Barwa Bank’s AGM approves 13.5 per cent cash dividend for shareholders

01/03/2017 15:16 AST

Barwa Bank’s Board has recommended to distribute cash dividends amounting to 13.5 per cent of the nominal value of the shares at the rate of QAR 1, and AED 35 per share, along with the validation of the External Auditor's Report of the year ending December 31, 2016 during its Annual General Meeting (AGM) on 27 of February 2017, chaired by HE Sheikh Mohamed Bin Hamad Bin Jassim Al Thani, Chairman of the Board and Managing Director.

Barwa Bank recorded strong growth in each of the financial position and profits, as the net profit for 2016 rose to QAR 738.8 million and earnings per share reached QAR 2.49. These results were actualised despite the challenges faced banking sector in particular, and the overall market. Such perseverance came at a time during which the economy faced a liquidity freeze, along with an increase funding costs and the negative decline in oil prices, during which Barwa Bank Group was able to maintain its profitability and increase its market share.

The focus in 2016 was directed to consolidate the bank's foundation in the local market and to increase its market share, as the Group showed a strong performance represented by an asset growth reaching up to QR 46 billion, driven by a strong growth in the financing portfolio, which amounted to QAR 29.8 billion at a growth rate of 4.5 per cent from the previous year, while customer deposits stood at QAR 29.9 billion at a growth rate of 17.7 per cent.

The growth in the Group's business and the increase in its funding and investment activities, go in line with maintaining asset quality and risk management policies, with total non-performing loans accounting for just 1.5 per cent of the net financing portfolio. Out of the Group Management’s keenness on increasing shareholder returns and dividends, it has worked on controlling and rationalising the cost base and the adoption of a work structure that is marked by quality, flexibility and efficiency, as the expenses decreased by 5.6 per cent during 2016.

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