12th March 2006
NBF to distribute Cash Dividend and Bonus Shares

The National Bank of Fujairah (NBF) announced that a 5 percent cash dividend and 10.53 percent bonus shares have been approved at the bank's Annual Ordinary General Meeting (AGM) held in Al Diar Siji Hotel in Fujairah . These dividends and bonus shares shall be paid out to shareholders recorded in the Share Register as on Sunday, March 19 th 2006.

The Extraordinary General Meeting (EGM) was also held which ratified and approved the share split, announced by the bank in February, in the ratio of 1 to 100 where each share which has a nominal value of AED 100 would be split into 100 shares with a nominal value of AED 1 per share. The share split would be affected after the bonus issue of shares has been executed.

"Our continuing efforts to gain our shareholders value through long term vision, planning and sound execution will continue to be upheld due to the strength of the National Bank of Fujairah 's business operation and partnerships," said H. H. Sheikh Saleh Bin Mohammed Al Sharqi, NBF Chairman. "NBF's move into the retail market is another step in the right direction and will further elevate shareholder value through the diversification of the bank's asset structure."

The AGM also considered and approved the Chairman's report of the bank's activities and its financial statements for the year ended 31 st December 2005.

The bank experienced another record year posting a profit of AED 175.79 million, up 40 percent from the previous year's profit of AED 125.48 million. Average interest bearing assets and liabilities grew by 24 percent and 22 percent to AED 4.7 billion and AED 3.2 billion respectively. Net interest income rose by 33 percent over 2004.

Earning per share increased to AED 19.87 this year from AED 14.59 in 2004 while return on average equity rose from 13.59 percent in 2004 to 14.83 percent despite the increase in shareholders' equity by AED 225 million in June 2005. The bank's capital adequacy ratio at year-end was healthier than ever with the BIS ratio standing at 27.7 percent against the Central Bank minimum of 10 percent.

NBF had inaugurated its branch in the Mussafah area of Abu Dhabi in February 2006 and plans to aggressively increase its branch network this year.