NBB Group AGM Approves Distribution of 20% Cash Dividends and 10% Bonus Shares
Manama, Bahrain: The National Bank of Bahrain Group (NBB Group) today announced the conclusion of its Annual Ordinary and Extraordinary General Meeting held virtually, chaired by Mr. Farouk Yousuf Khalil Al Moayyed, NBB Chairman and attended virtually by Directors, Shareholders, Executive Management, delegates from the Ministry of Industry, Commerce & Tourism, Central Bank of Bahrain, Bahrain Bourse, the Bank’s External Auditors KPMG Fakhro, and the Bank’s Share Registrar Karvy. Upon the conclusion of the meeting, NBB Group approved the distribution of a dividend of 30%, comprising a 20% cash dividend and a 10% stock dividend in the form of bonus shares. The Group’s Shareholders eligible to receive the dividend, which will be distributed from 12th April 2021.
Shareholder approval was also granted on the Group’s financial statements for 2020, where the Group’s financial performance demonstrated resilience despite the circumstances of the pandemic. The Group’s total assets increased by 36.5% to BHD 4,361.4 million (USD 11,568.7 million) compared to BHD 3,194.5 million (USD 8,473.5 million) recorded on 31 December 2019. The increase was attributable to the consolidation of Bahrain Islamic Bank B.S.C. (“BisB”) following the acquisition in January 2020 as well as strong demand for NBB loan products during 2020.
In reflection of proactive customer service and responsible banking, the Group made every effort to work even more closely with clients to offer relief and solutions to the financial challenges brought on by the pandemic, and to manage a loan/asset book, protecting shareholders’ interests while reinforcing its customers across a wide variety of sectors. The Group continued to support the Government's Liquidity Support Fund for local corporate entities facing temporary liquidity constraints by providing low-cost funding and facilitating processes, and took many steps to meet the increasing needs of its retail and corporate customers, while enhancing digital solutions, offering innovative products and services, and supporting programmes such as the Voluntary Retirement Scheme. Mr. Farouk Yousuf Khalil Almoayyed, Chairman of NBB, said, “The NBB Group remains committed to delivering consistent returns for its shareholders, and I am proud of the Group’s resilient performance throughout 2020. NBB Group continuously strives to enhance its performance as a key driver and contributor to the Kingdom’s economic growth, by analysing market opportunities and leveraging on our industry acumen to balance our business portfolios and diversify our revenue streams. We are determined to continue on our journey of sustainability and build on this year’s resilient performance to sustain-long term success for the NBB Group, and deliver value to our shareholders.” In 2020, the NBB Group continued to provide donations and contributions, such as its support for the national “Feena Khair” campaign, the Capital Governorate’s “Together We Care” campaign and other initiatives targeted towards under-privileged communities in these times of need. The Group also emphasized the health and safety of its staff, while managing to enhance and expand its internal virtual training programme, and significantly increase the number of women in management.
In 2020, NBB proudly continued to implement the Environmental, Social and Governance (ESG) Reporting, reflected in the Bank’s annual report, and positions NBB as a local benchmark in best practice. The NBB board undertook specialised ESG training, ensuring that ESG and sustainability guidelines are embedded in the Group’s governance model.
Mr. Jean-Christophe Durand, NBB’s Chief Executive Officer, added, “The year 2020 was a year of challenges across the board, as the pandemic has demonstrated that good governance demands proactive understanding of environmental, social and governance (ESG) risks and opportunities that can materially impact the Group’s performance. We are especially proud of the ESG report which showcases our desire to integrate sustainability into our corporate strategy and business practices, further underscoring our commitment to the betterment of our community. We strive to conduct business in a responsible manner and have ensured that our approach to sustainability is aligned to the UN SDGs and Bahrain’s Vision 2030, and is in compliance with the requirements of the Code of Corporate Governance issued by the Ministry of Industry and Commerce and the Central Bank of Bahrain’s Rulebook. On a business front, we are pushing ahead with our growth plans. Following our acquisition of a majority stake in Bahrain Islamic Bank (BisB) in 2020, our key areas of focus for 2021 and beyond will definitely be exploiting our new Islamic banking capabilities to penetrate new market segments and growing our regional footprint through our existing branches through sustainable growth, digitalisation and broader innovation. Our strategy aligns to market and industry trends, with diversified routes to ensure that the NBB Group continues to boost its business and remain profitable, to guarantee consistent shareholder returns.”