Ajman Bank Approves Dividend and Launches Sukuk Programme
Ajman Bank's AGM greenlights dividends and a USD 1.5 billion Sukuk programme, marking significant financial moves.
Summary
Ajman Bank's AGM approved a 7.25% cash dividend and a USD 1.5 billion Sukuk issuance programme, reflecting strong financial health.
The Annual General Assembly Meeting of Ajman Bank PJSC, held on February 27, 2025, marked a significant milestone for the company, as it approved a comprehensive set of resolutions that highlight the bank's robust financial health and strategic foresight. Among the key decisions was the approval of a 7.25% cash dividend, amounting to AED 197,453,750, which underscores the bank's commitment to delivering value to its shareholders.
The meeting, attended both in person and remotely, also saw the ratification of the Board of Directors' report on the bank's activities and financial position for the fiscal year ending December 31, 2024. This reflects a year of solid performance, as evidenced by the approval of the external auditor's report and the Internal Shari’ah Supervisory Committee's report.
A noteworthy development from the AGM was the approval of a USD 1.5 billion Sukuk Issuance Programme. This strategic move is aimed at bolstering the bank's capital structure and expanding its financial product offerings. The Sukuk, which will be issued within a year, is designed to be non-convertible into shares and will rank pari passu or be subordinated to the bank's senior debt. With a fixed tenor ranging from 5 to 60 years, this programme is poised to enhance Ajman Bank's liquidity and funding options.
The appointment of Deloitte as the external auditors for the financial year 2025 further strengthens the bank's commitment to transparency and rigorous financial oversight. Additionally, the AGM approved the remuneration policy for the Board of Directors, aligning with corporate governance standards.
For investors, Ajman Bank's recent AGM outcomes present a nuanced picture. The approval of a substantial cash dividend signals a healthy financial standing and a shareholder-friendly approach. However, the introduction of the Sukuk programme indicates the bank's strategic focus on long-term growth and diversification of its funding sources.
Given these developments, investors might consider a 'hold' position on Ajman Bank shares. The bank's financial health is solid, and the Sukuk programme could offer potential growth opportunities. However, investors should remain vigilant to market conditions and the bank's execution of its strategic initiatives.
Source
Summary
The Annual General Assembly meeting of Ajman Bank was held on February 27, 2025, both in person and electronically. The meeting resulted in several resolutions: approval of the Board of Directors' report, the external auditor's report, the Internal Shari’ah Supervisory Committee's report, and the bank's financial statements for the year ending December 31, 2024. Additionally, the assembly approved a cash dividend distribution of 7.25% of the capital, remuneration for the Board of Directors, and the discharge of liability for both the Board and external auditors for the financial year 2024. Deloitte was appointed as the external auditor for 2025. A special resolution was passed to establish a USD 1.5 billion Sukuk Issuance Programme, to be completed within a year, with specific conditions regarding the issuance of sukuk.
