GFH AGM approves US$30 million cash dividend

TDT | Manama

GFH Financial Group (GFH) shareholders yesterday approved the distribution of cash dividends at a rate of 3.34 per cent of the nominal value of the Group’s ordinary shares for a total amount of US$30 million (equating to US$0.0089 per share).

GFH board had initially recommended the distribution of US$50 m of cash dividends, however, in light of the current market environment, the distribution was reduced to US$30 m in cash dividends.

Held virtually, the annual general meeting also approved the allocation of US$8.01 m to the statutory reserve, US$500,000 for charity activities and US$568,000 to the Zakat Fund.

The transfer of US$41 million as retained earnings for the next year was also approved as were a recommendation to allocate US$2.2 m as remuneration for members of the Board of Directors.

The Group postponed for six months the previously planned election of 10 board members for the next three years from 2020 to 2022, due to the inability to hold a secret ballot electronically.

Commenting, Jassim Alseddiqi, Chairman of GFH, said, “We are pleased with the Group’s 2019 results and whilst 2020 is posing challenges for all financial institutions, we are confident that the strong foundations and reputation that GFH has built throughout the years will enable us to effectively navigate these difficult times and, God willing, that all mankind will safely overcome this unprecedented period.”

Hisham Alrayes, CEO of GFH, who was presiding over the AGM digitally, added, “Over the coming two to four months, we hope to see improvements in market conditions and remain focused and committed to ongoing progress and value creation across the business for the benefit of our investors, shareholders and economies in which we operate.”