Bank of Sharjah has announced unprecedented net profit growth. The net profit of the bank in 2005 reached AED602.8 million (US$164 million), an increase of 340 per cent compared to its 2004 profit of AED137 million.
Total assets last year grew by 68.4 per cent to reach AED5,749 million, up from AED3,413 million in 2004. Total facilities increased by 23.8 per cent to stand at AED2,502 million on December 31, 2005, up from AED2,021 million a year ago.
Bank of Sharjah’s total deposits grew 58 per cent to AED3,720 million compared to AED2,345 million at the end of December 2004.
At a meeting on January 22, the bank’s board of directors agreed a 20 per cent cash dividend and a 25 per cent bonus issue. The board also decided to issue AED500 million in convertible bonds at AED1 per bond to shareholders to finance future expansion plans.
The term of the bonds will be two years with a coupon of 5 per cent per annum, payable annually and convertible into shares with a premium of AED2 per bond at maturity.
The board’s decisions are subject to the final approval of the UAE’s financial and regulatory authorities, and the approval of shareholders at the Ordinary and Extraordinary General Assembly scheduled for February 28.
Varouj Nerguizian, General Manager of Bank of Sharjah, said: “The 2005 balance sheet and profit and loss statements portray exceptional growth in line with the buoyant economic activity witnessed by the UAE.”
