MANAMA: Shareholders of the Bahrain-based Gulf Finance House (GFH) approved a cash dividend payout of $52.56 million in addition to 20 percent bonus shares at the annual general assembly yesterday.
The bank posted a net profit of $291 million for 2008, down $49 million from a record net profit of $340 million generated in 2007, which were up 60 percent compared to 2006. The AGM, held at Banyan Tree, was attended by 71.36 percent of the total shareholding of the bank.
The cash dividend is equivalent to 20 percent of the par value of the paid-up capital. In addition, a further 20 percent will be paid in the form of bonus shares.
“GFH has performed extremely well over the past year, posting strong full year profits despite a dip in earnings due to the unprecedented turbulence experienced throughout the global economy. These strong profits are due in part to the emphasis we continue to place on conceiving pioneering and diversified initiatives with some of the world’s fastest growing economies in mind. We continue to build and consolidate strong bonds of partnership with governments, institutions and industry specialists across the GCC, Asia and North Africa. Alongside a robust and evolving business model GFH is well placed to build on its success in 2009,” Esam Janahi, chairman, GFH, told the bank’s shareholders.
During the meeting, shareholders were updated on the bank’s financial performance in 2008, the global economic landscape, key achievements, strategic progress, corporate social responsibility projects and the outlook for the year ahead.
Commenting on the Bank’s plans for 2009, Janahi said, “GFH will adapt its strategy to suit the economic environment it operates in. The innovative nature of our work over the past decade underlines the versatility of the products we can offer to our clients in a changing market. Alongside our core activities we anticipate exploring opportunities in defensive sectors across the region and look to capitalize on undervalued assets.”
The meeting also approved the re-appointment of the Shariah board and the bank’s auditors (KPMG Fakhro), releasing board members from any liability, and the election of a new board of directors for the bank for the years 2009-12.
The shareholders elected the following as directors for the subsequent term of three years, subject to the approval of the Central Bank of Bahrain. The board members are Hamad Al-Shaya, AlShaya Group; Anthony Travis, independent; Bader Nasser Al-Sebaie, Kuwait Investment Company; Abdulla Ali Al-Hamli, Dubai Islamic Bank; Adel Al-Ohali, Esam Yousif Janahi and Abdullatif Al-Meer, Qatar Islamic Bank; Dr. Abdul Aziz Al-Hinai, Islamic Development Bank; Samir Al-Nafisi, Kuwait Finance House; Mosbah Saif Al-Mutairy, Royal Guards of Oman Pension Fund; Mohammed Ebrahim Mohammed, Saudi Economic and Development Co.; and Yousif Khayat, Bahrain Islamic Bank.
Janahi took this opportunity to welcome the new Board Members, wishing them success in achieving the Bank’s goals, as well as success for the goals and interests of the companies they represent.
Janahi also announced that the first meeting for the new board would be held in March, pending the Central Bank of Bahrain’s approval.
“With a cautiously confident outlook for 2009, the shareholders agreed that GFH would further diversify its product offering across venture capital, private equity and asset management. These new revenue streams will build on a core development infrastructure business that will continue to conceive and develop sector themed economic platforms in the world’s fastest growing economies,” the statement of the bank added.