JEDDAH, 29 July 2004 — The National Commercial Bank (NCB) has launched its “Al Ahli 3-year Murabaha Fund A”, a closed-ended medium term fund, which is approved by the Shariah Supervisory Council.
The debut of “Ahli 3-year Murabaha Fund A” is part of the NCB strategy to provide unique investment opportunities for its clients.
These types of funds make it easier to invest, as well as provide a variety of funds to suit the diverse goals of the investors and increase their overall returns.
After the launching of the fund in early July, NCB General Manager Abdulhadi A. Shayif said that the “Ahli 3-year Murabaha Fund A” invests its roots in the medium term trade finance. There is a minimum investment of SR100,000 to participate. The fund lasts three years and is special due to its accumulation of competitive earnings. It is estimated to bring in an annual net worth ranging from 3.75 percent to 4.10 percent. The fund will distribute the profits from its lucrative deals every quarter and will reimburse its membership fee back to the investors at the end of the third year.
Shayif said that the fund was the first of a series of closed-ended funds and that the bank plans to introduce the second group of this type at the end of this year. He also added that this fund was in harmony with the needs of the investor to diversify the windows of opportunity for investment as well as to take advantage of the development in the different markets.
Shayif also assured that the bank was putting all its expertise and technical capabilities at the service of its investors.
NCB also announced earlier that its first-half net profit rose 16.8 percent to SR1.75 billion ($466.7 million).
The bank said earnings per share increased to SR14.6 from SR12.5 a year earlier. Return on average shareholder’s equity rose to 31.1 percent from 30.4 percent.
NCB said its board approved distributing dividends of SR960 million, or SR8 per share.