Abu Dhabi: National Bank of Abu Dhabi's (NBAD) annual general meeting on Tuesday approved the distribution of a 30 per cent cash dividend and 35 per cent bonus shares to shareholders listed in the share register held with the Abu Dhabi Securities Exchange (ADX) as of March 25.

The meeting, convened under the chairmanship of Nasser Ahmad Khalifa Al Suwaidi, chairman of the NBAD board, reviewed and approved the directors' report, auditor's report and the financial statements for the year ending December 31, 2011.

He announced the retirement of Michael Tomalin, group chief executive, and his appointment to the board of directors.

Core strengths

Al Suwaidi said: "Global economic activity slowed down in 2011 and near term prospects deteriorated against the background of fiscal problems in developed economies. Economic activity in the UAE picked up modestly, expanding by about 4 per cent year-on-year in 2011, up from 1.4 per cent in 2010.

"NBAD continues to deliver a strong and sturdy performance in the face of continued political and economic uncertainties, regionally and globally. The group's business model and its professional management are its core strengths."

He shared the bank's aspirations with the shareholders — to achieve a target of Dh16 billion in net profits by 2021.

The bank will continue to invest into key elements of its business — talent, information technology, brand and network, capital and funding and focusing on customer satisfaction.

"The year 2011 was one of the most difficult years ever in global banking. Nonetheless, NBAD has produced solid results with operating profits up 6.5 per cent and top-line revenues up 10 per cent.

"This year, we have been particularly cautious regarding provisions, both for our properties which we had purchased for expansion, and our credit portfolio, taking the general provisions to performing credit risk-weighted assets to the 2014 Central Bank target of 1.5 per cent, and adding appropriate specific provisions for non-performing loans.

Net earnings

"Despite these higher provisions, net earnings have remained steady; a good achievement in a year when many of our global peers have seen sharp falls in their income.

"None of this could have been achieved without the skills of our people, the support of our customers and our home base in Abu Dhabi," Tomalin said.

NBAD's ordinary Annual General Meeting re-elected directors for a new term. The chairman announced the re-appointment of Mattar Hamdan Al Amiri and David Beau to the board as independent directors.