than 5 per cent this year. (Reuters)

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Abu Dhabi Commercial Bank eyes $1.3 bln bond sale

Abu Dhabi Commercial Bank ADCB.AD (ADCB) said on Monday it could borrow up to 4.8 billion dirhams ($1.31 billion) by selling bonds to help finance expansion and lending.

Abu Dhabi's second-biggest bank by market value would seek shareholder approval to sell bonds denominated in UAE dirhams, Alok Kakkar, ADCB head of corporate finance, said.
"We are seeking approval at the extraordinary general meeting for a bond issue worth 4.8 billion dirhams," Kakkar told Reuters, without being more specific.

Expectations that the United Arab Emirates and its Gulf Arab neighbours could choose to revalue their dollar-pegged currencies as the U.S. currency tumbles on global markets has led to an increase in borrowing in local currencies.

UAE investors in dollar-denominated bonds fear that if the dirham appreciates, their returns in local currencies would be slashed.

"The proceeds will go towards expansion plans and for funding projects in the UAE and overseas," Akkar said. The shareholder meeting will be held on April 21, the bank said in a statement.

"There is no date clearly identified when the sale would take place," Kakkar said.

ADCB, like its regional rivals, is expanding abroad as competition intensifies at home.

The bank said earlier this month it had won ministerial approval to buy 25 percent of Malaysia's fourth-largest lender, RHB Capital (RHBC.KL: Quote, Profile, Research), to tap growing Asian demand for Islamic bank services.

ADCB Chief Executive Ervin Knox said in January the lender expects profit this year to rise by at least 20 percent on higher lending to consumers and projects. (Reuters)

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ADCB Deputy CEO Captures Asian Banking Award

Abu Dhabi Commercial Bank Deputy CEO Ala'a Eraiqat won The Asian Banker 'Promising Young Banker Award for the Gulf Region 2007'. It was recently bestowed at a ceremony in the Vietnamese capital, Hanoi.

The only accolade to recognize excellence among bankers in the middle of their career, it was judged based on candidates' accomplishments, responsibility for major operational or business lines and strong financial performance.

"This is fantastic recognition of all the work Ala'a has put into the business initiatives he has launched since he joined us in 2004," said Eirvin Knox, ADCB CEO.

"This includes the restructuring that led to the creation of ADCB?s UAE Banking Group - for which he is now directly responsible. It also includes the building of the new teams and departments that have captured fresh revenue opportunities and the establishment of new businesses to take advantage of a host of external and tripartite business opportunities." Emmanuel Daniel, president of The Asian Banker, said of the award: "We feel that it is important to celebrate the incredible efforts that certain outstanding individuals are making to the industry mid-career. They set new benchmarks for talent and are raising the bar for the whole industry." In 2007, ADCB saw a 40 percent growth in core business, a 31 percent growth in assets, a 30 percent growth in customer deposits and a ratio of bad loans of just 1.3 percent - the lowest in the UAE.

"Of all of his peers in the Gulf region, Ala'a scores extremely highly on his ability to ensure business growth, something that this award focuses very closely on," said Eirvin Knox.

It is not just the quality of the evaluation process that makes this award so special; it is the quality of the panel of judges. These are some of the most influential people working in banking today. They have put their seal of approval on both Ala?a and what he has achieved at ADCB in the past couple of years.

"I'd very much like to thank the ADCB Board of Directors and Mr. Knox for their trust and the opportunities they have given me," said Ala'a Eraiqat. "Without their support I would never have been in the position to receive this award." "I would also like to express my great appreciation for the work of every ADCB staff-member over the past year." WAM

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NBAD approves distribution of 40% cash dividends and 20% bonus shares

National Bank of Abu Dhabi (NBAD) Ordinary General Meeting, held on Sunday in Abu Dhabi, approved the distribution of 40% cash dividends and 20% bonus shares to shareholders listed in the Share Register held with Abu Dhabi Securities Market (ADSM) as on April 2nd 2008.

The meeting, held under the chairmanship of H.E. Khalifa Mohammed Al Kindi, Chairman of the NBAD Board, also reviewed and approved the directors? report, auditor?s report and the financial statements for the year 2007.

The Extraordinary General Meeting (EGM), which has convened after the ordinary meeting, approved establishing a ?Staff Share Option Scheme? and authorised the board of directors to execute its resolution.

It also approved the increase of the Bank's paid up capital resulting from the conversion of AED1.388bn of the 2006 Subordinated Convertible Note in accordance with the resolutions passed by the Extraordinary General Meetings on November 22nd, 2005 and September 5th, 2007.

"The Staff Share Option Scheme, one of the first in Abu Dhabi is an added proof that NBAD is committed to employing and rewarding top talent and treating its key staff more like owners than employees. The scheme aims to retain the Bank's best employees and attract new hires to NBAD" said Mr. Ehab Hassan, NBAD's Chief Human Resources Officer.

