UAE lender ADCB to buy back further shares in 2014 — CEO

Abu Dhabi: Abu Dhabi Commercial Bank (ADCB) plans to buy back a further 3 per cent of its shares this year, as it seeks to enhance its stock value, its chief executive said.

The emirate’s third-largest lender by market value bought back 7 per cent of its shares last year after it secured approval from the regulator for a 10 per cent buy-back last January.

“We have adequate capital to support our strategic growth plans and well-positioned to return excess capital to our shareholders via dividends and share buy-backs,” CEO Ala’a Eraiqat told the lender’s annual general meeting late on Wednesday.

Last year’s buy-back resulted in an uplift in 2013 earnings per share (EPS) of 7 per cent on a pro-forma basis, he said.

ADCB’s 2013 cash dividend of 0.3 dirhams ($0.08) per share was up slightly from the 0.25 dirhams paid out in 2012.

ADCB shares jumped 3.7 per cent on Thursday, as part of a wider advance on the Abu Dhabi index, which climbed 2.2 per cent after rebounding from a technical resistance level.

The bank’s stock price hit a near-eight-year high last week as it benefited from improving economic conditions in the UAE.