Abu Dhabi Commercial Bank CEO says a further 3% of shares will be bought back this year
Abu Dhabi Commercial Bank (ADCB) plans to buy back a further 3 percent of its shares this year, as it seeks to enhance its stock value, its chief executive said.
The emirate's third-largest lender by market value bought back 7 percent of its shares last year after it secured approval from the regulator for a 10 percent buyback last January.
"We have adequate capital to support our strategic growth plans and well-positioned to return excess capital to our shareholders via dividends and share buybacks," CEO Ala'a Eraiqat told the lender's annual general meeting.
Last year's buyback resulted in an uplift in 2013 earnings per share (EPS) of 7 percent on a pro-forma basis, he said.
ADCB's 2013 cash dividend of 0.3 dirhams ($0.08) per share was up slightly from the 0.25 dirhams paid out in 2012.
ADCB shares jumped 3.7 percent on Thursday, as part of a wider advance on the Abu Dhabi index, which climbed 2.2 percent after rebounding from a technical resistance level.
The bank's stock price hit a near-eight-year high last week as it benefited from improving economic conditions in the United Arab Emirates.