Mr. Michael Tomalin, NBAD?s Chief Executive commented:"We value our people. They are the key asset of our business? NBAD reported net attributable profits of AED 2,505 million or AED 1.57 per share in 2007, 19% up on 2006.

Operating income reached AED 3,665 billion, 24% up on 2006. Net Interest income, which represented 66% of operating income rose 19%; fee and other operating income rose 35% reflecting the focus on fee generating businesses.

Total assets reached AED140 billion at the end of 2007, up 38% from year end 2006 with customer deposits up 16% to AED 82 Billion and loans up 39% to AED 80 billion. Total capital resources reached AED 13.7 billion, up 20%, including AED 2.5 billion of subordinated convertible notes and without any new shareholder contributions. The Return On Equity at 26.3% in 2007 is ahead of the 25% average target set in the bank?s 5 year plan. Capital adequacy ratios remain comfortable.

"NBAD's financial results in 2007 were solid and a continuation of our good performance since 1999. The return on equity of 26.3% is one of the best in the industry, both locally and internationally, and in line with our 25% medium term objective said Mr. Abdulla Mohammed Saleh Abdul Raheem, NBAD's Senior General Manager and Group Chief Operating Officer.

?We expect positive growth in 2008. Our fully owned Islamic and real estate subsidiaries will be operational in 2008 and we plan to continue to invest more in the business. Although we have done well, there remains a great opportunity to grow much larger still? Mr. Michael Tomalin, NBAD?s Chief Executive concluded. WAM

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FGB opens Madinat Zayed City Branch

Abu Dhabi-headquartered First Gulf Bank (FGB), one of the UAE's leading financial institutions, has opened a new branch in the emirate of Abu Dhabi at Madinat Zayed City, in the western province of the UAE.

'FGB is viewed by UAE nationals as their financial institution of choice, because of our innovative products and services, based on an in-depth understanding of the individual needs of Emiratis. Madinat Zayed City, with its dominant UAE population, was therefore an obvious choice in being able to provide greater convenience and accessibility for this important segment of our clientele,' said Huda Abdullah Vice President and Head of Branches.

FGB is focusing on distribution by opening new branches, investing in alternative delivery channels like IVR, SMS, and internet banking to delight its customers. (WAM)

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NBAD takaful IPO 43 times oversubscribed

Gulf Arab investors offered Dh3.6 billion ($980 million) towards the initial public offering of an Abu Dhabi-based Islamic insurer, almost 43 times more than the firm was seeking to raise, the IPO adviser said.

Mithaq Lil Takaful sold 82.5 million shares at Dh1 each, equivalent to 55 per cent of the company and valuing it at Dhs150 million, Majd Maaitah, senior manager for securities services at National Bank of Abu Dhabi, said.

The nine-day sale closed on Feb.4. The shares will list on the Abu Dhabi exchange at the end of March, Maaitah said on Thursday.

"The response was very good," he said. Non-Gulf Arab citizens will be able to own as much as 25 per cent of the shares once they list. (Reuters)

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FGB offers open-ended certificates

First Gulf Bank (FGB) is offering a series of open-ended certificates issued by ABN AMRO Private Investor Products, to meet the needs of high net worth individuals (HNWI).

To begin with, FGB is launching trackers on European, US, BRIC and Indian Equities as well as Gold with many more to follow by the end of the first quarter.

These certificates enable investors to gain exposure to the performance Of an index, a sector, a commodity or interest rates over the medium to long term.

The investment performance of these certificates will parallel the performance of the underlying asset.

Open-ended certificates are available on a wide range of underlyings.

Mufazzal Kajiji, head of wealth management at FGB said that with increasing complexity in investment products and their valuations, clients are

looking for a transparent platform to invest in various asset classes. "With these certificates clients can get an exposure to various indices that can be easily accessed and tracked, giving their portfolio the right balance," he said. Source

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Mellon Bank of New York hosts The UAE Bankers' Forum

The event which is held monthly and organized by Mr. Suleiman Al Mazroui, General Manager Corporate Communications and Community Relations, Emirates NBD, in Abu Dhabi, on the occasion of their 10 year anniversary in the United Arab Emirates.

H.E. Sultan bin Nasser Al Suwaidi, Governor of the Central Bank of the UAE also attended.

During the gathering, H.E. Al Suwaidi addressed the audience with a speech that presented the latest developments in the banking sector for the year 2007 and pointed to the bright future which the industry is expected to witness. He stated that under the directives of H.H. Sheikh Mohamed bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai and in line with the Governments' Federal Strategy, the UAE Central Bank started implementing its strategy which once completed, will enormously improve the environment for the banking business in the UAE.

He added, 'The most important thing that we all have to focus on, at this point-in-time, is to set our business strategies for the short and medium-term to benefit from the opportunities that would be created locally and regionally through the implementation of the Federal Government Strategy.'

