Barwa Bank approves 10% cash dividend for shareholders
Barwa Bank convened its Annual General Meeting (AGM) on the 31st of May, at which the results and budgets, as well as a cash dividend of 10 percent to shareholders for the fiscal year ending on December 31, 2014, were unveiled and approved. The AGM also discussed the bank’s vision going forward, highlighting the role of Sukuk and bond issuance in its record growth.
During the AGM, shareholders signed off the development and registration of an EMTN (Euro Medium Term Note) program to facilitate the issuance of non-convertible Senior Unsecured Sukuk, with a cap standing at $2 billion or its equivalent in other currencies. This plan will be carried out through the establishment of a SPV (Special Purpose Vehicle) in full compliance with the instructions of the Qatari Central Bank and in accordance with the provisions and amendments of the 2002 commercial companies law number 5. The Board of Directors will be authorized to issue and determine the currency, quantity, terms and conditions of the Sukuks, and will be entrusted with the establishment of the SPV for this purpose. To this end, it will pursue the necessary approvals from the Qatar Central Bank, the Ministry of Economy and Trade, as well as other governmental agencies.
Barwa Bank’s Chairman, H.E. Sheik Mohammed Bin Hamad Bin Jassim Al-Thani, opened the meeting with a report detailing the bank's activities and highlighting its financial results and achievements during 2014.
Key features of the 2014 financial results
Outstanding performance
The Group recorded strong growth in both balance sheet and profitability, its Net Profit soaring to over 713 QAR million from 504 QAR million in 2013, 41.5 percent year-on-year growth; a remarkable performance that met and exceeded the bank’s strategic objectives and ambitious projections against a backdrop of increasingly fierce local competition and volatile international markets.
In 2014, Barwa Bank poured its resources and investments into solidifying its position in the local market and growing its market share; efforts that were reflected in a 14 percent growth in total assets, which stood at 38 QAR billion, and that were supported by an equally solid performance on the bank’s financing portfolio, which exceeded 23 QAR billion in 2014, an increase of 19% over 2013.
This ambitious and active expansion of the bank’s financing portfolio and market share has neither compromised nor undermined the performance of its assets. In fact, non-performing assets accounted for only 1.8 % of the total financing portfolio, down from 2% for 2013. Furthermore, the board succeeded in reducing total expenses by 2%, bringing the bank’s cost-to-revenue ratio down to 39% from 47% in 2013.
Regional and global footprint
In 2014, Barwa Bank successfully cemented its footing in the region and on international markets, driven by its solid position in the treasury and capital markets through a slew of successful deals. The latter culminated in the bank’s appointment as one of five Joint Lead Managers for the UK’s GBP 200 million debut sovereign sukuk – the first issue of a Shari’ah compliant debt instrument by a western nation.
Qatarisation
With a firm belief in the role of human capital into its success and its achievements, Barwa Bank continues to pour efforts into attracting capable and aspiring Qatari talent and moulding them into the future leadership of Islamic financial institutions; in 2014, Qatari talent made up more than 25 percent of the group’s staff.
Vision
Capitalising on the country’s prosperous economic outlook and promising investment climate, the bank will extend its resources and efforts to financing infrastructural and developmental projects that will propel the growth of the local economy. It will equally intensify efforts to grow shareholder return by expanding within the State of Qatar.
