National Bank of Abu Dhabi (NBAD), the biggest lender in the UAE by assets, has increased the 2015 dividend for its shareholders.
The lender got the shareholders nod at NBADs annual general meeting to raise the pay-out to AED0.45 ($0.12) per share from previously proposed AED0.40 when it reported its annual results in January, according to a statement on Abu Dhabi Securities Exchange. The shareholders also approved setting up a $2bn medium term note programme.
The hike in dividend is a result of pressure from the banks shareholders, news agency Reuters cited NBAD Chairman Nasser Ahmed al-Sowaidi as saying at the meeting in Abu Dhabi.
NBAD was hit hard last year by deposit outflows as the UAE government drew upon reserves with local banks to compensate for the shrinking oil revenues. That has squeezed business for banks and put pressure on their capital. The UAE central bank has already flagged concerns about dividend payments and safeguarding bank liquidity, telling lenders they need to get pay-outs approved.
NBAD Chief Executive Alex Thursby told reporters after the meeting there had been a bloom in deposits so far this year. Theres liquidity in the system. We are in a good position.
NBAD has no plans to enter new markets in 2016, marking a change in pace for NBAD, which has been expanding in recent years.