Mr. Robert Kelly presented the merger experience of the Bank of New York and the Mellon Financial Corporation which was recently completed, saying,' Last year was a historic year for BNYM and our clients. We combined two institutions rich in history and unparalleled in their commitment to asset management and securities servicing, the result is an institution positioned to lead our industry for years to come and be an invaluable partner to our clients throughout the world. We are committed to increase our local presence in the Middle East and looking forward to building on our partnerships that we have forged over the years.' (AME Info)

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NBAD plans $545mn bond

National Bank of Abu Dhabi said on Saturday it would sell 2 billion dirhams ($544.7 million) worth of convertible bonds to help finance investment banking operations and expansion overseas.

The second-largest UAE lender by market value said in the 10-year floating rate convertible bonds would be listed on the London Stock Exchange.

"It (the bond) will be used for general corporate purposes, including growth in lending, retail, investment banking and expansion into new businesses," Stuart Henrickson, general manager, investment banking group at NBAD told Reuters.

The bonds would be sold in different markets including the Middle East and Europe, Henrickson said.

"The notes are being marketed to investors with a floating rate coupon ... all payments under the notes will be made at the applicable US dollar equivalent amount to the dirham amount," the lender said in the statement, adding that they would be convertible during the first five years after issue.

NBAD said in July it wanted to sell bonds worth as much as 40 billion yen ($372.2 million) and as much as 3 billion ringgit ($789.5 million).

The lender launched a $5 billion Euro Medium Term Note programme in 2006 and had sold almost $1.5 billion of bonds in currencies such as Swiss francs and sterling by March 2007.

The bank, which is expanding abroad as competition at home intensifies, has applied for a licence to open a representative office in Libya, where it sees long-term potential, and also plans to open offices in Asia, Jordan and Qatar this year, Chief Executive Michael Tomalin said in January.

"Our strategy is to grow organically," Tomalin said. "We do not want to pay large amounts of goodwill to companies".

Abu Dhabi's First Gulf Bank (FGB) said earlier this month it could return to the debt market by selling as much as $2.5 billion of bonds that are convertible to shares after delaying a bond sale last year. (Reuters)

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UNB Board recommends 20% cash, 20% stock dividend to shareholders

The Board of Directors of Union National Bank (UNB) has recommended a 20 percent cash and a 20 percent stock dividend to UNB shareholders. The decision was taken at a Board meeting yesterday and is subject to approval by the UAE Central Bank.

UNB declared a consolidated net profit of AED 1.17 billion for 2007, a growth of 16.8 percent over the previous year. Total assets in 2007 grew 33.4 percent to AED 55.45 billion, while net loans and advances grew 35.9 percent to reach AED 37.37 billion. Customer deposits increased to AED 40.20 billion from AED 30 billion in 2006, recording a 33.8 percent growth rate. Earnings per Share for 2007 were AED 0.75. (WAM)Technorati ProfileTechnorati Profile

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NBAD launches "Ratibi" to facilitate payment of workers' wages

National Bank of Abu Dhabi (NBAD) has launched "Ratibi", the innovative payment solution to meet the needs of corporations and their employees while reducing significantly their processing cost.

The payroll card "Ratibi", is designed to replace the payment of the wages made through Cheques and cash. It is an efficient way for corporations to manage their payroll processing accounts. In addition, it gives employees the flexibility of making cash withdrawals and other banking transactions via worldwide ATMs and it can also be used as a Debit Card for purchases on Points of Sale (POS) machines.

With no minimum balance or annual fees, corporates can simply issue Ratibi cards for all their laborers. Then, all the corporates have to do is execute one single bank transfer on monthly basis and the cards of the employees are loaded with their salaries.

"We are always keen to provide services and products that benefit our customers. We identified a very intriguing opportunity in this new solution, which comes in pursuant to the Ministry of Labor regulation regarding salary payment to employees through bank accounts," said Mr. Saif Al Shehhi, Senior General Manager, NBAD's Domestic Banking Division.

"It also represents a part of NBAD initiatives to provide our customers with more electronic banking solutions as we strive to make banking with us easier" he added.

"Ratibi will provide corporations lower cost of handling money which means less risk and hassle associated with cash; facilitate paying employees at off-site locations; and eliminate printing and distribution of checks and money as well," said Mr. John Malouf, NBAD's Head of Retail Banking Group.

"On the other hand, the workers and employees will enjoy the privilege of immediate funds from ATMs around the clock without opening an account," he added.

He noted that NBAD is well equipped with one of the largest ATM Networks in the UAE which covers both the cities and industrial areas where most of the laborer camps are situated. "This Network of 193 will expand during 2008 to reach over 300. In addition, we will supplement this network with Mobile ATMs to be used during salary disbursement days," he added. (WAM)Technorati Profile

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