Annual Report 2012 - Al Baraka Investment and Development

directors’ report
(continued)
In light of the Group’s performance in 2012, the Board of
Directors has recommended a cash dividend distribution to
the shareholders of 3.5% of the paid up capital, amounting to
$35.51 million, after a transfer of $13.30 million to the legal
reserve, with the remainder of the net income, amounting to
$84.22 million, being allocated to retained earnings. The Board
has also recommended a bonus dividend of 1 share for every
30 shares held, to be allocated from retained earnings and
amounting to $33.82 million. The Board has further recommended
a remuneration distribution of $1.0 million, to be paid following
the approval of shareholders at the Annual General Meeting.
Ownership of shares in ABG by Board Members and Executive
Management (with the exception of that of the Chairman) is
not material and no major trading of such shares took place
during 2012. Details of shares held by Directors and members
of the Executive Management are provided in the Notes to the
Consolidated Financial Statements.
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Although sometimes labouring under difficult local conditions,
the Group has once more delivered growth and profitability and
demonstrated the soundness of its ongoing strategic objectives.
ABG’s commitment to growth through geographical expansion
remains firm, as demonstrated by our growing branch network and
the recent acquisition of a thriving investment banking business
in Saudi Arabia, providing a platform from which the Group can
expand in that market. In 2013 we intend to continue with our
branch expansion strategy, while at the same time maintaining
our watch over other potential markets, with a view to entering
them when the time is right.
We continue meanwhile to strengthen our risk management
processes and procedures, maintaining and improving our
asset quality, at the same time as we seek to optimise costs
across the board in our search for ever greater productivity
and expanding profitability.
26 Annual Report 2012
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Our subsidiaries will continue to design and introduce innovative
new products and services to meet the needs of our customers
and, by sharing new Shari’a compliant products with other ABG
units, ensure that all our customers Groupwide benefit.
In conclusion, I should like to take this opportunity to extend, on
behalf of the Board and Executive Management, our appreciation
to our Shari’a Supervisory Board, the Central Bank of Bahrain,
the Ministry of Commerce and Industry of Bahrain and all of
our subsidiaries’ regulatory authorities, for their support and
guidance during 2012.
For and on behalf of the Board of Directors
saleh Abdullah Kamel
Chairman
(All figures in US Dollars unless otherwise stated)