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Dear Shareholders,
It is my pleasure to welcome you on
behalf of the Board of Directors to the 37th Ordinary General Assembly meeting.
I take this opportunity to extend on your behalf and on behalf of the Board
Members, our sincere gratitude to the President HH Sheikh Khalifa bin Zayed Al
Nahyan, the Vice President, HH Sheikh Mohamad bin Rashed Al Maktoum, HH Doctor
Sheikh Sultan bin Mohamed Al Qassimi, Ruler of Sharjah, and to their brothers,
their Highnesses the Rulers, Members of the Supreme Council for their leadership
during the Economic Crisis, and their vision to lead our country to prosperity
and development.
Dear Shareholders,
2010 saw the continuation of a
recovery process as the world economy emerged from the throes of a deep
recession that had permeated global markets in the two preceding years.
Unprecedented fiscal policy from national Governments defined efforts to restore
stability in a world economy compromised by a lack of confidence and
insufficient liquidity.
Yet 2010 marked itself as another
significant year for Bank of Sharjah with total assets crossing the AED 20
billion threshold for the first time since inception. This additional mile stone
achievement is attributed to the Bank’s proven strategy, the quality of its
assets, and the strength of its balance sheet.
As of December 31st, 2010 total
assets reached AED 20,618 million an increase of 14% over the corresponding
December 31st, 2009 figure of AED 18,062 million.
The bank’s equity grew by 7 % to
reach AED 4,395 million as of December 31st, 2010 compared to the December 31st,
2009 figure of AED 4,097 million.
Bank of Sharjah has successfully
managed to substantially increase its deposits portfolio. Total deposits reached
AED 14,377 million as of December 31st, 2010, a 19% increase over the December
31st, 2009 figure of AED 12,113 million.
Profits available for appropriation
stood at AED. 680 Million up by 16% compared with AED. 584 Million as at
31/12/2009.
The net profits of the Bank were
affected by the continued deterioration of the local stock markets, the sluggish
and slow recovery of the economy, along with the historically low level of
interbank rates, and penalized our prudent high liquidity and conservative
credit policies, reaching AED. 404 Million, against AED. 475 Million for 2009,
this profit was realized after the allocation of General Impairment & General
Provisions of AED. 196 Million to reach a total of AED. 336 Million.
Bank of Sharjah signed on Thursday 29
July 2010, a term loan facility agreement of US$ 150 Million with major foreign
banks, in what is the first term loan for a GCC bank since the beginning of the
Financial Crisis in September 2008.
Let me reiterate that our primary
goal is, and will always be, to remunerate our shareholders and to protect their
investment as we guide it through these adverse market conditions, as such I am
pleased to advise you that the Board of Directors submits for your kind approval
the distribution of 15% Cash Dividend i.e. AED. 315 Million.
Dear Shareholders,
I wish to share our sincere gratitude
to HH Doctor Sheikh Sultan bin Mohamed Al Qassimi, Ruler of Sharjah, our
Honorary Chairman, for his continued patronage.
I would also like to express our
appreciation to the Monetary Authorities of the UAE notably the Ministry of
Economy, the UAE Central Bank and the Securities and Commodities Authority; and
to our Customers and Correspondents.
In the name of the Board members and
the Shareholders I would like to extend our gratitude and well wishes to H.E.
Claude de Kemoularia, who was the key decision maker, from Banque Paribas, for
the creation of Bank of Sharjah in 1973. The Board, in appreciation of all his
contributions over the past 37 years has decided to bestow upon him the title of
“Honorary Founding Member” in order to honor his legacy.
I also wish to thank the Management
and Staff of the Bank for their services and devotion.
Finally, I have the honor to submit
to you the Board of Directors report for the year 2010.
Ahmed Abdulla Al Noman
Chairman
Sharjah, 26/2/2011
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