Dubai – Mubasher: Dubai Islamic Bank on Wednesday announced that its shareholders will convene on 22 February to discuss dividend distributions for 2016.
The bank's board recommended a cash dividend of 45 fils per share, or around 45% of capital, totalling AED 2.22 billion, according to a statement.
Shareholders will also discuss increasing the bank's Tier 1 issued capital by $1 billion, as well as the issuance of senior or subordinated sukuk and/or other similar non-convertible instruments for no more than $5 billion, according to the bourse filing.
DIB's stock gained 1.5% mid-session on Wednesday to AED 6.20 by 12:00pm UAE time, backed by the higher-than-expected annual results.
The Islamic bank's results for 2016 beat analysts' expectations of AED 3.9 billion despite challenges facing the UAE banking sector, analyst Mahmoud Abu Zeid told Mubasher.
DIB reported profits of AED 1.04 billion ($283.09 million) in Q4-16, unchanged from the same figure reported in the same period in 2015. Profits were up 1% AED 4.05 billion in 2016 from AED 3.84 billion in 2015.
DIB's capital amounts to AED 4.94 billion, at AED 1 per share.
