Firms plan Dhs29b cash dividends
ABU DHABI: Despite a slower and only marginal improvement in business conditions around the world, to the tune of Dhs29 billion in cash dividends for 2020 have been proposed to date by 38 companies listed in the UAE capital markets, according to data released by the listed firms.
Banks are the largest distributors of profits, with eight Emirati banks reported to disburse up to Dhs15.13 billion to their stockholders, with 10 banks yet to disclose their recommendations on dividend distributions.
The telecommunications sector comes second with Dhs7.63 billion in dividends, excluding the profits proposed by Etisalat board following their declaration that trading in its shares had been stopped.
Other sectors that announced dividend payouts include, transport, real estate, investment, financing, energy, medical services, insurance, transport and construction.
ADIB cash cash dividend: Abu Dhabi Islamic Bank (ADIB) has announced that its Board of Directors recommended a cash dividend of 20.58 fils per share which represents 46.6 per cent of net profits for the fiscal year ending 31st December, 2020.
The dividend distribution is pending shareholders’ approval at the bank’s general assembly meeting, which is scheduled for 4th April, 2021.
ADIB reported a net profit of Dhs1.6 billion for the full year 2020. Throughout 2020, ADIB employed a rigorous approach to cost management, which resulted in a reduction of 7.7 percent year on year in operating expenses, achieved through the successful implementation of technology-led initiatives that reduced the cost of sales and customer acquisition while also streamlining internal processes.
As of 31st December, 2020, ADIB continues to maintain a robust capital position with Common equity Tier 1 ratio 12.94 percent and Capital adequacy ratio of 18.80 per cent ater the dividend adjustment, comfortably above regulatory requirements.